Oregon Surface Mining Permit Bond
In 2016, the Department of Geology and Mineral Industries (DOGAMI) recorded 33 mining companies - gathering gem, mineral, and metal - in the state of Oregon. Prior to that, mining operators were only required to secure a permit to operate if they use 1 to 5 acres of land annually within 5 years. This, however, changed in 2016 when companies who were below the threshold were required to secure an Exclusion Certificate to regulate the small-scale mining industry in the state.
What is the Oregon Surface Mining Permit Bond?
The Oregon Surface Mining Permit Bond is a pre-licensing requirement for mining operators to legally conduct business in the state. The bond will be used to guarantee the compensation of the public in case of damages and other non-compliance. Normally, the bond amount will be determined depending on the operation plan and size.
Why do you need the Oregon Surface Mining Permit Bond?
The Oregon Surface Mining Permit Bond acts as a leverage for the state and its people in that it promises that impending mining operations that will be up to standards and any non-compliance will be covered financially at the cost of the surety company, but will be reimbursed duly by the mining company.
Aside from the legal compliance, you await to benefit from the following:
- The good reputation of your company
- Financial security and credential boost
- Available full line of credit
- Confidentiality of your transactions (unless required by law)
- Access to professional advice counseling from lawyers, estimators, and similar professionals
How does the Oregon Surface Mining Permit Bond work?
The parties in the agreement are the Principal (mining company or applicant), Obligee (State of Oregon), and Surety/Bond Company or Obligor (surety bond provider). The mining company must secure a bond with a surety provider to cover the liabilities for potential damages and wage claims during their operation. The entire financial coverage, however, will be reimbursed to the surety company including the premiums.
The bond must be filed with the Oregon Department of Geology and Mineral Industries and must be issued by a surety bond provider certified by the state’s Insurance Department.
How much does the bond cost?
You may expect the bond to be priced between 0.5% and 15% of the total bond amount. To give you a better picture and help you prepare for the credit check the surety companies will conduct as part of their underwriting, here are the determining factors for the premium rates:
- employer’s credit score
- industry experience
- business history
- surety provider’s background
How can I secure the bond?
Transact with a reputable surety company today and secure your Oregon Surface Mining Permit Bond the fast and easy way. If you have more questions or are in need of more information, get in touch with us today.
Make sure you have gathered and provided accurate information on the following for the speedy processing of your application:
- Nature of your business
- Credit Score
- Financial strength
Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond. Once the assessment is done, we will promptly issue your bond and send it your way!