SECTION 252:626-3-3. Financial assurance

(a)   All applicants must demonstrate they have adequate financial, technical, and managerial capacity to comply with national primary drinking water regulations and continuously maintain the facility.

(1)   If the applicant is not a city, town or other public entity, the applicant must submit the following to the DEQ:

(A)   expected costs for operation and maintenance, replacement and closure,

(B)   continued existence and financial accountability, and

(C)   assurance that provisions have been made for continued existence of the operating entity for the expected life of the facility.

(2)   Continued existence may be demonstrated in one of the following fashions:

(A)   the applicant may be a property owners' association or a nonprofit corporation established under the laws of the State of Oklahoma. The association must have the legal authority to own and manage the PWS system including the authority to set and collect fees from users for operation and maintenance of the system. The bylaws of the entity must contain a provision that dissolution cannot occur until the system is either closed in accordance with applicable DEQ rules or transferred to another viable operating entity. The instrument creating the association must be filed in the office of the county clerk where the property is located, or

(B)   the applicant must provide proof of a sufficient amount on deposit to the credit of a trust, the powers of which are to operate and maintain the PWS system for the expected life of the facility, or

(C)   other proof of financial viability, such as the issuance of a bond or insurance contract covering the operation and maintenance of the PWS system for the life of the system may be submitted to DEQ for approval;

(3)   Costs for closure of the PWS system as required by law must be included in any funding plan.

(4)   If the information fails to demonstrate the on-going viability of the operation, the application will be denied.

(b)   Applications and un-expired permits may be transferred upon showing the transferee has legal authority and financial accountability, and that both parties agree to the transfer.

[Source: Added at 18 Ok Reg 1612, eff 6-1-01]