2013 Kentucky Revised Statutes CHAPTER 350 - SURFACE COAL MINING 350.131 Use of forfeited reclamation bond funds -- Contract to reclaim overlapped disturbed area for which bond has been forfeited and collected.
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350.131 Use of forfeited reclamation bond funds -- Contract to reclaim
overlapped disturbed area for which bond has been forfeited and
collected.
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(2)
(3)
When a bond for an interim or preinterim program permit was forfeited prior to
July 15, 1988, by the cabinet, and the entire forfeited amount is not necessary
to establish proper drainage and revegetation on the permit area for which it
was submitted, the cabinet may use any remaining funds to supplement
reclamation of other forfeited or released permit areas, if the other permit areas
endanger public health and safety.
When the bond for an interim or permanent program permit is forfeited by the
cabinet, and the entire forfeited amount is more than the amount necessary to
complete reclamation, the unused funds less any interest that has accrued
shall be returned to the party from whom they were collected, subject to the
cabinet's right to attach or set off the proceeds under other state laws.
Notwithstanding any other provisions of this chapter or the provisions of KRS
Chapter 45A, when the bond, other than a surety bond or bond secured by a
letter of credit, for an interim or permanent program permit is forfeited and
collected by the cabinet, and a person subsequently applies for a permit
overlapping all or part of the disturbed area of the permit area for which the
bond is forfeited, the cabinet may negotiate and enter into a contract with the
applicant to reclaim the disturbed area overlapped in exchange for all or part of
the forfeited bond funds held by the cabinet, if requested by the applicant. If the
applicant proposes to overlap only a part of the disturbed area the cabinet may
enter into a contract with the applicant to reclaim the overlapped part of the
disturbed area if the cabinet has retained a portion of the forfeited bond that is
sufficient for the cabinet to reclaim the part of the disturbed area that is not
overlapped. Any applicant under this subsection shall not be eligible for the
benefits available under this subsection if the applicant has any ownership or
control connection with the permittee or operator with respect to which the
bond was forfeited. The amount of forfeited bond funds the cabinet may pay to
the applicant shall be determined by the cabinet based upon the estimated cost
for the cabinet to reclaim the disturbed area overlapped to the reclamation
standards applicable to the original permit, but not to exceed the forfeited bond
amount collected and held by the cabinet. Payments under this subsection
shall be made only after release of the bond pursuant to KRS 350.093(4)(a) for
those areas of the overlapping permit that are covered by the contract. If the
applicant obtains a permanent program permit overlapping a forfeited interim
permit, any disturbances created in connection with the overlapping permit on
areas that were disturbed under the forfeited interim permit may be covered by
a contract under this subsection and shall be reclaimed to permanent program
standards. Areas where coal is not removed under the overlapping permit and
the disturbances are for reclamation of the interim permit only shall be
reclaimed to interim program standards. If the applicant obtains a permanent
program permit overlapping a forfeited interim permit, any disturbances created
in connection with the overlapping permit on areas that were not disturbed
under the forfeited interim permit shall not be covered by a contract under this
subsection and shall be reclaimed to permanent program standards. Nothing in
this subsection shall be construed to exempt a person from the permitting,
bonding, and reclamation requirements imposed in this chapter or to infringe
upon the right of any surety to reclaim any permit or increment thereof to avoid
bond forfeiture.
Effective:July 15, 1998
History: Amended 1998 Ky. Acts ch. 222, sec. 1, effective July 15, 1998. -Amended 1996 Ky. Acts ch. 323, sec. 1, effective July 15, 1996. -- Amended
1988 Ky. Acts ch. 294, sec. 4, effective July 15, 1988. -- Created 1986 Ky. Acts
ch. 451, sec. 1, effective July 15, 1986.
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