Utah Admin. Code R651-700-13 - Insurance and Bonding - Easement, ROW, Special Use Lease, and Temporary Land Use Permits

(1) The division may require a grantee, lessee, or permittee to obtain insurance in a specified amount if, in the division's opinion, the proposed land use, constitutes a risk to public safety; or to the state's interest.

(2) Pursuant to Subsection R37-1-7(2)(c), the division may request that the applicant, grantee, lessee, or permittee provide information concerning the use of the area to the Division of Risk Management, so that the Division of Risk Management may assist the division in determining the appropriate amount of insurance coverage the grantee, lessee, or permittee must obtain.

(3) Until the grantee fully satisfies its obligations under a ROW, easement, or special use lease, or until the bond is replaced with a new bond posted by a sublessee or assignee. Any required bond shall remain in effect even if the grantee or lessee has conveyed all or part of its interest to a sub lessee, assignee, or subsequent operator.

(4) The division may at any time increase the amount of any bond in reasonable amounts, upon 30 days written notice to the grantee, lessee, or permittee stating the amount of the increase and the reasons for the increase.

(5) The division may, at its discretion, accept bonds in any of the following forms:

(a) a surety bond issued by an approved corporate surety that is registered in Utah;

(b) a cash deposit; or

(c) a certificate of deposit that:

(i) is issued in the name of "The Division of State Parks and applicant, c/o Applicant's address";

(ii) is issued by an approved state or federally insured banking institution registered in Utah.

(iii) has a maturity date of no greater than 12 months;

(iv) is automatically renewable; and

(v) is deposited with the division.

(6) If the division accepts a bond in the form of a certificate of deposit pursuant to Subsection (5)(c), the applicant shall be entitled to and receive the interest payments.

(7) All certificates of deposit must be endorsed by the applicant before acceptance by the director or must be in other forms of surety as may be acceptable to the division at its sole discretion.

(8) If division accepts a bond in the form of a cash deposit pursuant to Subsection (5)(b), the division may not provide to the grantee, lessee, or permittee any investment returns earned on the cash deposit.

Notes

Utah Admin. Code R651-700-13

Amended by Utah State Bulletin Number 2023-21, effective 10/24/2023