CHAPTER 8. BOND POOL
IC 14-34-8
Chapter 8. Bond Pool
IC 14-34-8-1
"Bond pool" defined
Sec. 1. As used in this chapter, "bond pool" refers to the surface
coal mine reclamation bond pool established by this chapter.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-2
"Committee" defined
Sec. 2. As used in this chapter, "committee" refers to the surface
coal mine reclamation bond pool committee established by this
chapter.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-3
Surface coal mine reclamation bond pool
Sec. 3. The surface coal mine reclamation bond pool is
established to be used for surface coal mine reclamation under this
chapter. The department shall administer the bond pool.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-4
Participation in bond pool
Sec. 4. (a) As used in this section, "mining" includes contract
mining.
(b) As used in this section, "operator" includes a predecessor in
interest, subsidiaries, and affiliates as approved by the director.
(c) Participation in the bond pool is open to each operator
applying for a permit under this article who, after May 3, 1978, has
a five (5) year history of mining within Indiana and who meets the
following conditions:
(1) Is not subject to an outstanding cessation order issued under:
(A) IC 13-4.1-11-5 (before its repeal); or
(B) IC 14-34-15-6.
(2) Does not owe a civil penalty under:
(A) IC 13-4.1-12 (before its repeal);
(B) IC 14-34-16; or
(C) the federal Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1201 through 1328).
(3) Does not:
(A) owe a fee:
(i) under IC 13-4.1 (before its repeal);
(ii) under this article; or
(iii) collected under the federal Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1201 through
1328); or
(B) have a history of delinquency in the payment of fees or
civil penalties.
(4) Has never been suspended under:
(A) IC 13-4.1-6.5-6 (before its repeal); or
(B) section 6 of this chapter.
(d) Participation in the bond pool is:
(1) optional for each permit application;
(2) subject to approval by the director; and
(3) not effective until the entrance fee has been paid in full.
(e) The director may, based on all available information,
disapprove an application that may create an unreasonable risk to the
bond pool.
(f) This chapter does not preclude compliance with IC 14-34-6
instead of participation in the bond pool before commencement of
participation in the bond pool.
(g) Commencement of participation in the bond pool for the
applicable permit constitutes an irrevocable commitment to
participate in the bond pool for the applicable permit for the duration
of the surface coal mining operations covered under the permit,
unless the operator has replaced all bond pool liability with bonds
acceptable under IC 14-34-6-1.
(h) An operator may apply for participation in the bond pool on
a bond increment area under an existing permit. Commencement of
participation in the bond pool for the bond increment area, within an
existing permit, constitutes an irrevocable commitment to participate
in the bond pool for the duration of that surface coal mining permit,
unless the operator has replaced all bond pool liability with bonds
acceptable under IC 14-34-6-1.
As added by P.L.1-1995, SEC.27. Amended by P.L.71-2004, SEC.28.
IC 14-34-8-5
Fees for participation in bond pool
Sec. 5. (a) An application for participation in the bond pool must
be accompanied by an entrance fee of one thousand dollars ($1,000).
The fees collected under this section shall be deposited in the
post-1977 abandoned mine reclamation fund under IC 14-34-6-15
and dedicated as collateral for the bond pool. The entrance fee is not
required on subsequent permits or bond increments after an operator
has been accepted for participation in the bond pool.
(b) In addition to the initial payments to the bond pool under
subsection (a), an operator electing to participate in the bond pool
must furnish a bond in an amount adequate to ensure phase I
reclamation, except as provided in subsection (c).
(c) The director may accept:
(1) the bond of an operator without separate surety under the
self-bonding provisions of IC 14-34-7; or
(2) deposits in lieu of bond under IC 14-34-6-5.
(d) Subject to subsection (e), fees and payments under this chapter
are:
(1) not refundable; and
(2) in addition to all other fees required under this article.
(e) The entrance fee required under subsection (a) is refundable
if the application is rejected.
(f) Bond pool participants may post incremental bonds under
IC 14-34-6-1. The bonds may be posted in increments according to
a schedule contained in the approved permit application.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-6
Suspension from bond pool
Sec. 6. (a) Subject to subsection (c), an operator is suspended
from the bond pool if the operator:
(1) fails to pay a fee or civil penalty under:
(A) IC 13-4.1 (before its repeal);
(B) this article; or
(C) the federal Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1201 through 1328); or
(2) receives a cessation order that is not abated.
(b) If the final release of a bond has not been obtained within ten
(10) years after the date of the last required report of the affected
area for the permit, including new disturbances, the director may
require the operator to:
(1) replace the bond pool liability with bonds acceptable under
IC 14-34-6-1; and
(2) withdraw that operation from the bond pool.
If the operator fails to comply with the director's order to withdraw
a mine area from the bond pool, the director may suspend the
operator from the bond pool.
(c) An operator is not suspended from the bond pool if the
director makes a written determination that mitigating circumstances
are present that would not create an unreasonable risk to the bond
pool if the operator's participation continues.
