30 Tex. Admin. Code § 37.9205 - Irrevocable Standby Letter of Credit Requirements
(a) An owner or operator may satisfy the
requirements of financial assurance by obtaining an irrevocable standby letter
of credit that conforms to the requirements of this subchapter and submit an
originally signed irrevocable standby letter of credit to the executive
director.
(b) The financial
institution issuing the irrevocable standby letter of credit shall be an entity
that has the authority to issue irrevocable standby letters of credit and whose
operations are regulated and examined by a federal or state agency.
(c) The wording of the irrevocable standby
letter of credit must be identical to the wording specified in §
37.9210 of this title (relating to
Irrevocable Standby Letter of Credit Wording).
(d) The originally signed irrevocable standby
letter of credit must be accompanied by a letter from the owner or operator
referring to the irrevocable standby letter of credit by number, issuing
institution, and date, and providing the following information for each quarry:
(1) the permit number;
(2) name and physical and mailing addresses
of the quarry; and
(3) the amount
of funds assured for reclamation or restoration by the irrevocable standby
letter of credit.
(e)
The letter of credit must be irrevocable and issued for a period of at least
one year. The irrevocable standby letter of credit must provide that the
expiration date shall be automatically extended for a period of at least one
year unless, at least 120 days before the current expiration date, the issuing
institution notifies both the owner or operator and the executive director by
certified mail of a decision not to extend the expiration date. Under the terms
of the irrevocable standby letter of credit, the 120 days shall begin on the
date when both the owner or operator and the executive director have received
the notice, as evidenced by the return receipts.
(f) The irrevocable standby letter of credit
must be issued in an amount at least equal to the current cost estimate, except
as provided in §§
37.41,
37.51, or
37.9170 of this title (relating to
Use of Multiple Financial Assurance Mechanisms, Use of a Financial Assurance
Mechanism for Multiple Facilities, and Financial Assurance Requirements for
Reclamation and Restoration).
(g)
Following a determination that the owner or operator has failed to perform
reclamation or restoration in accordance with the reclamation or restoration
plan, other applicable requirements of the permit(s), or written directive by
the executive director or commission or that the owner or operator has failed
to perform reclamation at the quarry or restoration related to the quarry in
accordance with the permit, other applicable requirements, or written directive
by the executive director or commission, the executive director may draw on the
irrevocable standby letter of credit.
(h) If the owner or operator does not
establish alternate financial assurance as specified in this subchapter and
obtain written approval of such alternate assurance from the executive director
within 90 days after receipt by both the owner or operator and the executive
director of a notice from the issuing institution that it has decided not to
extend the irrevocable standby letter of credit beyond the current expiration
date, the executive director shall draw on the irrevocable standby letter of
credit. The executive director may delay the drawing if the issuing institution
grants an extension of the term of the letter of credit. During the last 30
days of any such extension, the executive director shall draw on the
irrevocable standby letter of credit if the owner or operator has failed to
provide alternate financial assurance as specified in this subchapter and
obtain written approval of such assurance from the executive
director.
(i) Upon termination, in
accordance with §
37.61 of this title (relating to
Termination of Mechanisms), the executive director shall return the irrevocable
standby letter of credit to the issuing institution.
Notes
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