Section NR 131.116 - Reclamation bond and other financial assurance securities(1)(a) Upon notification that a prospecting permit has been issued by the department but prior to commencing prospecting, the operator shall file with the department a bond conditioned on faithful performance of all of the requirements of this chapter and ch. 293, Stats. In lieu of a bond, the operator may deposit cash, certificates of deposit, or government securities with the department. Interest received on certificates of deposit and government securities shall be paid to the operator. The amount of the bond or other security required shall be equal to the estimated cost to the state of fulfilling the reclamation plan, in relation to that portion of the site that will be disturbed by the end of the following year. The department shall determine the estimated cost of reclamation of each prospecting site on the basis of relevant factors including expected changes in the price index, topography of the site, methods being employed, depth and composition of overburden, and depth of the prospecting excavation.(b) The department, as provided under s. 293.53(1) (a), Stats., may increase the amount of the bond, cash, certificates of deposit, or government security filed under par. (a) to assure adequate financing for the reclamation plan.(c) A bond filed under par. (a) shall be issued by a surety company licensed to do business in Wisconsin. If the surety company's license to do business is revoked or suspended, the operator, within 30 days after receiving written notice thereof from the department, shall substitute surety underwritten by a surety company licensed to do business in Wisconsin. Upon failure of the operator to make a substitution, the department shall suspend the operator's prospecting permit until an acceptable substitute surety has been submitted.(d) A bond filed under par. (a) shall provide that the bond shall not be canceled by the surety, except after not less than 90 days' notice to the department in writing by registered or certified mail. Not less than 30 days prior to the expiration of the 90-day notice of cancellation, the operator shall deliver to the department a replacement bond in the absence of which all prospecting shall cease.(3) The applicant shall submit a certificate of insurance certifying that the applicant has in force a liability insurance policy issued by an insurer authorized to do business in this state, or in lieu of a certificate of insurance evidence that the applicant has satisfied state or federal self-insurance requirements, covering all prospecting operations of the applicant in this state and affording personal injury and property damage protection in a total amount deemed adequate by the department but not less than $50,000.(4) If a mining waste site is approved as part of a permitted prospecting project, the owner shall maintain proof of financial responsibility ensuring the availability of funds for compliance with the long-term care requirements specified in the waste site feasibility study and plan of operation in accordance with ss. 293.51(1g) and 289.41, Stats., and ch. NR 182. Proof of financial responsibility for long term care shall be submitted prior to operation of the mining waste facility.(5) If a mining waste site is approved as part of a permitted prospecting project, the operator shall provide and maintain proof of financial responsibility as required under s. 293.51(1r), Stats., related to replacement of engineered cover systems or water management control systems used at the mining site or mining waste site to avoid adverse environmental consequences following closure of the mining waste site. The amount of the security required under this subsection shall be determined as provided in s. 293.51(1r), Stats., and shall be specified as part of the prospecting permit and reclamation plan approval. Proof of financial responsibility under this subsection shall be submitted at the time of closure of the mining waste site and in accordance with provisions of ch. NR 182.Wis. Admin. Code Department of Natural Resources NR 131.116
Adopted by, CR 20-043: cr. Register December 2021 No. 792, eff. 1/1/2022