Michigan Administrative Code › Department - Licensing and Regulatory Affairs › Bureau of Fire Services › Underground Storage Tank Regulations. R 29.2101-29.2192 › AMENDMENTS TO ADOPTED FEDERAL REGULATIONS › Subpart H - FINANCIAL RESPONSIBILITY › Section R. 29.2163f - Surety bond

Current through Vol. 24-12, July 15, 2024
Rule 63f. Section 280.98 is added as adopted from the
						July 15, 2015, EPA-UST rules as follows:
Section 280.98.
(a) An O/O may satisfy the requirements of
					 section 280.93 by obtaining a surety bond that conforms to the requirements of
					 this section. The surety company issuing the bond must be among the companies
					 listed as acceptable sureties on federal bonds in the latest circular 570 of
					 the United States Department of the Treasury.
(b) The surety bond shall be worded as
					 follows, except that instructions in brackets shall be replaced with the
					 relevant information and the brackets deleted:
Performance Bond
Date bond executed:
						_______________________________
Period of coverage:
						_______________________________
Principal: [legal name and business address of owner or
						operator]
						________________________________________________________________
Type of organization: [insert "individual," "joint
						venture," "partnership," or "corporation"]
						________________________________________________________________
State of incorporation (if applicable):
						________________________________________________________________
Surety(ies): [name(s) and business address(es)]
						_________________________________________________________________
Scope of Coverage: [List the number of tanks at each
						facility and the name(s) and address(es) of the facility(ies) where the tanks
						are located. If more than 1 instrument is used to assure different tanks at any
						1 facility, for each tank covered by this instrument, list the tank
						identification number provided in the notification submitted pursuant to 40
						C.F.R. part 280.22, or the corresponding state requirement, and the name and
						address of the facility. List the coverage guaranteed by the bond: "taking
						corrective action" and/or "compensating third parties for bodily injury and
						property damage caused by" either "sudden accidental releases" or "nonsudden
						accidental releases: or "accidental releases" arising from operating the
						underground storage tank"].
Penal sums of bond:
Per occurrence $ _____________________________
Annual aggregate $ ___________________________
Surety's bond number: _______________________
Know all Persons by These Present, that we, the Principal
						and Surety(ies), hereto are firmly bound to [the implementing agency], in the
						above penal sums for the payment of which we bind ourselves, our heirs,
						executors, administrators, successors, and assigns jointly and severally;
						provided that, where the Surety(ies) are corporations acting as cosureties, we,
						the Sureties, bind ourselves in such sums jointly and severally only for the
						propose of allowing a joint action or actions against any or all of use, and
						for all other purposes each Surety binds itself, jointly and severally with the
						Principal, for the payment of such sums only as is set forth opposite the name
						of such Surety, but if no limit of liability is indicated, the limit of
						liability shall be the full amount of the penal sums.
Whereas said Principal is required under Subtitle I of
						the Resource Conservation and Recovery Act (RCRA), as amended, to provide
						financial assurance for [insert: "taking corrective action" and/or
						"compensating third parties for bodily injury and property damage cause by"
						either "sudden accidental releases" or "non-sudden accidental releases" or
						"accidental releases";, if coverage is different for different tanks or
						location, indicate the type of coverage applicable to each tank or location]
						arising from operating the USTs identified above, and Whereas said Principal
						shall establish a standby trust fund as is required when a surety bond is used
						to provide such financial assurance:
Now, therefore, the conditions of the obligation are such
						that if the Principal shall faithfully ["take corrective action, in accordance
						with 40 C.F.R. Part 280, Subpart F and the Director of the state implementing
						agency's instructions for," and/or "compensate injured third parties for bodily
						injury and property damage cause by" either "sudden accidental releases" or
						"nonsudden accidental releases" or "sudden and nonsudden accidental releases"
						or "accidental releases"] accidental releases arising from operating the
						tank(s) identified above, or if the Principal shall provide alternate financial
						assurance, as specified in 40 C.F.R. Part 280, Subpart H, within 120 days after
						the date the notice of cancellation is received by the Principal from the
						Surety(ies), then this obligation shall be null and void; otherwise it is to
						remain in full force and effect.
