{"data":{"id":"us-ky/krs-350.131","jurisdiction":"us-ky","citation":"KRS 350.131","heading":"Use of forfeited reclamation bond funds -- Contract to reclaim overlapped","body":"disturbed area for which bond has been forfeited and collected.\n(1) When a bond for an interim or preinterim program permit was forfeited prior to July\n15, 1988, by the cabinet,  and the entire forfeited amount is not necessary to\nestablish proper drainage and revegetation on the permit area for which it was\nsubmitted, the cabinet may use any remaining funds to supplement reclamation of\nother forfeited or released permit areas, if  the other permit areas endanger public\nhealth and safety.\n(2) When the bond for an interim or permanent program permit is forfeited by the\ncabinet, and the entire forfeited amount is more than the amount necessary to\ncomplete reclamation, the unused funds  less any interest that has accrued shall be\nreturned to the party from whom they were collected, subject to the cabinet's right to\nattach or set off the proceeds under other state laws.\n(3) Notwithstanding any other provisions of this chapter or the provi sions of KRS\nChapter 45A, when the bond, other than a surety bond or bond secured by a letter of\ncredit, for an interim or permanent program permit is forfeited and collected by the\ncabinet, and a person subsequently applies for a permit overlapping all or part of the\ndisturbed area of the permit area for which the bond is forfeited, the cabinet may\nnegotiate and enter into a contract with the applicant to reclaim the disturbed area\noverlapped in exchange for all or part of the forfeited bond funds held by the\ncabinet, if requested by the applicant. If the applicant proposes to overlap only a\npart of the disturbed area the cabinet may enter into a contract with the applicant to\nreclaim the overlapped part of the disturbed area if the cabinet has retained a portion\nof the forfeited bond that is sufficient for the cabinet to reclaim the part of the\ndisturbed area that is not overlapped. Any applicant under this subsection shall not\nbe eligible for the benefits available under this subsection if the applicant ha s any\nownership or control connection with the permittee or operator with respect to\nwhich the bond was forfeited. The amount of forfeited bond funds the cabinet may\npay to the applicant shall be determined by the cabinet based upon the estimated\ncost for the cabinet to reclaim the disturbed area overlapped to the reclamation\nstandards applicable to the original permit, but not to exceed the forfeited bond\namount collected and held by the cabinet. Payments under this subsection shall be\nmade only after rele ase of the bond pursuant to KRS 350.093(4)(a) for those areas\nof the overlapping permit that are covered by the contract. If the applicant obtains a\npermanent program permit overlapping a forfeited interim permit, any disturbances\ncreated in connection wit h the overlapping permit on areas that were disturbed\nunder the forfeited interim permit may be covered by a contract under this\nsubsection and shall be reclaimed to permanent program standards. Areas where\ncoal is not removed under the overlapping permit and the disturbances are for\nreclamation of the interim permit only shall be reclaimed to interim program\nstandards. If the applicant obtains a permanent program permit overlapping a\nforfeited interim permit, any disturbances created in connection with the\noverlapping permit on areas that were not disturbed under the forfeited interim\npermit shall not be covered by a contract under this subsection and shall be\nreclaimed to permanent program standards. Nothing in this subsection shall be\nconstrued to exempt a person from the permitting, bonding, and reclamation\nrequirements imposed in this chapter or to infringe upon the right of any surety to\nreclaim any permit or increment thereof to avoid bond forfeiture.","path":["KRS Chapter 350"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32801","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:35Z","sha256":"9dd19d06f425b95dac33811a20f7c1ba5d9dbd044ad2daefe402478124dabbbf","source_id":"us-ky","stale":false,"prev":"us-ky/krs-350.130","next":"us-ky/krs-350.133"},"notice":"GroundRules: Original legal text. Not legal advice."}