(a) The form and terms of the bond shall be as prescribed by the department. The bond shall name the State as beneficiary and shall be signed by the applicant as principal and by a responsible corporate surety authorized to do business in the State of New York. The terms of the bond shall be such that the applicant as principal shall agree to reclaim the affected land in accordance with the reclamation plan and schedule submitted to and approved by the department. In addition, the principal shall protect the State against all accounts, damages, costs and judgments arising from the performance of said work.

(b) The bonding requirement shall remain the obligation of the original permittee regardless of a change in landowner or operator, unless the latter person has furnished a replacement bond or appropriate substitute and the transfer of the reclamation obligation to the subsequent person has been approved by the department.

(c) If, for any reason, the principal defaults in the performance of reclamation under the terms of the bond, or if the permit is revoked, the department may thereupon call the surety to complete the reclamation as provided for in the bond. The liability of the surety shall not exceed the amount of the bond.

(d) A reclamation bond shall not be cancelled by the surety without at least 30 days notice to the department. If the reclamation bond is, for any reason, cancelled by the surety, the permittee shall provide a valid replacement within 30 days after receiving notice thereof. Failure to provide a replacement bond or acceptable substitute within such period shall be considered a violation of the mining permit and may result in the immediate suspension and subsequent revocation thereof.