Such obligation does not apply to any of the
						following:
(a) Any obligation of
					 [insert owner or operator] under a worker's compensation, disability benefits,
					 or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert
					 owner or operator] arising from and in the course of, employment by [insert
					 owner or operator];
(c) Bodily
					 injury or property damage arising from the ownership, maintenance, use, or
					 entrustment to others of any aircraft, motor vehicle, or watercraft;
(d) Property damage to any property owned,
					 rented, loaned to, in the care, custody, or control of, or occupied by [insert
					 owner or operator] that is not the direct result of a release from a petroleum
					 UST;
(e) Bodily injury or property
					 damage for which [insert owner or operator] is obligated to pay damages by
					 reason of the assumption of liability in a contract or agreement other than a
					 contract or agreement entered into to meet the requirements of 40 C.F.R. part
					 280.93.
The Surety(ies) shall become liable on this bond
						obligation only when the Principal has failed to fulfill the conditions
						described above.
Upon notification by [the Director of the implementing
						agency] that the Principal has failed to ["take corrective action, in
						accordance with 40 C.F.R. Part 280, Subpart F, and the Director's
						instructions," and/or "compensate injured third parties"] as guaranteed by this
						bond, the Surety(ies) shall either perform ["corrective action in accordance
						with 40 C.F.R. Part 280 and the Director's instructions," and/or "third-party
						liability compensation"] or place funds in an amount up to the annual aggregate
						penal sum into the standby trust fund as directed by [the Regional
						Administrator or the Director] under 40 C.F.R. part 280.112.
Upon notification by [the Director] that the Principal
						has failed to provide alternate financial assurance within 60 days after the
						date the notice of cancellation is received by the Principal from the
						Surety(ies) and that [the Director] has determined or suspects that a release
						has occurred, the Surety(ies) shall place funds in an amount not exceeding the
						annual aggregate penal sum into the standby trust fund as directed by [the
						Director] under 40 C.F.R. part 280.112.
The Surety(ies) hereby waive(s) notification of
						amendments to applicable laws, statutes, rules, and regulations and agrees that
						no such amendment shall in any way alleviate its (their) obligation on this
						bond.
The liability of the Surety(ies) shall not be discharged
						by any payment or succession of payments hereunder, unless and until such
						payment or payments shall amount in the annual aggregate to the penal sum shown
						on the face of the bond, but in no event shall the obligation of the
						Surety(ies) hereunder exceed the amount of said annual aggregate penal
						sum.
The Surety(ies) may cancel the bond by sending notice of
						cancellation by certified mail to the Principal, provided however, that
						cancellation shall not occur during the 120 days beginning on the date of
						receipt of the notice of cancellation by the Principal, as evidenced by the
						return receipt.
The Principal may terminate this bond by sending written
						notice to the Surety(ies).
In Witness Thereof, the principal and Surety(ies) have
						executed this Bond and have affixed their seals on the date set forth
						above.
The persons whose signatures appear below hereby certify
						that they are authorized to execute this surety bond on behalf of the Principal
						and Surety(ies) and that the wording of this surety bond is identical to the
						wording specified in 40 C.F.R. part 280.98(b) as such regulations were
						constituted on the date this bond was executed.
Principal
[Signature(s)]
[Name(s)]
[Title(s)]
[Corporate seal]
Corporate Surety(ies)
[Names and address]
[State of Incorporation]:
						_______________________________
[Liability limit]:$
						_____________________________________
[Signature(s)]
[Name(s) and title(s)]
[Corporate seal]
[For every co-surety, provide signature(s), corporate
						seal, and other information in the same manner as for Surety above.]
Bond premium: $
						_________________________________________