SECTION 252:653-11-16. Letter of credit

(a)   Letter of credit authorized. Financial assurance for closure and/or corrective action may be satisfied by obtaining an irrevocable standby letter of credit that conforms to the requirements of this Section.

(b)   Submit letter of credit to DEQ. A copy of the letter of credit must be submitted to DEQ for approval.

(c)   Acceptable issuing institutions. The issuing institution must be an entity that has the authority to issue letters of credit and whose letter of credit operations are regulated and examined by a federal or state agency.

(d)   Documents to include. A letter from the owner/operator referring to the letter of credit by number and containing the following must be included with the letter of credit:

(1)   the name of the issuing institution;

(2)   the date the letter of credit was issued;

(3)   the disposal facility name and address; and

(4)   the amount of funds assured.

(e)   Letter of credit requirements. The letter of credit must:

(1)   be irrevocable;

(2)   be issued for a period of at least one year in an amount at least equal to the current cost estimate for closure and/or corrective action, except as provided in OAC 252:653-11-9; and

(3)   provide that the expiration date will be automatically extended for a period of at least one year unless the issuing institution cancels the letter of credit.

(f)   Cancellation by issuing institution. The issuing institution may cancel the letter of credit by sending notice of cancellation by certified mail to the owner/operator and DEQ 120 days in advance of cancellation.

(g)   New financial assurance required. If the letter of credit is canceled by the issuing institution, alternate financial assurance meeting the requirements of this Part must be obtained prior to the effective date of cancellation.

[Source: Added at 35 Ok Reg 1333, eff 9-15-18]