Louisiana Administrative Code › Title 33 - ENVIRONMENTAL QUALITY › Part IX - Water Quality › Subpart 2 - The Louisiana Pollutant Discharge Elimination System (LPDES) Program › Chapter 67 - Financial Security › Section IX-6703 - Acceptable Form of Financial Security

Current through Register Vol. 50, No. 6, June 20, 2024
A. Financial security required by
				  R.S.
				  30:2075.2 may be established by any one or a
				  combination of the following mechanisms.
1.
				  Surety Bond. The requirements of this Section may be satisfied by obtaining a
				  surety bond that conforms to the following requirements:
a. the bond must be submitted to the
				  department at the following address: Louisiana Department of Environmental
				  Quality, Office of Environmental Services, Water and Waste Permits Division,
				  Box 4313, Baton Rouge, LA 70821-4313;
b. the bond must be executed by the permittee
				  and a corporate surety licensed to do business in Louisiana. The surety 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 and be approved by the
				  administrative authority;
c. under
				  the terms of the bond, the surety will become liable on the bond obligation
				  when the permit holder fails to perform as guaranteed by the bond;
d. under the terms of the bond, the surety
				  may cancel the bond by sending notice of cancellation by certified mail to the
				  permit holder and to the administrative authority at the address indicated in
				  Subparagraph A.1.a of this Section. Cancellation may not occur, however, before
				  120 days have elapsed, beginning on the date that both the permit holder and
				  the administrative authority receive the notice of cancellation, as evidenced
				  by the return receipts; and
e. the
				  wording of the surety bond must be identical to the following, except that
				  material in brackets is to be replaced with the relevant information and the
				  brackets deleted:
PERFORMANCE BOND
Date bond was executed:_______________________
Effective date:________________________________
Principal: [legal name and business address of permit
					 holder or applicant]
Type of organization: [insert "individual," "joint
					 venture," "partnership," or "corporation"]
State of incorporation:_______________________
Surety: [name(s) and business address(es)]
[Site identification number, site name, facility name,
					 facility permit number, facility address, amount for each facility guaranteed
					 by this bond]
Total penal sum of bond: $_______________
Surety's bond number: __________________
Know All Persons By These Presents That we, the Principal
					 and Surety hereto, are firmly bound to the Louisiana Department of
					 Environmental Quality in the above penal sum for the payment of which we bind
					 ourselves, our heirs, executors, administrators, successors, and assigns,
					 jointly and severally, provided that, where Sureties are corporations acting as
					 cosureties, we, the Sureties, bind ourselves in such sum "jointly and
					 severally" only for the purpose of allowing a joint action or actions against
					 any or all of us and, for all other purposes, each Surety binds itself, jointly
					 and severally with the Principal, for the payment of such sum 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
					 sum.
WHEREAS, said Principal is required, under the Louisiana
					 Environmental Quality Act, La.
					 R.S.
					 30:2001 et seq., to have a permit in order to
					 discharge wastewater from the facility identified above; and
WHEREAS, the Principal is required by law to provide
					 financial assurance for the conditions specified in LAC 33:IX.Chapter 67, as a
					 condition of the permit; and
THEREFORE, the conditions of this obligation are such that
					 if the Principal shall faithfully perform, in a timely manner, the requirements
					 of LAC 33:IX applicable to the facility for which this bond guarantees the
					 requirements of LAC 33:IX, in accordance with the other requirements of the
					 permit as such permit may be amended and pursuant to all applicable laws,
					 statutes, rules, and regulations, as such laws, statutes, rules, and
					 regulations may be amended;
OR, if the Principal shall provide other financial
					 assurance as specified in LAC 33:IX.Chapter 67 and obtain written approval of
					 the administrative authority of such assurance within 90 days after the date of
					 notice of cancellation of this bond is received by both the Principal and the
					 administrative authority, then this obligation shall be null and void;
					 otherwise, it is to remain in full force and effect.
The Surety shall become liable on this bond obligation
					 only when the Principal has failed to fulfill the conditions described
					 hereinabove.
Upon notification by the administrative authority that the
					 Principal has been found in violation of the requirements of LAC 33:IX or of
					 its permit, for the facility for which this bond guarantees performances of the
					 requirements of LAC 33:IX.Chapter 67, the Surety shall either perform the
					 requirements of LAC 33:IX.Chapter 67, or place the closure amount guaranteed
					 for the facility into the standby trust fund as directed by the administrative
					 authority.
The Surety hereby waives notification of amendments to
					 permit, applicable laws, statutes, rules, and regulations and agrees that no
					 such amendment shall in any way alleviate its 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 aggregate to the penal sum of the bond,
					 but in no event shall the obligation of the Surety hereunder exceed the amount
					 of the penal sum.
The Surety may cancel the bond by sending notice of
					 cancellation by certified mail to the Principal and to the administrative
					 authority. Cancellation shall not occur before 120 days have lapsed, beginning
					 on the date that both the Principal and the administrative authority received
					 the notice of cancellation as evidenced by the return receipts.
The Principal may terminate this bond by sending written
					 notice to the Surety and to the administrative authority, provided, however,
					 that no such notice shall become effective until the Surety receives written
					 authorization for termination of the bond by the administrative
					 authority.
The Principal and Surety hereby agree that no portion of
					 the penal sum may be expended without prior written approval of the
					 administrative authority.
IN WITNESS WHEREOF, the Principal and the Surety have
					 executed this PERFORMANCE BOND on the date set forth above.
Those persons whose signatures appear below hereby certify
					 that they are authorized to execute this surety bond on behalf of the Principal
					 and Surety, that each Surety hereto is authorized to do business in the state
					 of Louisiana, and that the wording of this surety bond is identical to the
					 wording specified in LAC 33:IX.6703.A.1, effective on the date this bond was
					 executed.
PRINCIPAL
[Signature(s)]
[Name(s)]
[Title(s)]
CORPORATE SURETY
[Name and address]
State of incorporation:___________________
Liability limit: $____________
[Signature(s)]
[Name(s) and title(s)]
[For every cosurety, provide signature(s) and other
					 information in the same manner as for Surety above.]
Bond premium: $___________