If the department determines that a surety company or bank, by reason of bankruptcy, insolvency, or suspension or revocation of its license, has become unable to fulfill its obligations, the operator is deemed to be without financial assurance. The department shall notify the operator in writing of the absence of financial assurance and specify a reasonable period, not to exceed ninety days, to replace financial assurance coverage. If adequate financial assurance is not posted by the end of the period, the department must petition the board to issue the operator a cease-and-desist order in accordance with SDCL 45-6B-49 and schedule a hearing before the board in accordance with SDCL 45-6B-50 and 45-6B-51. During the hearing, the board may require the operator to immediately begin reclamation of the mine in accordance with SDCL chapter 45-6B, the rules promulgated thereunder, and the reclamation plan. Mining operations may not resume until the board has determined that acceptable financial assurance has been posted.

Source: 52 SDR 24, effective September 10, 2025 .

General Authority: SDCL 45-6B-81 .

Law Implemented: SDCL 45-6B-20 , 45-6B-20.1 , 45-6B-21 , 45-6B-24 , 45-6B-48 , 45-6B-49 , 45-6B-50 , 45-6B-51 , 45-6B-55 , 45-6B-66 , 45-6B-67 , 45-6B-91 .