Mont. Code Ann. § 82-4-433

(1) A bond required to Before a permit or permit amendment may be filed in this part by issued, a surety bond made payable to the operator shall be in such form as the state department prescribes, payable to the of state of Montana and conditioned upon the operator's full compliance with all requirements of this part part, and the all rules of adopted under this part, and the board. The bond shall permit must be signed submitted to by and approved the by landowner or operator, as appropriate, as principal, and the department. The bond must be signed by the applicant as principal a and by a good and sufficient corporate surety licensed to do business in the state of Montana, as surety. Montana. The bond shall be amount in an amount not to exceed must be the determined costs of by restoration required by this part as determined by the department. The amount department at of the cost of reclamation of the bond may not be less than $200 or more than $1,000 per acre unless affected land by the department determines, in writing, department. The applicant shall submit a bond that is no less than the cost of restoration of amount determined by the land exceeds $1,000 per acre. Upon such a determination, the bond amount must be set department. by the department at the

(2) In lieu of the bond, the operator may deposit with the board cash, government securities, a letter of credit in a form acceptable to the department, or a bond with property sureties in an amount equal to that of the required bond on conditions as above prescribed. In the discretion of the board, surety bond requirements may be fulfilled by the operator's posting a bond with land and improvements and facilities thereon as security, in which event no surety may be required. The penalty of the bond or amount of cash and securities shall be increased or reduced from time to time as provided in this part. The bond or security remains in effect until the affected land has been reclaimed as provided under the contract and the reclamation has been approved and the bond or security has been released by the board. The bond or security shall cover only actual affected land and may be increased or reduced to cover only such acreages as remain unreclaimed.

(2) (a) For opencut operations on federal land within the state, the department may accept a bond payable to the state of Montana and the federal agency administering the land. The bond must provide at least the same amount of financial guarantee as required by this part.

(b) The bond must provide that the department may forfeit the bond without the concurrence of the federal land management agency. The bond may provide that the federal land management agency may forfeit the bond without the concurrence of the department. Upon forfeiture by either agency, the bond must be payable to the department and may also be payable to the federal land management agency. If the bond is payable to the department and the federal land management agency, the department, before accepting the bond, shall enter into an agreement or memorandum of understanding with the federal land management agency providing for administration of the bond funds in a manner that will allow the department to provide for compliance with the requirements of this part, the rules adopted under this part, and the permit.

(3) If the license In lieu of submitting a surety upon a bond filed with the pursuant department pursuant to this part is suspended or revoked, subsection (1), the operator, within 30 days after receiving notice thereof from the board, shall substitute for that operator may submit cash, surety a good and sufficient surety licensed to do business certificate in of the state. Upon failure deposit, a letter of credit in a form acceptable the to operator to make substitution of surety, the board may suspend the contract of the operator to conduct operations upon the land described department, or a bond with property sureties in an amount equal to that of the contract until the substitution has been made. required bond on conditions as prescribed in this part. In the discretion of the department, surety bond requirements may be fulfilled by the operator's posting a bond with land and improvements and facilities located on the land as security, in which event a surety may not be required but the department may require that the amount

(4) The department shall cause the reclamation of any affected land with respect to which a bond has been forfeited. or other security must be increased or reduced as provided in this part.

(5) Whenever an operator has completed all of The bond or security remains in effect until the requirements under affected land has been reclaimed the as provisions of this part as to any affected land, provided under the operator shall notify permit and the department thereof. If has approved the board releases reclamation and released the operator from further obligation regarding such affected land, the penalty of the bond shall be reduced proportionately. or security. The bond or security may cover

(6) If the license of a surety that has issued a bond filed with the department pursuant to this part is suspended or revoked, the operator, within 30 days after receiving notice of the suspension or revocation from the department, shall substitute a good and sufficient bond from another surety licensed to do business in the state or shall submit another type of security pursuant to subsection (3). Upon failure of the operator to make the bond substitution within the 30-day time period, the department shall suspend the permit of the operator to conduct opencut operations upon the land described in the permit until the substitution has been made. If the operator demonstrates in writing that the operator has been pursuing a replacement bond in good faith but additional time is necessary to complete the transaction, the department may grant up to an additional 60 days for the operator to submit a replacement bond before suspending the permit.

(7) Whenever an operator has completed all of the reclamation requirements under the provisions of this part as to any affected land, the operator shall notify the department of the completed requirements and may request bond release. If the department releases the operator from further obligation regarding any affected land, the bond must be reduced proportionately. Within 365 days of receiving the bond release request, the department shall notify the operator and the landowner in writing of the decision on the bond release application.

(8) If the operator fails to complete reclamation as required, the bond is forfeited. The surety is liable to the state for the bond amount. The operator is liable for the remainder of the reasonable costs to the state of reclaiming the operation.

(9) (a) If the bond is canceled by the surety, the operator shall provide a replacement bond to the department within 30 days after receiving notice of the cancellation. The department may extend this timeframe if the operator exercised due diligence in attempting to obtain a replacement bond within the time required.

(b) The permit is suspended by operation of law if the operator fails to submit a replacement bond within 30 days or within an extended period provided by the department pursuant to subsection (9)(a).

(c) A suspended permit is reinstated upon department approval of a replacement bond.

Bond