1574-S AMH ELLI H2426.2

SHB 1574 - H AMD 142 ADOPTED 3/7/95

By Representative Elliot

     On page 4, after line 22, strike all of section 3 and insert the following:

     "Sec. 3.  RCW 78.44.087 and 1994 c 232 s 23 are each amended to read as follows:

(1) The department shall not issue a reclamation permit until the applicant has deposited with the department an acceptable performance security on forms prescribed and furnished by the department.  A public or governmental agency shall not be required to post performance security nor shall a permit holder be required to post surface mining performance security with more than one state or local agency, except as provided in subsection (9) of this section.

(2) This performance security may be:

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

     (((2))) (b) A cash deposit;

     (((3))) (c) Negotiable securities acceptable to the department;

     (((4))) (d) An assignment of a savings account;

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

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

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

(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 shall have the authority to determine the amount of the performance security using a standardized performance security formula developed by the department.  The amount of the security shall be determined by the department 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 surface 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 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 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 unless released as hereinafter provided.  Liability under the performance security may be released only upon written notification by the department.  Notification shall be given upon completion of compliance or acceptance by the department of a substitute performance security.  The liability of the surety shall not exceed the amount of security required by this section and the department's reasonable legal fees to recover the security.

(7) Any interest or appreciation on the performance security shall be held by the department 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 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 surface mine reclamation and only one agency of government shall require and hold the performance security.  The department may enter into written agreements with federal agencies in order to avoid redundant bonding of surface mines straddling boundaries between federally controlled and other lands within Washington state.

     ((The department and the department of ecology shall jointly require performance security for metals mining and milling operations regulated under chapter 232, Laws of 1994.))

(9) The department of ecology shall not issue necessary permits to an applicant for a metals mining and milling operation as defined in RCW 78.56.020 until the applicant has deposited an acceptable performance security pursuant to the requirements of RCW 78.56.110.

(a) A public or governmental agency shall not be required to post surface mine reclamation performance security nor shall a permit holder be required to post surface mine reclamation performance security with any agency other than the department of natural resources.

(b) A single performance security, when acceptable to both the department of natural resources and the department of ecology, may be utilized to satisfy the requirements of this section and RCW 78.56.110."

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