ARIZONA MINING PERMITTING GUIDE - AZGS Document Repository

Bonding Requirements - Continued
Forest Service
Arizona Mining Permitting Guide
Any operator required to file a Plan of Operations, must furnish a bond (36 C.F.R. 228.13)
prior to approval of the plan. The purpose of the bond is to assure compliance with the
reclamation provisions of the regulations [36 C.F.R. 228.8 (g)] and the operating plan. The
amount of the bond will be determined on a case by case basis, and shall be based on the
estimated cost of the work needed to stabilize, rehabilitate and reclaim surface resources
disturbed by the mining operation.
If the operator fails to do the work, the bond will be used by the Forest Service to do the work
or have it done. The Forest Service will accept several different types of bonding instruments
including: certificates of deposits, savings accounts, irrevocable letters of credit, and
corporate sureties shown on the latest approved list issued by the U.S. Treasury Department
and executed on an approved standard form, cash, and Negotiable securities of the United
States.
Throughout the life of the Plan of Operations, the bond will be reviewed for adequacy and, if
necessary, adjusted to conform to changing conditions as needed. When a portion of the
reclamation has been satisfactorily completed, the amount of the bond may be reduced. When
all reclamation work has been completed, the bonding instrument will be released by the
Forest Service. Where other agencies require bonds for reclamation purposes within the
National Forests, every effort is made to avoid double bonding.
Forest Service reclamation bonding guide: www.fs.fed.us/geology/bond_guide_042004.pdf
Operations Conducted with a Mineral Materials Contract:
Bureau of Land Management
For contracts of $2,000 or more, BLM requires a performance bond of an amount sufficient to
meet the reclamation standards provided for in any contract, but at least $500. Bonding for
Free Use Permits is discretionary. BLM may require a performance bond for contracts of less
than $2,000 but will not require a bond amount greater than 20 percent of the total contract
value.
Forest Service
The Forest Service requires a bond to ensure performance of payment and reclamation. For
sales of 10,000 cubic yards or more, a bond of not less than 10 percent of the total contract
price or value of estimated production, plus reclamation costs is required. For sales under
10,000 cubic yards, bond requirements are at the discretion of the authorized officer.
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