Administrative Rules of Montana › Department 17 - ENVIRONMENTAL QUALITY › Chapter 17.56 - UNDERGROUND STORAGE TANKS PETROLEUM AND CHEMICAL SUBSTANCES › Subchapter 17.56.8 - Financial Responsibility › Rule 17.56.810 - SURETY BOND

Current through Register Vol. 13, July 5, 2024
(1) An owner or
				operator may satisfy the requirements of ARM
				17.56.805
				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.
(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
				  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 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 to the
				  Resource Conservation and Recovery Act (RCRA) amending 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 ARM Title 17, chapter 56, subchapter 6, and the Director of the Montana
				  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 ARM Title 17, chapter 56,
				  subchapter 4, 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 ARM 17.56.805.
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 Montana Department
				  of Environmental Quality that the Principal has failed to ["take corrective
				  action, in accordance with ARM Title 17, chapter 56, subchapter 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 ARM Title 17, chapter 56 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 ARM
				  17.56.824.
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 ARM 17.56.824.
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 ARM 17.56.810(2) as such rule was 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: $ ___________________