Kentucky Reclamation Surety Bonds

Before any surface mining operations can begin, Kentucky coal operators are required by the Kentucky Department of Natural Resources to post a surety bond to ensure proper reclamation.

Once an application for a new, amended, revised, or renewed permit to conduct surface coal mining and reclamation operations has been approved — but before the permit is issued — the applicant must file the performance reclamation surety bond with the cabinet. This requirement can be found in 405 KAR Chapter 1.

How much does a KY surface mining surety bond cost?

Kentucky mining bonds are required in an amount ranging from $10,000 to $1,000,000. Because there is no set amount for these bonds, the price of these bonds will also vary and rely on underwriting consideration.

Once an applicant submits a bond application, an underwriter will review the applicant’s credit and financial history to determine the risk associated with writing this bond. The applicant’s risk and financials will help determine whether the bond can be issued and for what premium.

The only way to determine how much your surface mining bond will cost is to submit a free quote application today!

When does this bond remain in effect?

This bond will remain in effect until it is released by the Kentucky Department of Natural Resources. This bond must remain in effect until the department determines that all mining operations have concluded and there is no more need for the surety bond.

How to apply for a coal mining permit

Any person wishing to perform reclamation operations or surface coal mining must first obtain a permit designating the area of land that will be affected by the operations. Permits authorize the miner or operator to engage in mining and reclamation operations for a period not to exceed five years. Longer terms are available if the miner demonstrates a need for a longer term.

An applicant must file a permit application that will include:

The location and area of land affected by the operation, including a description of how to access the area from the nearest public highways
The owner (s) of the surface of the land to be affected by the permit or any owner (s) of land adjacent to any part of the affected area
The owner (s) of the coal that will be mined
The source of the applicant’s legal right to mine the coal on the affected land
The permanent and temporary addresses of the applicant (must always be current)
Whether the applicant or any associated person, partnership, or corporation holds or has held any other permits under chapter 350
- These permits must be identified if applicable
The names and addresses of all officers, partners, directors, or persons in director functions
- This includes individuals holding 10% of any class of voting stock
A listing of any violations of any applicable laws or regulations during the three-year period prior to the date of the application
Whether the land to be affected had been previously mined and is in compliance with reclamation standards

Mining permits provide protection to the public and environmental area around which the mining operations occur.

Applicants are also required to submit:

The required permit application fee
- This fee is not to exceed $2,500
A required fee of $75 for each acre or fraction of land to be affected
A surety bond in the amount required for your mining operation

The Electronic Mine Permit Forms can only be found online. All forms are compressed into Zip files and will require a compression utility to become unzipped. These files can then be opened in Microsoft Access.

Once you submit all mine permit application forms, the Division of Mine Permits must review all materials to ensure that all established standards of operation are met. If it is determined that the standards of operation are met, the division may then issue a mining permit.

Don’t forget to obtain your Kentucky reclamation and surface mining surety bond today to get the bond coverage you need!