AMENDMENT PROPOSED BY THE HOUSE COMMITTEE ON MINING AND MINERAL RESOURCES

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Commonwealth, provided that (i) the Attorney General approves the acceptance of such letter of credit; (ii) the letter of credit affords protection to the Department equivalent to a corporate surety's bond; and (iii) the letter of credit satisfies such other criteria deemed appropriate by the Director.

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United States. Each letter of credit can only be issued up to the amount which can be insured by the FDIC. Any letter of credit issued by a non-Virginia lending institution must be confirmed by an approved Virginia lending institution. The letters of credit shall be irrevocable, unconditional, must be payable to the Department upon demand, and must afford to the Department protection equivalent to a corporate surety's bond. The issuer of the letter of credit shall give prompt notice to the permittee and the Department of any notice received or action filed alleging the insolvency or bankruptcy of the issuer, or alleging any violations of regulatory requirements which could result in suspension or revocation of the issuer's charter or license to do business. In the event the issuer becomes unable to fulfill its obligations under the letter of credit for any reason, the issuer shall immediately notify the permittee and the Department. Upon the incapacity of an issuer by a reason of bankruptcy, insolvency or suspension or revocation of its charter or license, the permittee shall be deemed to be without proper performance bond coverage and shall promptly notify the Department, and the Department shall then issue a notice to the permittee specifying a reasonable period, which shall not exceed ninety days, to replace bond coverage. If an adequate bond is not posted by the end of the period allowed, the permittee shall cease coal extraction and coal processing operations and shall immediately begin to conduct reclamation operations in accordance with the reclamation plan. Coal extraction and coal processing operations shall not resume until the Department has determined that an acceptable bond has been posted. If an acceptable bond has not been posted by the end of the period allowed, the Department may suspend the permit until acceptable bond is posted. The letter of credit shall be provided on the form and format established by the Director. Nothing herein shall relieve the permittee of responsibility under the permit or the issuer of liability on the letter of credit.