30-10 MINING, QUARRY, SAND AND GRAVEL EXCAVATION OPERATIONS: Provision of Surety

An operation shall have an approved provision of surety and the following requirements shall apply: A. Provision of Surety before Operations Begin. After receiving notification that the application for an Excavation Permit has been approved, but prior to commencement of such operation, the Operator shall provide surety to the City, in a form and amount to be approved by the CDD and City Attorney based on an estimate of an engineer retained by the Operator that is sufficient to secure compliance with requirements of the approved Operation and Reclamation Plan. If the scope of the operation or area changes, the surety may be adjusted, as determined by the CDD and City Attorney upon further review not to exceed five (5) years. The surety required by DOGM, if applicable, shall satisfy this requirement. B. Amount of Surety. If no surety bond is provided per DOGM requirement, the City may require a bond in an amount determined by the CDD. In determining the amount of the surety, the CDD shall consider factual information as to the magnitude, type and costs of approved reclamation activities planned for the land affected and the nature, extent and duration of operations under the approved Operation and Reclamation Plan. The CDD shall determine the amount of the surety reasonably related thereto, to protect the City and ensure compliance with the requirements with the Excavation Permit; however, the amount of surety shall not exceed one hundred percent of the estimated cost of reclaiming the excavation site provided by an engineer retained by the Operator as set forth above. The surety shall be periodically reviewed to ensure that the amount of the surety is capable of insuring adequate rehabilitation and shall be adjusted accordingly. C. Form of Surety. In determining the form of surety to be provided, the CDD and City Attorney shall approve a method acceptable to the Owner or Operator that is consistent with the requirements of this Chapter. D. Release of Surety. The liability under surety provisions shall continue until such time as released in part, or in its entirety, by the CDD based on the report verifying compliance with the provisions of this Chapter and the approved Operation and Reclamation plan. E. Forfeiture of Surety. If the Operator fails to or refuses to carry out the necessary land reclamation as outlined in the approved Operation and Reclamation Plan, the City may, after providing Operator with notice, reasonable opportunity to cure and hearing, declare default and assert a claim against the surety or corporate bond, including filing suit against the Owner or Operator and its bonding company.