(1) Financial assurance has to be furnished by every mineral concession holder. The amount of financial assurance shall be as per amount specified in the First Schedule:
Provided that the amount of financial assurance shall not be more than Rupees five Lacs.
(2) The financial assurance shall be furnished in the form of Fixed Deposit Receipt from any scheduled bank.
(3) The mineral concession holder shall submit the financial assurance to the State Geologist before execution of lease or contract.
(4) In the case of lease holder(s) where the lease has been executed under the Himachal Pradesh Minor Minerals (Concession) Revised Rules, 1971, such lease holder shall furnish the said financial assurance at the time of renewal of lease deed.
(5) Release of financial assurance shall be effective from the date of submission of application by the mineral concession holder for the satisfactory compliance of the provisions contained in the mine closure plan certified by the Mining Officer of the concerned district and shall be released by the State Geologist.
(6) If the State Geologist has reasonable ground for believing that the protective, reclamation and rehabilitation measures as envisaged in the approved mine closure plan in respect of which the financial assurance was given has not been or will not be carried out in accordance with the mine closure plan, either fully or partially, the State Geologist shall give the mineral concession holder a written notice of his intention to issue the orders for forfeiting the amount of financial assurance alongwith interest accrued thereon at least thirty days prior to the date of the order to be issued.
(7) Within thirty days of the receipt of notice referred to in sub-rule (5), if no satisfactory reply has been received in writing from mineral concession holder, the State Geologist shall pass an order for forfeiting the financial assurance amount alongwith the interest accrued thereon.