Arkansas § 15-57-412 - Bond.

§ 15-57-412. Bond.

In order to assure that all reclamation is completed as required and within a reasonable length of time, the operator shall submit a bond or substitute security used specifically for the quarry described in the legal description of the notification of intent. The bond or substitute security shall be in force prior to the operator commencing a new or reactivated quarry operation and in force for all active quarry operations by January 1, 1998. As of January 1, 1998, the reclamation bond required for acceptance of an operator's notice of intent to open a quarry, or to reactivate a quarry, will be one thousand one hundred dollars ($1,100) per acre of affected land. The face value of the bond will be evaluated every five (5) years by the operator and a representative of the Division of Environmental Quality. In the event it is determined that the bond or substitute security is inadequate, the surety will be notified and the bond limits or amount of security will be increased. If the security is determined to be surplus, then the amount required will be decreased. Bonding or substitute security may be incrementally increased based on the annual acreage to be affected but must be sufficient in total to fund full reclamation as required by this subchapter. Bonding or substitute security shall be incrementally decreased as reclamation is completed. When final reclamation is completed, the remaining bond or substitute security will be released to the operator. The operator may submit any of the following three (3) types of bonds or substitute security: A surety bond; A collateral bond with supporting collateral consisting of irrevocable letters of credit or certificates of deposit in favor of the division; and A self bond with an unencumbered right to certain property to be held by the division. Recommended bond forms shall be provided by the division. A variation of the language in all but the self bond form may be acceptable, provided the requirements of this subchapter and this Code are incorporated and the division approves the language. In the event self bonding is used, the following conditions apply: The applicant must use the self bond form provided by the division; The collateral to be offered must be appraised by a licensed appraiser approved by the operator and the division; The operator must have unencumbered ownership of the collateral and provide proof of such ownership to the division; The value of the collateral as bond will be eighty percent (80%) of the fair market value of the collateral as established by the appraiser; Any collateral that decreases in value due to usage (rolling stock) will be not be acceptable; In the event the collateral consists of real property, an environmental audit of the area must be provided to the division; and Where applicable, a lien will be filed against the collateral until the affected area is reclaimed and released by the Arkansas Pollution Control and Ecology Commission.