1. The Division of Minerals of the Commission on Mineral Resources shall develop and administer a program providing for the pooling of reclamation performance bonds to assist:

(a) An operator to comply with the bonding and surety requirements of this chapter;

(b) A person who engages in small mining operations or small exploration projects to comply with the requirements for financial guarantees set forth in the regulations adopted pursuant to 43 U.S.C. § 1740; or

(c) A person who engages in mining operations, small mining operations, exploration projects or small exploration projects to comply with the bonding requirements imposed pursuant to an ordinance adopted by a county in this State.

2. The program must:

(a) Be designed to reduce the financial burden of obtaining a reclamation performance bond for mining operations, small mining operations, exploration projects or small exploration projects;

(b) Require each operator or any other person who participates in the program to:

(1) Pay an amount into the pool each year which annually is actuarially determined to enable the program to be self-sustaining;

(2) Execute an agreement of indemnity on a form provided by the Division of Minerals; and

(3) Provide collateral or other security approved by the Administrator of the Division of Minerals if the Administrator considers it necessary to ensure against the forfeiture of a reclamation performance bond;

(c) Use the money in the pool to cover the bonded liability of the operators and any other persons who participate in the program;

(d) Provide a limit on the total bonded liability of any person who may be covered under the program; and

(e) Provide conditions for the release and forfeiture of bonds.

3. The Division of Minerals shall adopt regulations relating to the development and administration of the program.

4. If the reclamation performance bond of an operator or any other person who participates in the program is forfeited, the Attorney General may bring an action in the name of the State of Nevada in any court of competent jurisdiction against the operator or such other person to recover the costs incurred by the program in the reclamation of the land.

(Added to NRS by 1989, 1287; A 1993, 1688; 1997, 910; 1999, 3631)