Section 86.294. Uses and limitations

(a) An operator may apply a bond credit to an original or additional bond required under § 86.143 (relating to requirement to file a bond) for a permit issued for surface or underground mining, coal preparation or coal refuse disposal.

(b) An operator may use a bond credit or part of a bond credit on a single permit or multiple permits. A bond credit or part of a bond credit may be used two times; however, it cannot be used a second time until it is released from its first use under § § 86.170—86.175.

(c) A bond credit may be used in combination with other types of bonds authorized by the act.

(d) A bond credit may be transferred to a qualified operator, as authorized by section 4.13 of the act (52 P. S. § 1396.4m).

(e) A bond credit may not be used to bond water loss or to bond long-term water treatment.

(f) If a discharge not meeting the effluent criteria of § 87.102, § 88.92, § 88.187, § 88.292, § 89.52 or § 90.102 develops on a permit on which a bond credit is being used, the operator shall within 90 days of receipt of written notice by the Department replace the bond credit with other types of bonds authorized by the act for that purpose. If an acceptable bond has not been received and approved by the Department within the specified time limit, the Department will issue a cessation order for mining activities except for reclamation and other activities required to maintain the permit area.

(g) Bond credits will be released prior to any other surety or collateral bond on a permit area.

(h) A bond credit or part of a bond credit that is not used within 5 years from the date it is issued under § 86.293 (relating to issuance) or released under § § 86.170—86.175 will expire, including bond credits that have been transferred.