BP BHEAD INT S

AN ACT Relating to metals mining and milling; amending RCW 78.56.110 and 78.44.161; and adding new sections to chapter 78.56 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 78.56.110 and 1995 c 223 s 1 are each amended to read as follows:

(1) The department of ecology shall not issue necessary permits to an applicant for a metals mining and milling operation until the applicant has deposited with the department of ecology a performance security which is acceptable to the department of ecology based on the requirements of subsection (2) of this section. This performance security may be:

(a) Bank letters of credit;

(b) A cash deposit;

(d) An assignment of a savings account;

(e) A savings certificate in a Washington bank; or

(f) A corporate surety bond executed in favor of the department of ecology by a corporation authorized to do business in the state of Washington under Title 48 RCW.

The department of ecology may, for any reason, refuse any performance security not deemed adequate.

(2) The performance security shall be conditioned on the faithful performance of the applicant or operator in meeting the following obligations:

(a) Compliance with the environmental protection laws of the state of Washington administered by the department of ecology, or permit conditions administered by the department of ecology, associated with the construction, operation, and closure pertaining to metals mining and milling operations, and with the related environmental protection ordinances and permit conditions established by local government when requested by local government;

(b) Reclamation of metals mining and milling operations ((~~that do not meet the threshold of surface mining as defined by RCW 78.44.031(17)~~));

(d) Provision of sufficient funding as determined by the department of ecology for cleanup of potential problems revealed during or after closure.

(3) The department of ecology may, if it deems appropriate, adopt rules for determining the amount of the performance security, requirements for the performance security, requirements for the issuer of the performance security, and any other requirements necessary for the implementation of this section.

(4) The department of ecology may increase or decrease the amount of the performance security at any time to compensate for any alteration in the operation that affects meeting the obligations in subsection (2) of this section. At a minimum, the department of ecology shall review the adequacy of the performance security every two years.

(5) Liability under the performance security shall be maintained until the obligations in subsection (2) of this section are met to the satisfaction of the department of ecology. Liability under the performance security may be released only upon written notification by the department of ecology.

(6) Any interest or appreciation on the performance security shall be held by the department of ecology until the obligations in subsection (2) of this section have been met to the satisfaction of the department of ecology. At such time, the interest shall be remitted to the applicant or operator. However, if the applicant or operator fails to comply with the obligations of subsection (2) of this section, the interest or appreciation may be used by the department of ecology to comply with the obligations.

(7) Only one agency may require a performance security to satisfy the deposit requirements of ((~~RCW 78.44.087~~)) section 2 of this act, and only one agency may require a performance security to satisfy the deposit requirements of this section. However, a single performance security, when acceptable to both the department of ecology and the department of natural resources, may be utilized by both agencies to satisfy the requirements of this section and ((~~RCW 78.44.087~~)) section 2 of this act.

NEW SECTION. Sec. 2. A new section is added to chapter 78.56 RCW to read as follows:

(1) The department of natural resources shall not issue a reclamation permit until the applicant has deposited with the department of natural resources an acceptable performance security on forms prescribed and furnished by the department of natural resources. A public or governmental agency shall not be required to post performance security nor shall a permit holder be required to post metals mining and milling performance security with more than one state or local agency.

(2) This performance security may be:

(a) Bank letters of credit acceptable to the department of natural resources;

(b) A cash deposit;

(d) An assignment of a savings account;

(e) A savings certificate in a Washington bank on an assignment form prescribed by the department of natural resources;

(f) Assignments of interests in real property within the state of Washington; or

(g) A corporate surety bond executed in favor of the department of natural resources by a corporation authorized to do business in the state of Washington under Title 48 RCW and authorized by the department of natural resources.

(3) The performance security shall be conditioned upon the faithful performance of the requirements set forth in this chapter and of the rules adopted under it.

(4) The department of natural resources shall have the authority to determine the amount of the performance security using a standardized performance security formula developed by the department of natural resources. The amount of the security shall be determined by the department of natural resources and based on the estimated costs of completing reclamation according to the approved reclamation plan or minimum standards and related administrative overhead for the area to be metals mined during (a) the next twelve‑month period, (b) the following twenty-four months, and (c) any previously disturbed areas on which the reclamation has not been satisfactorily completed and approved.

(5) The department of natural resources may increase or decrease the amount of the performance security at any time to compensate for a change in the disturbed area, the depth of excavation, a modification of the reclamation plan, or any other alteration in the conditions of the mine that affects the cost of reclamation. The department of natural resources may, for any reason, refuse any performance security not deemed adequate.

(6) Liability under the performance security shall be maintained until reclamation is completed according to the approved reclamation plan to the satisfaction of the department of natural resources unless released as hereinafter provided. Liability under the performance security may be released only upon written notification by the department of natural resources. Notification shall be given upon completion of compliance or acceptance by the department of natural resources of a substitute performance security. The liability of the surety shall not exceed the amount of security required by this section and the department of natural resource's reasonable legal fees to recover the security.

(7) Any interest or appreciation on the performance security shall be held by the department of natural resources until reclamation is completed to its satisfaction. At such time, the interest shall be remitted to the permit holder; except that such interest or appreciation may be used by the department of natural resources to effect reclamation in the event that the permit holder fails to comply with the provisions of this chapter and the costs of reclamation exceed the face value of the performance security.

(8) Except as provided in this section, no other state agency or local government shall require performance security for the purposes of metals mine reclamation and only one agency of government shall require and hold the performance security. The department of natural resources may enter into written agreements with federal agencies in order to avoid redundant bonding of metals mines straddling boundaries between federally controlled and other lands within Washington state.

NEW SECTION. Sec. 3. A new section is added to chapter 78.56 RCW to read as follows:

The department of natural resources may order at any time an inspection of the disturbed area to determine if the miner or permit holder has complied with the reclamation permit, rules, and this chapter.

The department of natural resources shall inspect metals mining and milling operations at least quarterly, unless prevented by inclement weather conditions, in order to ensure that the permit holder is in compliance with the reclamation permit, rules, and this chapter. The department of natural resources shall conduct additional inspections as needed during the construction phase of these mining operations in order to ensure compliance with the reclamation permit, rules, and this chapter.

Sec. 4. RCW 78.44.161 and 1994 c 232 s 22 are each amended to read as follows:

The department may order at any time an inspection of the disturbed area to determine if the miner or permit holder has complied with the reclamation permit, rules, and this chapter.

((The department shall have special inspection requirements for metals mining and milling operations regulated under chapter 232, Laws of 1994. The department shall inspect these mining operations at least quarterly, unless prevented by inclement weather conditions, in order to ensure that the permit holder is in compliance with the reclamation permit, rules, and this chapter. The department shall conduct additional inspections as needed during the construction phase of these mining operations in order to ensure compliance with the reclamation permit, rules, and this chapter.))