Financial assurance and rehabilitation for environmental authorities
Financial assurance and residual risk payments are security deposits held by your administering authority to ensure you comply with your environmental authority (EA) conditions and to cover potential rehabilitation costs.
Financial assurance is held while your operation is underway and must be provided to your administering authority before you begin operating. If you are conducting a resource activity, you may be required to make a residual risk payment for a certified rehabilitated area or after you have surrendered your EA.
You must pay financial assurance to cover the likely costs of:
- preventing or minimising environmental harm, and/or
- rehabilitating or restoring the environment after you've finished your environmentally relevant activity (ERA).
If you have an EA for a resource activity, progressive rehabilitation is a way for you to reduce the amount of financial assurance required by rehabilitating disturbed areas while you conduct a resource project. It allows you to:
- apply for progressive certification of rehabilitated areas of your tenure
- surrender part of your resource tenure over time to reduce this amount.
You may also qualify for a discount on the financial assurance you are required to pay, if you meet certain criteria in the financial assurance guideline.
A plan of operations is required for EAs for resource activities related to a mining lease or petroleum lease. This plan will be used to assess the amount and form of financial assurance for these activities.
EA holders without a lease, but a requirement to give financial assurance, will need to either:
- apply for a decision on the amount and form of financial assurance (if it has not yet been given), or
- apply to amend or discharge the financial assurance (if the administering authority already holds financial assurance).
This guide includes information on how to:
- calculate and pay financial assurance or residual risk payments
- apply for a discount on your financial assurance
- apply for progressive rehabilitation and certification
- meet the plan of operations requirements for your activity.