What is a Pennsylvania Mining Permit Bond?
Mining facilities and mine reclamation operators in Pennsylvania are required to purchase surety bonds as part of their permit requirements before being able to work on any state-mandated mining and reclamation projects.
The Mining Permit Bond guarantees that mine reclamation operators will faithfully perform and conform to all applicable rules, regulations, and statutes as prescribed by:
- The Clean Streams Law;
- The Surface Mining Conservation and Reclamation Act;
- The Air Pollution Control Act;
- The Coal Refuse Disposal Control Act;
- The Dam Safety and Encroachments Act;
- The Non-coal Surface Mining Conservation and Reclamation Act (applicable only to applicants for non-coal surface mining permits);
- And the Solid Waste Management Act.
The operators must file with the Pennsylvania Department of Environmental Protection with an application for either:
- Coal surface mining permit under the Surface Mining Conservation and Reclamation Act;
- Coal underground mining permit under the Surface Mining Conservation and
Reclamation Act and the Clean Streams Law;
- Coal preparation plant permit under the Surface Mining Conservation and Reclamation Act and the Clean Streams Law;
- Coal refuse disposal control permit under the Coal Refuse Disposal Control Act;
- Non-coal surface mining permit under the Non-coal Surface Mining Conservation and Reclamation Act;
- Or a non-coal underground mining permit under the Clean Streams Law.
What is the bond amount?
The bond amount is a part of the total bond for the acreage specified for the permit. The amount will be determined by the Pennsylvania Department of Environmental Protection.
The cost of the bond is a percentage of the bond amount, which ranges from 1%-5%. This will be subjected to an underwriting evaluation of your credit score.
How can I obtain a Mining Permit Bond?
Here’s a step-by-step guide to the bonding process that we have made easier so that you can get your bond in no time:
You must first apply for this type of surety bond. If you are ready to do this now, you may learn more about your bond costs and requirements by getting your FREE quote HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
Next, you will be asked to submit a few critical information that our underwriter will need to assess the following:
- Your job or business history
- Your credit score
- Your copy of the BOND FORM, which can be obtained from the Pennsylvania Department of Environmental Protection, Bureau of Mining and Reclamation.
There are additional bonds to obtain, if applicable to the type of project and situation.
- Additional Bond – supplements all other bonds posted or to be posted for the issuance of a permit.
- Replacement Bond – replaces other existing bonds.
- Transfer of Permit Bond – covers the pledge and deposit of the bond where the Department will release all existing bonds of all liability under the law.
- Pre-existing mining liability – assumes any and all liability and obligations which ensued on-site before the issuance of the mining permit.
To avoid any delays, please make sure that you have gathered the right information needed before submitting it.
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!
What are the bond conditions?
- The Surety must be authorized to conduct business in the Commonwealth of Pennsylvania.
- The Principal must be faithfully compliant with all applicable rules, regulations, and statutes related to mining and reclamation.
- The Surety will have the option of reclaiming the forfeited site, in place of paying the bond amount to the Pennsylvania Department of Environmental Protection, upon consent and approval.
- The Department reserves the right to require additional bonding from the operator, which will serve as a supplement to the bond liability provided.
For more details about this bond, contact us at 800-333-7800 today!