| (a) An owner or operator may satisfy the requirements of financial assurance by obtaining a surety bond that conforms to the requirements of this subchapter and by submitting an originally signed surety bond to the executive director. (b) The surety company issuing the bond must, at a minimum, be among those listed as acceptable sureties on federal bonds in Circular 570 of the United States Department of the Treasury. (c) The wording of the surety bond must be identical to the wording specified in §37.9200 of this title (relating to Payment Bond Wording). (d) The bond must guarantee that the owner or operator shall: (1) fund the standby trust fund as required in §37.161 of this title (relating to Establishment of a Standby Trust) in an amount equal to the penal sum of the bond before the beginning of final reclamation at the quarry or restoration related to the quarry; (2) fund the standby trust fund as required in §37.161 of this title in an amount equal to the penal sum within 15 days after a written directive by the executive director or commission to begin reclamation or restoration, or within 15 days after an order to begin final reclamation or restoration is issued by the United States district court or other court of competent jurisdiction; or (3) provide alternate financial assurance as specified in this subchapter, and obtain the executive director's written approval of the assurance provided, within 90 days after receipt by both the owner or operator and the executive director of a notice of cancellation of the bond from the surety. (e) Under the terms of the bond, the surety shall become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond. (f) The penal sum of the bond must be in an amount at least equal to the current cost estimate, except as provided in §§37.41, 37.51, or 37.9170 of this title (relating to Use of Multiple Financial Assurance Mechanisms, Use of a Financial Assurance Mechanism for Multiple Facilities, and Financial Assurance Requirements for Reclamation and Restoration). (g) Under the terms of the bond, the surety may cancel the bond by sending notice of cancellation by certified mail to the owner or operator and to the executive director. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the owner or operator and the executive director, as evidenced by the return receipts. |
