Quarry extraction

SURETIES

Guarantees similar to those for Contracts

QUARRY OPERATIONS
NATIONAL LEGISLATION

The Regions have regulated quarry and peat bog operations in order to allow the harmonious execution of extraction activities while addressing the need to protect the land and the environment. Concessions (or authorizations) for quarry operations are granted to companies directly by the Region or by the Municipalities through delegation. Specific agreements regulate the extraction activity and the corresponding environmental rehabilitation.
The company is required to provide an appropriate surety, including in the form of a policy, to guarantee compliance with the obligations established by the concession. The scope of these obligations—ranging from site restoration to land protection, landscape preservation, and ecological concerns—represent significant commitments, compounded by the long duration of the "agreements." The responsibility related to extraction activities, including any damages (direct or indirect) caused to third parties (persons or property) that could affect the company’s balance, must also be considered. The issuance of the surety is thus typically conditional on the existence (or stipulation) of a liability insurance policy.

Type
Contract guarantees

Category
Similar to those for contracts

Legal References
Specific Regional laws

Typical Policyholder
Companies extracting inert materials

Typical Beneficiary
The Regions or Municipalities in whose territory the quarries are located

Usual Initial Duration
It is equal to the duration of the extraction authorization (3-5 years), sometimes extended for an additional two years

Extensions
Not provided

Commonly Requested Clauses
Specific wording

Specific Documentation to be Obtained
Copy of the agreement between the Municipality or Region and the company