[Code of Federal Regulations]
[Title 43, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR23.9]

[Page 442]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
PART 23--SURFACE EXPLORATION, MINING AND RECLAMATION OF LANDS--Table of Contents
 
Sec. 23.9  Performance bond.

    (a)(1) Upon approval of an exploration plan or mining plan, the 
operator shall be required to file a suitable performance bond of not 
less than $2,000 with satisfactory surety, payable to the Secretary of 
the Interior, and the bond shall be conditioned upon the faithful 
compliance with applicable regulations, the terms and conditions of the 
permit, lease, or contract, and the exploration or mining plan as 
approved, amended or supplemented. The bond shall be in an amount 
sufficient to satisfy the reclamation requirements of an approved 
exploration or mining plan, or an approved partial or supplemental plan. 
In determining the amount of the bond consideration shall be given to 
the character and nature of the reclamation requirements and the 
estimated costs of reclamation in the event that the operator forfeits 
his performance bond.
    (2) In lieu of a performance bond an operator may elect to deposit 
cash or negotiable bonds of the U.S. Government. The cash deposit or the 
market value of such securities shall be equal at least to the required 
sum of the bond.
    (b) A bond may be a nationwide or statewide bond which the operator 
has filed with the Department under the provisions of the applicable 
leasing regulations in subchapter C of chapter II of this title, if the 
terms and conditions thereof are sufficient to comply with the 
regulations in this part.
    (c) The district manager shall set the amount of a bond and take the 
necessary action for an increase or for a complete or partial release of 
a bond. He shall take action with respect to bonds for leases or permits 
only after consultation with the mining supervisor.
    (d) Performance bonds will not be required of Federal, State, or 
other governmental agencies. Where the exploration or mining is actually 
performed for such Federal, State, or governmental agencies by a 
contractor who would have to post a bond under the terms of paragraph 
(a) of this section if he were the operator, such agencies shall require 
the contractor to furnish a bond payable to the United States which 
meets the requirements of paragraph (a) of this section. If, for some 
other purpose, the contractor furnishes a performance bond, an amendment 
to that bond which meets the requirements of paragraph (a) of this 
section will be acceptable in lieu of an additional or separate bond.

[34 FR 852, Jan. 18, 1969, as amended at 35 FR 11237, July 14, 1970]