(2) The
surety bond
must be worded as follows, except that instructions in brackets must be
replaced with the relevant information and the brackets deleted:
Performance Bond
Date bond executed:________________________________
Period of coverage:_________________________________
Principal: [legal name and business address of owner or
operator]
_________________________________________________
Type of organization: [insert "individual," "joint venture,"
"partnership," or "corporation"]
_________________________________________________
State of incorporation (if applicable):
_________________________________________________
Surety(ies): [name(s) and business address(es)]
_________________________________________________
Scope of Coverage: [List the number of tanks at each facility
and the name(s) and address(es) of the facility(ies) where the tanks are
located. If more than one instrument is used to assure different tanks at any
one facility, for each tank covered by this instrument, list the tank
identification number provided in the notification submitted pursuant to
40 CFR
280.22, or the corresponding state
requirement, and the name and address of the facility. List the coverage
guaranteed by the bond: "taking corrective action" and/or "compensating third
parties for bodily injury and property damage caused by" either "sudden
accidental releases" or "nonsudden accidental releases" or "accidental
releases" "arising from operating the underground storage tank"].
Penal sums of bond:
Per occurrence $___________________________________
Annual aggregate $_________________________________
Surety's bond number:_______________________________
Know All Persons by These Presents, that we, the Principal
and Surety(ies), hereto are firmly bound to the Department of Environmental
Quality, in the above penal sums for the payment of which we bind ourselves,
our heirs, executors, administrators, successors, and assigns jointly and
severally; provided that, where the Surety(ies) are corporations acting as
co-sureties, we, the Sureties, bind ourselves in such sums jointly and
severally only for the purpose of allowing a joint action or actions against
any or all of us, and for all other purposes each Surety binds itself, jointly
and severally with the Principal, for the payment of such sums only as is set
forth opposite the name of such Surety, but if no limit of liability is
indicated, the limit of liability shall be the full amount of the penal
sums.
Whereas said Principal is required under Subtitle I to the
Resource Conservation and Recovery Act (RCRA) amending the Solid Waste Disposal
Act, as amended, to provide financial assurance for [insert: "taking corrective
action" and/or "compensating third parties for bodily injury and property
damage caused by" either "sudden accidental releases" or "nonsudden accidental
releases" or "accidental releases"; if coverage is different for different
tanks or locations, indicate the type of coverage applicable to each tank or
location] arising from operating the underground storage tanks identified
above, and
Whereas said Principal shall establish a standby trust fund
as is required when a surety bond is used to provide such financial assurance;
Now, therefore, the conditions of the obligation are such
that if the Principal shall faithfully ["take corrective action, in accordance
with ARM Title 17, chapter 56, subchapter 6, and the Director of the Montana
Department of Environmental Quality's instructions for," and/or "compensate
injured third parties for bodily injury and property damage caused by" either
"sudden" or "nonsudden" or "sudden and nonsudden"] accidental releases arising
from operating the tank(s) identified above, or if the Principal shall provide
alternate financial assurance, as specified in ARM Title 17, chapter 56,
subchapter 4, within 120 days after the date the notice of cancellation is
received by the Principal from the Surety(ies), then this obligation shall be
null and void; otherwise it is to remain in full force and effect.
Such obligation does not apply to any of the
following:
(a) Any obligation of
[insert owner or operator] under a workers' compensation, disability benefits,
or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert
owner or operator] arising from, and in the course of, employment by [insert
owner or operator];
(c) Bodily
injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor vehicle, or watercraft;
(d) Property damage to any property owned,
rented, loaned to, in the care, custody, or control of, or occupied by [insert
owner or operator] that is not the direct result of a release from a petroleum
underground storage tank;
(e)
Bodily injury or property damage for which [insert
owner or
operator] is
obligated to pay damages by reason of the assumption of liability in a contract
or agreement other than a contract or agreement entered into to meet the
requirements of ARM
17.56.805.
The Surety(ies) shall become liable on this bond obligation
only when the Principal has failed to fulfill the conditions described above.
Upon notification by the Director of the Montana Department
of Environmental Quality that the Principal has failed to ["take corrective
action, in accordance with ARM Title 17, chapter 56, subchapter 6 and the
Director's instructions," and/or "compensate injured third parties"] as
guaranteed by this bond, the Surety(ies) shall either perform ["corrective
action in accordance with ARM Title 17, chapter 56 and the Director's
instructions," and/or "third-party liability compensation"] or place funds in
an amount up to the annual aggregate penal sum into the standby trust fund as
directed by the Director under ARM
17.56.824.
Upon notification by the Director that the Principal has
failed to provide alternate financial assurance within 60 days after the date
the notice of cancellation is received by the Principal from the Surety(ies)
and that the Director has determined or suspects that a release has occurred,
the Surety(ies) shall place funds in an amount not exceeding the annual
aggregate penal sum into the standby trust fund as directed by the Director
under ARM 17.56.824.
The Surety(ies) hereby waive(s) notification of amendments to
applicable laws, statutes, rules, and regulations and agrees that no such
amendment shall in any way alleviate its (their) obligation on this bond.
The liability of the Surety(ies) shall not be discharged by
any payment or succession of payments hereunder, unless and until such payment
or payments shall amount in the annual aggregate to the penal sum shown on the
face of the bond, but in no event shall the obligation of the Surety(ies)
hereunder exceed the amount of said annual aggregate penal sum.
The Surety(ies) may cancel the bond by sending notice of
cancellation by certified mail to the Principal, provided, however, that
cancellation shall not occur during the 120 days beginning on the date of
receipt of the notice of cancellation by the Principal, as evidenced by the
return receipt.
The Principal may terminate this bond by sending written
notice to the Surety(ies).
In Witness Thereof, the Principal and Surety(ies) have
executed this Bond and have affixed their seals on the date set forth above.
The persons whose signatures appear below hereby certify that
they are authorized to execute this surety bond on behalf of the Principal and
Surety(ies) and that the wording of this surety bond is identical to the
wording specified in ARM 17.56.810(2) as such rule was constituted on the date
this bond was executed.
Principal
[Signature(s)]
[Name(s)]
[Title(s)]
[Corporate seal]
Corporate Surety(ies)
[Name and address]
[State of Incorporation:___________________
[Liability limit: $___________________
[Signature(s)]
[Name(s) and title(s)]
[Corporate seal]
[For every co-surety, provide signature(s), corporate seal,
and other information in the same manner as for Surety above.]
Bond premium: $ ___________________