§ 34-32-118 — Forfeiture of financial warranties

Colorado § 34-32-118

• Jurisdiction: Colorado
• Title 34: Mineral
• Art.: Colorado Mined Land Reclamation Act

Text

(1) A financial warranty shall
be subject to forfeiture whenever the board shall determine that any one or more of
the following circumstances exist:

(a) The operator has violated a cease-and-desist order entered pursuant to
section 34-32-124 and, if corrective action was proposed in such order, has failed to
complete such corrective action although ample time to have done so has elapsed;
or

(b) The operator is in default under his performance warranty and has failed
to cure such default although he has been given written notice thereof and has had
ample time to cure such default; or

(c) The financial warrantor has failed to maintain his financial warranty in
good standing as required by section 34-32-117; or

(d) The financial warrantor no longer has the financial ability to carry out his
obligations under this article.

(2) Whenever the board, based on information and belief, has reason to
believe that a financial warranty is subject to forfeiture, the board shall so notify
the operator and all financial warrantors. The board shall afford the operator and all
financial warrantors the right to appear before the board at a hearing to be held not
less than thirty days after the parties' receipt of said notice. Any such hearing shall
be held in accordance with the provisions of article 4 of title 24, C.R.S.

(3) (a) At any such hearing, the board shall be empowered to:

(I) Withdraw or modify any determination that the financial warranty is
subject to forfeiture;

(II) Settle or compromise the determination; or

(III) Confirm its determination that the financial warranty should be forfeited.

(b) Upon finding that a financial warranty should be forfeited, the board shall
issue written findings of fact and conclusions of law to support its decision and
shall issue an order directing affected financial warrantors to immediately deliver
to the board all amounts warranted by applicable financial warranties.

(4) (a) The board, upon issuing any order pursuant to subsection (3) of this
section, may request the attorney general to institute proceedings to secure or
recover amounts warranted by forfeited financial warranties. The attorney general
shall have the power, inter alia, to:

(I) Foreclose upon any real and personal property encumbered for the
benefit of the state;

(II) Collect, present for payment, take possession of, and otherwise reduce to
cash any property held as security by the board;

(III) Dispose of pledged property.

(b) and (c) Repealed.

(5) Money recovered by the attorney general in proceedings brought
pursuant to subsection (4) of this section shall be held in the account described in
section 34-32-122 and shall be used to reclaim lands covered by the forfeited
warranties. The board has a right of entry to reclaim the lands. Upon completion of
the reclamation, the board shall present to the financial warrantor a full accounting
and refund all unspent money.

(6) Defaulting operators shall remain liable for the actual cost of reclaiming
affected lands, less any amounts expended by the board pursuant to subsection (5)
of this section, notwithstanding any discharge of applicable financial warranties.

(7) Notwithstanding any provision of this section to the contrary, a corporate
surety may elect to reclaim affected lands in accordance with an approved plan in
lieu of forfeiting a bond penalty.

Legislative History

Source: L. 76: Entire article R&RE, p. 743, � 1, effective July 1. L. 77: Entire section amended, p. 1564, � 3, effective June 2. L. 81: Entire section R&RE, p. 1674, � 10, effective June 19. L. 93: (5) amended, p. 1193, � 11, effective July 1. L. 2025: (4)(b) and (4)(c) repealed and (5) amended, (SB 25-054), ch. 200, p. 893, � 9, effective August 6.