DEPARTMENT OF ENVIRONMENTAL QUALITY

OFFICE OF GEOLOGICAL SURVEY

NONFERROUS METALLIC MINERAL MINING

(By authority conferred on the director of the department of environmental quality

by section 63203(1) of 1994 PA 451, MCL 324.63203(1))

PART 1. GENERAL PROVISIONS

R 425.101 Purpose.

Rule 101. These rules implement the act, and regulate the construction,

operation, closure, postclosure monitoring, reclamation, and remediation of nonferrous

metallic mineral mines in the state of Michigan. These rules do not regulate the

extraction of metallic minerals by in situ leaching when regulated under part 625 of

the act.

History: 2006 AACS.

R 425.102 Definitions; A to L.

Rule 102. (1) As used in these rules:

(a) "Accelerated soil erosion" means the increased loss of the land surface that

occurs as a result of human activities.

(b) "Act" means 1994 PA 451, MCL 324.101 et seq.

(c) "Aquifer" means a geological formation, group of formations, or part of a

formation capable of yielding significant quantities of groundwater to wells or springs.

(d) "Assurance instrument" means a financial instrument executed in favor of the

department on a form approved by the department, including the following:

(i) A surety bond executed by a surety company authorized to do business in the

state of Michigan.

(ii) A certificate of deposit or time deposit account held

by a financial

institution regulated and examined by a state or federal agency, the value of which is

insured by an agency of the United States government.

(iii) A cash bond.

(iv) An irrevocable letter of credit issued by a financial institution which has the

authority to issue letters of credit and whose letter of credit operations are regulated

and examined by a federal or state agency.

(v) A trust fund managed by a financial institution which has the authority to

act as a trustee and whose trust operations are subject to federal or state oversight.

(vi) An escrow account managed by a bank or other financial institution

whose account operations are regulated and examined by a federal or state agency.

(e) "Beneficiation" means the primary treatment of ore to separate or remove a

metallic product or products from ore using a process including, but not limited to,

any of the following:

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(i) Crushing.

(ii) Grinding.

(iii) Washing.

(iv) Dissolution.

(v) Crystallization.

(vi) Filtration.

(vii) Sorting.

(viii) Sizing.

(ix) Drying.

(x) Sintering.

(xi) Pelletizing.

(xii) Briquetting.

(xiii) Calcining to remove water and/or carbon dioxide.

(xiv) Roasting, autoclaving, and/or chlorination in preparation for leaching

(except where this process produces a final or intermediate product that does not undergo

further beneficiation or processing).

(xv) Gravity concentration.

(xvi) Magnetic separation.

(xvii) Electrostatic separation.

(xviii) Flotation.

(xix) Ion exchange.

(xx) Ex situ solvent extraction.

(xxi) Electrowinning.

(xxii) Precipitation.

(xxiii) Amalgamation.

(xxiv) Heap, dump, vat, and tank leaching.

(f) "Contaminated" or "contamination" means having substances in

concentrations that are above natural background and that are, or may be, harmful to

the environment or to human health and safety as determined by the department under

other applicable parts of the act.

(g) "Cultural, historical, or archaeological resource" means a structure or site that

meets any of the following requirements:

(i) Is listed as a national historic landmark under the historic sites, buildings,

and antiquities act, chapter 593, 49 Stat. 666, 16 U.S.C.461 to 467 as of the effective

date of these rules.

(ii) Is listed on the national register of historic places pursuant to the national

historic preservation act of 1966, Public Law 89-665, 16 U.S.C.470 to 470a, 470b, and

470c to 470x-6 as of the effective date of these rules.

(iii) Is listed on the state register of historic sites pursuant to 1955 PA 10, MCL

399.151 to 399.152.

(iv) Is recognized under a locally established historic district created pursuant

to the local historic districts act, 1970 PA 169, MCL 399.201 to 399.215.

(h) "Cumulative impact" means the environmental impact that results from the

proposed mining activities when added to other past, present, and reasonably

foreseeable future activities.

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(i) "Designated wellhead protection area" means a specific

which is approved by the department as the surface and subsurface area surrounding

a water well or well field that supplies a public water system and through which

geographic area

contaminants are reasonably likely to move toward and reach the water well or well

field.

(j) "Detroit consumer price index" means the most comprehensive index of

consumer prices available for the Detroit area from the United States department

of labor, bureau of labor statistics.

(k) "Disposal facility" means a facility or a part of

a

facility where

overburden, waste rock, or tailings are intentionally placed into or on the land and at

which the overburden, waste rock, or tailings will remain after closure.

(l) "Earth change" means a humanmade change in the natural cover or

topography of land, including cut and fill activities, which may result in or contribute to

soil erosion or sedimentation of the waters of the state.

(m) "Final reclamation" means reclamation performed after final cessation of

mining with the intent not to resume mining.

(n) "Financial assurance" means an assurance instrument or statement of

financial responsibility provided by an operator to ensure compliance with the act,

these rules, permit conditions, instructions, or orders of the department.

(o) "Floodplain" means an area of land adjoining a river or stream that will be

inundated by a flood with a magnitude that has a 1% chance of occurring or being

exceeded in any given year.

(p) "Groundwater" means water below the land surface in a zone of saturation.

(q) "Hazardous substance" means that term as defined in part 201 of the act.

(r) "Indian reservation" means any

federally

recognized reservation

established by treaty, agreement, executive order, or act of congress.

(s) "Indian governing body" means the governing body of any tribe, band, or

group of Indians subject to the jurisdiction of the United States and recognized by

the United States as possessing power of self-government.

(t) "Interim reclamation" means reclamation performed

temporary cessation of mining with the intent to resume mining.

(u) "Life of the mine" means the period from issuance of

through the completion of reclamation.

in

connection with

a

mining permit

(2) A term defined in the act has the same meaning when used in these rules.

History: 2006 AACS.

R 425.103 Definitions; M to Z.

Rule 103. (1) As used in these rules:

(a) "Mining activity" means any of the following activities for the purpose of,

or associated with, mining:

(i) Clearing of land.

(ii) Drilling and blasting.

(iii) Excavation of earth materials to access or remove ore.

(iv) Beneficiation.

(v) Reclamation.

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(vi) Transportation of overburden, waste rock, ore, and tailings.

(vii) Storage, relocation, and disposal of overburden, waste rock, ore, and tailings

within a mining area, including backfilling of mined areas.

(viii) Storage and transportation of chemical reagents.

(ix) Construction of water impoundment and drainage features.

(x) Construction of haul roads.

(xi) Construction of utilities or extension of existing utilities.

(xii) Withdrawal, transportation, and discharge of water.

(b) "Nonerosive velocity" means a speed of water movement that

conducive to the development of accelerated soil erosion.

is not

(c) "Organization report" means a certified statement, on a form prescribed by

the department, giving the name, address, and plan of the business organization,

and listing the following:

(i) All corporate officers, directors, incorporators, and limited liability

company managers.

(ii) All other partners, shareholders, limited liability company members, or other

persons who have the authority to make, or are responsible for making, operational

decisions, including the construction, operation, closure, postclosure monitoring,

reclamation, and remediation of a mine.

