republic-os/legal/us/code/title-30/chapter-25/section-1259.md

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LegalText	30 U.S.C. § 1259	Performance bonds	us	united_states_code	code_section	30	MINERAL LANDS AND MINING	25	SURFACE MINING CONTROL AND RECLAMATION	1259	30 U.S.C. § 1259	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc30@119-100.zip	/us/usc/t30/s1259	data/legal/raw/us/code/title-30/usc30.xml	0eaf193cca62f1f7be8a644f0f61fb63e884527ef4c42c7d18a2f0fa337668f4	355f8eb5c6ad5372de4a8e665d9ed90202d53d2aac19ac001d43948af4a4dd2f	e89e35f6c65ef6d06b5a5ac4abe9eee6e33c99998a34a9fb08b58dae5befbd73	2026-07-04	official	legal us-code

30 U.S.C. § 1259 - Performance bonds

Text

(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.

(c) Bond of applicant without separate surety; alternate system 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.)