Mackenzie Valley Land Use Regulations

32 (1) The Board may require security to be posted in an amount not exceeding the aggregate of the costs of

• (a) abandonment of the land-use operation;

• (b) restoration of the site of the land-use operation; and

• (c) any measures that may be necessary after the abandonment of the land-use operation.

(2) In setting the amount of security pursuant to subsection (1), the Board may consider

• (a) the ability of the applicant or prospective assignee to pay the costs referred to in that subsection;

• (b) the past performance of the applicant or prospective assignee in respect of any other permit;

• (c) the prior posting of security by the applicant pursuant to other federal legislation in relation to the land-use operation; and

• (d) the probability of environmental damage or the significance of any environmental damage.

(3) Where the Board requires that a security deposit be posted, the permittee shall not begin the land-use operation until the security has been deposited with the federal Minister.

(4) Posted security may be in the form of

• (a) a promissory note guaranteed by a bank listed in Schedule I or II to the Bank Act and made payable to the Receiver General;

• (b) a certified cheque drawn on a bank listed in Schedule I or II to the Bank Act and made payable to the Receiver General;

• (c) a performance bond approved by the Treasury Board for the purposes of paragraph (c) of the definition security deposit in section 2 of the Government Contracts Regulations;

• (d) an irrevocable letter of credit from a bank listed in Schedule I or II to the Bank Act; or

• (e) a cash payment.

(5) Posted security, or any remaining portion thereof, shall be returned to the permittee by the federal Minister after the Board issues a letter of clearance under section 33 in respect of the land-use operation.