---
title: "Security deposit and rehabilitation obligations checklist for a NSW mining authority"
url: "https://ailawframework.com/precedents/energy-resources-and-mining/security-deposit-and-rehabilitation-obligations-checklist-nsw"
type: "precedent"
site: "AI Law Framework"
id: "a13-security-deposit-and-rehabilitation-obligations-checklist-nsw"
area_id: "A13"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A13-T1-R5", "A13-X20260927-5"]
law_stated_as_at: "2026-10-18"
---

# Security deposit and rehabilitation obligations checklist for a NSW mining authority

> Checklist mapping a NSW mining authority's security deposit condition and rehabilitation exposure: the assessed or minimum deposit, review rights, directions under s 240, rehabilitation by the Minister at the holder's…

Canonical page: https://ailawframework.com/precedents/energy-resources-and-mining/security-deposit-and-rehabilitation-obligations-checklist-nsw  
Law stated as at: 2026-10-18

Site index for agents: https://ailawframework.com/llms.txt

Checklist mapping a NSW mining authority's security deposit condition and rehabilitation exposure: the assessed or minimum deposit, review rights, directions under s 240, rehabilitation by the Minister at the holder's expense, claims on the deposit and when the requirement lapses.

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Energy, Resources & Mining](https://ailawframework.com/precedents/energy-resources-and-mining.md)
- Jurisdictions: New South Wales
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-18
- Status: Maintained. Checked on 2026-10-18 against the 4 authorities it cites, for New South Wales.

## When to use it

Use in due diligence on a tenement, on a transfer or change of control, when the Secretary reassesses a deposit, or when planning closure, to identify the financial assurance in place and the gaps between it and the holder's rehabilitation liability.

## Used for these tasks

- [Map decommissioning obligations and financial-assurance gaps](https://ailawframework.com/practice/energy-resources-and-mining.md#A13-T1-R5)
- [Reconcile the disturbance data and prepare the rehabilitation provisioning return](https://ailawframework.com/practice/energy-resources-and-mining.md#A13-X20260927-5)

## How AI may be used

AI may extract the deposit condition, assessments, directions and disturbance data into the checklist and compare deposit amounts with estimates; the lawyer decides the exposure, the gaps and any review application.

**AI may:**

- Extract the security deposit condition, current amount and form of security from the authority and correspondence
- List all directions, prohibition notices and rehabilitation obligations on the file
- Compare the deposit with the latest rehabilitation cost estimate and show the difference

**AI must not:**

- Must not estimate rehabilitation costs; those come from the client's qualified estimate
- Must not conclude that the deposit covers the liability, or that a review would succeed
- Must not treat the deposit as a cap on the holder's liability (s 261H)

**The lawyer checks:**

- The current assessed or minimum deposit and whether a reassessment or review application is needed
- Outstanding directions under s 240 and exposure under s 241 if a direction is not complied with
- On a transfer, whether security will be required before registration (s 261BAA) and how the transferor's security is released

## Authorities

- [Mining Act 1992 (NSW) Part 12A, ss 261B to 261BF (security deposit conditions; amount as assessed deposit or minimum deposit; Secretary's assessment; review by the Minister)](https://legislation.nsw.gov.au/view/whole/html/inforce/current/act-1992-029)
- [Mining Act 1992 (NSW) ss 261BA and 261BAA (security before grant, renewal or transfer)](https://legislation.nsw.gov.au/view/whole/html/inforce/current/act-1992-029)
- [Mining Act 1992 (NSW) ss 261F and 261G (claim on and use of the deposit; lapsing and return)](https://legislation.nsw.gov.au/view/whole/html/inforce/current/act-1992-029)
- [Mining Act 1992 (NSW) ss 240 and 241 (directions to address environmental impacts and rehabilitate; Minister may act at the holder's expense and recover costs as a debt)](https://legislation.nsw.gov.au/view/whole/html/inforce/current/act-1992-029)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/energy-resources-and-mining/security-deposit-and-rehabilitation-obligations-checklist-nsw and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*