Section 312IAC25-5-17. Forfeiture of bonds

   (a) The director shall forfeit all or part of a bond for any permit area or an increment of a permit area if reclamation operations are not conducted in accordance with the reclamation plan or the operator defaults on the conditions under which the bond was posted.

  (b) The director may withhold forfeiture if the permittee and surety, if any, agree to a compliance schedule to comply with the violations of the permit or bond conditions.

  (c) The director may allow the surety to complete the reclamation plan if the surety can demonstrate the ability to complete the reclamation plan, including achievement of the capability to support the alternative postmining land use approved by the director. No bond shall be released, except for partial releases authorized under section 16 of this rule, until successful completion of all reclamation under the terms of the permit, including applicable liability periods of section 7 of this rule.

  (d) In the event a determination to forfeit bond is made, the department shall do the following:

(1) Send written notification by certified mail, return receipt requested, to the permittee and the surety on the bond, if any, of the director's determination to forfeit all or part of the bond and the reasons for the forfeiture, including a finding of the amount to be forfeited.

(2) Advise the permittee and surety of their rights to appeal the final determination in accordance with IC 4-21.5.

(3) Proceed in an action for collection of the bond as provided by applicable laws for the collection of defaulted bonds or other debts, consistent with this section, for the amount forfeited, if an appeal is not filed within a time established by the director and a stay of collection issued by the hearing officer or such appeal is unsuccessful.

(4) If an appeal is filed, defend the action.

  (e) The written determination to forfeit all or part of the bond, including the reasons for forfeiture and the amount to be forfeited, shall be a final decision by the director.

  (f) Upon default, the director may forfeit any and all bonds deposited to complete those reclamation operations for which the bonds were posted.

  (g) The director shall utilize funds collected from bond forfeiture to complete the reclamation plan on the permit area on which bond coverage applies and to cover associated administrative expenses. (Natural Resources Commission; 312 IAC 25-5-17; filed Jun 21, 2001, 2:53 p.m.: 24 IR 3508, eff Dec 1, 2001; readopted filed May 29, 2007, 9:51 a.m.: 20070613-IR-312070146RFA; readopted filed Sep 19, 2013, 10:12 a.m.: 20131016-IR-312130125RFA)