(d) An operator who is suspended from the bond pool shall cease
all surface coal mining operations until the operator furnishes a new
performance bond under IC 14-34-6-1 in an amount calculated under
IC 14-34-6-2 for all disturbed areas and proposed additional mining
areas under the permit. When the new performance bond has been
executed, the bond pool has no additional liability for reclamation on
any part of the area covered by the applicable permit.
As added by P.L.1-1995, SEC.27. Amended by P.L.71-2004, SEC.29.
IC 14-34-8-7
Release of bond or other surety
Sec. 7. The bond or other surety furnished by the operator under
section 5 of this chapter shall be released by the director when the
operator completes the backfilling, regrading, and drainage control
of a bonded area in accordance with the operator's approved
reclamation plan.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-8
Fees per acre for bond
Sec. 8. (a) When an operator furnishes a bond under section 5 of
this chapter to participate in the bond pool, the operator shall pay a
fee of twenty-five dollars ($25) per bonded acre into the bond pool.
(b) After the bond or other surety has been released under section
7 of this chapter, the operator shall annually pay ten dollars ($10) per
acre on the areas affected to the bond pool until phase II bond release
is approved.
(c) After revegetation is established, the operator shall pay to the
bond pool fund the following:
(1) Five dollars ($5) per acre per year for the first three (3)
years.
(2) Ten dollars ($10) per acre per year after the first three (3)
years on the areas affected until phase III bond release is
approved.
(d) All fees collected under this section shall be:
(1) deposited in the post-1977 abandoned mine reclamation
fund established by IC 14-34-6-15; and
(2) dedicated as collateral for the bond pool.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-9
Use of bond pool money to complete reclamation
Sec. 9. After all available money furnished for a permit under
section 5(b) and 5(c) of this chapter is exhausted under section 10 of
this chapter, the money in the bond pool is available for the
completion of reclamation necessary to achieve phase II and phase
III bond release according to the approved reclamation plan on
permitted areas covered by the bond pool by participating operators.
The bond pool may not be used to complete reclamation on any areas
not permitted and bonded under this chapter.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-10
Forfeiture of bonds
Sec. 10. (a) Forfeiture of bonds of an operator participating in the
bond pool shall be accomplished under IC 14-34-6-16. In addition to
forfeiture, the director may proceed against the permittee of the
surface coal mining operation by filing a civil action for injunctive
or other relief in any court having jurisdiction to compel the
permittee to perform the reclamation work in full compliance with
this article, the rules adopted under this article, and the approved
permit plans. The director may also file an action in any court having
jurisdiction against the permittee to recover all money expended by
the bond pool to accomplish the reclamation, including construction
costs, engineering costs, administrative costs, and legal costs. In an
action to recover these costs, the defendant may not do the following:
(1) Relitigate the facts giving rise to the forfeiture.
(2) Defend by claiming the forfeiture was improper.
(b) A:
(1) proceeding under this section does not constitute a waiver
by the director to proceed under other provisions of this article;
and
(2) commencement of action under one (1) provision does not
constitute an election to proceed solely under that provision.
(c) Liability of participants in the bond pool for reclamation of
areas disturbed by other operators is limited to fees paid into the
bond pool under sections 5 and 8 of this chapter.
As added by P.L.1-1995, SEC.27.
IC 14-34-8-11
Surface coal mine reclamation bond pool committee
Sec. 11. (a) The surface coal mine reclamation bond pool
committee is established. The committee consists of the following:
(1) Five (5) members appointed by the director as follows:
(A) Three (3) members must represent a cross-section of
coal operators.
(B) One (1) member must be a member of the commission.
(C) One (1) member must be a representative of the public
with knowledge of reclamation performance guarantees.
(2) The director or the director's designee, who is a nonvoting
member.
(b) The term of each member is four (4) years beginning July 1.
The director may remove an appointed member for cause.
(c) The committee shall do the following:
(1) Annually elect a chairman.
(2) Adopt rules for organization and procedure.
(d) Each member of the committee who is not a state employee is
entitled to the minimum salary per diem provided by
IC 4-10-11-2.1(b). The member is also entitled to reimbursement for
traveling expenses and other expenses actually incurred in
connection with the member's duties as provided in the state travel
policies and procedures established by the Indiana department of
administration and approved by the budget agency.
(e) The committee shall, acting in an advisory capacity to the
director, do the following:
(1) Meet as necessary to perform duties under this chapter, but
not less than one (1) time each year, for the purpose of
formulating recommendations to the director concerning
oversight of the general operation of the bond pool.
(2) Review and make recommendations concerning the
following:
(A) All proposed expenses from the bond pool.
(B) All applications for admission to the bond pool.
(f) The director shall report annually to the committee and to the
governor on the status of the bond pool.
As added by P.L.1-1995, SEC.27. Amended by P.L.71-2004, SEC.30.