SECTION 252:515-27-71. General requirements for financial assurance mechanisms

(a)   Requirements. To qualify as financial assurance for the performance costs of closure, post-closure, and/or corrective action, a financial assurance mechanism must:

(1)   ensure that the amount of funds assured is sufficient to cover the costs of closure, post-closure care, and/or corrective action for known releases when needed;

(2)   ensure that funds will be available in a timely fashion when needed;

(3)   be legally valid, binding, and enforceable under State and Federal law;

(4)   be non-negotiable;

(5)   be in an amount approved by the DEQ;

(6)   indicate the purpose of the financial assurance is to provide funds for the adequate completion of closure, post-closure, and/or corrective action upon the failure of the owner/operator ("principal") to fully complete performance according to the terms of the permit and applicable law;

(7)   provide the name, address, telephone number(s), contact person(s), and organizational information for the principal and for the financial assurance issuer ("issuer");

(8)   provide information on financial responsibility and liability limits of the issuer;

(9)   provide a clause requiring payment to the State of Oklahoma, Department of Environmental Quality Revolving Fund, as the sole beneficiary upon the DEQ's certification that the principal has not fully or satisfactorily performed required closure, post-closure, and/or corrective action activities;

(10)   provide a clause addressing termination and stating that neither the principal nor issuer can revoke or cancel the financial assurance mechanism without notice to the DEQ 120 days before revocation or cancellation is effective;

(11)   provide a clause requiring notice to the DEQ by issuer and to the principal prior to renewal date, if any;

(12)   provide a clause requiring 30 day notice to the DEQ by issuer of principal's failure to pay renewal fee(s), if any;

(13)   specify whether coverage is for the life of the facility through certified closure, the period of post-closure care required by law, and/or corrective action;

(14)   include original signatures and typed names of authorized agents of the principal and the issuer; and

(15)   contain evidence that the signatory for the issuer is empowered to commit the issuer to payment.

(b)   Submit to DEQ. An original and one copy of the approved mechanism shall be submitted to the DEQ for deposit or filing in the State Treasurer's office.

[Source: Added at 20 Ok Reg 1151, eff 6-1-03]