The proposed bill would amend current statutes regarding financial assurance mechanisms for exploration operations and mining units. Under the new law, owners and operators would be allowed to provide a cash deposit with a third-party escrow or trust account as an additional financial assurance mechanism, expanding the existing list of acceptable options. This insertion would be added as a new item in the list of allowable mechanisms, which currently includes various forms such as surety bonds and letters of credit. Additionally, the bill specifies that all interest and earnings accrued from these cash deposits would belong to the owner or operator and could be applied toward final reclamation costs, with provisions for the proportional release of interest upon partial withdrawals.

Current law requires that financial assurance mechanisms be approved by the State Mine Inspector, and the bill maintains this requirement while enhancing the financial options available. It also clarifies that if the financial assurance is held in a third-party escrow or trust account, the inspector must release the proportional share of any interest earned when funds are partially released or substituted. The bill makes technical and conforming changes to ensure consistency with these new provisions, while retaining the existing framework for financial assurance and reclamation processes.

Statutes affected:
Introduced Version: 27-991, 27-996, 27-1291, 27-1296, 27-992
House Engrossed Version: 27-991, 27-996, 27-1291, 27-1296, 27-992