Self-bond indemnit Self-bond indemnity agreement

United States Department of the Interior
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT
SELF-BOND INDEMNITY AGREEMENT
Permit No._____________

Self-Bond No. ____________

THIS AGREEMENT OF INDEMNITY, by and between the United States Office of
Surface Mining Reclamation and Enforcement (hereinafter referred to as OSM), as
indemnitee, and, ______________, duly authorized to do business in the State of
, as indemnitor, (hereinafter referred to as “Permittee”) and as Guarantor;
WHEREAS, Permittee has filed with OSM an application to self-bond in compliance
with 30 USC 1259 et. seq., and the rules and regulations promulgated thereunder, in
connection with Permittee’s Mining Permit No.
;
WHEREAS, Permittee has satisfied the self-bonding requirements and criteria set by
OSM;
WHEREAS, Permittee desires to indemnify OSM from all loss and costs associated
with its Self-Bond No.
.
WHEREAS, Permittee has the full authority under the laws of the State of
, under which it is incorporated, its articles of incorporation and bylaws to enter
into this Indemnity Agreement;
WHEREAS, Permittee has full approval from its Board of Directors to enter into this
Indemnity Agreement;
WHEREAS, it is in the best interests of Permittee, in the legitimate furtherance of its
purposes and business, to enter into this Indemnity Agreement;
WHEREAS, OSM has the legal authority to administer the bonding requirements for
coal mine operations in the State of
.
NOW THEREFORE, effective upon the execution of this agreement by all parties,
for value received, and in consideration of the approval and execution of Self-Bond
No.
___________, it is agreed by and between the Permittee, OSM, and the
Guarantor as follows:
I.

Permittee and Guarantor, their successors and assigns, jointly and severally
do hereby covenant and agree to indemnify OSM of, from and against any
and all demands, liabilities, charges, costs and expenses of whatsoever kind
or nature, which OSM may sustain or incur in consequence of the failure
by the Permittee to faithfully perform all the requirements of the Surface
Mining Control and Reclamation Act (SMCRA) and any amendments
thereto, OSM regulations and amendments thereto, applicable federal laws
and regulations as they apply to mining operations under the aforesaid
Permit No.
and the mining and reclamation plans
approved therewith. With the exception of litigation and administrative

Permit No.______________

Page 1 of 6

Self-Bond No.___________

costs as referenced in paragraph VI, Permittee’s liability hereunder shall not
exceed the principal amount set forth in Permittee's Self-Bond No.
________________ and any modifications thereto.
II.

Upon this agreement becoming effective, OSM shall deliver and execute, as
necessary, to Permittee any and all documents and forms needed to allow
Permittee to substitute any existing bonds, letters of credit, certificates of
deposit, cash or government securities or portions thereof that are being
replaced by this self-bond and self-bonding indemnity agreement.

III.

This indemnity agreement is continuing and is to be in full force and effect
until all of the terms of the Permittee’s self-bond have been satisfactorily
performed or otherwise discharged to the satisfaction of OSM.

IV.

Permittee and Guarantor hereby fully consent and agree that any of the
following shall not affect nor change or discharge the obligations of this
indemnity agreement:
1. Any renewals, revisions, modifications or riders to the terms of Self-Bond
No. _____________, including increases or decreases in the dollar amount of
the self-bond, or the lands to which it applies, in accordance with the
requirements of the Surface Mining Control and Reclamation Act (SMCRA)
and the rules and regulations promulgated thereunder;
2. Any extension of time for performance of the whole or any part of the
conditions of Self-Bond No.
;
3. Any changes, revisions, modifications or renewals to the terms of Permit
No.
including the mining and reclamation plans contained
therein.

V.

