{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/45.2-1016.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/45.2-1016.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/45.2-1016.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/45.2-1016.html"}],"law_id":64109,"edition_id":1,"section_id":64109,"structure_id":13541,"section_number":"45.2-1016","catch_line":" Performance bonds","history":"1979, c. 290, \u00a7 45.1-241; 1984, c. 590; 1997, c. 285; 1998, c. 692; 2014, cc. 111, 135; 2021, Sp. Sess. I, c. 387.","full_text":"A\n\nAfter a coal surface mining permit application has been approved, but before such permit is issued, the applicant shall file with the Director, on a form prescribed and furnished by the Director, a bond for performance payable to the Commonwealth and conditioned upon the faithful performance of all the requirements of this chapter and the permit. The bond shall cover that area of land within the permit area upon which the operator plans to initiate and conduct surface coal mining and reclamation operations within the initial term of the permit. As each succeeding increment of coal surface mining and reclamation operations is initiated and conducted within the permit area, the permittee shall file with the Director an additional bond to cover such increment in accordance with this section. The amount of the bond required for each bonded area shall be determined by the Director and shall (i) depend upon the reclamation requirements of the approved permit and (ii) reflect the probable difficulty of reclamation, giving consideration to such factors as topography, geology of the site, hydrology, and revegetation potential. The amount of the bond shall be sufficient to assure the completion of the reclamation plan if the work is performed by the Director in the event of forfeiture but in no case shall the bond for the entire area under one permit be less than $10,000.B\n\nLiability under a performance bond shall be for the duration of the coal surface mining and reclamation operation and for a period coincident with the operator’s responsibility for revegetation as required under regulations adopted pursuant to § 45.2-1017. The bond shall be executed by the operator and a corporate surety licensed to do business in the Commonwealth, except that the operator may elect to deposit cash, negotiable bonds of the United States or the Commonwealth, or negotiable certificates of deposit of any bank organized for transacting business in the United States. The cash deposit or market value of such securities shall be equal to or greater than the amount of the bond required for the bonded area.C\n\nCash or securities deposited pursuant to subsection B shall be deposited upon the same terms as the terms upon which surety bonds may be deposited. Such securities shall be security for the repayment of such negotiable certificate of deposit.D\n\nThe Director may accept a letter of credit on certain designated funds issued by a financial institution authorized to do business in the United States. Such letter of credit shall be irrevocable and unconditional, shall be payable to the Department upon demand, and shall afford the Department protection equivalent to a corporate surety’s bond. Such letter of credit shall be provided on a form and in a format established by the Director. Nothing in this section shall relieve the permittee of responsibility under the permit or the issuer of liability on the letter of credit.E\n\nThe issuer of a letter of credit pursuant to subsection D shall give prompt notice to the permittee and the Department of any notice received or action filed alleging the insolvency or bankruptcy of the issuer, or alleging any violation of a regulatory requirement that could result in the suspension or revocation of the issuer’s charter or license to do business. In the event the issuer becomes unable to fulfill any of its obligations under the letter of credit for any reason, the issuer shall immediately notify the permittee and the Department. Upon the incapacity of an issuer by a reason of bankruptcy, insolvency, or the suspension or revocation of its charter or license, the permittee shall be deemed to be without proper performance bond coverage and shall promptly notify the Department. The Department shall then issue a notice to the permittee specifying a reasonable period not exceeding 90 days to replace bond coverage. If an adequate bond is not posted by the end of the period allowed, the permittee shall cease coal extraction and coal processing operations and shall immediately begin to conduct reclamation operations in accordance with its reclamation plan. No coal extraction or coal processing operation shall resume until the Department has determined that an acceptable bond has been posted. If an acceptable bond has not been posted by the end of the period allowed, the Department