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Bond What You Know and Insure What You Don’t: A Comment on A Market Approach to Regulating the Energy Revolution

August 2015

Citation: 45 ELR 10756

Issue: 8

Author: W. Blaine Early III

It is a privilege to comment on the extensive and thoughtprovoking work of Professors Dana and Wiseman. I approach this from the perspective of my practice in the environmental regulation of natural resources industries, including coal and hard rock mining and oil and gas extraction, and the role that surety bonds and other forms of financial assurance play in those industries. Professors Dana and Wiseman describe categories of relatively certain risks in the short or medium term versus those risks that are uncertain and have a long tail. This comment focuses on how surety bonds can address the relatively certain risks of these natural resources industries within the framework of command-and-control regulation, while insurance is better suited for the more uncertain risks.

W. Blaine Early III is a member of the law firm of Stites & Harbison, PLLC, in the firm’s Lexington, Kentucky, office. The opinions expressed in this Comment are his alone and do not represent those of the firm or of any client.

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