A.Â
The mining operation shall not commence until such time as the licensee
has posted with the Township Clerk a performance bond in an amount
determined by the Township Board, following recommendation of its
experts, to be reasonably necessary to ensure reclamation. No less
than 25% of the total bond shall be in the form of cash or an irrevocable
letter of credit issued by a banking or savings and loan institution
licensed to do business in the state, making the Township the beneficiary
thereof. All of the rest and balance of the bond shall be a corporate
surety bond issued by a company licensed for such purposes in the
state. The conditions of such bonds shall be that, if the licensee
has satisfactorily reclaimed the property being the subject of the
permit in accordance with the approved reclamation plan, the performance
bond shall be returned to the licensee; otherwise, the Township shall
have a right to use the cash or proceeds of the irrevocable letter
of credit to the extent necessary to reclaim the property and to cover
the costs of enforcing and bringing about compliance with this chapter,
including reasonable attorney's fees, and the corporate surety
bond shall serve to guarantee payment for all such reclamation and
enforcement and compliance requirements, as aforementioned.
B.Â
The cash or irrevocable letter of credit shall remain with the Township
until the parcel or parcels have been reclaimed, and all equipment,
machinery, materials, buildings and other operation related improvements
removed as required by this chapter and/or by the terms of the permit.
C.Â
In the establishment of the amount of the performance bond, the Township
Board shall take into account the size and scope of the proposed operation,
the current and projected costs of reclamation in the event of default
by the operator at such time as it is likely to be most costly, and
other such conditions and factors as might be relevant in determining
a sum reasonable in light of all the facts and circumstances. The
Township Board, in considering any application to renew the permit,
may in its discretion, increase or decrease the amount of the performance
bond, based upon increased costs, new information, or partial reclamation.
In the event that the applicant chooses to post cash in lieu of an irrevocable letter of credit, as provided in § 267-8, such cash may be deposited in an interest-bearing account in control of the Township at a bank or savings and loan institution satisfactory to the Township, provided that all sums of deposit shall be readily accessible to the Township in the event of need. Such interest shall accrue for the benefit of the applicant, or be paid over to the applicant.
Insurance shall be a precondition to commencement of operations,
and maintenance in full force and effect of insurance shall be a precondition
to the right to continue operations. The applicant shall provide binders
for personal injury and property damage insurance for the project
to be carried by an insurance company licensed to do business in the
state during all times which any reclamation is left to be done, and
during all times any machinery and/or equipment remains on the site,
or any structures, equipment or improvements to be removed remain
on the site, said insurance to contain a hold-harmless clause regarding
liability of the Township during any reclamation phase. This insurance
shall be carried in amounts as currently established or hereafter
adopted by resolution of the Township Board from time to time. This
insurance shall cover injury or damage occurring upon the site of
the operations, as well as upon injuries occurring upon adjoining
property as the result of conditions or activities conducted upon
the subject property.