may suspend the permit until an acceptable bond is posted.F\n\nThe Director may develop and adopt an alternative system to achieve the objectives and purposes of the bonding program established under this section.G\n\nThe amount of the bond or deposit required and the terms of each acceptance of the applicant’s bond shall be adjusted by the Director from time to time as affected land acreages are increased or decreased or where the cost of future reclamation changes.","order_by":null,"text":{"0":{"id":233422,"text":"After a coal surface mining permit application has been approved, but before such permit is issued, the applicant shall file with the Director, on a form prescribed and furnished by the Director, a bond for performance payable to the Commonwealth and conditioned upon the faithful performance of all the requirements of this chapter and the permit. The bond shall cover that area of land within the permit area upon which the operator plans to initiate and conduct surface coal mining and reclamation operations within the initial term of the permit. As each succeeding increment of coal surface mining and reclamation operations is initiated and conducted within the permit area, the permittee shall file with the Director an additional bond to cover such increment in accordance with this section. The amount of the bond required for each bonded area shall be determined by the Director and shall (i) depend upon the reclamation requirements of the approved permit and (ii) reflect the probable difficulty of reclamation, giving consideration to such factors as topography, geology of the site, hydrology, and revegetation potential. The amount of the bond shall be sufficient to assure the completion of the reclamation plan if the work is performed by the Director in the event of forfeiture but in no case shall the bond for the entire area under one permit be less than $10,000.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":233423,"text":"Liability under a performance bond shall be for the duration of the coal surface mining and reclamation operation and for a period coincident with the operator’s responsibility for revegetation as required under regulations adopted pursuant to § 45.2-1017. The bond shall be executed by the operator and a corporate surety licensed to do business in the Commonwealth, except that the operator may elect to deposit cash, negotiable bonds of the United States or the Commonwealth, or negotiable certificates of deposit of any bank organized for transacting business in the United States. The cash deposit or market value of such securities shall be equal to or greater than the amount of the bond required for the bonded area.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":233424,"text":"Cash or securities deposited pursuant to subsection B shall be deposited upon the same terms as the terms upon which surety bonds may be deposited. Such securities shall be security for the repayment of such negotiable certificate of deposit.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":233425,"text":"The Director may accept a letter of credit on certain designated funds issued by a financial institution authorized to do business in the United States. Such letter of credit shall be irrevocable and unconditional, shall be payable to the Department upon demand, and shall afford the Department protection equivalent to a corporate surety’s bond. Such letter of credit shall be provided on a form and in a format established by the Director. Nothing in this section shall relieve the permittee of responsibility under the permit or the issuer of liability on the letter of credit.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":233426,"text":"The issuer of a letter of credit pursuant to subsection D shall give prompt notice to the permittee and the Department of any notice received or action filed alleging the insolvency or bankruptcy of the issuer, or alleging any violation of a regulatory requirement that could result in the suspension or revocation of the issuer’s charter or license to do business. In the event the issuer becomes unable to fulfill any of its obligations under the letter of credit for any reason, the issuer shall immediately notify the permittee and the Department. Upon the incapacity of an issuer by a reason of bankruptcy, insolvency, or the suspension or revocation of its charter or license, the permittee shall be deemed to be without proper performance bond coverage and shall promptly notify the Department. The Department shall then issue a notice to the permittee specifying a reasonable period not exceeding 90 days to replace bond coverage. If an adequate bond is not posted by the end of the period allowed, the permittee shall cease coal extraction and coal processing operations and shall immediately begin to conduct reclamation operations in accordance with its reclamation plan. No coal extraction or coal processing operation shall resume until the Department has determined that an acceptable bond has been posted. If an acceptable bond has not been posted by the end of the period allowed, the Department may suspend the permit until an acceptable bond is posted.