(a) As a condition precedent to the issuance of mining permit, each applicant shall furnish a reclamation bond or appropriate substitute, as provided in this Part, which is conditioned upon conformance with the applicant's mined land-use plan.

(b) A person who has filed applications for more than one mine may furnish a blanket bond for the total amount of the financial obligation in lieu of individual bonds for each mine location.

(c) The amount of the bond shall be determined by the department and shall be based upon the total estimated cost to the state for completion of reclamation consistent with the minimum basic reclamation requirements as described in section 422.3(b) of this Title. This cost and the corresponding amount of the bond shall be determined by the department on the basis of an evaluation of the following factors: the type of mine; the number of acres of affected land; the geographic location of the mine; the proposed land-use objective and basic reclamation requirements; the length of the permit period; the proposed method and schedule of reclamation; and other criteria which may be considered relevant to the estimate. The bond shall be maintained for a period of two years after completion of reclamation as provided in section 423.3(c) of this Part.

(d) In lieu of the bond, the applicant may deposit cash or certified check, negotiable bonds of the United States government, United States treasury notes, United States treasury certificates of indebtedness, United States treasury bills, bonds or notes of the State of New York, bonds of any political subdivision in the State of New York, bonds of the New York State Housing Finance Agency or of other New York State agencies or authorities, or bonds of public corporations of the State of New York, an irrevocable bank letter of credit, a certificate of deposit, or other forms of financial security acceptable to the department. Acceptable substitutes, if furnished, shall be kept on deposit with the department for the duration of the bond period.

(e) If, in case of default, the amount of the bond established by the department is not sufficient to cover the cost of reclaiming the affected land, the permittee shall be liable for the full additional costs. These additional funds shall be obtained by agreement with the permittee or, if necessary, by placing a lien on any or all materials, machinery, implements and tools of every description which may be found at the mine, or on other assets of the permittee.