Bond Pool (Reclamation)
Bond Pool Contact
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The Nevada Division of Minerals administers the Nevada Reclamation Performance Bond Pool through which mine or exploration operators may apply for bond coverage to satisfy the bond requirements of the regulating agency, either the Bureau of Land Management or the Nevada Division of Environmental Protection. The program is designed to reduce the financial burden of, and time-frame for, obtaining a reclamation bond for small operators.
Summary of Bond Pool Regulations
1. State Bond Pool is an accepted form of bonding for NDEP and BLM.
2. The Bond Pool does not establish the amount of the bond. NDEP and/or BLM does that.
3. The maximum bond amount for a participant is $3,000,000 (the cap).
4. For bonds under $10,000 the deposit is 100 percent of the bond amount and the annual premium is 3 percent of the bond amount.
5. For bonds of $10,000 and greater, the deposit is 50 percent of the bond amount, escalating linearly to 80 percent at the cap, and the annual premium is 10 percent of the bond amount, declining linearly to 5 percent at the cap. Example calculations can be found in the Example Calculations for Bond Deposits and Premiums document.
6. Premiums are payable in advance.
7. Rates are subject to change through regulatory amendment by the Commission on Mineral Resources.
8. Penalties apply for failure to pay premiums timely.
9. Interest earned remains in Pool's account.
10. Deposit is returned upon release of bond. Premiums are not returned.
11. All participants are required to sign an indemnity agreement supplied by the Division.