Self-Bond Indemnity Agreement

United States Department of the Interior
OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT
SELF-BOND INDEMNITY AGREEMENT
Permit No._____________

Self-Bond No. ____________

THIS AGREEMENT OF INDEMNITY, by and between the United States Office of
Surface Mining Reclamation and Enforcement (hereinafter referred to as OSM), as
indemnitee, and, ______________, duly authorized to do business in the State of
as indemnitor, (hereinafter referred to as “Permittee”) and as Guarantor;
WHEREAS, Permittee has filed with OSM an application to self-bond in compliance with
30 USC 1259 et. seq., and the rules and regulations promulgated thereunder, in connection
;
with Permittee’s Mining Permit No.
WHEREAS, Permittee has satisfied the self-bonding requirements and criteria set by
OSM;
WHEREAS, Permittee desires to indemnify OSM from all loss and costs associated with
.
its Self-Bond No.
WHEREAS, Permittee has the full authority under the laws of the State of ____________,
under which it is incorporated, its articles of incorporation and bylaws to enter into this
Indemnity Agreement;
WHEREAS, Permittee has full approval from its Board of Directors to enter into this
Indemnity Agreement;
WHEREAS, it is in the best interests of Permittee, in the legitimate furtherance of its
purposes and business, to enter into this Indemnity Agreement;
WHEREAS, OSM has the legal authority to administer the bonding requirements for coal
.
mine operations in the State of
NOW THEREFORE, effective upon the execution of this agreement by all parties, for
value received, and in consideration of the approval and execution of Self-Bond No.
__________________, it is agreed by and between the Permittee, OSM, and the
Guarantor as follows:
I.

Permittee and Guarantor, their successors and assigns, jointly and severally do
hereby covenant and agree to indemnify OSM of, from and against any and all
demands, liabilities, charges, costs and expenses of whatsoever kind or nature,
which OSM may sustain or incur in consequence of the failure by the Permittee
to faithfully perform all the requirements of the Surface Mining Control and
Reclamation Act (SMCRA) and any amendments thereto, OSM regulations and
amendments thereto, applicable federal laws and regulations as they apply to
and the
mining operations under the aforesaid Permit No.
mining and reclamation plans approved therewith. With the exception of
litigation and administrative costs as referenced in paragraph VI, Permittee’s

Permit No.______________

Page 1 of 6

Self-Bond No.___________

,

liability hereunder shall not exceed the principal amount set forth in Permittee's
Self-Bond No. ________________ and any modifications thereto.
II.

Upon this agreement becoming effective, OSM shall deliver and execute, as
necessary, to Permittee any and all documents and forms needed to allow
Permittee to substitute any existing bonds, letters of credit, certificates of
deposit, cash or government securities or portions thereof that are being
replaced by this self-bond and self-bonding indemnity agreement.

III.

This indemnity agreement is continuing and is to be in full force and effect until
all of the terms of the Permittee’s self-bond have been satisfactorily performed
or otherwise discharged to the satisfaction of OSM.

IV.

Permittee and Guarantor hereby fully consent and agree that any of the
following shall not affect nor change or discharge the obligations of this
indemnity agreement:
1. Any renewals, revisions, modifications or riders to the terms of Self-Bond No.
_____________, including increases or decreases in the dollar amount of the selfbond, or the lands to which it applies, in accordance with the requirements of the
Surface Mining Control and Reclamation Act (SMCRA) and the rules and
regulations promulgated thereunder;
2. Any extension of time for performance of the whole or any part of the conditions
;
of Self-Bond No.
3. Any changes, revisions, modifications or renewals to the terms of Permit No.
, including the mining and reclamation plans contained therein.

V.

