Mississippi Administrative Code › Title 11 - Mississippi Department of Environmental Quality › Part 5 - Underground Storage Tank Regulations › Chapter 2 - Mississippi Commission on Environmental Quality Underground Storage Tanks Regulations Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (UST) (Adopted March 22, 1989; Amended August 25, 2011, Last Amended August 23, 2018) › Rule 11-5-2.8 - Financial Responsibility › Section 11-5-2.8-280.98 - Surety bond

Current through June 25, 2024
(a) An owner or
				  operator may satisfy the requirements of § 280.93 by obtaining a surety
				  bond that conforms to the requirements of this section. The surety company
				  issuing the bond must be among those listed as acceptable sureties on federal
				  bonds in the latest Circular 570 of the U.S. Department of the
				  Treasury.
(b) The surety bond must
				  be worded as follows, except that instructions in brackets must 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 one instrument is used to assure different tanks at
					 any one facility, for each tank covered by this instrument, list the tank
					 identification number provided in the notification submitted pursuant to
					 40 CFR
					 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
Annual
Surety's bond number:
occurrence aggregate
								____________________
$__________________
$______________________
Know All Persons by These Presents, 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 co-sureties,
					 we, the Sureties, bind ourselves in such sums 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 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 caused by" either "sudden
					 accidental releases" or "nonsudden accidental releases" or "accidental
					 releases"; if coverage is different for different tanks or locations, indicate
					 the type of coverage applicable to each tank or location] arising from
					 operating the underground storage tanks 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 CFR part 280, Rule 2.6 and the Director of the state implementing
					 agency's instructions for," and/or "compensate injured third parties for bodily
					 injury and property damage caused by" either "sudden" or "nonsudden" or "sudden
					 and nonsudden"] accidental releases arising from operating the tank(s)
					 identified above, or if the Principal shall provide alternate financial
					 assurance, as specified in 40 CFR 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 workers' 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
				  underground storage tank;
(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 CFR
				  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 CFR part 280, Rule 2.6 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 CFR
					 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 CFR
					 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 CFR
					 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
					 CFR 280.98(b) as such
					 regulations were constituted on the date this bond was executed.
Principal
[Signature(s)]
[Names(s)]
[Title(s)]
[Corporate seal]
Corporate Surety(ies)
[Name and address]
[State of Incorporation: _____
[Liability limit: $ _____
[Signature(s)]
[Names(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: $ _____