KRS 350.131: Use of forfeited reclamation bond funds -- Contract to reclaim overlapped

disturbed area for which bond has been forfeited and collected.

(1) When a bond for an interim or preinterim program permit was forfeited prior to July

15, 1988, by the cabinet, and the entire forfeited amount is not necessary to

establish proper drainage and revegetation on the permit area for which it was

submitted, the cabinet may use any remaining funds to supplement reclamation of

other forfeited or released permit areas, if the other permit areas endanger public

health and safety.

(2) When the bond for an interim or permanent program permit is forfeited by the

cabinet, and the entire forfeited amount is more than the amount necessary to

complete reclamation, the unused funds less any interest that has accrued shall be

returned to the party from whom they were collected, subject to the cabinet's right to

attach or set off the proceeds under other state laws.

(3) Notwithstanding any other provisions of this chapter or the provi sions of KRS

Chapter 45A, when the bond, other than a surety bond or bond secured by a letter of

credit, for an interim or permanent program permit is forfeited and collected by the

cabinet, and a person subsequently applies for a permit overlapping all or part of the

disturbed area of the permit area for which the bond is forfeited, the cabinet may

negotiate and enter into a contract with the applicant to reclaim the disturbed area

overlapped in exchange for all or part of the forfeited bond funds held by the

cabinet, if requested by the applicant. If the applicant proposes to overlap only a

part of the disturbed area the cabinet may enter into a contract with the applicant to

reclaim the overlapped part of the disturbed area if the cabinet has retained a portion

of the forfeited bond that is sufficient for the cabinet to reclaim the part of the

disturbed area that is not overlapped. Any applicant under this subsection shall not

be eligible for the benefits available under this subsection if the applicant ha s any

ownership or control connection with the permittee or operator with respect to

which the bond was forfeited. The amount of forfeited bond funds the cabinet may

pay to the applicant shall be determined by the cabinet based upon the estimated

cost for the cabinet to reclaim the disturbed area overlapped to the reclamation

standards applicable to the original permit, but not to exceed the forfeited bond

amount collected and held by the cabinet. Payments under this subsection shall be

made only after rele ase of the bond pursuant to KRS 350.093(4)(a) for those areas

of the overlapping permit that are covered by the contract. If the applicant obtains a

permanent program permit overlapping a forfeited interim permit, any disturbances

created in connection wit h the overlapping permit on areas that were disturbed

under the forfeited interim permit may be covered by a contract under this

subsection and shall be reclaimed to permanent program standards. Areas where

coal is not removed under the overlapping permit and the disturbances are for

reclamation of the interim permit only shall be reclaimed to interim program

standards. If the applicant obtains a permanent program permit overlapping a

forfeited interim permit, any disturbances created in connection with the

overlapping permit on areas that were not disturbed under the forfeited interim

permit shall not be covered by a contract under this subsection and shall be

reclaimed to permanent program standards. Nothing in this subsection shall be

construed to exempt a person from the permitting, bonding, and reclamation

requirements imposed in this chapter or to infringe upon the right of any surety to

reclaim any permit or increment thereof to avoid bond forfeiture.