Reclamation Bond Research Articles

The law and economics of reclamation bonds

It is becoming a standard practice for governments to require mining operations to post reclamation bonds. Yet, there have been few theoretical treatments examining the rationale for bonding mechanisms, and even fewer empirical treatments of the effectiveness of bonding. This paper addresses some of these holes in the literature. It begins by examining the rationale underlying reclamation bonds, and discusses the strengths and weaknesses of bonding as a tool for enforcing reclamation requirements. The role of bonding mechanisms is to help enforce standards, not necessarily yield efficient outcomes, and these mechanisms are best viewed as a complement to — not a substitute for — liability rules. The paper also examines the effectiveness of bonding by drawing on evidence from hardrock mining on public lands in the western United States.

Performance guarantee schemes in the minerals industry for sustainable development: The case of Thailand

Achieving sustainable development within Thailand and other developing nations requires a combination of appropriate minerals policies, environmental policies, legislation, administration, enforcement and organization in order to achieve a balance between mineral development and environmental concerns. Central to achieving these objectives is the design and implementation of an efficient and equitable mining reclamation procedure based on the principle of the ‘polluter pays’. It is proposed that a cornerstone of this procedure is a land reclamation bonding process which minimizes the disincentive to invest while maximizing the incentive to protect the environment. A reclamation bond allows the miner (or polluter) to receive a refund of their money for reclamation and thereby is an incentive for the miner to develop a proper plan of operations and reclamation in order to maximize their refundable money - often accomplished by the adoption and utilization of advanced technologies. Between implementing command and control regulations or establishing a bonding system, a bonding system is by far preferable for Thailand and other developing nations on the Asia-Pacific region.

Methods to determine vegetation production on surface mines

ABSTRACT State regulatory authorities (SRAs) must evaluate the amount of 1) plant cover and 2) production on revegetated areas and compare them to reference areas or a technical standard to determine if acceptable vegetation exists for reclamation bond release. While most SRAs have adopted a method to evaluate ground cover by plants, only a few SRAs have established a method for determining production. In this study, six methods for predicting aboveground biomass were used to determine if one or more methods would provide an accurate way of assessing aboveground biomass. Correlations were determined between each of six methods and the dry weight of forage clipped from large (65 m ) plots on eight reclaimed sites in West Virginia. Three methods involved visual estimations (quadrat cover, estimated yield, and average height), two methods involved indirect measurements (disk height and probe), and the sixth method used small plot clipping. The visual estimations were made by three individuals and their estim...

THE NEED FOR FEDERAL OVERSIGHT OF ALTERNATIVE BOND SYSTEMS UNDER SMCRA

The 1977 Surface Mining Control and Reclamation Act (SMCRA) requires mine operators to post reclamation bonds before mining begins. The Federal Office of Surface Mining Reclamation and Enforcement (OSMRE) has approved alternative bond systems in seven states. These systems, rather than requiring bond amounts at the full cost of reclamation, require operators t o submit only a flat rate, acreage specific bond. Additional reclamation costs should be covered by a supplemental fund composed generally of permit fees, taxes, or penalties.In many cases, alternative bond systems fail to ensure that funds will be available to reclaim coal mined land in the event of operator default, as required by SMCRA. OSMRE needs to take a more active role in oversight of existing state alternative bond systems to ensure that reclamation occurs.

Pursuing Expeditious Release of Reclamation Bonds Held on Post-May 3, 1978, Affected Areas

Pursuing Expeditious Release of Reclamation Bonds Held on Post-May 3, 1978, Affected Areas