Protecting Taxpayers from Coal Mine Cleanup Costs
This act aims to protect citizens from bearing the costs of reclaiming coal mining sites when mining companies fail to meet their obligations. It introduces new, stricter rules for financial assurances that companies must provide to ensure funds for reclamation are always available. This means if a company goes bankrupt, taxpayers won't have to pay for the cleanup.
Key points
No More Self-Bonding: Mining companies can no longer guarantee their own reclamation payments. They must provide independent financial assurances like surety bonds or collateral.
Increased Oversight of Financial Assurances: The act sets new rules for what types of collateral are accepted and how often their value is re-evaluated to ensure sufficiency.
Limits on Surety Bonds: Restrictions will be placed on how much a single surety company can guarantee, reducing risk to the government and citizens.
Prohibition of Coal-Related Property as Collateral: Companies cannot use mines, land above mines, or mining equipment as collateral, enhancing financial security.
Executive Compensation as Potential Collateral: In some cases, executive salaries and bonuses may be considered as part of the collateral, increasing corporate accountability.
Expired
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