TOWN of WASHINGTON, MAINE MINING ORDINANCE
ARTICLE VII - PERFORMANCE GUARANTEES

    [NOTE: See Article III, § 5 for explanation of the size symbols.]
    The following applies to All sized projects unless otherwise noted.
  1. Types of Guarantees
    With submittal of the application for mineral extraction Town permit, the applicant shall provide one of the following performance guarantees for an amount adequate to cover the total costs of all required reclamation, taking into account the time-span of the phasing, or reclamation schedule and the inflation rate for costs:
    1. Either a certified check payable to the Town or a savings account or certificate of deposit naming the Town as owner, for the establishment of an escrow account; or
    2. A performance bond payable to the Town issued by a surety company, approved by the Selectmen; or
    3. An irrevocable letter of credit from a financial institution establishing funding for the construction or reclamation of the mineral extraction activity, from which the Town may draw if reclamation or construction is inadequate, approved by the Selectmen; or
    4. MediumSmall Small or Medium projects may propose alternatives to the above.
    The conditions and amount of the performance guarantee shall be determined by the Planning Board with the advice of one or more of the following: a certified Civil Engineer, Town Road Commissioner, Town Selectmen, and/or Town Attorney, expenses paid for by the applicant.
  2. Contents of Guarantee
    The performance guarantee shall contain a reclamation schedule, cost estimates for each major phase of reclamation taking into account inflation, provisions for inspections of each phase of reclamation, provisions for the release of part or all of the performance guarantee to the permit holder, and a date after which the permit holder will be in default and the Town shall have access to the funds to finish reclamation.
  3. Escrow Account
    A cash contribution to the establishment of an escrow account shall be made by either a certified check made out to the municipality, the direct deposit into a savings account, or the purchase of a certificate of deposit. For any account opened by the permit holder, the municipality shall be named as owner or co-owner, and the consent of the municipality shall be required for a withdrawal. Any interest earned on the escrow account shall be returned to the developer unless the municipality has found it necessary to draw on the account, in which case the interest earned shall be proportionately divided between the amount returned to the developer and the amount withdrawn to complete the required improvements.
  4. Performance Bond
    A performance bond shall detail the conditions of the bond, the method for release of the entire bond or portions of the bond to the Town, and the procedures for collection by the municipality. The bond documents shall specifically reference the mineral extraction activity for which approval is sought.
  5. Letter of Credit
    An irrevocable letter of credit from a bank or other lending institution shall indicate that funds have been set aside for the reclamation of the mineral extraction activity and may not be used for any other project or loan.
  6. Phasing of Development
    The Board may approve phased performance guarantees, when a mineral extraction activity is approved in separate and distinct phases.
  7. Performance Guarantee Review
    Any performance bond or proof of financial capacity shall be reviewed no later than 30 days before the expiration of the guarantee, and adjusted if necessary. The applicant may also request adjustments in the guarantee.
  8. Release of guarantee
    Prior to the release of any part of the performance guarantee, the Planning Board shall determine to its satisfaction, that the reclamation meets or exceeds the design requirements for the portion of the reclamation for which the release is requested. The Planning Board's determination shall in part be based upon a certification of compliance, provided by the permit holder, issued by a licensed Civil Engineer and/or adequate assurances that compliance has been achieved from whatever governmental agencies and departments other than the Town that may be involved.
  9. Default
    If upon inspection, CEO or other inspecting official finds that any of the required reclamation has not been performed in accordance with the approved plans and specifications, he shall so report in writing to the Municipal Officers, the Board, and the permit holder and guarantor. The permit holder shall have 30 days unless otherwise specified by the CEO, to remedy any insufficiency noted. Thereafter, Municipal Officers shall take any steps necessary to enforce the guarantee and remedy the insufficiencies.
  10. Improvement Guarantees
    Performance guarantees may be required for all off site improvements required by this Ordinance, when the Planning Board finds that the scale of the improvements warrants.

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