33.05.110 Financial assurances for reclamation plans.
In order to ensure that reclamation will proceed in accordance with the approved reclamation plan, appropriate security for performance shall be required by the granting authority as a condition of reclamation plan approval. The applicant shall post security as provided by statewide regulations adopted by the State Mining and Geology Board. Financial assurances shall be made payable to the county and the California Department of Conservation and to the Department of Agriculture or United States Forest Service where mining occurs on National Forest System lands.
A. Scope of Assurances. Financial assurances will be required to ensure compliance with elements of the reclamation plan, including but not limited to re-vegetation and landscaping requirements; restoration of aquatic or wildlife habitat; restoration of water bodies and water quality; slope stability and erosion and drainage control; disposal of hazardous materials; and other mitigation measures. Financial assurances for such elements of the plan shall be monitored by the Planning Department.
B. Amount of Assurances.
1. The amount of financial assurances shall be based on the estimated costs of reclamation for the years or phases stipulated in the approved reclamation plan, including any maintenance of reclaimed areas as may be required, subject to adjustment for the actual amount required to reclaim lands disturbed by surface mining activities since January 1, 1976, and new lands to be disturbed by surface mining activities in the upcoming year, as provided by subsection (C) of this section.
2. A licensed engineer and/or other qualified professionals retained by the operator and approved by the Planning Director shall prepare cost estimates. The estimated amount of financial assurance shall be based on an analysis of physical activities necessary to carry out the approved reclamation plan, the unit costs for each activity, the number of units of each activity, and the actual administrative costs.
3. Financial assurances to ensure compliance with re-vegetation, restoration of water bodies, restoration of aquatic or wildlife habitat, and any other applicable element of the approved reclamation plan shall be based upon cost estimates that include but may not be limited to labor, equipment, materials, mobilization of equipment, administration, and reasonable profit by a commercial operator other than the permittee.
4. In projecting the costs of financial assurances, it shall be assumed without prejudice or insinuation that the surface mining operation could be abandoned by the operator and consequently the county or state may need to contract with a third party commercial company for reclamation of the site.
C. Adjustments to Assurances. The amount of financial assurances required of a surface mining operation for any one year shall be adjusted annually to account for new lands disturbed by surface mining operations, inflation, and reclamation of lands completed in accordance with the approved reclamation plan. The financial assurances shall include estimates to cover reclamation for existing conditions and anticipated activities during the next calendar year; provided, that the permittee may not claim credit for reclamation scheduled for completion during the coming year. Proposed adjustments to financial assurances shall be submitted to the Planning Director each year prior to the anniversary date for approval of the financial assurances. If adjustments to the financial assurances are not required, the operator shall explain, in writing, why adjustments are not required.
D. Term and Release of Assurances. The financial assurances shall remain in effect for the duration of the surface mining operation and any additional period until reclamation is completed (including any maintenance required). The financial assurances shall be released upon satisfactory performance.
E. Authority for Memorandum of Understanding. The county may enter into a memorandum of understanding with the United States Forest Service, Department of Agriculture or the Bureau of Land Management, Department of the Interior, when the reclamation of a site occurs on federal lands, to enable the responsible agencies to cooperatively administer the financial assurance and other aspects required under Cal. Pub. Res. Code §§ 2710 et seq., and Cal. Pub. Res. Code § 2207 as deemed appropriate. (Formerly 33.011)