---
kind: "section"
citation: "30 U.S.C. § 1259"
title: "30"
title_heading: "Mineral Lands and Mining"
number: "1259"
heading: "Performance bonds"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/30/1259"
units:
  - "Chapter 25 — Surface Mining Control and Reclamation"
  - "Subchapter V — Control of the Environmental Impacts of Surface Coal Mining"
---

# §1259. Performance bonds

- (a) **Filing with regulatory authority; scope; number and amount—** After a surface coal mining and reclamation [permit](/usc/30/1291.md?p=15) application has been approved but before such a [permit](/usc/30/1291.md?p=15) is issued, the applicant shall file with the [regulatory authority](/usc/30/1291.md?p=22), on a form prescribed and furnished by the [regulatory authority](/usc/30/1291.md?p=22), a bond for performance payable, as appropriate, to the United States or to the [State](/usc/30/1291.md?p=24), and conditional upon faithful performance of all the requirements of this chapter and the [permit](/usc/30/1291.md?p=15). The bond shall cover that area of land within the [permit area](/usc/30/1291.md?p=17) upon which the [operator](/usc/30/1291.md?p=13) will initiate and conduct [surface coal mining and reclamation operations](/usc/30/1291.md?p=27) within the initial term of the [permit](/usc/30/1291.md?p=15). As succeeding increments of [surface coal mining and reclamation operations](/usc/30/1291.md?p=27) are to be initiated and conducted within the [permit area](/usc/30/1291.md?p=17), the [permittee](/usc/30/1291.md?p=18) shall file with the [regulatory authority](/usc/30/1291.md?p=22) an additional bond or bonds to cover such increments in accordance with this section. The amount of the bond required for each bonded area shall depend upon the reclamation requirements of the approved [permit](/usc/30/1291.md?p=15); shall reflect the probable difficulty of reclamation giving consideration to such factors as topography, geology of the site, hydrology, and revegetation potential, and shall be determined by the [regulatory authority](/usc/30/1291.md?p=22). The amount of the bond shall be sufficient to assure the completion of the [reclamation plan](/usc/30/1291.md?p=21) if the work had to be performed by the [regulatory authority](/usc/30/1291.md?p=22) in the event of forfeiture and in no case shall the bond for the entire area under one [permit](/usc/30/1291.md?p=15) be less than $10,000.
- (b) **Liability period; execution—** Liability under the bond shall be for the duration of the surface coal mining and reclamation operation and for a period coincident with [operator](/usc/30/1291.md?p=13)’s responsibility for revegetation requirements in [section 1265 of this title](/usc/30/1265.md). The bond shall be executed by the [operator](/usc/30/1291.md?p=13) and a corporate surety licensed to do business in the [State](/usc/30/1291.md?p=24) where such operation is located, except that the [operator](/usc/30/1291.md?p=13) may elect to deposit cash, negotiable bonds of the United States Government or such [State](/usc/30/1291.md?p=24), or negotiable certificates of deposit of any bank organized or transacting business in the United States. The cash deposit or market value of such securities shall be equal to or greater than the amount of the bond required for the bonded area.
- (c) **Bond of applicant without separate surety; alternate system—** The [regulatory authority](/usc/30/1291.md?p=22) may accept the bond of the applicant itself without separate surety when the applicant demonstrates to the satisfaction of the [regulatory authority](/usc/30/1291.md?p=22) the existence of a suitable agent to receive service of process and a history of financial solvency and continuous operation sufficient for authorization to self-insure or bond such amount or in lieu of the establishment of a bonding program, as set forth in this section, the [Secretary](/usc/30/1291.md?p=23) may approve as part of a [State](/usc/30/1291.md?p=24) or [Federal program](/usc/30/1291.md?p=6) an alternative system that will achieve the objectives and purposes of the bonding program pursuant to this section.
- (d) **Deposit of cash or securities—** Cash or securities so deposited shall be deposited upon the same terms as the terms upon which surety bonds may be deposited. Such securities shall be security for the repayment of such negotiable certificate of deposit.
- (e) **Adjustments—** The amount of the bond or deposit required and the terms of each acceptance of the applicant’s bond shall be adjusted by the [regulatory authority](/usc/30/1291.md?p=22) from time to time as affected land acreages are increased or decreased or where the cost of future reclamation changes.

## Source credit

(Pub. L. 95–87, title V, § 509, Aug. 3, 1977, 91 Stat. 479.)