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 26-3.098 - Surety Bond

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule describes the requirements for use
				  of a surety bond as evidence of financial responsibility.
(1) An owner or operator may satisfy the
				financial responsibility requirements of
				10
				CSR 26-3.093 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 United States Department of the
				Treasury.
(2) The surety bond shall
				be worded as specified in Form 5, included herein.
(3) Under the terms of the bond, the surety
				will become liable on the bond obligation when the owner or operator fails to
				perform as guaranteed by the bond. In all cases the surety's liability is
				limited to the per occurrence and annual aggregate penal sums.
(4) The owner or operator who uses a surety
				bond to satisfy the requirements of
				10
				CSR 26-3.093 shall establish a standby trust fund when
				the surety bond is acquired. Under the terms of the bond, all amounts paid by
				the surety under the bond will be deposited directly into the standby trust
				fund in accordance with instructions from the director under
				10 CSR
				26-3.108. This standby trust fund shall meet the
				requirements specified in
				10 CSR
				26-3.103.
Form 5-Performance Bond
The following text should be used to comply with the
				  requirements of
				  10 CSR
				  26-3.098(2) as follows, except that
				  the instructions in brackets are to be replaced by 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 (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 in the notification submitted pursuant to
				  10 CSR
				  26-2.022 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 "non-sudden 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, 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(s) 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 "non-sudden 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
				  10 CSR
				  26-2.070-10 CSR
				  26-2.083 and the director's instructions for," and/or
				  "compensate injured third parties for bodily injury and property damage caused
				  by" either "sudden" or "non-sudden" or "sudden and non-sudden"
]
				  accidental releases arising from operating the tank(s) identified above, or if
				  the Principal shall provide alternate financial assurance, as specified in
				  10 CSR
				  26-3.090-10 CSR
				  26-3.115, within one hundred twenty (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 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
				10
				CSR 26-3.093.
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
] that the
				  Principal has failed to [
"take corrective action, in accordance with
				  10 CSR
				  26-2.070-10 CSR
				  26-2.083 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
				  10 CSR
				  26-2.070-10 CSR
				  26-2.083 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
				  10 CSR
				  26-3.108.
Upon notification by [
the director
] that the
				  Principal has failed to provide alternate financial assurance within sixty (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
				  10 CSR
				  26-3.108.
The Surety(ies) hereby waive(s) notification of amendments to
				  applicable laws, statutes, 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(s) 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 one hundred twenty (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
				  10 CSR
				  26-3.098(2) as such rules were
				  constituted on the date this bond was executed.