LRB-5775/1
RCT:kmg&kaf:dw
1995 - 1996 LEGISLATURE
May 7, 1996 - Introduced by Committee on Assembly Organization. Referred to
Calendar.
AB1101,1,5 1An Act to renumber and amend 144.86 (1m) and 144.86 (4); to amend 144.86
2(3), 144.90 (2) to (4) and 293.63 (2) to (4); and to create 144.86 (1m), 144.86 (4)
3(a), 144.90 (6) and 144.90 (6) of the statutes; relating to: requiring a bond for
4certain remedial action associated with metallic mineral mines or mine waste
5disposal facilities.
Analysis by the Legislative Reference Bureau
Under current law, after the department of natural resources (DNR) approves
an application for a metallic mining permit and before mining begins, the mine
operator must post a bond with DNR to ensure performance of the requirements of
this state's mining laws. Instead of the bond, a mining operator may deposit cash,
certificates of deposit or government securities with DNR.
This bill requires a mine operator to post another bond with DNR. This bond
is to ensure the performance of any remedial action necessary as the result of a
discharge of a hazardous substance for which DNR has not issued a permit. Instead
of a bond, a mining operator may deposit cash, certificates of deposit or government
securities with DNR. Under the bill, the amount of the required bond or other
security is the amount determined by DNR to be necessary for remedial action
related to discharges that are reasonably likely to occur in connection with the
mining site or a solid waste facility that is part of the mining site.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1101, s. 1
1Section 1. 144.86 (1m) of the statutes is created to read:
AB1101,2,182 144.86 (1m) For a mining operation for which the mining permit is issued on
3or after the effective date of this subsection .... [revisor inserts date], upon
4notification that the application for the mining permit has been approved by the
5department but prior to commencing mining, the operator shall file with the
6department a bond conditioned on performance of any remedial action necessary as
7the result of a discharge of a hazardous substance for which the operator has not been
8issued a permit by the department. The bond shall be furnished by a surety company
9licensed to do business in this state. In lieu of a bond, the operator may deposit cash,
10certificates of deposit or government securities with the department. Interest
11received on certificates of deposit and government securities shall be paid to the
12operator. The bond or other security shall be in an amount determined by the
13department as necessary for remedial action related to discharges that are
14reasonably likely to occur in connection with a mining site or a solid waste facility
15regulated under s. 144.44 that is part of a mining site. The department may reduce
16the amount of the bond to reflect any separate agreements between the department
17and the applicant regarding the operation of the mining site and the mining waste
18facility.
AB1101, s. 2 19Section 2. 144.86 (1m) of the statutes, as created by 1995 Wisconsin Act ....
20(this act), is renumbered 293.51 (1m) and amended to read:
AB1101,3,1221 293.51 (1m) For a mining operation for which the mining permit is issued on
22or after the effective date of this subsection .... [revisor inserts date], upon
23notification that the application for the mining permit has been approved by the
24department but prior to commencing mining, the operator shall file with the
25department a bond conditioned on performance of any remedial action necessary as

1the result of a discharge of a hazardous substance for which the operator has not been
2issued a permit. The bond shall be furnished by a surety company licensed to do
3business in this state. In lieu of a bond, the operator may deposit cash, certificates
4of deposit or government securities with the department. Interest received on
5certificates of deposit and government securities shall be paid to the operator. The
6bond or other security shall be in an amount determined by the department as
7necessary for remedial action related to discharges that are reasonably likely to
8occur in connection with a mining site or a solid waste facility regulated under s.
9144.44
subch. III of ch. 289 that is part of a mining site. The department may reduce
10the amount of the bond to reflect any separate agreements between the department
11and the applicant regarding the operation of the mining site and the mining waste
12facility.
AB1101, s. 3 13Section 3. 144.86 (3) of the statutes is amended to read:
AB1101,3,1714 144.86 (3) Upon approval of the operator's bond or bonds, mining application
15and certificate of insurance, the department shall issue written authorization to
16commence mining at the permitted mining site in accordance with the approved
17mining and reclamation plans.
AB1101, s. 4 18Section 4. 144.86 (4) of the statutes is renumbered 144.86 (4) (b) and amended
19to read:
AB1101,4,220 144.86 (4) (b) Any operator who obtains mining permits from the department
21for 2 or more mining sites may elect, at the time the 2nd or any subsequent site is
22approved, to post a single bond in lieu of separate bonds on each site. Any single bond
23so posted shall be in an amount equal to the estimated cost to the state amounts of
24the bonds
determined under sub. subs. (1) of reclaiming and (1m) for all sites the
25operator has under mining permits. When an operator elects to post a single bond

