Published: June 19, 2018 |

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Senate Bill 686 which became effective and was signed into law on May 4, 2018, amends ten titles of the Tennessee Code Annotated (TCA) relating to surface coal mining and reclamation. Amendments to Title 59 in particular concern coal exploration operations as well as coal mining and reclamation operations.

These amendments include, among others, the condition for either of such operations to satisfy a surety bond requirement prior to commencement. The amendments also include further conditions which such operations must comply with to be permitted.

Here’s a brief overview of the new bond requirements!

NEW REQUIREMENTS FOR COAL EXPLORATION OPERATIONS

Two new bond requirements, along with other important rules, are introduced by Senate Bill 686.

First, to perform coal exploration that substantially disturb the natural land surface, operators will need to comply with the rules devised by the Tennessee Board of Energy and Natural Resources. These rules will include the requirement to file a notice of intention to perform such exploration with the Commissioner of Environment and Conservation. They will further include the requirement to reclaim all lands that are disturbed by such exploration as well as the removal of equipment and facilities used in the process.

As a guarantee that such reclamation will be conducted, exploration operations cannot begin before a performance bond is submitted to the commissioner. This performance bond must be in the amount of $500 per acre disturbed by the exploration. It is conditioned upon the performance of the reclamation as it is specified in the operator’s notice of intention as well as the state standards for such reclamation.

The bond is released immediately after after the reclamation of the site is completed, according to these standards, and an inspection is conducted.

NEW REQUIREMENTS FOR SURFACE COAL MINING AND RECLAMATION OPERATIONS

A similar requirement must also be met by applicants for a permit for surface coal mining and reclamation operations.

Before a permit for such operations is issued, applicants must furnish a bond which guarantees their compliance with the requirements of the permit as well as with 59-8-108 of the TCA. The bond obtained by the permittee covers the area specified in their permit on which they will conduct coal mining and reclamation operations.

The minimum amount of the bond required for such a permit must be at least $10,000, though the exact amount will be determined by the commissioner. The amount is determined based on the specific reclamation requirements of the permit that is being issued. This includes any possible difficulties that may arise in the reclamation process related to the topography, geology and hydrology of the site, as well the site’s potential for revegetation. It must also include a consideration of the permittee’s past performance.

The amount must be sufficient to cover for the completion of the reclamation plan in cases in which the permittee does not execute this plan. The liability of this bond is continuous, as for exploration operations, until the requirements of the permit and reclamation plan are fulfilled.

EFFECTIVE DATE

The effective date of the bill and of the above requirements is specified as: “eight (8) months immediately following the receipt of notification from the secretary of the interior that this state has been approved to exercise primacy over the regulation of surface coal mining and reclamation operations within its territorial boundaries”.

This means that the specific effective date for the surety bond requirements is as of yet not defined, and will be earliest in the beginning of 2019.

What do you think of these requirements, and the other provisions of the bill?

Source: Bryant Security Bonds

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