Sec. 306. Financial assurance
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After a permit is issued under this title and before any exploration or operations begin under the relevant permit, the operator shall file with the Secretary concerned evidence of financial assurance payable to the United States, which shall be provided in the form of a surety bond, letters of credit, certificates of deposit, or cash. The financial assurance required under paragraph
(1)shall cover all land within the initial permit area and all affected waters that may require restoration, treatment, or other management as a result of mineral activities, and shall be extended to cover all land and water added to the permit area pursuant to any permit modification made under section 303(e) or 304(e) or affected by mineral activities within the permit area. The amount of the financial assurance required under this section shall be sufficient to ensure the completion of reclamation satisfying the requirements of this Act if the work were to be performed by the Secretary concerned, or by a third-party contractor hired by the Secretary concerned, in the event of forfeiture, including the construction and maintenance costs for any treatment facilities necessary to meet Federal and State environmental requirements. The calculation of the amount under paragraph
(1)shall take into account the maximum estimated cost of reclamation, as determined by the best available science, and administrative costs associated with a government agency reclaiming the site. The financial assurance required under this section shall be held for the duration of the mineral activities and for an additional period sufficient to cover the responsibility of the operator for reclamation, long-term maintenance, and effluent treatment as specified in subsection (g). The Secretary concerned may adjust the amount of the financial assurance required under this section and the terms of the acceptance of the financial assurance as needed as the land subject to the relevant permit is increased or decreased, the costs of reclamation or treatment change, or pursuant to section 304(f), but the financial assurance shall otherwise be in compliance with this section. The Secretary concerned shall review the financial assurance every 3 years and as part of the permit application review under section 304(g). The Secretary concerned may, upon request, after consultation with the Administrator of the Environmental Protection Agency, notice and opportunity for public comment, and inspection by the Secretary concerned, release, in whole or in part, the financial assurance required under this section if the Secretary concerned makes both of the following determinations: Reclamation or restoration covered by the financial assurance has been accomplished as required by this Act. The terms and conditions of any other applicable Federal requirements, and State requirements applicable pursuant to cooperative agreements under section 308, have been fulfilled. The release referred to in subsection
(e)shall be according to the following schedule: After the operator has completed any required backfilling, regrading, and drainage control of an area subject to mineral activities and covered by the financial assurance, and has commenced revegetation on the regraded areas subject to mineral activities in accordance with the approved reclamation plan, that portion of the total financial assurance secured for the area subject to mineral activities attributable to the completed activities may be released, except that sufficient financial assurance must be retained to address other required reclamation needs and to ensure the long-term success of the revegetation. After the operator has successfully completed all remaining mineral activities and reclamation activities and all requirements of the operations plan and the reclamation plan, and all other requirements of this Act have been fully met, the remaining portion of the financial assurance may be released. During the period following release of the financial assurance as specified in paragraph (1), until the remaining portion of the financial assurance is released as provided in paragraph (2), the operator shall be required to comply with the relevant permit issued under this title. Notwithstanding section 307(b)(2)(D), where any discharge or other water-related condition resulting from mineral activities requires treatment in order to meet applicable effluent limitations and water quality standards, the financial assurance shall include the estimated cost of maintaining such treatment for the projected period that will be needed after the cessation of mineral activities. The portion of the financial assurance attributable to such estimated cost of treatment shall not be released until such discharge has ceased for a period of 5 years, as determined by ongoing monitoring and testing, or, if the discharge continues, until the operator has met all applicable effluent limitations and water quality standards for 5 full years without treatment. If the Secretary concerned determines, after final release of a financial assurance, that an environmental hazard resulting from the mineral activities exists, or the terms and conditions of the exploration permit or operations permit of this Act were not fulfilled at the time of such release, the Secretary concerned shall issue an order under section 507 requiring the claim holder or operator (or any person who controls the claim holder or operator) to correct the condition such that applicable laws and regulations and any conditions from the operations plan are met.