If in OSM’s opinion Permittee has refused or is unable to conduct reclamation of
an unabated violation, or if the terms of Mining Permit No.___________
are not met, or if the Permittee defaults on the conditions under
which Self-Bond No.
is accepted, OSM may institute bond
forfeiture proceedings against the Permittee and/or Guarantor in accordance with
the forfeiture proceedings at 30 CFR 800.50.
In the event an order of forfeiture is entered by an authorized representative of
OSM against Permittee requiring the forfeiture of all or any part of the self-bond,
OSM will mail to Permittee and/or Guarantor written demand for payment of the
amount of the self-bond which was so ordered forfeited and Permittee and/or
Guarantor shall pay such amount in full to the indemnitee making the demand in
immediately available federal funds, within ten (10) business days after receipt
of such demand. Payment shall be made to such bank account as OSM shall
specify in the demand notice to Permittee and/or Guarantor. If such order is
vacated, reversed, or otherwise made unenforceable by court or administrative
agency of competent jurisdiction, any amount previously paid to OSM by
Permittee or Guarantor hereunder shall be refunded to Permittee and/or
Guarantor in full within thirty (30) business days after receipt of a certified copy
of the ruling, order or other action by such court or administrative agency. Any

Permit No.______________

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Self-Bond No.___________

refund to Permittee and/or Guarantor by OSM shall be in immediately available
federal funds and shall be made to such bank account as Permittee and/or
Guarantor may specify in writing to OSM.
VI.

In the event OSM initiates, pursues or is brought into litigation, as a result of
attempts to enforce bonding requirements under this indemnity agreement, the
Permittee agrees to pay all litigation costs incurred by OSM in any successful
effort to enforce this agreement against the Permittee with respect to the
operations or activity for which this agreement is made. This agreement
pertains to all costs reasonably connected to the operation or activity for
which this agreement is made. This agreement pertains to all costs reasonably
connected to the litigation costs and all administrative costs reasonably
incurred in the course of enforcing or in preparation to enforce the rules and
regulations for self-bonding against the Permittee with respect to the
operation or activity for which this agreement is made. Liability for payment
of litigation costs shall not be limited by the principal amount of the
Permittee’s Self-Bond. Permittee agrees that vouchers or other proper
evidence showing payment shall be conclusive evident of the fact and amount
of liability of such costs.

VII. This agreement shall be deemed terminated in whole or in part; (a) when and
as OSM certifies in writing to the Permittee that Permittee has successfully
completed as required by the Surface Mining Control and Reclamation Act
and any amendments thereto, and applicable federal laws and regulations, the
mining and reclamation activities pursuant to Permit No.
, for
which this agreement is posted; or (b) when and as OSM certifies in writing
to the Permittee that the Permittee has provided an acceptable corporate
surety bond, letter of credit or other security complying with 30 CFR §
800.12 in substitution for this agreement; or (c) when OSM otherwise
authorizes release of this agreement in whole or in part to the Permittee
pursuant to the Surface Mining Control and Reclamation Act and the rules
and regulations promulgated thereunder.

Permittee shall have the right at any time to post a corporate surety bond, letter
of credit or other securities complying with 30 CFR § 800.12 in substitution for
and replacement of all or part of this agreement. Permittee shall notify OSM in
writing of any such substitution, and OSM shall notify the Permittee in writing
of the acceptability of any such substitution. Said substitution shall not be valid
and effective until OSM certifies such in writing.
VIII. There are no conditions or limitations to this indemnity agreement except those
contained herein at the date hereof; and thereafter, no alteration, change or
modification hereof shall be binding or effective unless executed in writing,
signed by the Permittee and/or Guarantor, and approved by OSM.
IX.

X.

Permittee agrees to pay all costs and expenses incurred by OSM which are
expended in any successful action instituted to enforce the terms of this
indemnity agreement.
This indemnity agreement shall be good and effective notwithstanding any
change or changes in the business name of the Permittee and/or Guarantor.

Permit No.______________

Page 3 of 6

Self-Bond No.___________

XI.

No changes, revisions, modifications or renewals to the self-bond of the
Permittee or the terms of Permit No.
shall act as a release of the
Permittee and/or Guarantor from this indemnity agreement.

XII.

All notices required to, or which may be given shall be effective when
received by the addressees at the addresses specified below.
1.

