§ 77.253. Procedures.
(a) If forfeiture of the bond is required, the Department will:
(1) Send written notification by registered or certified mail to the permittee, the surety on the bond and the bank issuing a letter of credit of the Department’s determination to forfeit the bond and the reasons for the forfeiture.
(2) Advise the permittee and surety of the right to appeal to the EHB under section 4 of the Environmental Hearing Board Act (35 P.S. § 7514) and 2 Pa.C.S. § § 501—508 and 701—704 (relating to the Administrative Agency Law).
(3) Proceed to collect on the bond as provided by applicable laws for the collection of defaulted bonds or other debts, consistent with this section, if timely appeal under Chapter 1021 (relating to practice and procedures) is not filed, or if an appeal is filed, and if the appeal is unsuccessful.
(b) The written determination to forfeit the bond, including the reasons for forfeiture, will be a final decision by the Department.
(c) The Department will forfeit a bond deposited for a permit area, including designated phases of a permit area and amended permit areas, except for a portion of bond which has been released as provided in § § 77.241—77.243 (relating to release of bonds).
(d) If the Department declares a collateral bond forfeited, it will pay, or direct the State Treasurer to pay, the collateral funds into the Noncoal Surface Mining Conservation and Reclamation Fund. If upon proper demand and presentation, the banking institution or other person or municipality which issued the collateral refuses to pay the Department the proceeds of a collateral undertaking, such as a certificate of deposit, letter of credit or government negotiable bond, the Department will take appropriate steps to collect the proceeds.
(e) If the Department declares a surety bond forfeited, it will certify the same to the Office of Attorney General which will enforce and collect the amount forfeited and pay it into the Noncoal Surface Mining Conservation and Reclamation Fund.
(f) Funds received from the forfeiture of bonds, both surety and collateral, will be expended by the Secretary for reclaiming and planting the area of land affected by the operation upon which liability was charged on the bond, if the Secretary determines the expenditure to be reasonable, necessary and physically possible. Funds received from the forfeited bonds in excess of the amount that is required to reclaim and plant the area of land affected by the operation upon which liability was charged, and funds received from bond forfeitures where reclamation and planting is determined to be unreasonable, unnecessary or physically impossible, may be used by the Secretary for a purpose provided by law.
(g) The Department’s declaration of forfeiture under this section does not excuse the operator from meeting the requirements of this chapter or other requirements under the act.
Source The provisions of this § 77.253 adopted March 16, 1990, effective March 17, 1990, 20 Pa.B. 1643.
Cross References This section cited in 25 Pa. Code § 77.195 (relating to Department responsibilities); 25 Pa. Code § 77.224 (relating to special terms and conditions for collateral bonds); 25 Pa. Code § 77.227 (relating to payment in lieu of bond (PILB)); and 25 Pa. Code § 77.251 (relating to scope).
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