Reclamation Bond Guide

Reclamation Bond Definition

Reclamation bonds ensure that any land tampered with during various mining operations will be restored to its original state and according to the contract once the mining company completes the work. These bonds protect the public and environmental safety during and after mining explorations and operations (sand, soil and gravel mining) or well plugging (oil, water and mineral).

This bond can be required of mine operators by local or federal governments throughout the U.S. to ensure things like the land itself, water and wildlife are preserved and restored. If the mining operator doesn’t restore the land properly or causes environmental damage such as water contamination, claims can be filed which the mining company must pay in full (including legal costs).

You can select your state below to determine if there are any local or federal bond requirements.

Select Your State

How Much Do Reclamation Bonds Cost?

Costs are a percentage of the bond amount, which is based on personal credit and financials. Collateral is sometimes required for these bonds (up to 50% - 100%) based on the specific mining operation being conducted, as some projects are long term jobs that can take years to complete. You can use our free bond premium calculator to get a price estimate, or you can apply online to get a firm quote.

Reclamation Bond Claims Can Put You at Risk

The mining company that obtained the bond is responsible to pay any bond claims in full which can be as large as the bond amount (this includes legal costs). The indemnity agreement that must be signed to get a reclamation bond is a legal contract that pledges corporate and personal assets if the mining company causes claims by not restoring land properly or causing environmental damage. Take a look at our guide to learn more about how bond claims work.