Kan. Admin. Regs. § 28-29-2109 - Financial assurance provided by the corporate guarantee
(a) Corporate
guarantee. Any owner or operator of a permitted solid waste disposal area or
processing facility may meet the requirements of K.A.R. 28-29-2101 or K.A.R.
28-29-2102, or both, by obtaining a written guarantee for closure, postclosure,
or corrective action costs, or any combination of these as specified in this
regulation.
(1) The guarantor shall comply
with the following:
(A) The requirements for
owners or operators using the corporate financial test as specified in K.A.R.
28-29-2108(b) ;
(B) the record
keeping and reporting requirements in K.A.R. 28-29-2108(c) ; and
(C) the terms of the guarantee.
(2) The guarantor shall be one of
the following:
(A) The direct or higher-tier
parent corporation of the owner or operator; or
(B) a corporation having the same parent
corporation as the owner or operator.
(b) Form of the corporate guarantee. The
guarantor shall provide a written guarantee that is worded identically to the
document provided by the department.
(c) Effective date of the guarantee. A
guarantee of closure, postclosure, or both, for a new permit shall be in force
before the permit is issued by the department. A guarantee for corrective
action shall be in force within the times specified in K.A.R. 28-29-2102(d).
(d) Record keeping and reporting
requirements. Copies of the guarantee, with original signatures, shall be
placed in the facility operating record of the owner or operator and filed with
the department, accompanied by the documents specified for use by the owner or
operator in K.A.R. 28-29-2108(c), that shall be completed using the financial
information and reports of the guarantor corporation. These documents shall be
updated and filed annually.
(e)
Consideration for the guarantee. If the guarantor's parent corporation is also
the parent corporation of the owner or operator, the letter from the
guarantor's chief financial officer shall describe the value received in
consideration for the guarantee.
(f) Provisions of the guarantee. The terms of
the written guarantee shall specify the following remedies:
(1) If the owner or operator fails to perform
closure, postclosure, corrective action, or any combination of these, for the
permitted facility covered by the guarantee when required by the department or
any court of competent jurisdiction, the guarantor shall perform either of the
following remedies:
(A) Perform or pay a
third party to perform closure, postclosure, corrective action, or any
combination of these, as required by the department or any court of competent
jurisdiction; or
(B) establish a
fully funded trust fund as specified in K.A.R. 28-29-2103, in the name of the
owner or operator, in the amount of the current cost estimate for closure,
postclosure, corrective action, or any combination of these, whichever is
greatest.
(2) The
guarantee shall remain in effect unless the guarantor sends prior notice of
cancellation by certified mail to both the owner or operator and the
department. Cancellation shall not occur, however, during the 120 days
beginning on the date by which both the owner or operator and the department
have received the notice of cancellation, as evidenced by the return receipts.
(3) If the guarantee is canceled,
the owner or operator shall, within 90 days following the date by which both
the owner or operator and the department have received the cancellation notice,
obtain alternate financial assurance as specified in K.A.R. 28-29-2101(b) and
obtain the approval of the department for its use. If the owner or operator
fails to provide alternate financial assurance within the 90-day period, the
guarantor shall provide the alternate financial assurance in the name of the
owner or operator within 120 days following the date by which both the
department and the owner or operator have received the cancellation notice.
(g) Failure of the
guarantee. If the corporate guarantor no longer meets the requirements of
K.A.R. 28-29-2108(b), the owner or operator shall, within 90 days, obtain
alternate financial assurance and obtain the approval of the department for its
use. If the owner or operator fails to provide alternate financial assurance as
specified in K.A.R. 28-29-2101(b) within the 90-day period, the guarantor
shall, within the next 30 days, provide the alternate financial assurance in
the name of the owner or operator.
(h) Release of the guarantee. The owner or
operator shall be no longer required to meet the requirements of this
regulation if any of the following occurs:
(1) The owner or operator substitutes an
alternative method of financial assurance as specified in K.A.R. 28-29-2101(b)
and obtains written approval for its use from the department.
(2) The owner or operator is released by the
department from further obligation for closure, postclosure, or both, at the
permitted facility.
(3) The owner
or operator completes required corrective action and is released from further
obligation by the department or any court of competent jurisdiction.
(i) The provisions of this
regulation shall apply on and after February 24, 2000.
Notes
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