Illinois Compiled Statutes
225 ILCS 720/ - Surface Coal Mining Land Conservation and Reclamation Act.
Article VI - Performance Bonds

(225 ILCS 720/Art. VI heading)

(225 ILCS 720/6.01) (from Ch. 96 1/2, par. 7906.01)
Sec. 6.01.
Requirement of a Bond.
(a) After a mining and reclamation permit application has been approved but
before a permit is issued, the applicant shall file with the Department, on a
form prescribed and furnished by the Department, a performance bond payable to
the People of the State of Illinois, and conditional on the faithful
performance of, and compliance with, all requirements of the permit and this
Act. The bond shall cover that area of land within the permit area on which
the operator will initiate and conduct mining and reclamation operations within
the term of the permit. Such bond shall be signed by the operator as
principal, and by a good and sufficient corporate surety, licensed to do
business in Illinois, as surety.
(b) The Department may accept the bond of the applicant, without
separate surety, when the applicant demonstrates to the Department's
satisfaction the existence of a suitable agent to receive service of process,
a history of financial solvency and continuous operation, and a current
financial soundness sufficient for authorization to self-insure or bond the
required amount.

(Source: P.A. 88-185.)

(225 ILCS 720/6.02) (from Ch. 96 1/2, par. 7906.02)
Sec. 6.02.
Amount of Bond.
The amount of the bond shall be determined
by the Department. It shall be sufficient to assure the completion of the
reclamation plan specified in the approved permit if the work has to be
performed by the Department in the event of forfeiture. The Department
shall by rule prescribe standards for determination of the amount of bonds.
Such standards shall include the probable difficulty of reclamation, topography,
geology, hydrology, revegetation potential, and other standards related
to the purposes of this Act. In no case shall the bond for the entire area
under one permit be less than the greater of $600 per acre or $10,000.

(Source: P.A. 81-1015.)

(225 ILCS 720/6.03) (from Ch. 96 1/2, par. 7906.03)
Sec. 6.03.
Duration of Bond.
(a) Liability under the bond shall be
for the duration of the mining operations and reclamation, and for a period
coincident with the operator's responsibility for revegetation requirements
under the permit, this Act and rules under this Act.
(b) Liability under the bond for areas used for the disposal of slurry
and gob shall continue for the longer of the period specified in subsection
(a) or while such areas are in active use.

(Source: P.A. 81-1015.)

(225 ILCS 720/6.04) (from Ch. 96 1/2, par. 7906.04)
Sec. 6.04.
Cancellation.
A bond with separate surety filed in accordance
with this Article shall not be cancelled by the surety except after not
less than 90 days notice to the Department. A surety shall not at any time
cancel any portion of a bond covering land already affected. If the license
to do business in Illinois of any surety on a bond filed with the Department
pursuant to this Act shall be suspended or revoked, the operator, within
30 days after receiving notice thereof from the Department, shall substitute
for such surety a good and sufficient corporate surety licensed to do business
in Illinois. On failure of the operator to make substitution of surety
as herein provided, the Department may suspend the permit of the operator
until such substitution has been made.

(Source: P.A. 81-1015.)

(225 ILCS 720/6.05) (from Ch. 96 1/2, par. 7906.05)
Sec. 6.05.
Alternatives to a Bond.
In lieu of a performance bond,
the operator may deposit as security cash, negotiable government securities,
or negotiable certificates of deposit of any bank organized or transacting
business in the United States, or any combination thereof, with the Department
in an amount equal to or greater than the amount of the surety bond required
by Section 6.02. Such deposits shall be made, held and disposed of as provided
in this Act and by the Department by rule.

(Source: P.A. 81-1015.)

(225 ILCS 720/6.06) (from Ch. 96 1/2, par. 7906.06)
Sec. 6.06.
Changes in Amount of Bond.
The amount of the bond or cash
and securities shall be increased or reduced from time to time as the land
affected by mining operations changes, and as the cost of future reclamation
changes whether as a result of cost inflation or deflation, changes in costs,
new information, or other cause. The Department shall by rule provide standards
and procedures for such adjustments of a bond.

(Source: P.A. 81-1015.)

