2016 Kentucky Revised Statutes CHAPTER 350 - SURFACE COAL MINING .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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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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