Iowa Administrative Code › Agency 567 - Environmental Protection Commission › Title IX - Spills and Hazardous Conditions › Chapter 136 - Financial Responsibility for Underground Storage Tanks › Rule 567-136.9 - Surety Bond

Current through Register Vol. 47, No. 3, July 24, 2024
(1) An owner or
				operator may satisfy the requirements of rule
				567-136.4 (455B) by obtaining a
				surety bond that conforms to the requirements of this rule. 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.
(2) 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
				  567-subrule 135.3(3), 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 Iowa Department of Natural
				  Resources, 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 rule 567-135.7 (455B) and the
				  Director of the Iowa Department of Natural Resources instructions for," and/or
				  "compensate injured 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 tank(s) identified above, or
				  if the Principal shall provide alternate financial assurance, as specified in
				  567-Chapter 136, 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
				rule 567-136.4 (455B).
The Surety(ies) shall become liable on the bond obligation
				  only when the Principal has failed to fulfill the conditions described
				  above.
Upon notification by the director of the Iowa department of
				  natural resources that the Principal has failed to ["take corrective action, in
				  accordance with rule 567-135.7 (455B) 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 567-Chapter 135 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
				  director under rule 567-136.7 (455B).
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 rule 567-136.21 (455B).
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 567-subrule 136.9(2) as such rules 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: $______________________