§ 86.283. Procedures.

 (a)  An operator’s participation in the financial guarantees program is subject to the following:

   (1)  Annual payments will be 1% of the total amount of the number of acres of remining area to be affected multiplied by the Department’s current applicable bond rates.

   (2)  The first payment is due upon receipt of notice of the Department’s approval of the operator’s application to participate in the program. Payments shall be made annually thereafter concurrent with the license renewal or in accordance with a schedule determined by the Department.

   (3)  Payments are not refundable and will be deposited into the financial guarantees special account in the Remining Financial Assurance Fund to be used in case of operator forfeiture. When the special account becomes actuarially sound, excess payments may be used under section 18(a.1) and (a.2) of the act (52 P. S. §  1396.18(a.1) and (a.2)).

   (4)  The operator may not substitute financial guarantees for existing collateral or surety bonds.

 (b)  The operator is responsible for making the annual payment as calculated by the Department, until the amount of the bond is reduced or released in accordance with § §  86.170—86.172 (relating to scope; procedures for seeking release of bond; and criteria for release of bond).

 (c)  An operator approved to participate in the financial guarantees program is not required to pay the per acre reclamation fee required by §  86.17(e) (relating to permit and reclamation fees) for the remining area.

 (d)  The Department will issue a letter to the operator specifying the amount of money in the financial guarantees special account in the Remining Financial Assurance Fund which has been reserved as collateral for the operator’s reclamation obligations on the remining area. A copy of the letter will be kept in the operator’s permit application file.

 (e)  The obligation covered by the financial guarantees program bond will be reduced or released prior to any other bond submitted by the operator to cover the reclamation obligations of that permit. This portion of the bond may not be used to cover the reclamation obligation on another section of the permit area.