DEP Begins Imposing "Full Cost Bonding" on Non-Coal Permits.

Posted on March 24, 2008 by Chip Haws

The Department of Environmental Protection (“DEP”)has begun implementing “full cost bonding” for non-coal, industrial minerals permits. DEP is requiring additional bonding for all new permits as well as permit revisions and permit renewals. It does not appear that DEP has published the new bonding rates in accordance with the requirements of 25 Pa. Code § 77.202, as such there is some debate as to the propriety of DEP’s new policy. The new bonding rates will typically increase the total bond for a site from three to five times higher than the prior bond amount. Rather than the existing bond rate of $1,000 per acre, the new rates are at least $3140 per acre and depending on the required backfilling may total more than $5,000 per acre.

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