If in OSM’s opinion Permittee has refused or is unable to conduct reclamation of an
unabated violation, or if the terms of Mining Permit No.___________ are not met or
if the Permittee defaults on the conditions under which Self-Bond No.
is accepted, OSM may institute bond forfeiture proceedings against the
Permittee and/or Guarantor in accordance with the forfeiture proceedings at 30 CFR
800.50.
In the event an order of forfeiture is entered by an authorized representative of OSM
against Permittee requiring the forfeiture of all or any part of the self-bond, OSM will
mail to Permittee and/or Guarantor written demand for payment of the amount of the
self-bond which was so ordered forfeited and Permittee and/or Guarantor shall pay
such amount in full to the indemnitee making the demand in immediately available
federal funds, within ten (10) business days after receipt of such demand. Payment
shall be made to such bank account as OSM shall specify in the demand notice to
Permittee and/or Guarantor. If such order is vacated, reversed, or otherwise made
unenforceable by court or administrative agency of competent jurisdiction, any
amount previously paid to OSM by Permittee or Guarantor hereunder shall be
refunded to Permittee and/or Guarantor in full within thirty (30) business days after
receipt of a certified copy of the ruling, order or other action by such court or
administrative agency. Any refund to Permittee and/or Guarantor by OSM shall be in
immediately available federal funds and shall be made to such bank account as
Permittee and/or Guarantor may specify in writing to OSM.

Permit No.______________

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Self-Bond No.___________

VI.

In the event OSM initiates, pursues or is brought into litigation, as a result of
attempts to enforce bonding requirements under this indemnity agreement, the
Permittee agrees to pay all litigation costs incurred by OSM in any successful
effort to enforce this agreement against the Permittee with respect to the
operations or activity for which this agreement is made. This agreement pertains
to all costs reasonably connected to the operation or activity for which this
agreement is made. This agreement pertains to all costs reasonably connected to
the litigation costs and all administrative costs reasonably incurred in the course of
enforcing or in preparation to enforce the rules and regulations for self-bonding
against the Permittee with respect to the operation or activity for which this
agreement is made. Liability for payment of litigation costs shall not be limited by
the principal amount of the Permittee’s Self-Bond. Permittee agrees that vouchers
or other proper evidence showing payment shall be conclusive evident of the fact
and amount of liability of such costs.

VII. This agreement shall be deemed terminated in whole or in part; (a) when and as
OSM certifies in writing to the Permittee that Permittee has successfully
completed as required by the Surface Mining Control and Reclamation Act and
any amendments thereto, and applicable federal laws and regulations, the mining
, for which this
and reclamation activities pursuant to Permit No.
agreement is posted; or (b) when and as OSM certifies in writing to the Permittee
that the Permittee has provided an acceptable corporate surety bond, letter of
credit or other security complying with 30 CFR § 800.12 in substitution for this
agreement; or (c) when OSM otherwise authorizes release of this agreement in
whole or in part to the Permittee pursuant to the Surface Mining Control and
Reclamation Act and the rules and regulations promulgated thereunder.
Permittee shall have the right at any time to post a corporate surety bond, letter of
credit or other securities complying with 30 CFR § 800.12 in substitution for and
replacement of all or part of this agreement. Permittee shall notify OSM in writing
of any such substitution, and OSM shall notify the Permittee in writing of the
acceptability of any such substitution. Said substitution shall not be valid and
effective until OSM certifies such in writing.
VIII. There are no conditions or limitations to this indemnity agreement except those
contained herein at the date hereof; and thereafter, no alteration, change or
modification hereof shall be binding or effective unless executed in writing, signed
by the Permittee and/or Guarantor, and approved by OSM.
IX.

Permittee agrees to pay all costs and expenses incurred by OSM which are
expended in any successful action instituted to enforce the terms of this indemnity
agreement.

X.

This indemnity agreement shall be good and effective notwithstanding any change
or changes in the business name of the Permittee and/or Guarantor.

XI.

No changes, revisions, modifications or renewals to the self-bond of the Permittee or
shall act as a release of the Permittee and/or
the terms of Permit No.
Guarantor from this indemnity agreement.

Permit No.______________

Page 3 of 6

Self-Bond No.___________

XII.

All notices required to, or which may be given shall be effective when received by
the addressees at the addresses specified below.
1.

For the Permittee:

2.

For OSM:

Personal delivery shall have the same effect as notice given by mail. Notices
given by mail shall be sent certified.
XIII.