(225 ILCS 720/6.07) (from Ch. 96 1/2, par. 7906.07)
Sec. 6.07.
Forfeiture.
(a) The Attorney General, on request of the Department,
shall institute proceedings to have the bond of the operator forfeited for
violation by the operator of any of the provisions of this Act or for
noncompliance
with any lawful rule or regulation promulgated by the Department thereunder.
Before making such request of the Attorney General, the Department shall
notify the operator in writing of the alleged violation or non-compliance
and shall afford the operator the right to appear before the Department
at a hearing to be held not less than 30 days after the receipt of such
notice by the operator. At the hearing the operator may present for the
consideration of the Department statements, documents and other information
with respect to the alleged violation. After the conclusion of the hearing,
the Department shall either withdraw the notice of violation or shall request
the Attorney General to institute proceedings to have the bond of the operator
forfeited as to the land involved.
(b) The Department shall prescribe by rule the events and conditions on
the basis of which it may request the Attorney General to institute bond
forfeiture proceedings. Such rules shall be no less stringent than the Regulations.
(c) In the event that the Department requests the Attorney General to
institute proceedings to have the bond forfeited, the Department shall send
written notification to the permittee and, if applicable, the surety on
the bond, stating the reasons for its decision and the amount to be forfeited.
(d) The amount of forfeiture shall be based on the actual cost of the
necessary work by a third party to remedy the violation, except that the
amount shall not exceed the amount of the bond or deposit for the area in
which the violation occurred.
(e) Any operator against whom forfeiture proceedings have been required
shall not be issued a permit for further mining in Illinois unless he provides
additional assurances satisfactory to the Department that such proceedings
will not again become necessary.
(f) In the event the bond or deposit for a surface coal mining operation
on lands eligible for remining is forfeited, funds appropriated for expenditure
under the Abandoned Mined Lands and Water Reclamation Act may be used if the
amount of the bond or deposit is not sufficient to provide for adequate
reclamation or abatement.

(Source: P.A. 90-490, eff. 8-17-97.)

(225 ILCS 720/6.08) (from Ch. 96 1/2, par. 7906.08)
Sec. 6.08.
Release of bonds.
(a) A permittee may file a request with
the Department for the release of all or part of a performance bond or deposit.
Within 30 days after an application for such release has been filed with
the Department, the operator shall submit a copy of a public notice placed
at least once a week for 4 successive weeks in a newspaper of general
circulation
in the locality of the mining operation. Such public notice shall be
considered
part of the bond release application and shall contain a notification of
the precise location of the land affected, the number of acres, the permit
and the date it was approved, the amount of the bond filed and the portion
sought to be released, the type and approximate dates of reclamation work
performed, and a description of the results achieved as they relate to the
operator's approved reclamation. In addition, as part of any bond release
application, the applicant shall submit copies of letters which he has sent
to adjoining property owners, local governmental bodies, county boards,
planning agencies, and sewage and water treatment
authorities, or water companies in the locality in which the mining and
reclamation operations took place, notifying them of his intention to seek
release from the bond.
(b) Within 30 days after receipt of the notification and request, the
Department shall conduct an inspection and evaluation of the reclamation
work involved. Such evaluation shall consider, among other things, the
degree of difficulty to complete any remaining reclamation, whether pollution
of surface and subsurface water is occurring, the probability of continuance
or future occurrence of such pollution, and the estimated cost of abating
such pollution.
(c) Any person with a valid legal interest which might be adversely affected
by release of the bond or deposit, or the responsible officer or head of
any Federal, State, or local governmental agency which has jurisdiction
by law or special expertise with respect to any environmental, social, or
economic impact involved in the operation, or is authorized to develop and
enforce environmental standards with respect to such operations, may file
written objections to the proposed release with the Department within 30
days after the last publication of the notice provided in subsection (a)
of this Section. If written objections are filed, and a hearing is requested,
the Department shall inform all interested parties of the time and place
of the hearing, and shall hold a public hearing in the locality of the mining
operation proposed for bond or deposit release within 30 days after the
request for such hearing. At the option of an objector, hearings shall
be held at the State capital. The Department shall advertise the date,
time and location of such public hearings in a newspaper of general circulation
in the locality for 2 consecutive weeks.
(d) The Department may release in whole or in part said bond or deposit
if the Department is satisfied the reclamation covered by the bond or deposit
or portion thereof has been accomplished as required by this Act according
to the following schedule:
(e) The Department shall notify the permittee in writing of its decision
to release or not to release all or part of the performance bond or deposit
(1) within 60 days after the filing of the request, if no public hearing
is held under subsection (c) of this Section, or (2) if a public
hearing has been held under subsection (c) of this Section,
within 30 days thereafter.
(f) If the Department disapproves the application for release of the bond
or deposit or portion thereof, the Department shall state in writing the
reasons for disapproval and shall recommend corrective actions necessary
to secure said release. An opportunity for a public hearing shall be provided.
(g) If the Department approves the application, it shall notify the
municipality
and county in which the mining operation is located by certified mail at
least 30 days prior to the release of all or a portion of the bond or deposit.
(h) The Department may by rule provide procedures for the administration
of this Section, including procedures for hearings and informal conferences.
(i) Surface coal mining operations on lands eligible for remining shall
not affect the eligibility of those lands for reclamation and restoration under
the Abandoned Mined Lands and Water Reclamation Act after the release of the
bond or deposit for any such operation under this Section.

(Source: P.A. 90-490, eff. 8-17-97.)