Oregon Surface Mining Permit Bond
Mining operations in Oregon must obtain a Surface Mining Permit Bond as part of the required permitting process. The Oregon Department of Geology and Mineral Industries (DOGAMI) requires this bond as reclamation security. Simply a guarantee that reclamation plans are followed to their specifications.
With Jet Insurance Company, you are able to speak directly to the insurance carrier making the decisions on eligibility and cost of the bond. Apply online or give us a call to discuss the surety bond requirement for permitting.
What Is the Cost of the Surface Mining Permit Bond Based On?
The top factor affecting the cost of the bond is the bonding limit determined by DOGAMI. The bonding limit is set at an amount not to exceed the total cost of reclamation should it be left to DOGAMI to do it themselves. The cost of the bond will be a small percentage of that bonding limit.
Jet will need to review the financial status, experience and permit specifications to determine if the mining operation’s bond eligibility and price. Jet will consider a monthly payment option for the permit bond.
How Does the Application Process Work With Jet?
You can begin the process by completing our online application to cover some of the basic background information.
The size of the permit and the experience we have with the applicant will determine the scope of the application. Our underwriter may require personal and business financials, a copy of the permit or permit application, the reclamation plan and/or evidence of experience on prior operations.
Jet’s underwriters will review information gathered and make a determination on eligibility and at what cost the permit bond will be. At Jet there are no middlemen agents or brokers to get in the way and delay decision making. You will receive prompt attention and response to your bond application.
Can Jet File the Bond For Me?
Yes! Jet will file the bond to the DOGAMI for you free of charge. You will receive a copy of the bond and receipt the second you purchase the bond.
During the checkout process you may elect to have the original bond form sent to your location if you choose to submit the bond with the Surface Mining Permit. Either way the original bond needs to be send to the following address:
State of Oregon Department of Geology and Mineral Industries
229 Broadalbin Street SW
Albany, OR 97321
When Does the Bond Obligation End?
The bond requirement does not just when the mining operation ceases, but when the DOGAMI approves the completion of all reclamation.
The permit holder will notify the DOGAMI once all reclamation has been completed. The DOGAMI has 60 days from that date for inspection. The surety company will receive a release from all liability which can be up to 60 days following the inspection date.
For mining operations with blanket coverage for multiple sites, bond management and release operate in the same fashion. It would behoove the permit holder to keep Jet appraised of an obligations completion which can lead to a lowered bond rate as a job site closes up.
Can I Cancel My Bond and Get a Refund?
Sure can! Jet will provide a refund on any unused time on a prepaid annual bond without any fees or delays.
Permit holders should be forewarned, so long as there has not been a release from the DOGAMI, permit holders will need to secure another bond to replace the cancelled bond. Let Jet know if you are being cancelled by another Surety, we can help you out double time to avoid issues with the DOGAMI.
There is a 30-day cancellation clause keeping the bond active following cancellation notice receipt by the DOGAMI that Jet will have to take into account when calculating the return premium.
Why Is the Surface Mining Permit Bond Required?
The State of Oregon has made the protection of its landscape and environment an important element across all of its departments. The Department of Geology and Mineral Industries is enforced with the regulation of mining operation and to ensure that permitted and reclamation work upholds a standard of safety and sustainability. Reclamation security, which comes in the form of a surety bond, is required by the state to protect its resources from mining operations.
The Surface Mining Permit bond is a guarantee from a third party surety carrier (in this case Jet) that should the permit holder fail in their obligations in the reclamation plan to the state, then Jet will make restitution up to the limit of the bond to the State of Oregon.
There are three types of surface mining permits and two have a surety bond requirement.
- Operating Permit - mining activity over 5,000 cubic yards and over 1 acre, bond required
- Exclusion Permit - mining activity under 5,000 cubic yards and under 1 acre
- Exploration Permit - to explore deposit value by disturbing more than an acre or drilling more than 50 ft., bond required
How Does a Surface Mining Operation Avoid Issues with the DOGAMI?
Mining Operations in Oregon need to abide by the regulation surrounding their operation set forth in the Oregon State Statutes (ORS Chapter 517). Additionally, they need to follow the permit specifications and the reclamation plan. Easy right?
The bonding requirement specifically deals with the operating permit and reclamation plan securing that they are upheld. This includes the protection of surrounding land, rehabilitation of explored and mined land, protection from drainage and pollution problems, discharge of contaminants and refuse, meeting local land use requirements and paying fees.
The DOGAMI will perform inspections at “reasonable time” after “reasonable” notice has been given to the permit holder. Should there be a violation of standards or the reclamation plan a written notice will be issued followed by a compliance order. The mining operation at this time has the opportunity to comply and avoid further disciplinary action which may include a claim against the surety bond.
What Happens If I Get a Bond Claim?
Jet will investigate the claim and defend you as best as we can, but in light of a government driven inspection, determination and demand of surety payment there is little Jet can do but make a payout to the State of Oregon. The demanded payment may include the costs to remove hazards, drainage and pollution protection, compliance with federal and state laws and meeting local use requirements.
Jet will have 30 days to make the payment in an amount determined by DOGAMI to reclaim the surface-mined land.
It does not end there. The surety bond is a form of credit, but does not exonerate the permit holder from their obligations they signed for. Meaning the mining operation still has an obligation to pay the surety (Jet) back for the damages.
Furthermore, the DOGAMI may pull the permit thus ending the operation. At this point the site may follow reclamation plans or a new operator may receive a permit to mine for marketable mineral reserves.