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":233427,"text":"The Director may develop and adopt an alternative system to achieve the objectives and purposes of the bonding program established under this section.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":233428,"text":"The amount of the bond or deposit required and the terms of each acceptance of the applicant’s bond shall be adjusted by the Director from time to time as affected land acreages are increased or decreased or where the cost of future reclamation changes.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":13541,"edition_id":1,"name":"Regulation of Mining Activity","identifier":"2","label":"article","depth":5,"order_by":1,"parent_id":13540,"metadata":{},"date_created":"2026-06-26 03:45:10","date_modified":"2026-06-26 03:45:10","permalink":{"id":223733,"object_type":"structure","relational_id":13541,"identifier":"2","token":"45.2\/II\/C\/10\/2","url":"\/45.2\/II\/C\/10\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13540,"edition_id":1,"name":"Virginia Coal Surface Mining Control and Reclamation Act of 1979","identifier":"10","label":"chapter","depth":4,"order_by":1,"parent_id":13539,"metadata":{},"date_created":"2026-06-26 03:45:10","date_modified":"2026-06-26 03:45:10","permalink":{"id":223697,"object_type":"structure","relational_id":13540,"identifier":"10","token":"45.2\/II\/C\/10","url":"\/45.2\/II\/C\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13539,"edition_id":1,"name":"Surface Coal Mines","identifier":"C","label":"part","depth":3,"order_by":1,"parent_id":12985,"metadata":{},"date_created":"2026-06-26 03:45:10","date_modified":"2026-06-26 03:45:10","permalink":{"id":223695,"object_type":"structure","relational_id":13539,"identifier":"C","token":"45.2\/II\/C","url":"\/45.2\/II\/C\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12985,"edition_id":1,"name":"Coal Mining","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12713,"metadata":{},"date_created":"2026-06-26 03:44:06","date_modified":"2026-06-26 03:44:06","permalink":{"id":222647,"object_type":"structure","relational_id":12985,"identifier":"II","token":"45.2\/II","url":"\/45.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12713,"edition_id":1,"name":"Mines, Minerals, and Energy","identifier":"45.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":222539,"object_type":"structure","relational_id":12713,"identifier":"45.2","token":"45.2","url":"\/45.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":59248,"structure_id":13541,"section_number":"45.2-1008","catch_line":" Coal exploration operations","url":"\/45.2-1008\/","token":"45.2\/II\/C\/10\/2\/45.2-1008","metadata":false},{"id":68698,"structure_id":13541,"section_number":"45.2-1009","catch_line":" Permit required for coal surface mining operation; term; transfer, etc","url":"\/45.2-1009\/","token":"45.2\/II\/C\/10\/2\/45.2-1009","metadata":false},{"id":63876,"structure_id":13541,"section_number":"45.2-1010","catch_line":" Form and contents of permit application; fee","url":"\/45.2-1010\/","token":"45.2\/II\/C\/10\/2\/45.2-1010","metadata":false},{"id":69681,"structure_id":13541,"section_number":"45.2-1011","catch_line":" Operation and reclamation plans","url":"\/45.2-1011\/","token":"45.2\/II\/C\/10\/2\/45.2-1011","metadata":false},{"id":54700,"structure_id":13541,"section_number":"45.2-1012","catch_line":" Revision of permits","url":"\/45.2-1012\/","token":"45.2\/II\/C\/10\/2\/45.2-1012","metadata":false},{"id":80707,"structure_id":13541,"section_number":"45.2-1013","catch_line":" Approval or denial of permit","url":"\/45.2-1013\/","token":"45.2\/II\/C\/10\/2\/45.2-1013","metadata":false},{"id":81130,"structure_id":13541,"section_number":"45.2-1014","catch_line":" Public participation in process of issuing or revising permits","url":"\/45.2-1014\/","token":"45.2\/II\/C\/10\/2\/45.2-1014","metadata":false},{"id":76504,"structure_id":13541,"section_number":"45.2-1015","catch_line":" Decision of Director upon permit application; hearing; appeal","url":"\/45.2-1015\/","token":"45.2\/II\/C\/10\/2\/45.2-1015","metadata":false},{"id":64109,"structure_id":13541,"section_number":"45.2-1016","catch_line":" Performance bonds","url":"\/45.2-1016\/","token":"45.2\/II\/C\/10\/2\/45.2-1016","metadata":false},{"id":74259,"structure_id":13541,"section_number":"45.2-1017","catch_line":" Performance standards","url":"\/45.2-1017\/","token":"45.2\/II\/C\/10\/2\/45.2-1017","metadata":false},{"id":84028,"structure_id":13541,"section_number":"45.2-1018","catch_line":" Surface effects of underground coal mining