27-273. Performance and reclamation bonds
240 words·~1 min read·
/az/title-27/27-273A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The commissioner may require the lessee to post a cash deposit, a certificate of deposit, a surety bond or any other form of financial assurance acceptable to the commissioner to guarantee the payment of all monies due under the lease as royalty to the state.
B. The commissioner shall require the lessee to furnish a cash deposit, a certificate of deposit, a surety bond or any other form of financial assurance acceptable to the commissioner, in a reasonable amount to be fixed by the commissioner, conditioned that the lessee will guarantee reclamation of the surface of the land described in the lease to a reasonable condition in accordance with good mining practices.
C. The commissioner shall also require the lessee to file with the department a cash deposit, a certificate of deposit, a surety bond or any other form of financial assurance acceptable to the commissioner, conditioned upon prompt payment to the owner or lessee of the surface of the state land covered by the lease, or across which the lessee exercises the right of ingress, for any loss to such owner or lessee from damage or destruction caused by the lessee or the lessee's agents or employees to grasses, forage, crops and improvements upon such lands.
D. On default, the commissioner may use the proceeds of the cash deposit, certificate of deposit, surety bond or other financial assurance for the purposes described in subsection A, B or C.