RE: mine #2 and #3For 2010 for the 1st 3 months Mine #1 made a deficit of 75,797 according to the last financial report.
lets hope mine#2 is producing good numbers.
Mine #3 permit has been approved, public notice has been filed. Accoding to NAG's timeline if it holds true we can start after bond is posted.
Here is some more bond information source: https://scholar.lib.vt.edu/theses/available/etd-06272008-162512/unrestricted/Thesis5.pdf
GLTA
Wallywill
The second method of bonding allowed in some states (Kentucky and Virgnia) is the pool
bond fund, which is officially known as the Coal Surface Mining Reclamation Fund. If a
company qualifies for this alternative, a flat rate method set by the regulatory authority is used to
calculate the bond amount. This entails multiplying the flat rate by the number of acres in the
permit to be reclaimed to achieve a cost estimate of reclamation. This bond amount is generally
23
smaller than those posted using the cost estimate method (Dept of Mines, Minerals and Energy
2005).
OSMRE regulations 30 CFR 800.14(a)(1) specify that the bond amount be set by the
regulatory authority in charge of mining for each state. The bond amount must reflect the
probable difficulty of reclaiming the site based on site specific factors such as topography,
hydrology, geology and revegetation potential (30 CFR 800.14). For the calculation of bond
amounts, OSMRE follows a standard engineering cost-estimating methodology, which accounts
for site specific conditions. State agencies must use this methodology, or procedures consistent
with 30 CFR 800.14(a), to calculate bonds (1987 Handbook for Calculation of Reclamation
4.A.4. Pool Bond System.
The state of Kentucky allows an alternative bonding system known as the bond pool
program. In Kentucky the bond pool is a voluntary alternative bonding system created through
KRS 350.700- 350.755 (405 KAR 10:001). The bond pool fund consists of moneys collected
through membership fees as well as fines collected for surface coal mine reclamation violations
in the state of Kentucky. The money is deposited into an interest bearing account to be used only
for reclamation expenses due to operator bond forfeiture, Kentucky cabinet administrative costs,
26
to fund audits and studies required under KRS 350.710, and to cover operating expenses of the
bond pool commission (KRS 350.700).
Any operator who is interested in joining the bond pool program must submit an
application for membership, including a $100 non-refundable application fee (405 KAR 10:200).
Along with good financial standing, a bond pool applicant must receive an “A”, “B”, or “C”
rating from the commission to qualify for bond pool membership. An “A” rating is assigned if
the applicant has held a surface coal mining permit for at least five years and has an excellence
compliance record. A “B” rating is granted if the applicant has held a surface coal mining permit
for at least five years and has an acceptable compliance record. A “C” rating only requires a
surface coal mining permit be held for three of the last five years and the applicant having an
acceptable compliance record. Compliance records are determined by the commission by
looking at the number and seriousness of surface coal mining violations the applicant has
committed (KRS 350.720).
Membership fees are required for all accepted applicants into the bond pool program.
“A” rated members are charged a membership fee of $1,000. “B” rated members are charged
$2,000 and “C” rated members are required to pay $2,500. In addition to the membership fee,
each member is required to pay a set fee for each ton of coal extracted. This fee is determined by
the weight of the coal the first time the coal is weighed (KRS 350.725). When the pool bond
fund reaches 7 million dollars, the tonnage fee is suspended for all members who have made at
least 36 or more monthly payments to the pool fund. The tonnage fee is reinstated when the fund
drops below 5 million dollars (KRS 350.730). In addition to the membership and tonnage fees,
bond pool members are also required to submit a permit specific penal bond. The bond amounts
are calculated as $500 per acre for “A” rated members, $1,500 per acre for “B” rated members,
27
and $2,000 per acre for “C” rated members. This permit specific penal bond is released in its
entirety in accordance with bond release procedures once successful reclamation has been
completed (KRS 350.735).