Reclamation Bond

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What is a Reclamation Bond?

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).

Reclamation Bond Requirements and Costs

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).

If you're unsure whether you need a bond, you can select your state from the list below to view the bond requirements.

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.

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.

Frequently Asked Questions

Apply and get approved on our website, sign the surety agreements, and we will ship the bond out. If you would like to learn more about what surety bonds are and how they work, you can read our detailed guide here.

Yes, it’s possible, but bad credit usually results in higher rates.

Yes. We provide the lowest rates possible as a result of the large volume of bonds we write.

You must contact us immediately, as we have a team of claim specialists here to find a resolution for you. Keep in mind, it is crucial that you work with an expert in the surety industry. Learn more about how to ensure you choose the proper bond company.

You can take a look at our full list of license and permit bonds.

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