Louisiana Administrative Code › Title 43 - NATURAL RESOURCES › Part XVII - Office of Conservation-Injection and Mining › Subpart 4 - Statewide Order No. 29-M-2 › Chapter 31 - Disposal of Exploration and Production Waste in Solution-Mined Salt Caverns › Section XVII-3109 - Legal Permit Conditions

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				  Signatories. All reports required by permit or regulation and other information
				  requested by the Office of Conservation shall be signed as in applications by a
				  person described in §3105. D or §3105 E
B. Financial Responsibility
1. Closure and Post-Closure. The owner or
				  operator of a non-commercial salt cavern E& P waste disposal facility shall
				  maintain financial responsibility and the resources to close, plug and abandon
				  and, where necessary, for post-closure care of the salt cavern well, salt
				  cavern, and related facility as prescribed by the Office of Conservation.
				  Evidence of financial responsibility shall be by submission of a surety bond, a
				  letter of credit, certificate of deposit, or other instruments acceptable to
				  the Office of Conservation. The amount of funds available shall be no less than
				  the amount identified in the cost estimate of the closure plan of §3141. A and, if required, post-closure plan of §3141. B Any financial instrument
				  filed in satisfaction of these financial responsibility requirements shall be
				  issued by and drawn on a bank or other financial institution authorized under
				  state or federal law to operate in the state of Louisiana.
2. Insurance. All owners or operators of a
				  salt cavern waste disposal facility shall provide evidence of sudden and
				  accidental pollution liability insurance coverage for damages that may be
				  caused to any property and party by the escape or discharge of any material or
				  waste from the facility. Such evidence shall be provided to the Office of
				  Conservation before the issuance of a permit for a salt cavern waste disposal
				  facility.
a. Insurance responsibility may be
				  evidenced by filing a certificate of sudden and accidental pollution liability
				  insurance (indicating the required coverage is in effect and all deductible
				  amounts applicable to the coverage), a letter of credit, bond, certificate of
				  deposits issued by and drawn on Louisiana banks, or any other evidence of
				  equivalent financial responsibility acceptable to the Office of
				  Conservation.
b. The amount and
				  extent of such sudden and accidental pollution liability insurance
				  responsibility shall not be less than the face amounts per occurrence and/or
				  aggregate occurrences as set by the Office of Conservation. The minimum
				  coverage for sudden and accidental pollution liability insurance shall be
				  $5,000,000. The Office of Conservation retains the right to increase the
				  minimum amount of insurance coverage as needed to prevent waste and to protect
				  the environment, or the health, safety and welfare of the public.
c. Insurance coverage shall be issued by a
				  company licensed to operate in the state of Louisiana. A copy of the insurance
				  policy subsequently issued with any certificate of insurance is to be
				  immediately filed with the Office of Conservation upon receipt by the
				  operator.
3. Renewal of
				  Financial Responsibility and Insurance. Any approved instrument of financial
				  responsibility and insurance coverage shall be renewable yearly. Documentation
				  of renewals shall be submitted to the Office of Conservation.