(d) "Overburden" means unconsolidated earth material that overlies bedrock

and that is or will be excavated by open pit mining methods to access ore.

(e) "Percolation leaching" means a process for the primary purpose

of the

recovery of metals in an outdoor environment from a stockpile of crushed or excavated

ore by percolating water or a solution through the ore and collecting the leachate,

and includes the processes known as "heap leaching" and "dump leaching."

(f) "Peripheral rock" means rock that is or will be left in place

completion of mining and within 3 feet of either of the following:

(i) The walls and floor of an open pit.

after the

(ii) The walls, floor, and roof of adits, portals,

workings.

(g) "Permanent soil erosion and sedimentation control measures" means

control measures that are installed or constructed to control soil erosion and

and

underground mine

sedimentation and that are designed to remain in place after final reclamation.

(h) "Postclosure" means the period following completion of final reclamation

in compliance with the approved reclamation plan.

(i) "Public water supply well" means a well that provides water for a "type I

public water supply," "type IIa public water supply," "type IIb public water supply,"

or "type III public water supply" as those terms are defined in R 325.10502.

(j) "Reactive" means susceptible to reacting, dissolving, or otherwise

forming a leachate that is or may be harmful to the environment or to human health and

safety as determined by the department under conditions that exist, or may exist,

at a mining operation.

(k) "Reclamation" means that reconditioning or rehabilitation of the mining area

or portions thereof for useful purposes and the protection of the natural resources,

including the control of erosion and the prevention of land or rock slides, collapses

and subsidence, and air and water pollution.

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(l) "Remediation" means the taking of actions that are necessary to prevent,

minimize, or mitigate injury to the public health, safety, or welfare, or to the

environment, including cleanup,

removal, containment, isolation, destruction, or

treatment of a hazardous substance released or threatened to be released into the

environment; and associated monitoring and maintenance.

(m) "Stabilization" means the establishment of vegetation

or

the proper

placement, grading, or covering of soil to ensure its resistance to soil erosion, sliding,

or other earth movement.

(n) "Storage facility" means a facility or a part of a facility where ore, waste

rock, overburden, or tailings is held for a temporary period, at the end of which the ore,

waste rock, overburden, or tailings is treated, disposed of, or stored elsewhere.

(o) "Surety bond" has the same meaning as "conformance bond" as used in part

632 of the act.

(p) "Tailings" means material that is separated from the metallic product in the

beneficiation or treatment of minerals.

(q) "Temporary soil erosion and sedimentation control measures" means

interim control measures which are installed or constructed to control soil erosion and

sedimentation and which are not maintained after project completion.

(r) "Wetland" means that term as defined in part 303 of the act.

(2) A term defined in the act has the same meaning when used in these rules.

History: 2006 AACS.

PART 2. PERMITS

R 425.201 Permits.

Rule 201. (1) An operator shall not begin mining

activities

without first

obtaining a mining permit from the department. A person requesting a mining permit

shall submit all of the following to the department:

(a) A permit application on forms prescribed by the department, signed by the

operator or an authorized representative of the operator.

(b) A permit application fee as prescribed in part 632 of the act.

(c) An environmental impact assessment.

(d) A mining, reclamation, and environmental protection plan.

(e) A contingency plan.

(f) A description of the type or types and amount of financial assurance to be

provided that will satisfy the requirements of R 425.301.

(g) A list of all other applicable permits and licenses that are anticipated to be

required.

(h) An organization report on a form prescribed by the department.

(2) Beneficiation activities shall require a separate mining permit under 1 or both

of the following conditions:

(a) The site of the proposed beneficiation activities is not within or adjacent to

the site of other associated mining activities, either existing or proposed, that are

subject to a mining permit.

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(b) The operator of the proposed beneficiation activities is not the same person

as the operator of other associated mining activities, either existing or proposed, that

are subject to a mining permit.

(3) An applicant shall submit to the department 10 paper copies

of the

documents required under subrule (1), (a) and (c) to (h) of this rule, and shall also

submit the documents in an electronic format approved by the department.

(4) The department shall process an application for

a

mining permit

according to the requirements of section 63205 of the act, as follows:

(a) Effective 14 days after the department receives an application for a mining

permit, the application shall be considered to be administratively complete

unless the department proceeds as provided under subdivision (b) of this subrule.

(b) If, before the expiration of the 14-day period under subdivision (a) of this

subrule, the department notifies the applicant that the application is not administratively

complete, specifying the information

necessary

to make the application

administratively complete, or notifies the applicant that the fee required to accompany

the application has not been paid, specifying the amount due, the running of the

14-day period under subdivision (a) of this subrule is tolled until the applicant

submits to the department the specified information or fee amount due. The notice

shall be given in writing or electronically.

(c) Within 42 days after an application for a mining permit is determined to be

administratively complete, the department shall hold a public

meeting on the

application. The department shall give notice of the public meeting not less than 14 or

more than 28 days before the date of the public meeting. The notice shall specify the time

and place of the public meeting, which shall be held in the county where the proposed

mining operation is located, and shall include information on how to review or obtain a

copy of the application. The department shall make a printed and electronic copy of

the application available at a library or other public building in the county where the

proposed mining operation is located, and shall post a copy of the application on

the department website. The notice shall be given in writing to the city, village, or

township and the county where the proposed mining operation is to be located and to all

affected federally recognized Indian tribes in this state. The notice shall also be given

by publication in a newspaper of local distribution in the area where the proposed

mining operation is to be located.

(d) The department shall accept written public comment on the permit

application for 28 days following the public meeting under subdivision (c) of this subrule.

Within 28 days after the expiration of the public comment period, the department

shall reach a proposed decision to grant or deny a mining permit and shall prepare a

document explaining the basis for the decision. The decision shall be based upon the

permit application and the statutory requirements under part 632 of the act.

The department shall establish a time and place for a public hearing on the proposed

decision, and shall give notice of the public hearing not less than 14 or more than 28

days before the date of the public hearing. The notice shall be given in writing to the

city, village, or township and the county where the proposed mining operation is to be

located and to all affected federally recognized Indian tribes in this state. The notice

shall also be given by publication in a newspaper of local distribution in the area

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where the proposed mining operation is to be located. The notice shall contain all of

the following:

(i) The time and place of the public hearing.

(ii) The name and address of the applicant, the type of mining proposed, and the

location and general areal extent of the mining area.

(iii) A statement of the department's proposed decision to issue or deny the permit.

(iv) Information on how to review a complete copy of the application, the draft

permit or denial, and the basis for the proposed decision.

(v) A listing of other permits and hearings that are pending or anticipated

under this act with respect to the proposed mining operation.

(vi) The name, address, and telephone number of a representative

of the

department who may be contacted to obtain more information on the application.

(vii) A description of the process for participating in the public hearing.

(e) The department shall accept written public comment on the proposed

decision to grant or deny a mining permit for 28 days following the public hearing.

At the expiration of the public comment period, the department shall issue a report

summarizing all comments received and providing the department's response to the

comments.

