SECTION 252:515-27-83. Corporate guarantee

(a)   Corporate guarantee authorized. An owner/operator may satisfy his financial assurance requirements by obtaining a written guarantee from a corporate sponsor ("guarantor").

(b)   Relationship of guarantor to owner/operator. The guarantor must be the direct or higher-tier parent corporation of the owner/operator, a firm whose parent corporation is also the parent corporation of the owner/operator, or a firm with a substantial business relationship with the owner/operator.

(c)   Requirements of guarantor. The guarantor must meet the requirements for corporate owner/operators in OAC 252:515-27-81 and must comply with the terms of the guarantee.

(d)   Documentation required. The owner/operator must submit to the DEQ for approval, a certified copy of the guarantee, along with copies of the information described in OAC 252:515-27-81(c). A copy of the approved documentation shall be placed in the operating record.

(1)   If the guarantor's parent corporation is also the parent corporation of the owner/operator, the letter from the guarantor's chief financial officer must describe the value received in consideration of the guarantee.

(2)   If the guarantor is a firm with a substantial business relationship with the owner/operator, this letter must describe this substantial business relationship and the value received in consideration of the guarantee.

(e)   Terms of guarantee. The terms of the guarantee must include certain provisions.

(1)   Failure to perform. If the owner/operator fails to perform closure, post-closure care, and/or corrective action of a facility covered by the guarantee, the guarantor will:

(A)   perform, or pay a third party to perform, closure, post-closure care, and/or corrective action as required (performance guarantee); or

(B)   establish a fully funded trust fund as specified in OAC 252:515-27-76 in the name of the owner/operator (payment guarantee).

(2)   Guarantee remains in force unless cancelled. The guarantee will remain in force for as long as the owner/operator must comply with the applicable financial assurance requirements of this Subchapter unless the guarantor sends prior notice of cancellation by certified mail to the owner/operator and to the DEQ. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the owner/operator and the DEQ, as evidenced by the return receipts.

(3)   Obtain alternate financial assurance after cancellation. If notice of cancellation is given, the owner/operator must, within 90 days following receipt of the cancellation notice by the owner/operator and the DEQ, obtain DEQ approved alternate financial assurance meeting the requirements of this Part.

(4)   Failure to provide alternate financial assurance. If the owner/operator fails to provide alternate financial assurance within the 90-day period, the guarantor must provide DEQ approved alternate assurance within 120 days of receipt of the cancellation notice.

(f)   Corporate guarantor no longer qualifies.

(1)   Obtain alternative financial assurance. If a corporate guarantor no longer meets the requirements of OAC 252:515-27-81(b), the owner/operator must, within 90 days of receipt of such notice, obtain DEQ approved alternative financial assurance meeting the requirements of this Part.

(2)   Failure to provide alternate financial assurance. If the owner/operator fails to provide alternate financial assurance within the 90-day period, the guarantor must provide DEQ approved alternate assurance within the next 30 days.

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