Sec. 12. (a) If a permittee who posted a self-bond under this chapter does not file an application for a Phase I grading release with the department before the second November 1 after the year in which the coal was removed from the site covered by the self-bond, the permittee shall replace the self-bond with an alternate form of bond within ninety (90) days of the November 1 deadline established under this subsection.

     (b) If:

(1) a permittee who posted a self-bond under this chapter files an application for a Phase I grading release with the department before the second November 1 after the year in which the coal was removed from the site covered by the self-bond; but

(2) the application is rejected by the department;

the permittee shall replace the self-bond with an alternate form of bond not later than ninety (90) days after the denial of the application for a Phase I grading release becomes a final order of the department.

     (c) All acreage and structures that are within a permitted area and are used to facilitate active mining and reclamation operations are exempt from subsection (b). Areas described in this subsection include, but are not limited to, the following:

(1) Processing sites.

(2) Tipples.

(3) Railroad sidings.

(4) Buildings.

(5) Haul roads.

(6) Topsoil stockpiles.

(7) Sediment ponds.

     (d) For the purposes of subsection (c), the director shall determine what areas are used to facilitate active mining and reclamation operations.

     (e) A permittee shall submit annual reports to the department in a form that the director considers necessary to facilitate the effective monitoring of acres under self-bonding that have been affected and reclaimed.

     (f) An area that:

(1) is not subject to the time limitations set forth in subsection (b); and

(2) has been used for the disposal of:

(A) coal combustion fly or bottom ash;

(B) flue gas desulfurization byproducts generated by coal combustion units; or

(C) coal processing wastes;

is no longer eligible for self-bonding ten (10) years after the disturbance of the area or the self-bonding of the area, whichever is later. An alternative form of bond must be posted for the area under IC 14-34-6 not later than ninety (90) days after the area becomes ineligible for self-bonding under this subsection.

     (g) Whenever an area is determined to be no longer eligible for self-bonding, and an alternative form of bond is posted under IC 14-34-6, the area:

(1) is never again eligible for self-bonding; and

(2) may not be bonded by the surface coal mine reclamation bond pool established under IC 14-34-8-3.

As added by P.L.176-1995, SEC.22. Amended by P.L.2-1997, SEC.55.