Section 86.165. Failure to maintain proper bond

(a) If a permittee fails to promptly post additional bond required under § 86.152 (relating to bond adjustments), or fails to make timely deposits of bond according to the schedule submitted under § 86.161 (relating to phased deposits of collateral), or fails to make payments under § 86.162a (relating to Anthracite Deep Mine Operators Emergency Bond Fund) or fails to maintain subsidence insurance provided in § 86.162 (relating to subsidence insurance in lieu of bond), or fails to make annual payments for financial guarantees as required under § 86.283(a) (relating to procedures), or fails to make annual payments for Land Reclamation Financial Guarantees as required under § 86.162b (relating to Land Reclamation Financial Guarantees), the Department will issue a notice of violation to the permittee, and if the permittee fails to correct the violation within 15 days of the notice, the Department will issue a cessation order for the permittee’s permit areas and thereafter take actions that may be appropriate.

(b) The permittee shall maintain bonds in an amount and with sufficient guarantee as required by this chapter. If a surety company who had provided surety bonds, or a bank who had provided letters of credit or certificates of deposit for a permittee, enters into bankruptcy or liquidation, or has its license suspended or revoked or for another reason indicates an inability or unwillingness to provide an adequate financial guarantee of the obligations under the bond or instrument, the Department will issue a notice of violation to the permittee requiring that affected permits be rebonded according to the requirements of this subchapter and, if the permittee fails to correct the violation within 90 days of the notice, the Department will issue a cessation order for the permittee’s permit areas and thereafter take appropriate action.

The provisions of this § 86.165 adopted December 19, 1980, 10 Pa.B. 4789, effective July 31, 1982, 12 Pa.B. 2382; amended July 30, 1982, 12 Pa.B. 2473, effective July 31, 1982, 12 Pa.B. 2382; amended June 15, 1990, 20 Pa.B. 3383, effective July 27, 1991, 21 Pa.B. 3316; amended June 25, 1993, effective June 26, 1993, 23 Pa.B. 3075; amended June 17, 2011, effective June 18, 2011, 41 Pa.B. 3084; amended August 21, 2015, effective August 22, 2015, 45 Pa.B. 4904. Immediately preceding text appears at serial pages (357499) to (357500).

Notation

Authority

The provisions of this § 86.165 amended under section 5 of The Clean Streams Law (35 P. S. § 691.5); sections 4(a) and 4.2 of the Surface Mining Conservation and Reclamation Act (52 P. S. § § 1396.4(a) and 1396.4b); and section 1920-A of The Administrative Code of 1929 (71 P. S. § 510-20).

Notes of Decisions

When the Department of Environmental Resources notifies a permittee to rebond based on a liquidation of the original surety company, the permittee must exhaust their administrative remedies under 71 P. S. § 510-21 before the Environmental Hearing Board. Benjamin Coal Co. v. Department of Environmental Resources, 513 A.2d 1120 (Pa. Cmwlth. 1986).

Cross References

This section cited in 25 Pa. Code § 86.155 (relating to scope).