(f) Within 28 days after the expiration of the public comment

period under

subdivision (e) of this subrule, the department shall grant or deny the mining

permit application in writing. A determination that an application is administratively

complete does not preclude the department from requiring additional information from

the applicant. The 28-day period under this subdivision shall be tolled until the

applicant submits the requested information. If a mining permit is denied, the

reasons shall be stated in a written report to the applicant.

(5) The department may impose terms and conditions in a mining permit, in

addition to those specified in the application, that are necessary to implement these

rules and part 632 of the act.

(6) The department shall not issue a mining permit authorizing percolation

leaching unless the applicant demonstrates that the proposed percolation leaching

meets the requirements of R 425.403.

(7) Subject to subrule (9) of this rule, the department shall approve a mining

permit if it determines both of the following:

(a) The permit application meets the requirements of part 632 of the act.

(b) The proposed mining operation will not pollute, impair, or destroy the air,

water, or other natural resources or the public trust

in those resources, in

accordance with part 17 of the act. In making this determination, the department

shall consider the extent to which other permit determinations afford protection to

natural resources. For this subdivision, excavation and removal of nonferrous metallic

minerals and of associated overburden and waste rock, in and of itself, does not

constitute pollution, impairment, or destruction of those natural resources.

(8) The department shall deny a mining permit if it

requirements of subrule (7) of this rule have not been met.

determines the

(9) The department shall not issue a mining permit, or approve a transfer of a

mining permit, to a person if the department has determined that person to be in violation

of part 632 of the act, these rules, a mining permit, or an order of the department under

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part 632 of the act, unless the person has corrected the violation or the person has

entered into written consent agreement to correct the violation pursuant to a

a

compliance schedule approved by the department. The department may require

compliance with the consent agreement as a condition of the mining permit.

History: 2006 AACS.

R 425.202 Environmental impact assessment.

Rule 202. (1) The environmental impact assessment required under R

425.201(1)(c) shall include, but is not limited to, the following:

(a) For each of the conditions and features listed in subrule (2) of this rule:

(i) An identification and description of the condition or feature as it currently

exists within the mining area and the affected area.

(ii) An identification of the proposed mining activities that may impact the

condition or feature, and the process or mechanism through which the impact may

occur.

(iii) An analysis of the potential impacts of proposed mining activities on the

condition or feature and, where applicable, the effects of the condition or feature on

the proposed mining activities.

(iv) A reference to the measures proposed to be taken under the mining,

reclamation, and environmental protection plan to reduce or mitigate the potential

impacts, and the predicted effects of those measures. If the measures are not

required under part 632 of the act, then the environmental impact assessment shall

identify other statutes or regulations, if any, under which the measures are required.

(v) A map or maps and appropriate photographs, with any necessary

explanatory documents or notations, showing the affected area for the condition or

feature, and a description of the basis for determining the affected area.

(b) An analysis of the potential cumulative impacts on each

conditions or features listed in subrule (2) of this rule within the mining area and the

affected area from all proposed mining activities and through all processes or

of the

mechanisms. The analysis shall consider additive effects, and the assessment of

significant interactions between chemical and physical properties of any discharges, with

reference to the physical and chemical characteristics of the environment into which

the discharge may be released.

(c) An analysis of feasible and prudent alternatives for the mining activities

consistent with the reasonable requirements of the public health, safety, and welfare.

The analysis shall include all of the following:

(i) A description of feasible and prudent alternatives.

(ii) A description of alternatives considered but not carried forward for further

evaluation.

(iii) A description of why the chosen alternatives are preferred.

(d) The name and qualifications of the person or persons who

environmental impact assessment.

prepared the

preparing the

(e) A description of the methodologies

applied

in

environmental impact assessment, including the following:

(i) Quality assurance and quality control as approved by the department.

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(ii) Information that demonstrates that the methodologies

and effective, or are widely used and generally accepted.

are appropriate

(f) The sources of information used in preparing the environmental impact

assessment.

(2) The requirements of subrule (1)(a) and (b) of this rule apply to natural and

humanmade conditions and features including, but not limited to, the following:

(a) Topography.

(b) Soil series.

(c) Geology of the bedrock and unconsolidated materials

bedrock, including areal extent, thickness, lithology, and permeability.

overlying the

(d) Groundwater occurrence that may impact, or be impacted by, mining

activities, including the following:

(i) Thicknesses of aquifers, hydraulic conductivity, and interconnections

between multiple aquifers and between aquifers and surface water.

(ii) Depth to groundwater, groundwater recharge

areas,

groundwater flow

direction, hydraulic gradients, groundwater velocity, and 3-dimensional flow paths.

(iii) Seasonal variations of the items in paragraph (ii) of this subdivision.

(e) Natural or artificial lakes, ponds, impoundments, rivers, streams, creeks,

drains, seeps, and springs, including both of the following:

(i) Observed levels or discharge rates.

(ii) Predicted seasonal and long-term variations of levels or discharge rates.

(f)

A

complete water

balance

that

accounts

for precipitation,

evapotranspiration, infiltration, runoff, streamflows, and groundwater and surface

water withdrawals and discharges from mining activities.

(g) Groundwater and surface water quality, including all of the following:

(i) Specific conductance as an indication of dissolved solids.

(ii) Temperature.

(iii) The hydrogen ion concentration expressed as pH.

(iv) Dissolved oxygen.

(v) Concentrations of all of the following substances:

(A) Cations of calcium, sodium, magnesium, potassium, and iron.

(B) Anions of chloride, sulfate, and bicarbonate.

(C) Other total and dissolved elements and compounds that may be

introduced or affected by the mining activities.

(vi) Predicted seasonal variations of the parameters listed in paragraphs (i)

to (v) of this subdivision.

(h) Any known occurrence of groundwater that is contaminated so that a

property is a facility as defined by part 201 of the act.

(i) All documented private water supply wells.

(j) All public water supply wells.

(k) Irrigation and disposal wells.

(l) Designated wellhead protection areas.

(m) Floodplains, Great Lake shorelines, and wetlands.

(n) Natural rivers as defined in section 30501 of the act.

(o) Wild and scenic rivers as defined in 1968, Public Law 90-542, 82 Stat. 906.

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(p) Residential dwellings, places of business, places of

worship, schools,

hospitals, government buildings, or other buildings used for human occupancy all or

part of the year.

(q) Existing and proposed infrastructure and utilities.

(r) Areas actively maintained for public recreation.

(s) Natural areas as defined in R 324.35101.

(t) State wilderness areas as defined in MCL 324.35101.

(u) Federal wilderness areas as defined in 78 Stat. 890, 16 U.S.C. 1131.

(v) Wild areas as defined in MCL 324.35101.

(w) Research natural areas as defined in CFR Title 36, Section 251.23.

(x) Land uses, land access, general size and shape of tracts of land, and current

and historic land use trends.

(y) Species and abundance of aquatic and terrestrial flora and

fauna, and

predicted variations in their occurrence based on at least 2 years of relevant

information. Relevant information may include records of pertinent data at other

sites having documented similar conditions or credible regional studies from

acknowledged sources, but shall include at least 1 year of site-specific data.