operations","url":"\/45.2-1018\/","token":"45.2\/II\/C\/10\/2\/45.2-1018","metadata":false},{"id":84230,"structure_id":13541,"section_number":"45.2-1019","catch_line":" Inspections and monitoring","url":"\/45.2-1019\/","token":"45.2\/II\/C\/10\/2\/45.2-1019","metadata":false},{"id":54505,"structure_id":13541,"section_number":"45.2-1020","catch_line":" Enforcement of chapter generally","url":"\/45.2-1020\/","token":"45.2\/II\/C\/10\/2\/45.2-1020","metadata":false},{"id":84596,"structure_id":13541,"section_number":"45.2-1021","catch_line":" Civil and criminal penalties","url":"\/45.2-1021\/","token":"45.2\/II\/C\/10\/2\/45.2-1021","metadata":false},{"id":80009,"structure_id":13541,"section_number":"45.2-1022","catch_line":" Citizen suits; rights of citizens to accompany inspectors","url":"\/45.2-1022\/","token":"45.2\/II\/C\/10\/2\/45.2-1022","metadata":false},{"id":61906,"structure_id":13541,"section_number":"45.2-1023","catch_line":" Forfeiture or release of performance bond","url":"\/45.2-1023\/","token":"45.2\/II\/C\/10\/2\/45.2-1023","metadata":false},{"id":84157,"structure_id":13541,"section_number":"45.2-1024","catch_line":" Performance of reclamation operations by Director","url":"\/45.2-1024\/","token":"45.2\/II\/C\/10\/2\/45.2-1024","metadata":false},{"id":54560,"structure_id":13541,"section_number":"45.2-1025","catch_line":" Administrative review of notice or order issued under \u00a7 45.2-1020","url":"\/45.2-1025\/","token":"45.2\/II\/C\/10\/2\/45.2-1025","metadata":false},{"id":86764,"structure_id":13541,"section_number":"45.2-1026","catch_line":" Hearings","url":"\/45.2-1026\/","token":"45.2\/II\/C\/10\/2\/45.2-1026","metadata":false},{"id":76733,"structure_id":13541,"section_number":"45.2-1027","catch_line":" Judicial review of final order or decision or decision under \u00a7 45.2-1035","url":"\/45.2-1027\/","token":"45.2\/II\/C\/10\/2\/45.2-1027","metadata":false},{"id":61010,"structure_id":13541,"section_number":"45.2-1028","catch_line":" Designating areas unsuitable for coal surface mining","url":"\/45.2-1028\/","token":"45.2\/II\/C\/10\/2\/45.2-1028","metadata":false}],"previous_section":{"id":76504,"structure_id":13541,"section_number":"45.2-1015","catch_line":" Decision of Director upon permit application; hearing; appeal","url":"\/45.2-1015\/","token":"45.2\/II\/C\/10\/2\/45.2-1015","metadata":false},"next_section":{"id":74259,"structure_id":13541,"section_number":"45.2-1017","catch_line":" Performance standards","url":"\/45.2-1017\/","token":"45.2\/II\/C\/10\/2\/45.2-1017","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/45.2-1016\/","history_text":"

This law was first created in 1979. The record of its establishment is cataloged in chapter 290 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1979 \u201cActs\u201d aren\u2019t available online. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1984, chapter 590; in 1997, chapter 285<\/a>; in 1998, chapter 692<\/a>; in 2014, chapters 111<\/a> and 135<\/a>.<\/p>","references":[{"id":66688,"section_number":"45.2-1000","catch_line":" Definitions","order_by":null,"url":"\/45.2-1000\/"},{"id":74085,"section_number":"45.2-1044","catch_line":" Participation in Fund","order_by":null,"url":"\/45.2-1044\/"},{"id":82398,"section_number":"45.2-1045","catch_line":" Initial payments into Fund; renewal payments; bonds","order_by":null,"url":"\/45.2-1045\/"}],"refers_to":[{"id":74259,"section_number":"45.2-1017","catch_line":" Performance standards","order_by":null,"url":"\/45.2-1017\/"}],"permalink":{"id":223767,"object_type":"law","relational_id":64109,"identifier":"45.2-1016","token":"45.2\/II\/C\/10\/2\/45.2-1016","url":"\/45.2-1016\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/45.2-1016\/","token":"45.2\/II\/C\/10\/2\/45.2-1016","dublin_core":{"Title":" Performance bonds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 45.2-1016","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> After a coal surface mining permit application has been approved, but before such permit is issued, the applicant shall file with the Director<\/span>, on a form prescribed and furnished by the Director<\/span>, a bond<\/span> for performance payable to the Commonwealth and conditioned upon the faithful performance of all the requirements of this chapter and the permit. The bond<\/span> shall cover that area of land within the permit area<\/span> upon which the operator<\/span> plans to initiate and conduct surface coal mining and reclamation operations within the initial term of the permit. As each succeeding increment of coal surface mining and reclamation operations<\/span> is initiated and conducted within the permit area<\/span>, the permittee<\/span> shall file with the Director<\/span> an additional bond<\/span> to cover such increment in accordance with this section. The amount of the bond<\/span> required for each bonded area shall be determined by the Director<\/span> and shall (i) depend upon the reclamation requirements of the approved permit and (ii) reflect the probable difficulty of reclamation, giving consideration to such factors as topography, geology of the site, hydrology, and revegetation potential. The amount of the bond<\/span> shall be sufficient to assure the completion of the reclamation plan if the work is performed by the Director<\/span> in the event of forfeiture but in no case shall the bond<\/span> for the entire area under one permit be less than $10,000. