Whether you’re an experienced contractor or just stepping into the industry, you’ve probably heard of surety bonds and their importance in building and construction. From providing reassurance to clients to ensuring that the material suppliers receive their payments on time, surety bonds certainly offer multiple benefits to contractors.
Protection of environmental integrity is one such benefit of surety bonds. However, it’s frequently overlooked.
Brush up on your knowledge regarding surety bonds by learning more about surety bonds used for environmental protection through this blog.
Reclamation bonds are a type of surety bonds required by the Bureau of Land Management. These bonds offer protection to land from misuse of oil or water well, coal mines, etc. The law requires contractors to have a reclamation bond before they can begin operations on mines and wells, to preserve natural resources for future generations.
Through these bonds, the government obtains a guarantee from the principal of the bond, to restore the mining site to its former state. As the Surface Mining Control and Reclamation Act governs all mining activities in the United States, contractors and construction companies should always consult experienced underwriters to acquire reclamation bonds.
Oil or Tire Disposal Bonds
The purpose of these bonds is to ensure that the construction company disposes all used oils and tires properly. Oil or tire disposal bonds are fundamentally license and permit bonds, and are known by various names in different states.
For example, the environmental protection division of Georgia’s Department of Natural Resources requires scrap tire carriers to purchase a surety bond to assure that the tires in their possession will be disposed according to the Georgia’s Solid Waste Management Act.
Similarly, individuals in Colorado cannot acquire the license to transport waste grease from one point to another without having a surety bond worth at least $10,000.
Landfill Closure or Post-Closure Bonds
These bonds are used to guarantee that the principal of the bond will be able to pay the amount required for landfill closure and post closure activities. According to the U.S. Environmental Protection Agency, waste management and decontamination of the site are some examples of closure activities, while post closure activities may include monitoring of decontaminated and treated sites.
Through these bonds, the government ensures that the company working on a particular site will be able to close, maintain and monitor the landfill for the protection of environment.
The terms of the bond must adhere to the state and federal laws regarding closure and post-closure, which is why it’s important to contact an experienced surety underwriter for the job, like BondPro.
BondPro is a dependable surety agency, based in Oklahoma, which offers surety underwriting services in more than 50 states. With more than 60 years of underwriting experience and strategic connections with multiple bond markets, the team at BondPro provides efficient and affordable surety solutions to clients from diverse industries.
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