122 Neb. Admin. Code, ch. 13, § 005 - Surety Bond Guaranteeing Payment Into An Environmental Protection Trust Fund

005.01 An owner or operator shall satisfy the requirements of this section by obtaining a surety bond which conforms to the requirements of this section and submitting the bond to the Director with the application for a permit or for approval to operate under rule. The bond must be effective prior to injection. The surety company shall, at a minimum, be among those listed as acceptable sureties on Federal bonds in Circular 570 of the U.S. Department of the Treasury.
005.02 The wording of the surety bond shall be identical to the wording in Appendix II.
005.03 The owner or operator who uses a surety bond to satisfy the requirements of this section shall also establish a standby Environmental Protection Trust fund. Under the terms of the bond, all payments made thereunder will be deposited by the surety directly into the standby trust fund in accordance with instructions from the Director. This standby trust fund shall meet the requirements specified in Section 004 of this Chapter, except that:
005.03A An originally signed duplicate of the trust agreement shall be submitted to the Director with the surety bond; and
005.03B Until the standby trust fund is funded pursuant to the requirements of this section, the following are not required:
005.03B1 Payments into the trust as specified in Section 004.03 of this Chapter;
005.03B2 Updating of Schedule A of the Trust Agreement to show current EPMC estimates;
005.03B3 Annual valuations as required by the trust agreement; and
005.03B4 Notices of nonpayment as required by the trust agreement.
005.04 The bond shall guarantee that the owner or operator will:
005.04A Fund the standby trust fund in an amount equal to the penal sum of the bond before beginning the environmental protection measures enumerated in Section 001.01 of this Chapter;
005.04B Fund the standby trust fund in an amount equal to the penal sum within 15 days after an order to begin section 001.01 environmental protection measures is issued by the Director or a district court of competent jurisdiction; or
005.04C Provide alternate financial assurance as specified in this Chapter, and obtain the Director's written approval of the assurance provided, within 90 days after receipt by both the owner or operator and the Director of a notice of cancellation of the bond from the surety.
005.05 Under the terms of the bond, the surety will become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond.
005.06 The penal sum of the bond shall be in an amount at least equal to the current EPMC estimate.
005.07 Whenever the current EPMC estimate increases to an amount greater than the penal sum, the owner or operator, within 60 days after the increase, shall either cause the penal sum to be increased to an amount at least equal to the current EPMC estimate and submit evidence of such increase to the Director, or obtain other financial assurance as specified in this section to cover the increase. Whenever the current EPMC estimate decreases, the penal sum may be reduced to the amount of the current EPMC estimate following written approval by the Director.
005.08 The bond may be subject to cancellation by the surety company; provided that, no such cancellation, nor release of the surety company's liability under the bond, shall be effective sooner than one hundred twenty days following receipt by the Department and the permittee of written notice of cancellation sent by certified mail, return receipt requested. Such one hundred twenty day period shall be measured from the later of either the receipt by the Department or permittee of such notice. In the event of cancellation, the permittee must provide evidence of a replacement bond no later than forty-five days prior to the effective date of cancellation specified in the notice. The effective date of the replacement bond shall be no later than the effective date of cancellation. Failure of the permittee to obtain a replacement bond shall result in forfeiture of its bond.
005.09 The owner or operator may cancel the bond if the Director has given prior written consent based on his or her receipt of evidence of alternate financial assurance as specified in this section.

Notes

122 Neb. Admin. Code, ch. 13, § 005

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