207.10 - PERFORMANCE BOND REQUIREMENT.
207.10 PERFORMANCE BOND REQUIREMENT.
1. After a permit application has been approved but before
issuance, the applicant shall file with the division, on a form
furnished by the division, a bond for performance payable to the
state and conditioned upon faithful performance by the operator of
all requirements of this chapter and all rules adopted by the
division pursuant to this chapter.
2. The bond shall be signed by the operator as principal and by a
corporate surety licensed to do business in Iowa as surety. In lieu
of a bond, the operator may deposit cash, or government securities,
or certificates of deposit or letters of credit with the division on
the same conditions as for filing of bonds.
3. The amount of the bond or other security required to be filed
with the division shall be equal to the estimated cost of reclamation
of the site if performed by the division. The estimated cost of
reclamation of each individual site shall be determined by the
division on the basis of relevant factors. The division may require
each applicant to furnish information necessary to estimate the cost
of reclamation. The amount of the bond or other security may be
increased or reduced as the permitted operation changes, or when the
cost of future reclamation changes. However, the bond amount shall
not be less than ten thousand dollars.
4. Liability under the bond shall be for the duration of the coal
mining and reclamation operation and for a period coincident with
operator's responsibility for revegetation requirements in the rules
promulgated under section 207.7.
5. If the license to do business in Iowa of a surety of a bond
filed with the division is suspended or revoked, the operator, within
thirty days after receiving notice from the division, shall
substitute another surety. If the operator fails to make
substitution, the division may suspend the operator's authorization
to conduct mining on the site covered by the bond until substitution
has been made. The commissioner of insurance shall notify the
division whenever the license of any surety providing bond for an
operator is suspended or revoked.
6. Notwithstanding sections 12C.7, subsection 2, and 666.3, the
interest or earnings on investments or time deposits of the proceeds
of a performance bond forfeited to the division, cash deposited under
subsection 2, any funds provided for the abandoned mine reclamation
program under section 207.21 and any civil penalties collected
pursuant to sections 207.14 and 207.15 shall be credited to the
payment of costs and administrative expenses associated with the
reclamation, restoration or abatement activities of the division.
The division may expend funds credited to it under this subsection to
conduct reclamation activities on any areas disturbed by coal mining
not subject to a presently valid permit to conduct surface mining.
Section History: Early Form
[C81, § 83.10] Section History: Recent Form
85 Acts, ch 140, §1
C93, § 207.10
Referred to in § 207.14