A. The permittee or applicant shall file, with the approval of the director, financial assurance under one of the following schemes to cover the reclamation or closeout plan costs as determined in accordance with 19.10.12.1205 NMAC:

1. (1) financial assurance for the approved reclamation plan or closeout plan for the entire permit area; or

2. (2) financial assurance may be provided and approved to guarantee specific increments of reclamation within the permit area provided the sum of incremental financial assurance equals or exceeds the total amount required under 19.10.12.1205 NMAC and 19.10.12.1206 NMAC. The area to be reclaimed and the amount of financial assurance required for each increment shall be specified in detail, and the permittee shall comply with the following:

   1. (a) An incremental financial assurance schedule and the financial assurance required for full reclamation of the first increment in the schedule shall be provided.
   2. (b) Before mining, exploration or reclamation operations on succeeding increments are initiated and conducted within the permit area, the permittee shall file with the director additional financial assurance to cover such increments in accordance with 19.10.12 NMAC.
   3. (c) The permittee or applicant shall identify the initial and successive areas or increments on a map submitted with the permit application and shall specify the financial assurance amount to be provided for each area or increment.
   4. (d) Identified increments shall be of sufficient size and configuration to provide for efficient reclamation operations should reclamation by the director become necessary pursuant to 19.10.12.1211 NMAC.

B. A permittee or applicant shall not disturb any area prior to acceptance by the director of the required financial assurance.

[7-12-94, 2-15-96; 19.10.12.1202 NMAC - Rn, 19 NMAC 10.2.12.1202, 05-15-2001]