What Is a Reclamation Bond?
Reclamation bonds are required by the U.S. Department of the Interior (DOI) as well as some local governments to obtain mining permits. This type of performance surety bond ensures that surface mining operations will take care of and restore the surrounding land, water and environment.
How Do Reclamation Bonds Cost?
The required reclamation bond amount will vary per operation. Reclamation bonds typically cost 1–5% of the bond amount and may require 100% collateral. Exact pricing and collateral requirements will vary based on the bond type, amount and the applicant’s credit score.
How Do Reclamation Bonds Work?
A reclamation bond binds three parties in a legal contract:
- Principal: The mining operator purchasing the bond
- Surety: The provider issuing the bond to the principal
- Obligee: The U.S. Department of the Interior (DOI) OR the local government department requiring the bond
If a bonded mining operator does not restore the environment according to the contract terms, the DOI or local government can file a claim to recover damages.
Who Needs a Reclamation Bond?
The DOI Office of Surface Mining Reclamation and Enforcement requires a federal reclamation surety bond for surface coal mining operations for which environmental restoration is necessary. Some states also require a local reclamation bond. Select your state below to learn more.
How to Get a Reclamation Bond
To get started, submit a quote request now. We will need the following information for your application:
- Description of the project
- Permit number
- Duration of the project
- Location of the project
Once you apply, a surety expert will reach out to provide a free quote. You can purchase your reclamation bond online or over the phone. If you’re in a rush to receive your physical bond document, we offer next-day and overnight shipping options.
How Do I Renew My Reclamation Bond?
Reclamation bonds expire annually. A SuretyBonds.com representative will contact you with renewal instructions and an invoice to keep your bond active before your term ends.
