Section R11-2-806. Trust Funds

A.       An owner or operator may satisfy the requirements of this Article by establishing a trust fund that meets the requirements of the Act and this Chapter. The trust fund shall name the state of Arizona as the primary beneficiary. The trustee shall be an entity which has the authority to act as trustee and whose trust operations are regulated and examined by a  federal  or state agency.

B.       An owner or operator may satisfy the requirements of the trust fund by establishing a trust fund with a pay-in period that meets the requirements of the Act and this Chapter and by sub- mitting an original signed duplicate of the trust agreement to the State Mine Inspector.

C.       A copy of the trust agreement shall be placed in the facility’s operating record.

D.       The trust fund shall be initially funded in an amount at least equal to the costs estimated in the approved reclamation plan for reclamation of existing surface disturbances covered by the Act and any surface disturbances to occur in the 1st year of the trust fund.

E.       Payments into the trust fund, other than the initial funding, shall be made annually, at a minimum, with subsequent pay- ments made not later than 30 days after each annual anniver- sary of the date of the 1st payment by the owner or operator. Annual payments shall be in an amount adequate to pay all costs of reclamation for land to be disturbed in that annual period.

F.       If the property owner or operator establishes a trust fund after having used 1 or more alternate mechanisms specified in this Article, the initial payment into the trust fund shall be at least the amount that the fund would contain if the trust fund were established initially and annual payments made according to the specifications of this Section.

Historical Note

Adopted effective January 6, 1997 (Supp. 97-1).