Collateral bond Collateral bond

United States Department of the Interior
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

COLLATERAL BOND AND INDEMNITY AGREEMENT
(Corporation)
KNOW ALL PERSONS BY THESE PRESENTS, THAT THE UNDERSIGNED
,
(Corporation/Permittee/Obligor)

,
(Street Address)

(City)

(State)

(ZIP)

a corporation organized and existing under the laws of the State of
________ ,
as Obligor, is hereby held and firmly bound unto the United States Office of Surface Mining
Reclamation and Enforcement (OSM) in the sum of _________________________________
($
).

a

Contemporaneously with the execution and delivery of this Bond, the Obligor gives OSM
numbered:
, as collateral, pursuant to 30 CFR §800.5(b),
(type of instrument)

(instrument ID number)

in the amount specified above, and attached as Exhibit 1.
THE CONDITION OF THIS OBLIGATION is such, that:
Whereas, the above named Obligor has submitted an application for surface coal mining
, including a mining and reclamation plan,
operations, Permit Application No.
to conduct and reclaim the mining operation, as defined pursuant to the Surface Mining Control
and Reclamation Act of 1977, 30 U.S.C, §1201 et seq., (the Act) and its attendant regulations;
and
Whereas, pursuant to 30 CFR §800.5(b) the Obligor has chosen to post a collateral bond
and indemnity agreement (Bond) as a guarantee that the reclamation of the land disturbed during
this surface coal mining operation will be completed as required by the Act and 30 CFR Chapter
VII, and as specified in the Permit as issued; and
Whereas, the Obligor agrees to guarantee the obligation and to indemnify, defend, and
hold harmless OSM from any and all losses and expenses which OSM may sustain as a result of
the Obligor’s failure to comply with the conditions of the obligation; and

Permit No.____________

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Collateral Bond & Indemnity Agreement

Whereas obligations guaranteed by this bond shall be in effect for the following described lands
approved as the permit area or increment upon which initial or succeeding operations will be
conducted: ________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________.
(If more space is needed, attached a signed legal description exhibit to this collateral bond agreement)

Now therefore, if the Obligor faithfully completes all reclamation and abatement
requirements set forth in the Act, in 30 CFR Chapter VII, and in its Permit, including the mining
and reclamation plans, then this obligation shall be void; otherwise, it shall remain in full force
and effect:
(a)

beginning on the date of the approval and issuance of Permit No.___________
and extending until all reclamation, restoration, and abatement work pursuant to
the Act, 30 CFR Chapter VII, and the permit has been completed to the
satisfaction of OSM; and,

(b)

until the bond is released pursuant to 30 CFR §800.40, replaced in accordance
with 30 CFR §800.30, or until the permit has been sold, reassigned or otherwise
transferred in accordance with 30 CFR §774.17; and

(c)

extending for a minimum period of
years, notwithstanding the
requirements of sub-paragraphs (a) and (b) above, it being further understood that
if the Obligor performs any augmented seeding, fertilization or other
supplemental reclamation work on the site prior to bond release, the period of
liability under this bond shall begin again subject to the exception found in 30
CFR §816.116(c)(4) or 30 CFR §817.116(c)(4).

The failure of the Obligor to fulfill the obligations specified by the Act, 30 CFR Chapter
VII, and its permit, shall result in a forfeiture of this performance bond according to the
procedures described in 30 CFR §800.50.
IN WITNESS WHEREOF, the Obligor has hereunto set its signature and seal this
day of ___________________,
.
__________________________________
(Corporation/Permittee)

By:________________________________
(Corporate Officer1)

_______________________________
(Title)
1

Where one signs by virtue of Power of Attorney or Corporate Resolution for a corporate Principal, a certified copy
of the Power of Attorney or Corporate Resolution must be filed with the collateral bond.

Permit No.____________

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Collateral Bond & Indemnity Agreement

ACKNOWLEDGEMENT OF CORPORATION - OBLIGOR
On this _____ day of __________________________,
, before me, a Notary
Public in and for the County of _____________________ , in the State of _____
,
appeared _________________________ to me personally known who, being by me fully sworn,
did say that he/she is of
, the corporation named in and
which executed the within instrument, and that the seal affixed to said instrument is the corporate
seal of said corporation, and that said instrument was signed, sealed and delivered on behalf of
said corporation by authority of its Board of Directors, and he/she, as such officer,
acknowledged said instrument to be the free act and deed of said corporation for the uses and
purposes of said instrument as therein set forth.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal on the day,
month, and year aforesaid.
My Commission Expires: ____________________________________
________________________________________
Notary Public in aforesaid County and State

NOTE: Where negotiable securities are used as collateral, a completed POWER of ATTORNEY
AND AGREEMENT must be attached.

Paperwork Reduction Act Notice
We use the information required by this form to ensure that the requirements for a collateral bond under 30 CFR
800.21 have been met. You must provide the requested information to obtain a benefit (a collateral bond). Under 30
CFR 842.16, the information collected is a matter of public record.
The time needed to complete this form and related forms and submit the requested information to obtain a collateral
bond will vary depending on individual circumstances. We estimate that the average time will be 4 hours per
response. This number includes the time spent reviewing instructions, learning about the regulations, gathering and
maintaining information, and completing and reviewing the forms. If you have comments concerning the accuracy
of this estimate or suggestions for simplifying the forms or instructions, you may write to the Information Collection
Clearance Officer, Office of Surface Mining Reclamation and Enforcement, Room 202 SIB, 1951 Constitution Ave,
NW, Washington, D.C. 20240.
Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), you are not required to respond to, nor will
you be subject to a penalty for a failure to comply with, a collection of information unless it displays a currently
valid OMB control number.
OMB Control No. 1029-0043; expires 1/31/2009

Permit No.____________

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Collateral Bond & Indemnity Agreement