1in lieu of separate bonds previously posted on individual sites, the separate bonds
2may not be released until the new bond has been accepted by the department.
AB1101, s. 5 3Section 5. 144.86 (4) (a) of the statutes is created to read:
AB1101,4,54 144.86 (4) (a) The applicant may elect to combine the bonds under subs. (1) and
5(1m) into a single bond.
AB1101, s. 6 6Section 6. 144.90 (2) to (4) of the statutes are amended to read:
AB1101,4,127 144.90 (2) Upon the issuance of any certificate of completion under sub. (1) for
8any portion of the mining site, but not for the entire mining site, the department shall
9allow the operator to reduce the amount of the bond under s. 144.86 (1) to an amount
10which shall equal the estimated cost of reclamation of the portion of the mining site
11which is disturbed or for which reclamation has been completed but no certificate of
12completion has been issued.
AB1101,4,20 13(3) Upon issuance of a certificate or certificates of completion of reclamation
14for the entire mining site, the department shall require that the operator maintain
15a bond under s. 144.86 (1) equal to at least 10% of the cost to the state of reclamation
16of the entire mining site if mining of the site was wholly underground, and at least
1720% of the cost to the state of reclamation of the entire mining site if any surface
18mining was conducted. Where the mining site in the mining plan is less than 10
19acres, the department may release the bond under s. 144.86 (1) after issuance of the
20certificate under sub. (1).
AB1101,4,23 21(4) After 20 years after the issuance of a certificate or certificates of completion
22for the entire mining site, the department shall release the bond under s. 144.86 (1)
23if the department finds that the reclamation plan has been complied with.
AB1101, s. 7 24Section 7. 144.90 (6) of the statutes is created to read:
AB1101,5,4
1144.90 (6) Upon petition of the operator after completion of the reclamation
2plan, if the department finds after conducting a hearing that there is no significant
3possibility of a discharge of a hazardous substance from the mining site or the mine
4waste disposal facility, the department shall release the bond under s. 144.86 (1m).
AB1101, s. 8 5Section 8. 144.90 (6) of the statutes, as created by 1995 Wisconsin Act .... (this
6act), is renumbered 293.63 (6) and amended to read:
AB1101,5,117 293.63 (6) Upon petition of the operator after completion of the reclamation
8plan, if the department finds after conducting a hearing that there is no significant
9possibility of a discharge of a hazardous substance from the mining site or the mine
10waste disposal facility, the department shall release the bond under s. 144.86 293.51
11(1m).
AB1101, s. 9 12Section 9. 293.63 (2) to (4) of the statutes, as affected by 1995 Wisconsin Acts
13227 and .... (this act), are amended to read:
AB1101,5,1914 293.63 (2) Upon the issuance of any certificate of completion under sub. (1) for
15any portion of the mining site, but not for the entire mining site, the department shall
16allow the operator to reduce the amount of the bond under s. 144.86 293.51 (1) to an
17amount which shall equal the estimated cost of reclamation of the portion of the
18mining site which is disturbed or for which reclamation has been completed but no
19certificate of completion has been issued.
AB1101,6,2 20(3) Upon issuance of a certificate or certificates of completion of reclamation
21for the entire mining site, the department shall require that the operator maintain
22a bond under s. 144.86 293.51 (1) equal to at least 10% of the cost to the state of
23reclamation of the entire mining site if mining of the site was wholly underground,
24and at least 20% of the cost to the state of reclamation of the entire mining site if any
25surface mining was conducted. Where the mining site in the mining plan is less than

110 acres, the department may release the bond under s. 144.86 293.51 (1) after
2issuance of the certificate under sub. (1).
AB1101,6,5 3(4) After 20 years after the issuance of a certificate or certificates of completion
4for the entire mining site, the department shall release the bond under s. 144.86
5293.51 (1) if the department finds that the reclamation plan has been complied with.
AB1101, s. 10 6Section 10. Effective dates. This act takes effect on the day after
7publication, except as follows:
AB1101,6,108 (1) The treatment of section 293.63 (2) to (4) of the statutes and the
9renumbering and amendment of sections 144.86 (1m) and 144.90 (6) of the statutes
10take effect on January 1, 1997.
AB1101,6,1111 (End)
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