§ 35-11-417 — Bonding provisions

(a) The purpose of any bond required to be filed with the
administrator by the operator shall be to assure that the
operator shall faithfully perform all requirements of this act
and comply with all rules and regulations of the board made in
accordance with the provisions of this act.
(b) All bonds shall be signed by the operator as
principal, by a good and sufficient corporate surety licensed to
do business in the state, and be made payable to the state of
Wyoming. At the discretion of the director, the record mineral
owner of the land to be mined may also be required to join as
principal. This subsection shall not apply to collateral bonds
issued pursuant to subsection (g) of this section.
(c) The amount of any bond to be filed with the
administrator prior to commencing any mining shall be:
(i) For an initial bond the amount equal to the
estimated cost of reclaiming the affected land disturbed and
restoring, as defined in W.S. 35-11-103(f)(iii), any groundwater
disturbed by in situ mining during the first year of operation
under each permit. The estimated cost shall be based on the
operator's cost estimate submitted with the permit plus the
administrator's estimate of the additional cost to the state of
bringing in personnel and equipment should the operator fail or
the site be abandoned. In no event shall the bond be less than
ten thousand dollars ($10,000.00), except for limited mining
operations authorized and bonded under W.S. 35-11-401(e) or any
noncoal mine the affected land of which, excluding roads, is ten
(10) acres or less, in which case the bond amount shall be set
by the administrator with approval of the director to cover the
cost of reclamation, and in no event less than two hundred
dollars ($200.00) per acre, for affected land;
(ii) For renewal bonds the amount equal to the
estimated cost of reclaiming the land to be disturbed during
that renewal period, and the estimated cost of completing
reclamation of unreleased lands and groundwater disturbed during
prior periods of time. The estimated cost shall be based on the
operator's cost estimate, which shall include any changes in the
actual or estimated cost of reclamation of unreleased affected
lands, plus the administrator's estimate of the additional cost
to the state of bringing in personnel and equipment should the
operator fail or the site be abandoned. In no event shall the
bond be less than ten thousand dollars ($10,000.00), except for
limited mining operations authorized and bonded under W.S.
35-11-401(e) or any noncoal mine the affected land of which,
excluding roads, is ten (10) acres or less, in which case the
bond amount shall be set by the administrator with approval of
the director to cover the cost of reclamation, and in no event
less than two hundred dollars ($200.00) per acre, for affected
land.
(d) The council may promulgate rules and regulations for a
self-bonding program for mining operations under which the
administrator may accept the bond of the operator itself without
separate surety when the operator demonstrates to the
satisfaction of the director the existence of a suitable agent
to receive service of process and a history of financial
solvency and continuous operation sufficient for authorization
to self-insure or bond this amount. This subsection shall not
become operative until the council has promulgated rules and
regulations for the self-bonding program which require that the
protection provided by self-bonding shall be consistent with the
objectives and purposes of this act.
(e) When the reclamation plan for any affected land has
been completed, the administrator may recommend to the director
the release of up to seventy-five percent (75%) of the bond
required for that affected land. The remaining portion of the
bond shall be not less than ten thousand dollars ($10,000.00),
and shall be held for a period of at least five (5) years after
the date of reduction to assure proper revegetation and
restoration of groundwater. The retained portion of the bond may
be returned to the operator at an earlier date if a release
signed by the surface owner and approved by the administrator
and director is obtained.
(f) If the area of land or groundwater under permit to be
disturbed is increased, then the amount of bond shall be
increased to cover the added cost of reclaiming all affected
lands or groundwater.
(g) The council may, consistent with the requirements of
30 CFR 800.21(c), promulgate rules and regulations that allow
the administrator to accept real property posted as a collateral
bond without separate surety, provided that the real property is
located in this state, the bond provides a perfected first lien
security interest in the real property in favor of the
department and the protection provided by the bond is consistent
with the objectives and purposes of this act.
(h) The council shall promulgate rules for a voluntary
assigned trust program for coal, bentonite, trona and uranium
permits or licenses to bond all or a portion of the full cost of
reclamation as recommended by the administrator and determined
by the director. This subsection shall not become operative
until the governor has signed rules that the council promulgates
for a voluntary assigned trust program that require that the
protection provided by voluntary assigned trusts be consistent
with the objectives and purposes of this act. Any rules
promulgated under this subsection shall be in accordance with
the following:
(i) Participation in an assigned trust program shall
be voluntary on the part of an operator. An operator seeking to
participate in a voluntary assigned trust as part of the
operator's bonding option shall elect to create an assigned
trust as required by rules promulgated by the council;
(ii) The amount necessary for an operator to fully
fund the voluntary assigned trust shall be recommended by the
administrator and determined by the director in accordance with
the provisions of this article for each operator's permit or
license;
(iii) For each payment plan for a voluntary assigned
trust:
(A) The department shall provide the state
treasurer with a copy of the director's annual bond letter that
discloses the reclamation obligation and the estimated mine life
and duration of reclamation for each individual voluntary
assigned trust;
(B) Participants in the assigned trust shall
provide annual payments of not less than one percent (1%) of the
total annual reclamation bond obligation at any time until the
assigned trust is fully funded and sufficient to cover the cost
of the reclamation obligation as provided in W.S. 35-11-417(c);
(C) Participants in the assigned trust shall
provide other acceptable bonding instruments authorized by this
act to cover the remaining full cost of reclamation.
(iv) The funds received for a voluntary assigned
trust for coal shall be invested by the state treasurer as
authorized by law and in a manner to obtain the highest net
return possible consistent with the preservation of one hundred
percent (100%) of the corpus of the assigned trust. All earnings
from investment of the corpus of the assigned trust shall be
credited by the state treasurer to the balance of each voluntary
assigned trust;
(v) The funds received for a voluntary assigned trust
for non-coal shall be invested by the state treasurer as
authorized by law and in a manner to obtain the highest net
return possible less any administrative fees consistent with the
preservation of the corpus of the assigned trust. All earnings
from investment of the corpus of the assigned trust shall be
credited by the state treasurer to the balance of each voluntary
assigned trust;
(vi) The investment options of the treasurer shall
include funds authorized by law. The investment fund options
used shall be based on the corpus protection requirements as
provided in paragraphs (iv) and (v) of this subsection. No funds
shall be withdrawn by the participant from these accounts during
the first year after the establishment of the participant's
voluntary assigned trust;
(vii) The participant shall deposit any cash into an
irrevocable assigned trust, managed by the state treasurer for
the benefit of the department. The assets of each assigned trust
shall be available solely to cover the department's cost of
completing reclamation in the event of forfeiture. No portion of
the trust assets shall be returned to the participant until
trust assets are released in accordance with W.S. 35-11-423;
(viii) Any remaining amounts within an assigned trust
shall be released to the participant in the manner provided for
bonds in accordance with the provisions of W.S. 35-11-423 after
funds are applied to cover all costs of reclaiming the affected
land. Reclamation funds from the assigned trust shall be
withdrawn last, following certification of the requested bond
release by the director. Bond reductions to the permit or
license shall be made from any other bond instruments first
until the assigned trust is fully funded;
(ix) Each assigned trust shall not be withdrawn until
released by the director in accordance with this act and any
rules promulgated under this act;
(x) Any rules promulgated under this act shall
include:
(A) A process for withdrawal of funds that
exceed the bond obligation of a participant;
(B) Provisions for each assigned trust to be
assigned to a new owner resulting from a permit or license
transfer.
(xi) Permits or licenses that include federal lands
with a federal bonding requirement may participate in the
assigned trust following approval from the appropriate federal
agencies.