Section 62C-16.0075 - Financial Responsibility(1) Security. (a) Form of Security. If the Department determines that an operator is not in compliance with the rate of reclamation established in subsection (5), the Department shall notify the operator in writing that the operator shall have 30 days to post one or more of the following forms of security:1. A lien in favor of the state on unmined lands or on reclaimed and released real property owned in fee simple absolute by the operator.2. A surety bond using the form provided by the Department or a comparable format approved by the Department.3. A letter of credit using the form provided by the Department or a comparable format approved by the Department.4. A donation of land acceptable to the state whereby every acre donated would relieve the company of the obligation to bond or otherwise provide security for the reclamation of acres mined, based on a ratio of 1 acre donated to cover the financial responsibility for 10 or more, at the discretion of the Department, acres of mined lands. This donation would not relieve the operator of the obligation to reclaim and will not be released upon reclamation of the delinquent acres. The donation shall be made in accordance with Chapter 253, F.S.5. A cash deposit or trust fund payable to the state.(b) The form of security posted shall be at the option of the operator and shall cover the number of acres for which the operator is delinquent in reclaiming in the required time period as well as the number of acres that the operator must reclaim in the current five-year period. The security posted shall remain in effect until all delinquent acres are reclaimed, except as provided in subparagraph (1)(a)4., above.(c) Release of posted securities. The operator may request that the land upon which a security has been posted be released. Such request shall be in writing to the Department. If the security cannot be released, the Department shall notify the operator in writing within 30 days of such request specifically what work must be done in order to obtain release of the security. The posted security shall be released within 30 days of a determination by the Department that reclamation upon delinquent acres has been completed. Release shall consist of notification in writing by the Department that the operator is no longer under obligation to have a posted security and return of the security, except for donated lands.(d) Failure to provide the Department with an acceptable form of security within the time allowed will constitute a major violation for which the Department may institute a civil action in accordance with Rule 62C-16.0071, F.A.C.(e) The notification provided pursuant to paragraph (1)(a), shall include:1. The number of acres on which reclamation is delinquent.2. Which five-year period the delinquency covers.3. The number of acres covered by the current five-year period.4. The amount of security required at the current time.5. How the amount of security was determined.(f) Should the security be in the form of a surety bond, letter of credit or cash deposit, or trust fund payable to the state, the amount of the security will be adjusted annually for the percentage change in the construction cost index as published in the Engineering News Record. The percentage change shall be for the twelve-month period beginning on the date of notification, pursuant to paragraph (1)(a).(2) Establishment of required security. The amount of the security shall be established by the Department using the following criteria:(a) The amount and type of reclamation involved.(b) The probable cost of proper reclamation.(c) Inflation rates based on the construction cost index as published in the Engineering News Record.(d) Changes in mining operations.(e) The amount of security shall not exceed $7,270.00 per acre for each reclamation parcel, adjusted annually for inflation by five (5) percent beginning January 1, 2007.(3) Waiver or Modification of Financial Security. In instances where the intent of the financial responsibility requirements will not be at risk, an operator may apply to the Department to modify or release it from the requirements of posting security. Requests for such modifications or releases shall be filed as requests for a variance in accordance with Rule 62C-16.0045, F.A.C. Consideration shall be given to the following: (a) Past performance by the operator in complying with approved conceptual plans.(b) Compliance by the operator with all other portions of this rule.(c) The size and nature of the operation, when the reclamation effort may be reduced significantly by the lapse of time and/or a single reclamation parcel currently underway would bring the operator into compliance with reclamation rates. It must be shown that reclamation rates would be met should a portion of the reclamation parcel(s) be considered as reclaimed in proportion to the percentage of the reclamation work effort completed on the reclamation parcel.(d) The Department's analysis of the operator's financial statements to determine the operator's financial soundness.(4) Financial Statements.(a) Operators shall submit financial statements annually, within 90 days of the end of their fiscal year.(b) The financial statements must include, at a minimum, a profit or loss statement, balance sheet, and a statement of changes in financial position. For operators reporting to the SEC, their annual Form 10-K shall constitute compliance with this requirement.(c) All financial statements, except SEC Form 10-K, shall be considered confidential by the Department and shall be maintained in locked files of which only authorized personnel shall have access.(d) The operator shall be responsible for the confidentiality of all financial statements until receipt by the Department.(5) For the purpose of Rule 62C-16.0075, F.A.C., the reclamation shall be accomplished in accordance with the following criteria: (a) For the period July 1, 1975, to December 31, 1980, for existing mines, or the first five-year period of mining for new mines, no reclamation shall be required and any reclamation which is completed shall be credited forward.(b) For the period January 1, 1981, to December 31, 1985, for existing mines, or the second five-year period of mining for new mines, reclamation of acres mined shall be completed at the rate of an acreage equivalent of 15 percent of the acres mined during the period July 1, 1975, to December 31, 1980, or the immediately preceding five-year period, as appropriate. Reclamation in excess of the required percentage shall be credited forward.(c) For the period January 1, 1986, to December 31, 1990, for existing mines, or the third five-year period of mining for new mines, reclamation of acres mined shall be completed at the rate of an acreage equivalent of 60 percent of the acres mined during the period January 1, 1981, to December 31, 1985, or the immediately preceding five-year period, as appropriate. Reclamation in excess of the required percentage shall be credited forward.(d) For the period January 1, 1991, to December 31, 1995, for existing mines, or the fourth five-year period of mining for new mines, reclamation of acres mined shall be completed at the rate of an acreage equivalent of 75 percent of the acres mined during the period January 1, 1986, to December 31, 1990, or the immediately preceding five-year period, as appropriate. Reclamation in excess of the required percentage shall be credited forward.(e) For the period January 1, 1996, to December 31, 2000, for existing mines, or the fifth five-year period of mining for new mines, and each five-year period thereafter, reclamation of acres mined shall be completed at the rate of an acreage equivalent of 100 percent of the acres mined during the immediately preceding five-year period. Reclamation in excess of the required percentage shall be credited forward.(f) For the purposes of this subsection, completed shall mean reclaimed through the initial revegetation and not through final release of the reclaimed area.(g) Acres to be credited forward shall consist of acres mined or disturbed after June 30, 1975, and completed pursuant to paragraph (f), above.(h) The operator of a mine may request that the time periods and reclamation rates specified in this subsection be modified or waived for experimental reclamation, to take into account the effect of a temporary shutdown of mining operations or other physical restraints, for unreasonable delays in the processing of reclamation applications by the Department, or to relieve or prevent extreme economic hardship on the operator.(i) The rate of mining during any five-year period is to be determined solely by the operator and not the Department.Fla. Admin. Code Ann. R. 62C-16.0075
Rulemaking Authority 378.205, 378.208 FS. Law Implemented 378.208, 378.209, 378.212 FS.
New 2-22-87, Formerly 16C-16.0075, Amended 5-28-06.New 2-22-87, Formerly 16C-16.0075, Amended 5-28-06.