For the Permittee:

2.

For OSM:

Personal delivery shall have the same effect as notice given by mail. Notices given by mail shall
be sent certified.

XIII.

In case of the insolvency, bankruptcy or dissolution of the Permittee, all
funds represented by the self-bond shall immediately become due and
payable.

XIV.

The failure of any person or persons to sign this indemnity agreement shall
not release or affect the liability of the Permittee and/or Guarantor.

XV.

This indemnity agreement is a binding contract and shall be construed
under and subject to the laws of the United States of America.

XVI.

This agreement, together with the application for self-bonding applicable to
Permit No.
, contains the entire agreement of the parties
hereto with respect to indemnification.

XVII. If permitted under the laws of the State where Permittee’s mine operation is
located, this indemnity agreement when under forfeiture shall operate as a
judgment against those parties liable under this indemnity agreement.
XVIII. If at any time during the period that Self-Bond No.
is
posted and in effect the financial conditions of the Permittee or Guarantor
change so that the financial criteria at 30 CFR § 800.23 are not satisfied,
Permittee shall notify OSM immediately and shall within ninety(90) days
post an alternate, allowable form of bond in the same amount as the selfbond.
XIX.

EXECUTION BY THE PERMITTEE:
____________________________________
(Corporate Seal)
PERMITTEE (please print or type)
DATE: _________________________

BY:

TITLE: _____________________________

BY:

TITLE: _____________________________

Permit No.______________

Page 4 of 6

Self-Bond No.___________

ATTEST: _____________________________________
STATE OF______________________)
)SS.
COUNTY OF ____________________)

The
foregoing
instrument
was
____________________________________, this

acknowledged
day of

before

me
, 20

by
.

(Name of Principal Signatory - please print or type)

Witness my hand and official seal.

______________________________
(Notary Public or other Authorized Officer)

__________________________________
(Title - Name printed or typed)

My Commission Expires:_______________

XX.

GUARANTOR ACKNOWLEDGEMENTS:

Attached and incorporated herein as Exhibit A.
XXI.

EXECUTION BY GUARANTOR:
_________________________________
GUARANTOR (please print or type)
(Corporate Seal)

BY: ___________________________________ TITLE:_____________________________________
BY: ___________________________________ TITLE:_____________________________________
____________________________________________________________________________________
ATTEST:_____________________________
STATE OF______________________)
)SS.
COUNTY OF ____________________)
The
foregoing
instrument
was
_____________________________________, this

acknowledged
day of

before
me
by
_______ , 20____.

(Name of Principal Signatory - please print or type)

Witness my hand and official seal.

___________________________________
(Notary Public or other Authorized Officer)

_______________________________
(Title – Name printed or typed)

My Commission Expires: ____________________

Permit No.______________

Page 5 of 6

Self-Bond No.___________

XXII. CORPORATE GUARANTOR ACKNOWLEDGEMENTS:
Attached and incorporated herein as Exhibit B.

XXIII. EXECUTION BY OSM
In witness whereof, this Agreement is dated and effective as of this

day of

, 20

OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT
BY:

TITLE:

The foregoing instrument was acknowledged before me by ___________________________________,
this
day of
,
.
(Name of OSM Signatory - please type or
print)

Witness my hand and official seal.

__________________________________
NOTARY PUBLIC
My Commission Expires:_____________________

Paperwork Reduction Act Notice
We use the information required by this form to ensure that the requirements for a self-bond under 30 CFR 800.23 are met. You
must provide the requested information to obtain a benefit (a self-bond). Under 30 CFR 842.16, the information collected is a
matter of public record.
The time needed to complete this form and submit the requested information will vary depending on individual circumstances.
We estimate that the average time will be 3 hours per response. This number includes the time spent reviewing instructions,
learning about the regulations, gathering and maintaining information, and completing and reviewing the form. If you have
comments concerning the accuracy of this estimate or suggestions for simplifying the form 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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Self-Bond No.___________