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Liability under a performance bond<\/span> shall be for the duration of the coal surface mining and reclamation operation<\/span> and for a period coincident with the operator<\/span>’s responsibility for revegetation as required under regulations adopted pursuant to § 45.2-1017<\/a>. The bond<\/span> shall be executed by the operator<\/span> and a corporate surety<\/span> licensed to do business in the Commonwealth, except that the operator<\/span> may elect to deposit cash, negotiable bonds<\/span> of the United States or the Commonwealth, or negotiable certificates of deposit of any bank organized for transacting business in the United States. The cash deposit or market value of such securities shall be equal to or greater than the amount of the bond<\/span> required for the bonded area. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Cash or securities deposited pursuant to subsection B shall be deposited upon the same terms as the terms upon which surety<\/span> bonds<\/span> may be deposited. Such securities shall be security for the repayment of such negotiable certificate of deposit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Director<\/span> may accept a letter of credit on certain designated funds issued by a financial institution authorized to do business in the United States. Such letter of credit shall be irrevocable and unconditional, shall be payable to the Department<\/span> upon demand, and shall afford the Department<\/span> protection equivalent to a corporate surety<\/span>’s bond<\/span>. Such letter of credit shall be provided on a form and in a format established by the Director<\/span>. Nothing in this section shall relieve the permittee<\/span> of responsibility under the permit or the issuer of liability on the letter of credit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The issuer of a letter of credit pursuant to subsection D shall give prompt notice to the permittee<\/span> and the Department<\/span> of any notice received or action filed alleging the insolvency or bankruptcy<\/span> of the issuer, or alleging any violation of a regulatory requirement that could result in the suspension or revocation<\/span> of the issuer’s charter or license to do business. In the event the issuer becomes unable to fulfill any of its obligations under the letter of credit for any reason, the issuer shall immediately notify the permittee<\/span> and the Department<\/span>. Upon the incapacity of an issuer by a reason of bankruptcy<\/span>, insolvency, or the suspension or revocation<\/span> of its charter or license, the permittee<\/span> shall be deemed to be without proper performance bond<\/span> coverage and shall promptly notify the Department<\/span>. The Department<\/span> shall then issue<\/span> a notice to the permittee<\/span> specifying a reasonable period not exceeding 90 days to replace bond<\/span> coverage. If an adequate bond<\/span> is not posted by the end of the period allowed, the permittee<\/span> shall cease coal extraction and coal processing operations and shall immediately begin to conduct reclamation operations in accordance with its reclamation plan. No coal extraction or coal processing operation shall resume until the Department<\/span> has determined that an acceptable bond<\/span> has been posted. If an acceptable bond<\/span> has not been posted by the end of the period allowed, the Department<\/span> may suspend the permit until an acceptable bond<\/span> is posted. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The Director<\/span> may develop and adopt an alternative system to achieve the objectives and purposes of the bonding program established under this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The amount of the bond<\/span> or deposit required and the terms of each acceptance of the applicant’s bond<\/span> shall be adjusted by the Director<\/span> from time to time as affected land acreages are increased or decreased or where the cost of future reclamation changes. