HARRY HUGHES, Governor

3095

trust, for the purposes for which the deposit is made. The State
Treasurer at all times is responsible for the custody and
safekeeping of these deposits. The [operator] PERMITTEE making
the deposit may demand and receive from the State Treasurer the
whole or any portion of any securities so deposited, on
depositing with the State Treasurer other negotiable securities
of the classes specified in this section having a market value at
least equal to the sum of the bond;

(2)  A certificate of deposit if it is equivalent to
the required bond, issued by a bank within the State, and
accompanied by written agreement of the bank to pay on demand to
the State in event of forfeit; or

(3)  An irrevocable letter of credit if it is
equivalent to the required bond, issued by a bank within the
State, and expressly states that the total sum is guaranteed to
be available, and payable directly to the State on demand for the
surface mining and reclamation.

(e) A bond or other security filed as above shall contain a
provision that it cannot be canceled by the surety, bank, or
other issuing entity, except after not less than 90 days written
notice to the Department and to the [operator] PERMITTEE. At
least 45 days prior to the cancellation date indicated in the
notice, the [operator] PERMITTEE shall file with the Department a
commitment from a surety, bank, or other issuing entity, to
provide a substitute bond or other security which will be
effective on the cancellation date indicated in the notice.

7-6A-21.

(a)  On completion of the mining operations, and after the
requirements of the permit have been fully complied with, the
Department shall release the bond.

(b)  An amount of the bond or cash deposit, proportioned to
the restored portion of the affected land in ratio to all of the
affected land covered by the permit, may be released on
application by the [operator] PERMITTEE and inspection and
approval by the Department.

7-6A-22.

(a) The performance bond or cash deposit in lieu of a bond
shall be forfeited on failure of the [operator] PERMITTEE to
perform in the manner set forth in the authorized mining and
reclamation plan and to reclaim the land as provided for in the
permit or upon revocation of the permit. The Department shall
notify the [operator] PERMITTEE by certified mail, return receipt
requested, bearing a postmark from the United States Postal
Service, of its intention to initiate forfeiture proceedings. The
[operator] PERMITTEE has 30 days to show cause why the bond or
cash deposit should not be forfeited.