Louisiana Administrative Code › Title 33 - ENVIRONMENTAL QUALITY › Part XI - Underground Storage Tanks › Chapter 11 - Financial Responsibility › Section XI-1117 - Surety Bond

Current through Register Vol. 50, No. 6, June 20, 2024
A. An owner or
				operator may satisfy the requirements of LAC 33:XI.1107 by obtaining a surety
				bond that conforms to the requirements of this Section. The surety company
				issuing the bond shall 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 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 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 registration submitted pursuant to LAC
				  33:XI.301 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 Presents, that we, the Principal
				  and Surety(ies), hereto are firmly bound to the Department of Environmental
				  Quality, 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
				  Solid Waste Disposal Act, 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 LAC 33:XI.715 and the administrative authority of the Department of
				  Environmental Quality'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 LAC 33:XI.Chapter 11, 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:
1. any obligation of
				[insert owner or operator] under a worker's 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; or
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 LAC 33:XI.1107.
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 administrative authority of the
				  Department of Environmental Quality that the Principal has failed to ["take
				  corrective action, in accordance with LAC 33:XI.715 and the administrative
				  authority's instructions," and/or "compensate injured third parties"] as
				  guaranteed by this bond, the Surety(ies) shall either perform ["corrective
				  action in accordance with the department's Underground Storage Tank Regulations
				  and the administrative authority'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 administrative authority under
				  LAC 33:XI.1135.
Upon notification by the administrative authority 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 administrative authority 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 administrative authority under LAC 33:XI.1135.
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 LAC 33:XI.1117.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)
[Name 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: $ ______________