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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 252. Department of Environmental Quality |
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Chapter 653. Aquifer Storage and Recovery |
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Subchapter 11. Cost Estimates and Financial Assurance |
SECTION 252:653-11-15. Surety bond
Latest version.
- (a) Surety bond for closure authorized. Financial assurance requirements for closure may be satisfied by obtaining a payment or performance surety bond conforming to the requirements of this Section.(b) Performance bond for corrective action authorized. Financial assurance requirements for corrective action may be satisfied by obtaining a performance bond conforming to the requirements of this Section.(c) Submit bond to DEQ. A copy of the bond must be submitted to DEQ for approval.(d) Acceptable bonds. The surety company issuing the bond must, at a minimum, be among those listed as acceptable sureties on Federal bonds in Circular 570 of the U.S. Department of the Treasury.(e) Penal sum. The penal sum of the bond must be in an amount at least equal to the current closure or corrective action cost estimate, whichever is applicable, except as provided in OAC 252:653-11-19 (relating to the use of multiple mechanisms).(f) Surety liable. Under the terms of the bond, the surety will become liable on the bond obligation when the owner/operator fails to perform as guaranteed by the bond.(g) Establish standby trust fund. A standby trust to receive bond payments must be established that meets the requirements of OAC 252:653-11-13, except the requirements for initial payment and subsequent annual payments specified in OAC 252:653-11-13(e) through (g).(h) Deposits into standby trust. Payments made under the terms of the bond must be deposited by the surety directly into the standby trust fund.(i) Payments from the trust. Payments from the trust fund must first be approved by DEQ and the trustee.(j) Cancellation by surety. Under the terms of the bond, the surety may cancel the bond by sending notice of cancellation by certified mail to the owner/operator and to DEQ 120 days in advance of cancellation.(k) New financial assurance required. DEQ approved alternate financial assurance meeting the requirements of this Part must be established:(1) prior to the effective date of cancellation of the bond by the surety, or(2) within 60 days of receipt of notice the surety no longer meets the requirements of (d) of this Section.