(z) Fish and wildlife habitats.

(aa) Threatened species or endangered species as defined in part 365 of the act or

in the endangered species act of 1973, Public Law 93-205, 87 Stat.884.

(bb) Species of special concern as designated by the US forest service

region 9 regional forester's list of species of special concern.

(cc) Non-native or invasive plant and animal species.

(dd) Ecological systems as identified in recognized published sources.

(ee) Cultural, historical, or archaeological resources.

(ff) Air quality.

(gg) Meteorology, and predicted seasonal and long-term variations

meteorology.

of the

(hh) Visual resources.

(ii) Noise.

(jj) Light.

(kk) Seismicity.

(3) For the conditions and features listed in subrule (2)(d), (e), (g), and (gg) of

this rule, the required characterization of seasonal or long-term variations in the

condition or feature shall be satisfied by a combination of documented observations of

pertinent data over a period of at least 2 years at the monitoring site and records of

pertinent data at other sites having documented similar conditions or credible

regional studies from acknowledged sources. Seasonal and long-term variations at the

monitoring site shall be predicted, where feasible, using statistical analysis

demonstrating a confidence interval. The statistical analysis shall include an

explanation of how the use of any data from other sites affects the confidence interval.

Analysis of potential impacts shall incorporate credible extremes in the condition or

feature based on the statistical analysis.

(4) An applicant may describe the types of public input sought, if any, in

preparing the environmental impact assessment, and may include the method used to

collect public input and a summary of relevant comments.

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(5) Information required by rules promulgated under another part of the act or

under other state or federal law and incorporated in the environmental impact

assessment shall satisfy the requirements for an environmental impact assessment

under these rules to the extent that the information addresses the area and activities as

required under part 632 of the act.

History: 2006 AACS.

R 425.203 Mining Plan.

Rule 203. The mining, reclamation, and

environmental

protection plan

required under R 201(1)(d) shall contain a plan for the proposed mining operations.

The plan shall include information that demonstrates that all methods, materials, and

techniques proposed to be utilized are capable of accomplishing their stated

objectives in protecting the environment and public health, except that such

information may not be required for methods, materials, and techniques that are

widely used in mining or other industries and are generally accepted as effective.

The required information may consist of results of actual testing, modeling,

documentation by credible independent testing and certification organizations,

or documented applications in similar uses and settings. The plan shall include, at a

minimum, all of the following:

(a) A description of the type and method of mining, the expected operating

life of the mine, and the anticipated rate and schedule of mining.

(b) An estimate of the number of employees required for the mining

operation, and variations in the number over the life of the mine.

(c) Information depicting and describing the items listed in paragraphs (i) to

(xxiv) of this subdivision that are mining activities or are part of, or associated with,

mining activities. Information that is amenable to clear depiction on a map shall be

shown on a map or maps of the mining area drawn to an appropriate scale on a

topographic base and referenced to

the nearest government-surveyed section or

quarter-section lines.

Other required information shall be presented, as

appropriate, by cross-sections, photographs, documents, and engineering drawings.

(i) Area, thickness, and characteristics of topsoil that will be stripped, and

plans for stockpiling and stabilizing topsoil until it will be used in reclamation.

(ii) Area, volumes, and characteristics of overburden and waste rock to be

excavated; plans and schedules for excavating; and locations and dimensions of

stockpiles and final placement areas.

(iii) Area, volumes, types, and mineralogy of ore to be excavated, and schedule

of mining and stockpiling ore.

(iv) Plans for limiting access to stockpiles and storage or disposal facilities

to prevent disposal of unauthorized materials.

(v) A characterization of the geochemistry of the ore, waste

rock, and

overburden that will be mined, and peripheral rock that will be exposed in the process of

mining, and of any tailings that will be generated. The characterization shall include

the following:

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(A) Chemical and physical testing and modeling to predict the potential

generation of acid, dissolved metals, and other related substances by reaction and

leaching of the ore, waste rock, tailings, overburden, and peripheral rock.

(B) Testing and modeling methodology.

(C) A plan for monitoring the characterization during the proposed mining

operation to calibrate and adjust the model and predictions.

(D) Identification of the ore, waste rock, overburden, peripheral rock, and tailings

that are reactive.

(vi) Lithology and thickness of rock surrounding and overlying the ore body.

(vii) The locations, depths, and contours of open pits.

(viii) The locations and dimensions of shafts, portals,

between the land surface and underground mine workings.

or

other openings

(ix) The areal extent, depth, and dimensions of underground workings.

(x) Types and uses of grouting of the walls of open pits and of the walls, floor,

and roof of underground workings.

(xi) A plan for preventing damage to the environment or public health or safety

from subsidence, caving, or collapse of underground mine workings. The plan shall

contain the following:

(A) A description of any planned or intentional caving and subsidence.

(B) Provisions to prevent adverse impacts to public or private water supplies

or to an aquifer in the affected area.

(C) Provisions to assure that any underground mining

material damage to structures not owned or controlled by the operator.

(D) Provisions to assure that any underground mining

material damage to natural features on lands not owned by the operator.

shall

not cause

shall

not cause

(xii) A description of water that will be used in the mining operations,

including the source or sources of the water and intended rates and durations of

pumping, diversion, or withdrawal.

(xiii) A description of water that will be stored, transferred, or discharged in

the mining operations, including:

(A) The location, size, and capacities

of

any

artificial ponds,

impoundments, dewatering systems, diversions, other water control structures, and

treatment facilities.

(B) The estimated volumes, rates, and water quality of discharges,

discharge locations.

and the

(xiv) Storage areas for equipment and vehicles.

(xv) Buildings and other facilities or structures.

(xvi) Areas for the storage and transfer of chemicals, fuel, and explosives.

(xvii) Truck and mining equipment wash down areas.

(xviii) Roads, railroads,

docks,

piers,

and

other transportation

infrastructure, and provisions to prevent

release

of contaminants to the

environment from ore or waste rock during transportation.

(xix) Beneficiation processes, materials, and activities, including the following:

(A) The types, extent, and sequence of beneficiation, including physical and

chemical characterization of all materials, wastes, or products.

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(B) A description of any mills, concentrators, dryers, separators, chemical

reactors, filtering equipment, electrolytic chambers, flotation cells, kilns, or other

beneficiation equipment.

(C) The type and amount of chemicals to be added.

(D) The types, amounts, locations, sequence, schedule, and means of waste

rock and tailings disposal.

(E) Provisions to prevent release of contaminants to

beneficiation equipment.

the

environment from

(F) Tailings transport systems, if not buried, should be designed to provide for

emergency tailings conveyance or storage should a pipeline break, plug, freeze or

require repairs and be made accessible

for inspection, emergency repair, and

maintenance. Location of emergency spill areas shall be designed to prevent

contamination of surface water. If a power failure occurs, then tailing pipelines shall

be self draining to the tailings area or to an emergency spill area or standby

pumps and pipelines or standby power shall be provided. In some cases (such as

long pipeline over rough country), several spill areas may have to be provided.

a

(xx) Plans and schedules for regulating or controlling

including surface runoff, from within the diked area of a

prevent breaching of the dikes, both during and

drainage

tailings disposal area to

after mining. The plans and

of water,

schedules shall ensure that 24-hour 100-year precipitation events do not cause

releases of water that are not in compliance with the conditions of the mining permit.

