Department of Environmental Conservation

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Mined Land Financial Security Information

As a condition precedent to the issuance of a mining permit, each applicant shall furnish financial security, as described below, which is conditioned upon conformance with the applicant's mined land-use plan. The applicant will be informed of the amount of the obligation during the application review process. No financial security should be sent in with the application.

The most commonly used financial security instruments are surety bonds, irrevocable bank letters of credit, and assignments of certificate of deposit. Templates for each type of instrument are available below. Other forms of financial security may be considered. A complete list is provided in 6NYCRR, Part 423.1 (d) (link leaves DEC's website).

When completing the financial security instrument forms below, the following items must be included or the instrument will be rejected:

  • 5-digit Mine File Number
  • NYSDEC's address (625 Broadway, 3rd Floor, Albany, NY 12233-6500)
  • Official bank letterhead/stationery for irrevocable letters of credit or assignments of certificate of deposit
  • Permittee/Principal name must match the application materials or the permit on file
  • Financial security instrument number
  • Effective date of instrument
  • Original and notarized signature(s) of authorized person(s)

Financial Security Form Templates

  • Surety Bond - A surety bond may be used to satisfy the financial security requirements. A surety bond rider is used to make changes to an existing surety bond. The Adobe Acrobat version of the Surety Bond and Surety can be completed on-line and printed for signing and submitted to the Division.
  • Irrevocable Letter of Credit - A letter of credit submitted under financial institution letterhead may be used to satisfy the financial security requirement. The letter of credit must be established in the name of The New York State Department of Environmental Conservation. Changes to an existing the letter of credit may be made by using the letter of credit amendment form.
  • Certificate of Deposit - A certificate of deposit may be used to satisfy the financial security requirement if it is assigned to The New York State Department of Environmental Conservation, by using the Assignment of Certificate of Deposit Form. The certificate must be held by the issuing institution and a copy of the assignment letter attached to it. Any interest or dividends are the sole property of the principal (permittee). Changes to an existing the certificate of deposit assignment may be made by using the certificate of deposit amendment form.

In the event of cancellation, non-renewal, or termination of financial security, the permittee is responsible for providing a replacement to prevent department action to call the proceeds of the surety account. Failure to do so can also result in permit suspension, revocation and liability for penalties.

Please call (518) 402-8056 if you have any questions regarding these forms or procedures.