(1) A bond must be forfeited if the department finds that:
(a) the permittee has violated any of the terms or conditions of the bond;
(b) the permittee has failed to conduct the strip or underground mining and reclamation operations in accordance with the Act, the rules adopted pursuant thereto, or the conditions of the permit, within the time required by the Act, the rules adopted pursuant thereto, or the permit;
(c) the permit for the area under bond has been revoked, unless the operator assumes liability for completion of reclamation work; or
(d) the permittee has failed to comply with a compliance schedule approved by the department.
(2) A bond may be forfeited, if the department finds that:
(a) the permittee has become insolvent, failed in business, been adjudicated bankrupt, filed a petition in bankruptcy or for a receiver, or had a receiver appointed by any court;
(b) a creditor of the permittee has attached or executed a judgment against the permittee's equipment or materials at the permit area or on the collateral pledged to the department; or
(c) the permittee cannot demonstrate or prove the ability to continue to operate in compliance with the Act, the rules adopted pursuant thereto and the permit.