(a) General rule.--No person shall conduct a surface mining operation unless the person has first applied for and obtained a license from the department. The department may require the information in the license application as it deems necessary to carry out the purposes of this act. The application for renewal of a license shall be made annually at least 60 days before the current license expires. The term of the license shall be specified in the license and shall not exceed one year.

(b) Fees.--The initial application for a license shall be accompanied by a fee of $50 in the case of persons mining 2,000 tons or less of marketable minerals per year and a fee of $500 in the case of persons mining more than 2,000 tons of marketable minerals per year. All persons having a surface mining operator's license shall renew the license annually and shall pay for each license renewal a fee of $50 in the case of persons mining 2,000 tons or less of marketable minerals per year and a fee of $300 in the case of all other persons.

(c) Nonissuance, nonrenewal or amendment.--The department shall not issue any surface mining operator's license or renew or amend any license if it finds, after investigation and an opportunity for informal hearing, that a person, partner, associate, officer, parent corporation or subsidiary corporation has been subject to a bond forfeiture under this act or any of the statutes enumerated in section 7(c)(9)¹ or has failed to comply with an adjudicated proceeding, order, consent order and agreement or decree under this act or any of the statutes enumerated in section 7(c)(9). In addition, the department shall not renew any license for any operator who uses the provisions of section 9(g),² unless the operator submits his annual payment under section 9(g) with his license renewal application.

(d) Notification of intent not to renew.--If the department intends not to renew a license, it shall notify the licensee of that fact at least 60 days prior to the expiration of the license. Prior to the expiration, the licensee shall be provided an opportunity for an informal hearing. Any person who opposes the department's decision on issuance or renewal of a license shall have the burden of proof.

(e) Insurance.--The application for license or renewal for operators who extracted more than 2,000 tons of marketable minerals in the previous year or who plan to extract more than 2,000 tons of marketable minerals in the current year shall be accompanied by a certificate of insurance. The certificate shall certify that the applicant has in force a public liability insurance policy, issued by an insurance company authorized to do business in this Commonwealth, covering all surface mining operations of the applicant in this Commonwealth and affording personal injury and property damage protection, to be written for the term of the license or renewal. The total amount of insurance shall be in an amount adequate to compensate any persons damaged as a result of surface mining operations, including, but not limited to, use of explosives, and entitled to compensation under the applicable provisions of State law. The total amount shall be prescribed by regulation. The operator shall provide liability insurance or bond guarantees for replacement or restoration of water supplies as required under section 11(g)³ with the license application under this section or as part of each surface mining permit application under section 7⁴ where the department determines that the operation may contaminate, diminish or interrupt one or more water supplies.

(f) Opportunity for hearing before revocation or suspension.--If the department intends to revoke or suspend a license, it shall provide an opportunity for an informal hearing before suspending or revoking the license. Fifteen days notice of the informal hearing shall be given unless the department determines that a shorter period is in the public interest.