(xxi) Plans and schedules for monitoring, containment, and treatment of surface

runoff that has contacted, or may contact,

ore,

waste rock, overburden, or

tailings determined to be reactive under R 425.203(c)(v). The plans shall be

designed to reasonably minimize actual and potential adverse impacts on groundwater

and surface water by preventing leaching or runoff of acid-forming waste products and

other waste products from the mining process.

(xxii) A soil erosion and sedimentation control plan that meets the standards

of part 91 of the act to effectively reduce accelerated soil erosion and sedimentation

that may impact the affected area. The plan shall include, but not be limited to, all of

the following:

(A) The location, description, and schedule for installing and removing all

proposed temporary soil erosion and sediment control measures.

(B) A description and the location of all proposed permanent soil erosion and

sediment control measures, and provisions for establishing the permanent soil erosion

control measures as soon as possible after an earth change has been completed or if

significant earth change activity ceases.

(C) Provisions to limit the exposed area of any disturbed land to the shortest

feasible period of time.

(D) Provisions to remove sediment caused by accelerated

runoff water before it leaves the mining area.

soil

erosion from

(E) Temporary or permanent control measures for the conveyance of water

around, through, or from the area affected by mining activities to limit the water flow

to a nonerosive velocity.

(F) Provisions for temporary soil erosion and sedimentation control measures

before or upon commencement of the earth change activity; for maintaining the

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measures on a daily basis; and for removing the measures after permanent soil erosion

measures are in place and the area is stabilized.

(G) Provisions for stabilizing the area with permanent soil erosion control

measures as soon as possible after an earth change has been completed or if significant

earth change activity ceases.

(xxiii) Plans for conducting reclamation activities concurrently with mining

operations to the extent feasible.

(xxiv) Plans for inspecting, monitoring, and maintaining liners, final covers,

leachate collection systems, leak detection systems, berms, and embankments,

including frequency of inspections. Inspecting or monitoring shall be conducted at least

monthly.

(d) A map and description of ownership of all tracts of land in the mining area

and within 1320 feet of the boundary of the mining area, including all of the

following:

(i) Ownership of surface rights.

(ii) Ownership of mineral rights.

(iii) Conservation easements as defined in section 2140 of the act.

(iv) Historic preservation easements as defined in section 2140 of the act.

(e) A description of measures to be taken to prevent damage to property not

owned or controlled by the operator within and immediately adjacent to the mining

area.

(f) Measures to minimize impacts to the volumes and rates of recharge, flow, and

discharge of groundwater and surface waters in the mining area and in the affected area

sufficient to accommodate seasonal and long-term variations in precipitation, water

quantity, and water quality.

(g) A monitoring plan for monitoring of groundwater and surface water

quality, groundwater levels, and surface water stage and discharge rates, during

mining operations and during the post-closure monitoring period. The monitoring

plan shall conform to existing statutes and rules, but is not required to include

monitoring required under other permits.

(i) The monitoring plan shall provide for monitor wells and structures to be located

at points where mining activities have a reasonable potential for measurable impact

on surface water or groundwater, taking into consideration the following:

(A) Proximity to the mining activity.

(B) The potential for diffusion and dispersion.

(C) Horizontal and vertical groundwater gradients.

(D) Seasonal variations in flow.

(E) Topography, access, and other practical limitations.

(ii) The monitoring plan shall comply with the requirements of R 425.406.

(iii) The monitoring plan shall include all of the following:

(A) Number and location of monitoring wells and structures.

(B) Frequency of sampling and sampling procedure, including all

following:

of the

(aa) The sampling method and volume of water to be removed from each well or

sampling point during sampling.

(bb) Steps taken to prevent cross contamination between samples.

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(cc) Sample handling and preservation methods.

(dd) Laboratory analysis method.

(ee) Laboratory method detection level.

(ff) Quality assurance and quality control as approved by the department.

(gg) Provisions for routine monitoring to be conducted at least every 3 months.

(C) Sampling parameters, which shall include the following:

(aa) Specific conductance.

(bb) Temperature.

(cc) The hydrogen ion concentration expressed as pH.

(dd) Dissolved oxygen.

(ee) Concentrations of calcium, sodium, magnesium, potassium, and iron.

(ff) Concentrations of chloride, sulfate, and bicarbonate.

(gg) Concentrations of other total and dissolved elements and compounds that

may be introduced or affected by the mining activities, as identified in the environmental

impact assessment.

(D) A description of the techniques used to present and evaluate water quality

monitoring data.

(E) A description of the method used to collect static water levels and present

groundwater flow data. Static water level precision shall be to 0.01 foot.

(F) The depth and screened interval for each monitor well.

(G) Provisions for design, construction, and abandonment of monitoring wells

and structures that comply with R 425.406(2).

(h) A treatment and containment plan that describes proposed measures to

prevent contamination of groundwater and surface water from leaching of acidic

water or dissolved metals.

(i) The treatment and containment plan required under this subdivision shall

apply to earth materials that are determined to be reactive under R 425.203(c)(v).

The plan shall describe proposed measures for the following:

(A) Design, construction, and operation of stockpiles and storage or disposal

facilities for ore, waste rock, overburden, and tailings.

(B) The management of peripheral rock that has been determined

in the

environmental impact assessment to have

groundwater or surface water.

the

potential

to contaminate

(ii) The treatment and containment plan required under this subdivision

shall account for the volume, rate, and movement of leachate that may be generated,

and the influence of weather on the generation of leachate, including any adverse

impacts from severe or extreme weather events.

(iii) The treatment and containment plan required under this subdivision

shall meet all applicable requirements of R 425.409.

(i) A general description of blasting materials and methods.

(j) If a threatened or endangered species may be impacted, a plan to protect the

threatened or endangered species that conforms to the requirements of state and

federal endangered species laws.

(k) Plans to monitor, prevent, minimize, and mitigate any adverse impacts of the

proposed mining operation on flora, fauna, fish or wildlife habitats, and biodiversity.

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(l) Where percolation leaching is proposed as

demonstrating compliance with R 425.403.

(m) A plan and schedule for inspection or monitoring, or both, of

related facilities at least monthly.

a

mining

activity, plans

all mine

(n) The name and qualifications of the person or persons who prepared the plan

for the proposed mining operations.

History: 2006 AACS.

R 425.204 Reclamation Plan.

Rule 204. The mining, reclamation, and

environmental

protection plan

required under R 425.201(1)(d) shall contain a plan for the proposed final reclamation

operations, including the

reclamation. The plan

anticipated

schedule, sequence, and duration of

shall include information that demonstrates that all

methods, materials, and techniques proposed to be used are capable of accomplishing

their stated objectives in protecting the environment and public health, except that

such information may not be required for methods, materials, and techniques that are

widely used in mining or other industries and are generally accepted as effective.

