Right of Way / Road Use Bond - Daviess County, IN in Indiana

Brief Summary

Daviess County does not set this bond as one flat number. The Commissioners tie it to the county's investment in the road you will use, and they also want a cash or letter of credit escrow on top of it. We write the surety bond to the amount the county gives you so the permit can be approved and the trucks can roll.

Daviess County, Indiana requires a surety bond from anyone the Board of Commissioners approves to use a county road as a coal haul route, mine through a county road, or build an equipment crossing. Under section 91.18(H) of the county code the bond equals the county's investment in the road as set by County Highway Coal Mine Policy P-16, and a separate escrow equal to 10% of the bond is also required. Utility work in the county right of way goes through the Highway Department's Request to Utilize County Right of Way.

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How to Apply for a Right of Way / Road Use Bond:

• Contact the Daviess County Highway Department to identify the road and get the county's investment figure under Policy P-16.
• Submit operator data, pit location and proposed route to the nearest state highway with the $10 permit fee.
• Apply for the surety bond in the exact amount the county sets, using the company's legal name.
• Arrange the escrow equal to 10% of the bond in cash, certificates of deposit or an irrevocable letter of credit.
• Provide proof of $1,000,000 liability insurance if the approval includes an equipment crossing.
• Deliver the executed bond and escrow to the county once the Commissioners approve the route, mine through or crossing.

Detailed Information About the Indiana Right of Way / Road Use Bond:

The amount is set by the road, not by a fee schedule

Section 91.18(H) of the Daviess County Code says that upon approval of any coal haul route, mine through or equipment crossing, the company must present a satisfactory surety bond in an amount equal to the county's investment, as determined by section 2 of the County Highway Coal Mine Policy P-16. The county works out the figure for the specific road. Ask the Highway Department for the number before you apply for the bond.

The escrow is required in addition to the bond

The same subsection requires an escrow account in the form of cash, certificates of deposit or an irrevocable letter of credit, equal to 10% of the surety bond. The escrow amount is adjusted to reflect the number of coal companies using the route. A surety bond alone does not complete the requirement.

Who needs a permit

The rules come from Ordinance 97-2, passed March 24, 1997, and now codified in Chapter 91 of the county code. It is unlawful to operate a coal hauling vehicle or coal mining equipment on a county highway without a permit from the Board of Commissioners. Each application needs data on the operator, the pit location and the proposed route to the nearest state highway, plus a $10 permit fee. Each pit or surface mining operation needs its own permit, and every applicant must show proof of financial ability to comply. Permit holders must maintain the haul route under Policy P-16, including surface quality, dust control, drainage and ditching.

Under section 91.19, every county road that is not a designated coal haul route is closed to trucks with a gross weight of 20,000 pounds or more that are used primarily to haul coal. Coal companies must also use the haul routes for supply deliveries when a vehicle's gross weight is 20,000 pounds or more.

Mine throughs and equipment crossings

If the Commissioners approve mining through a county road, the section mined through requires bond and escrow as in section 91.18(H). The Commissioners decide whether a run around is needed, the road is replaced under Policy P-14 when mining is done, and each mine through is reviewed every six months. An approved equipment crossing also requires proof of liability insurance in the amount of $1,000,000, and the crossing section is replaced under Policy P-14.

Utility work and other right of way use

The Daviess County Highway Department accepts a Request to Utilize County Right of Way online for utility work, and a separate Property Improvement Permit for driveways, fences and signs. The Highway Department also issues a 10 ton load limit haul permit for haul routes. For right of way and road use bonds outside the coal provisions, confirm the required amount and bond form with the Highway Department before the bond is issued.

Eligibility and Requirements for a Indiana Right of Way / Road Use Bond:

• Bond amount equal to the county's investment as determined by section 2 of County Highway Coal Mine Policy P-16.
• Separate escrow equal to 10% of the surety bond, adjusted for the number of companies using the route.
• A surety bond satisfactory to the Daviess County Board of Commissioners.
• Separate permit for each surface mining operation or pit.
• Ongoing maintenance of the haul route, and road replacement under Policy P-14 after a mine through or crossing.

Indiana Right of Way / Road Use Bond FAQs:

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