In case of the insolvency, bankruptcy or dissolution of the Permittee, all funds
represented by the self-bond shall immediately become due and payable.

XIV.

The failure of any person or persons to sign this indemnity agreement shall not
release or affect the liability of the Permittee and/or Guarantor.

XV.

This indemnity agreement is a binding contract and shall be construed under
and subject to the laws of the United States of America.

XVI.

This agreement, together with the application for self-bonding applicable to
, contains the entire agreement of the parties hereto
Permit No.
with respect to indemnification.

XVII. If permitted under the laws of the State where Permittee’s mine operation is
located, this indemnity agreement when under forfeiture shall operate as a
judgment against those parties liable under this indemnity agreement.
XVIII. If at any time during the period that Self-Bond No.
is posted
and in effect the financial conditions of the Permittee or Guarantor change so
that the financial criteria at 30 CFR § 800.23 are not satisfied, Permittee shall
notify OSM immediately and shall within ninety (90) days post an alternate,
allowable form of bond in the same amount as the self-bond.

XIX.

EXECUTION BY THE PERMITTEE:
____________________________________
(Corporate Seal)
PERMITTEE (please print or type)
DATE: _________________________

BY:

TITLE: _____________________________

BY:

TITLE: _____________________________

ATTEST: _____________________________________
STATE OF______________________)
)SS.
COUNTY OF ____________________)

Permit No.______________

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Self-Bond No.___________

The foregoing instrument was acknowledged before me by _______________________________, this _____
day of
, 20
.
(Name of Principal Signatory - please print or type)
Witness my hand and official seal.

______________________________
(Notary Public or other Authorized Officer)
__________________________________

(Title - Name printed or typed)
My Commission Expires:_______________

XX.

GUARANTOR ACKNOWLEDGEMENTS:

Attached and incorporated herein as Exhibit A.

XXI.

EXECUTION BY GUARANTOR:
_________________________________
GUARANTOR (please print or type)
(Corporate Seal)

BY: ___________________________________ TITLE:_____________________________________
BY: ___________________________________ TITLE:_____________________________________

ATTEST:_____________________________
STATE OF______________________)
)SS.
COUNTY OF ____________________)

The foregoing instrument was acknowledged before me by ______________________________, this_____
Name of Principal Signatory - please print or type)
day of ___________________, 20____.
Witness my hand and official seal.

___________________________________
(Notary Public or other Authorized Officer)
_______________________________
(Title – Name printed or typed)

My Commission Expires: ____________________

XXII. CORPORATE GUARANTOR ACKNOWLEDGEMENTS:
Attached and incorporated herein as Exhibit B.

Permit No.______________

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Self-Bond No.___________

XXIII. EXECUTION BY OSM
In witness whereof, this Agreement is dated and effective as of this

day of

, 20

OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT
BY:

TITLE:

The foregoing instrument was acknowledged before me by ___________________________________, this
(Name of OSM Signatory - please type or print)
_______day of ____________________, 20_____.

Witness my hand and official seal.

__________________________________
NOTARY PUBLIC
My Commission Expires:_____________________

Paperwork Reduction Act Notice
We use the information required by this form to ensure that the requirements for a self-bond under 30 CFR 800.23 are met. You
must provide the requested information to obtain a benefit (a self-bond). Under 30 CFR 842.16, the information collected is a
matter of public record.
The time needed to complete this form and submit the requested information will vary depending on individual circumstances.
We estimate that the average time will be 16 hours per response. This number includes the time spent reviewing instructions,
learning about the regulations, gathering and maintaining information, and completing and reviewing the form. If you have
comments concerning the accuracy of this estimate or suggestions for simplifying the form or instructions, you may write to the
Information Collection Clearance Officer, Office of Surface Mining Reclamation and Enforcement, Room 202 SIB, 1951
Constitution Ave, NW, Washington, D.C. 20240.
Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), you are not required to respond to, nor will you be subject
to a penalty for a failure to comply with, a collection of information unless it displays a currently valid OMB control number.
OMB Control No. 1029-0043; expires 7/31/2012

Permit No.______________

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Self-Bond No.___________