The required information may consist of

results of actual testing, modeling,

documentation by credible independent testing and certification organizations, or

documented applications in similar uses and settings. The plan shall include, at a

minimum, all of the following:

(a) Information depicting and describing the items listed in paragraphs (i) to (iv)

of this subdivision. Information that is amenable to clear depiction on a map shall be

shown on a map or maps of the mining area drawn to an appropriate scale on a

topographic base and referenced to the nearest government-surveyed section or

quarter-section

lines. Other

required information shall be presented, as

appropriate, by cross-sections, documents, and engineering drawings.

(i) Final land contours.

(ii) Proposed final land use and relationship to surrounding land and land use.

(iii) Ponds, streams, wetlands, roads, dikes, drainage ditches, and soil erosion

and sedimentation control structures that will

reclamation.

remain after completion of

(iv) Plans and schedules for stabilizing waste rock piles, settling ponds, tailings

disposal facilities, overburden banks, open pit banks and walls, roads, and the plant

site. The plans shall include sloping, grading, terracing, and revegetating that will

prevent slumping, land or rock slides, or other slope failure and will effectively reduce

accelerated soil erosion and sedimentation. The plans shall include the following:

(A) Provisions for sloping or terracing of the banks or bottoms of open pit

surfaces that will be under water after cessation of mining, or other measures to

prevent a hazard to public safety.

(B) Provisions for replacing topsoil from surface areas disturbed by the mining

operation as appropriate for the approved final land use.

(C) Vegetation species and quantities,

preparation, seeding and planting

maintenance, and final density of plants.

seedbed

methods,

and

planting area

mulching, fertilization,

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(b) Evidence satisfactory to the department that the proposed reclamation

will conform to the following minimum performance standards:

(i) Final disposition of all toxic and hazardous wastes, refuse, tailings and

other solid waste shall be managed in a manner that protects the environment,

natural resources and public health and safety, and in conformance with all other

applicable federal and state laws and regulations.

(ii) All shafts, portals, or other openings between the land

underground mine workings shall be sealed in a manner that will

surface and

protect the

environment, natural resources, and public health and safety and in accordance with

all other applicable laws and regulations.

(iii) All surface structures, infrastructure, rock stockpiles, and tailings disposal

areas constructed as a part of the mining activities shall be removed, unless they

are converted to an alternate use in accordance with the proposed final land use.

(iv) All disturbed surface areas shall be stabilized to prevent accelerated

erosion by wind or water.

(v) All disturbed surface areas shall be revegetated with a variety of plants that

are native to the area, except that non-native plants may be used for revegetation in

areas where appropriate for an approved final land use that is different from the

premining land use. In addition, plant species not native to the area may be used

as approved by the department when necessary to provide temporary stabilization

of slopes and prevention of erosion.

(vi) Both the mining area and the affected area shall be reclaimed to achieve a

self-sustaining ecosystem appropriate for the region that does not require perpetual care

following closure and with the goal that the affected area shall be returned to the

ecological

conditions

that approximate premining conditions subject to changes

caused by nonmining activities or other natural events. Any portion of the mining

area owned by the applicant may be used for any legal purpose.

(c) Plans for monitoring of ground and surface water quality

postclosure monitoring period.

during the

(d) The name and qualifications of the person or persons who prepared the plan

for the proposed final reclamation operations.

History: 2006 AACS.

R 425.205 Contingency plan.

Rule 205. (1) The contingency plan required under

include at a minimum all of the following:

R

425.201(1)(e) shall

(a) An assessment of the risk to the environment or public health and safety

associated with potential accidents or failures involving the following, and the

response measures that shall be followed in each case:

(i) Release or threat of release of toxic or acid-forming materials.

(ii) Storage, transportation, and handling of explosives.

(iii) Fuel storage and distribution.

(iv) Fires.

(v) Wastewater collection and treatment system.

(vi) Settling pond or tailings disposal area embankment failure.

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(vii) Air emissions.

(viii) Spills of hazardous substances.

(ix) Other specific natural risks defined by

the

environmental impact

assessment.

(x) Power disruption.

(xi) Unplanned subsidence.

(xii) Leaks from containment systems for stockpiles or storage or disposal

facilities.

(b) A section that contains all of the following information:

(i) The procedure for notifying the general public, public authorities, and safety

agencies in the event of an emergency.

(ii) A list, by title, of personnel to be contacted and

responsibilities.

their

duties and

(iii) The actions to be taken to restrict access of nonessential personnel to the

area.

(iv) If evacuation of the public is necessary, then the procedure for conducting

the evacuation.

(v) A list of emergency equipment and its location.

(c) A list of emergency telephone numbers, including the following:

(i) Representatives of the operator.

(ii) The emergency management coordinator.

(iii) Local ambulance services.

(iv) Local hospitals.

(v) Local fire and police departments.

(vi) The department of environmental quality.

(vii) The pollution emergency alerting system.

(viii) Federal regulatory agencies as appropriate.

(ix) The department of natural resources.

(x) The local unit of government.

(d) A plan for testing the contingency plan to assure its effectiveness.

(2) The applicant shall submit a copy of the contingency

plan

to each

emergency management coordinator having jurisdiction over the affected area at the

time the application is submitted to the department.

History: 2006 AACS.

R 425.206 Amendment of permits.

Rule 206. (1) A mining permit may be amended at any time to address changes

in the mining operation, natural or humanmade conditions, or technology, or to

correct an oversight. An application for amendment of a mining permit shall be

submitted on a form prescribed by the department, signed by the permittee or an

authorized representative of the permittee. The application shall include revisions of any

of the following that are affected by the changes:

(a) The environmental impact assessment.

(b) The mining, reclamation, and environmental protection plan.

(c) The contingency plan.

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(d) Federal, state, and local permits and licenses that are anticipated to be

required.

(e) Provisions for financial assurance required under R 425.301.

(f) Other terms and conditions of the mining permit.

(2) A permittee may submit a request to the department to amend a mining

permit.

(3) The department may require a permittee to submit an

amendment of a mining permit if the department determines that the terms and

conditions of the mining permit are not providing the intended reasonable

application for

protection of the environment, natural resources, or public health and safety.

(4) Within 30 days after receiving a request to amend a mining

permit, the

department shall determine whether the request constitutes a significant change

from the conditions of the approved mining permit. If the department determines that the

request is a significant change, then the department shall submit the request for

amendment to the same review process as provided for a new permit application in R

425.201(4).

History: 2006 AACS.

R 425.207 Transfer of permit.

Rule 207. (1) If a permittee desires to transfer the mining permit to another

person, then the acquiring person shall submit to the department a request for the

transfer of the permit. The request for transfer of the permit shall be submitted on

forms prescribed by the department, and shall be signed by an authorized

representative of the permittee and

an authorized representative of the acquiring

operator. The request shall include the following:

(a) An update of the contingency plan.

(b) Provisions for financial assurance as prescribed in R 425.301.