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n PERFORMANCE BONDS (\u00a7 45.2-1016)\n\nA. After a coal surface mining permit application has been approved, but before\nsuch permit is issued, the applicant shall file with the Director, on a form\nprescribed and furnished by the Director, a bond for performance payable to the\nCommonwealth and conditioned upon the faithful performance of all the\nrequirements of this chapter and the permit. The bond shall cover that area of\nland within the permit area upon which the operator plans to initiate and\nconduct surface coal mining and reclamation operations within the initial term\nof the permit. As each succeeding increment of coal surface mining and\nreclamation operations is initiated and conducted within the permit area, the\npermittee shall file with the Director an additional bond to cover such\nincrement in accordance with this section. The amount of the bond required for\neach bonded area shall be determined by the Director and shall (i) depend upon\nthe reclamation requirements of the approved permit and (ii) reflect the\nprobable difficulty of reclamation, giving consideration to such factors as\ntopography, geology of the site, hydrology, and revegetation potential. The\namount of the bond shall be sufficient to assure the completion of the\nreclamation plan if the work is performed by the Director in the event of\nforfeiture but in no case shall the bond for the entire area under one permit be\nless than $10,000.\n\nB. Liability under a performance bond shall be for the duration of the coal\nsurface mining and reclamation operation and for a period coincident with the\noperator’s responsibility for revegetation as required under regulations\nadopted pursuant to § 45.2-1017. The bond shall be executed by the operator\nand a corporate surety licensed to do business in the Commonwealth, except that\nthe operator may elect to deposit cash, negotiable bonds of the United States or\nthe Commonwealth, or negotiable certificates of deposit of any bank organized\nfor transacting business in the United States. The cash deposit or market value\nof such securities shall be equal to or greater than the amount of the bond\nrequired for the bonded area.\n\nC. Cash or securities deposited pursuant to subsection B shall be deposited upon\nthe same terms as the terms upon which surety bonds may be deposited. Such\nsecurities shall be security for the repayment of such negotiable certificate of\ndeposit.\n\nD. The Director may accept a letter of credit on certain designated funds issued\nby a financial institution authorized to do business in the United States. Such\nletter of credit shall be irrevocable and unconditional, shall be payable to the\nDepartment upon demand, and shall afford the Department protection equivalent to\na corporate surety’s bond. Such letter of credit shall be provided on a\nform and in a format established by the Director. Nothing in this section shall\nrelieve the permittee of responsibility under the permit or the issuer of\nliability on the letter of credit.\n\nE. The issuer of a letter of credit pursuant to subsection D shall give prompt\nnotice to the permittee and the Department of any notice received or action\nfiled alleging the insolvency or bankruptcy of the issuer, or alleging any\nviolation of a regulatory requirement that could result in the suspension or\nrevocation of the issuer’s charter or license to do business. In the event\nthe issuer becomes unable to fulfill any of its obligations under the letter of\ncredit for any reason, the issuer shall immediately notify the permittee and the\nDepartment. Upon the incapacity of an issuer by a reason of bankruptcy,\ninsolvency, or the suspension or revocation of its charter or license, the\npermittee shall be deemed to be without proper performance bond coverage and\nshall promptly notify the Department. The Department shall then issue a notice\nto the permittee specifying a reasonable period not exceeding 90 days to replace\nbond coverage. If an adequate bond is not posted by the end of the period\nallowed, the permittee shall cease coal extraction and coal processing\noperations and shall immediately begin to conduct reclamation operations in\naccordance with its reclamation plan. No coal extraction or coal processing\noperation shall resume until the Department has determined that an acceptable\nbond has been posted. If an acceptable bond has not been posted by the end of\nthe period allowed, the Department may suspend the permit until an acceptable\nbond is posted.\n\nF. The Director may develop and adopt an alternative system to achieve the\nobjectives and purposes of the bonding program established under this section.\n\nG. The amount of the bond or deposit required and the terms of each acceptance\nof the applicant’s bond shall be adjusted by the Director from time to\ntime as affected land acreages are increased or decreased or where the cost of\nfuture reclamation changes.\n\nHISTORY: 1979, c. 290, \u00a7 45.1-241; 1984, c. 590; 1997, c. 285; 1998, c. 692;\n2014, cc. 111, 135; 2021, Sp. Sess. I, c. 387.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}