Missouri Code of State Regulations › Title 10 - DEPARTMENT OF NATURAL RESOURCES › Division 26 - Petroleum and Hazardous Substance Storage Tanks › Chapter 3 - Underground Storage Tanks- Financial Responsibility › Section 10 CSR 26-3.099 - Letter of Credit

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule describes the requirements for use
				  of a letter of credit as evidence of financial responsibility.
(1) An owner or operator may satisfy the
				financial responsibility requirements of
				10
				CSR 26-3.093 by obtaining an irrevocable standby
				letter of credit that conforms to the requirements of this section. The issuing
				institution must be an entity that has the authority to issue letters of credit
				in each state where used and whose letter of credit operations are regulated
				and examined by a federal or state agency.
(2) The letter of credit must be worded as
				specified in Form 6, included herein.
(3) An owner or operator who uses a letter of
				credit to satisfy the requirements of
				10
				CSR 26-3.093 shall also establish a standby trust fund
				when the letter of credit is acquired. Under the terms of the letter of credit,
				all amounts paid pursuant to a draft by the director will be deposited by the
				issuing institution directly into the standby trust fund in accordance with
				instructions from the director under
				10 CSR
				26-3.108. This standby trust fund must meet the
				requirements specified in
				10 CSR
				26-3.103.
(4) The letter of credit shall be irrevocable
				with a term specified by the issuing institution. The letter of credit must
				provide that credit be automatically renewed for the same term as the original
				term unless, at least one hundred twenty (120) days before the current
				expiration date, the issuing institution notifies the owner or operator by
				certified mail of its decision not to renew the letter of credit. Under the
				terms of the letter of credit, the one hundred twenty (120) days will begin on
				the date when the owner or operator receives the notice as evidenced by the
				return receipt.
Form 6-Irrevocable Standby Letter of
				  Credit
The following text should be used to comply with the
				  requirements of
				  10 CSR
				  26-3.090(2) as follows, except that
				  the instructions in brackets are to be replaced by the relevant information and
				  the brackets deleted:
Irrevocable Standby Letter of Credit
[
Name and address of issuing
				  institution
]
[
Name and address of director
]
Dear Sir or Madam: We hereby establish our Irrevocable
				  Standby Letter of Credit No. [
insert number
] in your favor, at
				  the request and for the account of [
owner or operator name
] of
				  [
address
] up to the aggregate amount of [
in
				  words
] United States dollars ($[
insert dollar
				  amount
]), available upon presentation [
insert, if more than
				  one (1) state is a beneficiary, "by any one (1) of you"
] of:
(A) Your sight draft, bearing reference to
				this letter of credit, No. [
insert number
], and
(B) Your signed statement reading as follows:
				"I certify that the amount of the draft is payable pursuant to regulations
				issued under authority of Subtitle I of the Resource Conservation and Recovery
				Act of 1976, as amended."
This letter of credit may be drawn on to cover
				  [
insert: "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(s) identified below in the
				  amount of [
in words
] $[
insert dollar amount
]
				  per occurrence and [
in words
] $[
insert dollar
				  amount
] annual aggregate:
[
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 one (1) instrument is used to assure different tanks at any one (1)
				  facility, for each tank covered by this instrument, list the tank
				  identification number provided by in the notification submitted pursuant to
				  10 CSR
				  26-2.022 and the name and address of the
				  facility.
]
The letter of credit may not be drawn on to cover any of the
				  following:
1. Any obligation of
				[
insert owner or operator
] under a Workers' Compensation,
				disability benefits, or unemployment compensation law or other similar
				law;
2. Bodily injury to an
				employee of [
insert owner or operator
] arising from, and in
				the course of, employment by [
insert owner or
				operator
];
3. Bodily
				injury or property damage arising from the ownership, maintenance, use, or
				entrustment to others of any aircraft, motor vehicle, or watercraft;
4. 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 underground storage tank;
5. 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
				10
				CSR 26-3.093.
This letter of credit is effective as of
				  [
date
] and shall expire on [
date
], but such
				  expiration date shall be automatically extended for a period of [
at
				  least the length of the original term
] on [
expiration
				  date
] and on each successive expiration date unless, at least one
				  hundred twenty (120) days before the current expiration date, we notify
				  [
owner or operator
] by certified mail that we have decided not
				  to extend this letter of credit beyond the current expiration date. In the
				  event that [
owner or operator
] is so notified, any unused
				  portion of the credit shall be available upon presentation of your sight draft
				  for one hundred twenty (120) days after the date of receipt by [
owner
				  or operator
], as shown on the signed return receipt.
Whenever this letter of credit is drawn on under and in
				  compliance with the terms of this credit, we shall duly honor such draft upon
				  presentation to us and we shall deposit the amount of the draft directly into
				  the standby trust fund of [
owner or operator
], in accordance
				  with your instructions.
We certify that the wording of this letter of credit is
				  identical to the wording specified in
				  10 CSR
				  26-3.099(2) as such rules were
				  constituted on the date shown immediately below.
[
Signature(s) and title(s) of official(s) of issuing
				  institution
]