(c) An organization report for the acquiring operator.

(2) Upon receiving a request for a transfer of a mining

department shall inspect the mining area and determine whether

permit, the

the existing

permittee is in violation of part 632 of the act or these rules at the mining site. If the

department determines the permittee to be in violation, then the mining permit shall

not be transferred to

a

person until the permittee has completed the necessary

corrective actions or the person acquiring the mining permit has entered into a

written consent agreement to correct all of the violations. The department may

incorporate the consent agreement by reference in the mining permit.

(3) A permit transfer is not effective until all other applicable permits are

transferred to the acquiring operator. Until the department approves the transfer of a

mining permit, the acquiring operator shall not operate the mine. Upon approval of a

transfer request, the acquiring operator shall assume the responsibilities for mining

activities specified in part 632 of the act, these rules, a mining permit, or orders of

the department under part 632 of the act.

(4) If a permittee conveys his or her authority to operate a mine to another

person, and a request for transfer of the mining permit has not been approved,

then, in addition to other enforcement actions, the department may order the

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immediate suspension of any or

all

mining activities at the permitted site,

including the removal or sale of metallic product.

History: 2006 AACS.

PART 3. FINANCIAL ASSURANCE

R 425.301 Financial assurance; requirements.

Rule 301. (1) A mining permit shall not be effective until the permittee

establishes financial assurance in an amount in accordance with the mining permit as

issued and in compliance with this rule.

A permittee shall thereafter maintain

financial assurance that is approved by the department during mining operations and

during the postclosure monitoring period, until the department releases the permittee

from its obligation to maintain financial assurance upon termination of the mining

permit or upon transfer of the mining permit to another operator. Failure of a permittee

to maintain financial assurance after the effective date of a mining permit as required

by this subrule constitutes a violation of the mining permit and is grounds for the

department to

order

immediate suspension of any or all mining activities,

including the removal of metallic product from the site, pursuant to section 63221 of

the act.

(2) The financial assurance shall apply to all mining and reclamation

operations subject to the mining permit and shall be sufficient to cover the cost to

administer, and to hire a third party to implement the reclamation, remediation, and

postclosure monitoring required under part 632 of the act, these rules, a mining permit,

or orders of the department under part 632 of the act, including the costs to remediate

any contamination of the air, surface water, or groundwater that is in violation of

the mining permit. The amount of financial assurance shall be determined as follows:

(a) The operator shall provide an itemized list of reclamation, remediation,

and postclosure monitoring activities and costs associated with all of the following:

(i) Mining activities subject to the mining permit where reclamation has not yet

been completed.

(ii) Mining activities that are anticipated to occur under the mining permit.

(b) The department may require financial assurance in an amount larger than

calculated by the operator under subdivision (a) of this subrule based upon an analysis

of the projected costs under subdivision (c) of this subrule by the department.

(c) The cost estimate required under this subrule shall be based on equipment,

materials, and methods normally available to

a

third party contractor using current

handbooks, publications, or other documented costs acceptable to the department. The

cost estimate shall include at a minimum the costs for the following:

(i) Reclamation.

(ii) Remediation of any contamination of the air, surface water, or

groundwater that is in violation of the mining permit.

(iii) Administrative oversight.

(iv) Reasonable contingencies.

(v) Other necessary environmental protection measures.

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(d) The amount of an assurance instrument shall include

assessed by the issuing institution for accessing the instrument.

any

possible fees

(3) The financial assurance required under this rule shall consist of an assurance

instrument or combination of instruments covering at least 75% of the total required

amount. Financial assurance for the balance of the required amount, if any, shall

consist of

a

statement of financial responsibility. When determining the portion

of the financial assurance required under this rule that may be satisfied by a statement

of financial responsibility, the department shall consider the following:

(a) The ability of the operator to pay for potential remediation costs in the case of

a violation of this part, as demonstrated by the information in the statement of financial

responsibility.

(b) Whether the operator carries pollution prevention or environmental

liability insurance, and if so, the amount of the insurance.

(c) Whether the operator has received a recognized third-party certification

of an environmental management system for mining operations.

History: 2006 AACS.

R 425.302 Assurance instruments.

Rule 302. (1) An assurance instrument shall consist of any of the following:

(a) A trust fund or escrow account as described in R 425.303.

(b) A surety bond as described in R 425.304.

(c) An irrevocable letter of credit as described in R 425.305.

(d) A certificate of deposit or time deposit account as described in R 425.306.

(e) Other equivalent financial instruments approved by the department.

(2) All assurance instruments shall be issued or maintained by entities that are not

affiliated with the operator and shall not be invested in the activities regulated under

this permit.

(3) Assurance instruments shall include a provision

requiring

the issuing

institution to give prompt notice to the department and permittee of any action

alleging bankruptcy or insolvency of the issuing institution or a violation that

would result in suspension or revocation of the license of the issuing institution.

(4) The operator shall be responsible for all administrative costs involved in

establishing and maintaining assurance instruments.

(5) An assurance instrument shall be payable to the state of Michigan.

(6) The permittee shall execute an agreement with

the

department that

stipulates that the department may draw upon the assurance instrument under the

conditions described in subrules (13) and (15) of this rule. The agreement shall be

executed on a form approved by the department.

(7) The assurance instrument required by this rule may be satisfied in whole or in

part by assurance instruments required by other parts of the act if those instruments

address the remediation activities required under part 632 of the act.

(8) The operator may submit a written request to the department to adjust the

amount of an assurance instrument provided the total value of all assurance

instruments equals or exceeds the amount required under the mining permit. If the

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request meets the requirements of these rules, then the department shall within 60

days after receiving the request approve the adjustment.

(9) A permittee may replace an existing assurance instrument with another

approved assurance instrument or instruments that provides equivalent coverage,

subject to approval by the department.

(10) A financial institution shall not cancel, terminate, or suspend an assurance

instrument without first giving the permittee and the department notice at least 90

days before the effective date of the cancellation, termination, or suspension. Such

cancellation, termination, or suspension shall not affect any liability that shall have

accrued under the assurance instrument before the effective date of cancellation,

termination, or suspension unless the permittee provides

a

replacement assurance

instrument approved by the department or unless the department shall otherwise

release the assurance instrument.

(11) A permittee is without the required financial assurance

bankruptcy of the trustee or issuing institution, a suspension or revocation of the

authority of the trustee institution to act as trustee, or a suspension or

if

filing of

revocation of the authority of the institution issuing an assurance instrument to

issue such instruments.

(12) A permittee shall provide an alternative assurance instrument or

instruments under the following conditions:

(a) At least 30 days before the effective date of cancellation, termination, or

suspension of an assurance instrument by the permittee or financial institution.

(b) Within 30 days of the date the permittee becomes aware that a financial

institution has become ineligible to provide or guarantee an assurance instrument

due to bankruptcy or insolvency of the issuing institution or a violation that would

result in suspension or revocation of the license of the issuing institution.

(13) If a permittee fails to provide an alternative assurance instrument when

required under subrule (12) of this rule, the department may do the following:

(a) Immediately draw upon the assurance instrument or instruments.

