New York Mined Land Reclamation Bond
What is a New York Mined Land Reclamation Bond?
It is a requirement for the issuance of a mining permit. This bond will ensure that the applicant will conform to the mined land-use plan and the obligations of the applicant which will be discussed by an officer of the New York Department of Environmental Conservation during the interview process.
Conformity of the mining permit holder to the provisions of 6NYCRR Parts 420-425 and Article 23, Title 27 of the Environmental Conservation Law (ECL) of New York State is another reason for this requirement. This is to ensure that New York's mineral resources will be protected and the affected land will still be productive.
In addition to that, this bond will serve as a security deposit in case the mining permit holder commits any deviation from the said laws and mined land-use plan.
This requirement is in pursuance of 6 CRR-NY 423.1.
How much does a New York Mined Land Reclamation Bond cost?
The bond premium will depend on the credit score of the mining permit applicant and the bond amount set by the New York Department of Environmental Conservation.
The bond amount will be based on the total estimated cost to the State of New York for completion of reclamation consistent with the minimum basic reclamation requirements. This will be evaluated based on the following:
- The geographic location of the mine
- Length of the permit period
- Number of acres of affected land
- Other relevant criteria
- Proposed land-use objective and basic reclamation requirements
- Proposed method and schedule of reclamation
- Type of mine
Bond premium starts at 0.5% of the bond amount for those who have excellent credit scores.
How can I get a New York Mined Land Reclamation Bond?
If you are ready to do this now, you may APPLY HERE!
You will be asked to submit a few important information to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
To avoid any delays, make sure that you have gathered the right information needed before submitting your application.
After the indemnity agreement is signed, the bond will be issued and sent to you!
How does a New York Mined Land Reclamation Bond work?
This bond will serve as a legal agreement among three parties:
Principal – mining permit applicant
Obligee – State of New York
Surety – surety bond provider
This bond serves as a guarantee regarding the compliance of the Principal to the mined land-use plan and the relevant laws of the state. The Surety will extend its credit to the Principal in case the Principal fails to fulfill the obligations.
If such happens, the Obligee can file a claim against the bond to recover the amount lost due to the Principal’s violation. The claim will first be verified by the Surety before it is settled. Once the Surety has settled the claim, the Principal will reimburse the Surety for the payments made.
Ready to apply? START HERE!