Blalock, 012280 MSAGO, 19800122
|Case Date:||January 22, 1980|
In the process of developing Mississippi's proposed surface coal mining rules and regulations to make them acceptable to the Federal Office of Surface Mining, the Mining and Reclamation Section of the Bureau of Geology and Energy Resources has come upon two items that need to be clarified by your office. Section 806.12(e)(2) of the Department of Interior, Office of Surface Mining's Rules and Regulations states that The regulatory authority (Mississippi's Department of Natural Resources) shall not accept a surety company's bond in excess of the company's maximum single obligation as provided by State law in the State where the permit area is located, unless the surety company satisfies State law for exceeding that limit.' Section 806.12(e)(4) states that The regulatory authority may provide in the bond that the amount shall be confessed to judgment upon forfeiture, if this procedure is authorized by State law.' What, if any, State laws apply to a company's maximum single obligation limit and conditions for exceeding that limit? What, if any, State law provides for procedures to collect bonds upon a judgment of forfeiture? Also, would these State laws, if they exist, apply to letters of credit? Since February 15, 1980, has been set as the deadline for getting the finished version of the rules and regulations back to the Regional Office of Surface Mining for review, it would be appreciated if you give this request your earliest possible attention. If you have any questions, please direct them to the Bureau of Geology and Energy Resources at 3546228.'Provisions of the Mississippi Code of 1972 governing the regulation of surety companies are located at Section 83271 through Section 832711, copies of which are attached. Sections 83271 and 83275 pertain to specific requirements for a surety company. Of particular interest relative to your questions is Section 83279 which limits liability for a surety in the sense that a surety cannot be...
To continue readingFREE SIGN UP