A. 
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. 
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. 
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.