(b) Order the immediate suspension of any or all mining activities

at the

permitted site, including the removal of metallic product from the site, pursuant to

section 63211(5) of the act. The permittee shall not resume the suspended mining

activities until the department has determined that an acceptable replacement

assurance instrument or instruments have been provided.

(14) If the department draws upon an assurance instrument or instruments

under subrule (13) of this rule, and the permittee subsequently provides an alternative

assurance instrument or instruments approved by the department, then the department

shall refund to the issuing financial institution or the permittee the forfeited funds,

less any costs associated with the forfeiture.

(15) The department may draw upon an assurance instrument to undertake

action necessary to curtail or remediate any damage to the environment or public

health under subrule (16) of this rule or to recover costs the department has

incurred.

(16) The department shall expend money from assurance instruments only for the

recovery of costs described in R 425.301(2).

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(a) If the department takes action necessary to curtail and remediate any damage

to the environment or public health under Sec. 63221(5) of the act, then the department

shall file a claim for recovery of costs with the permittee. If the permittee fails to

fully reimburse the department for the costs of such actions within 60 days after filing of

the claim, then the department may recover its unreimbursed costs from the

assurance instrument or instruments.

(b) For any part of the department's costs not recovered from the permittee or

the assurance instrument or instruments, the attorney general, acting for and on behalf

of the department, may bring suit for the payment of the claim against the permittee

and the financial institutions that executed an assurance instrument or instruments;

provided, the liability of any financial institution for costs under the claim shall not

exceed the value of the financial instrument or instruments provided by the

institution under the provisions for financial assurance under these rules.

(17) A permittee shall notify the department, by certified mail,

of the

commencement of a voluntary or involuntary proceeding under the bankruptcy

provisions of Public Law 95-598, 11 U.S.C. Section 1 to 151302, naming the permittee

as debtor, within 10 days after commencement of the proceeding.

History: 2006 AACS.

R 425.303 Trust fund or escrow account.

Rule 303. (1) Subject to R 425.301, an operator may satisfy all or a portion of

the financial assurance requirements by establishing

a

trust fund that conforms to the

requirements of this rule. The trustee shall be a bank or other financial institution that

has the authority to act as a trustee and whose trust operations are subject to

federal or state oversight. The trust agreement shall be executed on a form approved by

the department and shall designate the department as the sole beneficiary.

(2) Subject to R 425.301, an operator may satisfy all or a portion of the financial

assurance requirements by establishing an escrow account that conforms to the

requirements of this rule. The escrow account shall be maintained by a bank or

other financial institution whose account operations are subject to federal or state

oversight.

(3) Investments of the trust fund shall be reviewed and approved

department and may include the following fixed income investments:

(a) U.S. treasury obligations.

by the

(b) State issued securities.

(c) Time deposits.

(d) Other investments of similar risk as approved by the department.

History: 2006 AACS.

R 425.304 Surety bond.

Rule 304. (1) Subject to R 425.301, an operator may satisfy all or a portion of

the financial assurance requirements by obtaining a surety bond that is executed on a

form approved by the department and that conforms to the requirements of this rule.

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The surety company issuing the surety bond shall, at a minimum, be among those listed

as acceptable sureties on federal bonds in circular 570 of the United States

department of the treasury.

(2) The surety company shall not be liable for deficiencies

in the

performance of reclamation, remediation, and postclosure monitoring, by the permittee

after the department releases the surety bond or releases the permittee from the

requirements of part 632 of the act.

History: 2006 AACS.

R 425.305 Irrevocable letter of credit.

Rule 305. (1) Subject to R 425.301, an operator may satisfy all or a portion of

the financial assurance requirements by obtaining an irrevocable letter of credit that

conforms to the requirements of this rule and is executed on a form approved by the

department. The issuing institution shall be a bank or financial institution which has

the authority to issue letters of credit and whose letter of credit operations are

regulated and examined by a federal or state agency.

(2) The letter of credit shall include all of the following information:

(a) The name of the operator.

(b) The name and address of the mine.

(c) The amount of funds assured for reclamation,

postclosure monitoring by the letter of credit.

remediation, and

(3) The letter of credit shall be issued for a period of at least 1 year and shall be

irrevocable during its term. The letter of credit shall be automatically extended for

additional terms of 1 year from the current or each future expiration date unless the

issuing institution provides the permittee and the department, at least 60 days before

the current expiration date, written notice by certified mail that the issuing

institution elects to terminate the letter of credit at the end of its then current term.

(4) The irrevocable letter of credit shall not be for an amount in excess of 10

percent of the bank's capital surplus account as shown on a balance sheet certified by a

certified public accountant.

(5) The issuing institution shall notify the department immediately if the issuing

institution becomes ineligible to issue a letter of credit.

History: 2006 AACS.

R 425.306 Certificate of deposit or time deposit account.

Rule 306. (1) Subject to R 425.301, an operator may satisfy all or a portion of

the financial assurance requirements by placing funds in an insured, non-negotiable

certificate of deposit or time deposit account held by a bank or other financial

institution regulated and examined by a federal or state agency. The value of the

certificate of deposit or time deposit account shall be insured by an agency of the

United States government, unless otherwise approved by the department.

(2) The certificate or account shall be in the sole name of the director of the

department.

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History: 2006 AACS.

R 425.307 Statement of financial responsibility.

Rule 307. (1) The statement of financial responsibility under R 425.301(3)

shall consist of the following:

(a) A written statement signed by the operator's chief financial officer that

lists data that show that the operator meets the criteria specified in subrule (2) of this

rule, and states that the data are derived from an independently audited year-end

financial statement.

(b) An independent certified public accountant's report on examination of the

operator's financial statement for the latest completed fiscal year stating that the

accountant has compared the data listed in the statement provided under subdivision

(a) of this subrule with the amounts in the corresponding year-end financial

statement and that

the accountant asserts the operator's statement of financial

responsibility meets the criteria of subrule (2) of this rule and nothing came to the

attention of the accountant that caused the accountant to believe that the financial

statements should be adjusted.

(2) The statement of financial responsibility under R 425.301(3) shall meet all of

the following criteria:

(a) The operator must satisfy 1 of the following 3 conditions:

(i) A current rating for its senior unsecured debt of AAA, AA, A, or BBB as issued

by Standard and Poor's or Aaa, Aa, A, or Baa as issued by Moody's.

(ii) A ratio of total liabilities to tangible net worth less than 1.5.

(iii) A ratio of the sum of net income plus depreciation,

amortization, minus $10 million, to total liabilities greater than 0.10.

depletion and

(b) The operator shall have a tangible net worth not less than 25%

financial assurance required under R 425.301 plus $10 million.

of the

(c) The operator shall have total assets located in North America of not less than

25% of the sum of the financial assurance required under R 425.301 plus the financial

assurance requirements of other parts of the act and equivalent or substantially

equivalent federal or state regulations. Declared mineral reserves, except for mineral

reserves at the permitted site, may be utilized in determining current assets only to the

extent that the value of