30 U.S.C. § 1259

Performance bonds

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(a) Filing with regulatory authority; scope; number and amount

After a surface coal mining and reclamation permit application has been approved but before such a permit is issued, the applicant shall file with the regulatory authority, on a form prescribed and furnished by the regulatory authority, a bond for performance payable, as appropriate, to the United States or to the State, and conditional upon faithful performance of all the requirements of this chapter and the permit. The bond shall cover that area of land within the permit area upon which the operator will initiate and conduct surface coal mining and reclamation operations within the initial term of the permit. As succeeding increments of surface coal mining and reclamation operations are to be initiated and conducted within the permit area, the permittee shall file with the regulatory authority an additional bond or bonds to cover such increments in accordance with this section. The amount of the bond required for each bonded area shall depend upon the reclamation requirements of the approved permit; shall reflect the probable difficulty of reclamation giving consideration to such factors as topography, geology of the site, hydrology, and revegetation potential, and shall be determined by the regulatory authority. The amount of the bond shall be sufficient to assure the completion of the reclamation plan if the work had to be performed by the regulatory authority in the event of forfeiture and in no case shall the bond for the entire area under one permit be less than $10,000.

(b) Liability period; execution

Liability under the bond shall be for the duration of the surface coal mining and reclamation operation and for a period coincident with operator’s responsibility for revegetation requirements in section 1265 of this title. The bond shall be executed by the operator and a corporate surety licensed to do business in the State where such operation is located, except that the operator may elect to deposit cash, negotiable bonds of the United States Government or such State, or negotiable certificates of deposit of any bank organized or transacting business in the United States. The cash deposit or market value of such securities shall be equal to or greater than the amount of the bond required for the bonded area.

The regulatory authority may accept the bond of the applicant itself without separate surety when the applicant demonstrates to the satisfaction of the regulatory authority the existence of a suitable agent to receive service of process and a history of financial solvency and continuous operation sufficient for authorization to self-insure or bond such amount or in lieu of the establishment of a bonding program, as set forth in this section, the Secretary may approve as part of a State or Federal program an alternative system that will achieve the objectives and purposes of the bonding program pursuant to this section.

(d) Deposit of cash or securities

Cash or securities so deposited shall be deposited upon the same terms as the terms upon which surety bonds may be deposited. Such securities shall be security for the repayment of such negotiable certificate of deposit.

(e) Adjustments

The amount of the bond or deposit required and the terms of each acceptance of the applicant’s bond shall be adjusted by the regulatory authority from time to time as affected land acreages are increased or decreased or where the cost of future reclamation changes.

(Pub. L. 95–87, title V, § 509, Aug. 3, 1977, 91 Stat. 479.)

Notes of Decisions

Cited in 28 cases, 1981–2020 · leading case: Arsenal Coal Co. v. Commonwealth, Dep't of Env't Resources, 477 A.2d 1333 (Pa. 1984).

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Arsenal Coal Co. v. Commonwealth, Dep't of Env't Resources, 477 A.2d 1333 (Pa. 1984). · cites it 4× “§ 1266 , the performance bond limits of Section 509, 30 U.S.C. § 1259 , and the period of revegetation responsibility of Section 519, 30 U.”

West Virginia Highlands Conservancy v. Norton, 161 F. Supp. 2d 676 (S.D.W. Va 2001). · cites it 6× “]” 30 U.S.C. § 1259 (a). The Secretary of the Interior “may approve as part of a State or Federal program an alternative system that will achieve the objectives and purposes of the bonding program pursuant to this section.”

Hodel v. Indiana, 452 U.S. 314 (1981). “2 Under § 509 of the Act, 30 U. S. C. § 1259 (1976 ed., Supp. Ill), no mining permits may be issued until the operator has filed a performance bond with the appropriate regulatory authority.”

Pennsylvania Fed'n of Sportsmen's Clubs, Inc. v. Kempthorne, 497 F.3d 337 (3rd Cir. 2007). · cites it 6× “30 U.S.C. § 1259 (a). SMCRA’s bonding program is designed to provide further assurance of “complete reclamation of mine sites.”

West Virginia Highlands Conservancy v. Norton, 147 F. Supp. 2d 474 (S.D.W. Va 2001). · cites it 5× “See 30 U.S.C. § 1259 (a). Additionally, Plaintiff moved to enjoin DEP from issuing any and all surface mining permits if, by October 1, 2001, the State had failed to adopt revisions to the special reclamation fund adequate to eliminate the fund deficit and meet future…”

West Virginia Highlands Conservancy v. Norton, 137 F. Supp. 2d 687 (S.D.W. Va 2001). · cites it 6× “See 30 U.S.C. § 1259 ; W. Va.Code § 22-3-11. Federal law requires that such bonds must be sufficient to assure completion of reclamation if the bond is forfeited and the regulatory authority must step in to complete the job.”

Pennsylvania Fed'n of Sportsmen's Clubs v. Norton, 413 F. Supp. 2d 358 (M.D. Penn. 2006). · cites it 4× “30 U.S.C. § 1259 (a). The two basic types of bonding programs include a conventional, or “full cost” system (“CBS”) and an alternative bonding system (“ABS”).”

In Re Jenny Lynn Mining Co., Debtor Gerald H. Spiers, Tr. v. Ohio Dep't of Nat. Resources, 780 F.2d 585 (6th Cir. 1986). “08(A) (1981) with 30 U.S.C. § 1259 (1982). In neither case do the permit fees have the characteristics of the reclamation fees, which were a separate requirement.”

Busbee v. Cont'l Ins., 526 F. Supp. 1243 (N.D. Ga. 1981). · cites it 7× “§ 1352 , which grants this Court jurisdiction over actions on bonds executed pursuant to a federal law, and argues that the bond at issue was issued pursuant to the federal Surface Mining Control and Reclamation Act of 1977, 30 U.S.C. § 1259 . Finally, Continental asserts…”

West Virginia Highlands Conservancy v. Norton, 190 F. Supp. 2d 859 (S.D.W. Va 2002). · cites it 3× “” 30 U.S.C. § 1259 (a); see also 30 U.S.C. § 1259 (c).”

Cat Run Coal Co. v. Babbitt, 932 F. Supp. 772 (S.D.W. Va 1996). · cites it 2× “30 U.S.C. § 1259 (c); 30 C.F.R. § 800.14 .”

In re Appalachian Fuels, LLC, 493 B.R. 1 (6th Cir. BAP 2013). “30 U.S.C. § 1259 (a). If the applicant or operator is unable to cover the costs of reclamation after default, 30 C.”

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