North Dakota Administrative Code › Title 33.1 - Department of Environmental Quality › Article 33.1-24 - Hazardous Waste Management › Chapter 33.1-24-08 - Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks › Section 33.1-24-08-88 - Surety bond

Current through Supplement No. 393, July, 2024
1. An owner or
				operator may satisfy the requirements of section
				33.1-24-08-83 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 United States 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
				  section 33.1-24-08-12, and the name and
				  address of the facility. List the coverage guaranteed by the bond: "taking
				  corrective action" provided in the notification submitted pursuant to 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, 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 North Dakota Century
				  Code section 23.1-04-06 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 sections
				  33.1-24-08-50 through
				  33.1-24-08-57 and the
				  department's 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 sections
				  33.1-24-08-80 through
				  33.1-24-08-106, within one
				  hundred twenty 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; or
(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 section
				33.1-24-08-83.
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 department that the Principal has
				  failed to ["take corrective action, in accordance with 33.1-24-08, sections
				  33.1-24-08-50 through
				  33.1-24-08-57 and the
				  department's instructions", and/or "compensate injured third parties"] as
				  guaranteed by this bond, the Surety(ies) shall either perform ["corrective
				  action in accordance with 33.1-24-08 and the department'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
				  department under section
				  33.1-24-08-102.
Upon notification by the department that the Principal has
				  failed to provide alternate financial assurance within sixty days after the
				  date the notice of cancellation is received by the Principal from the
				  Surety(ies) and that the department 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
				  department under section
				  33.1-24-08-102.
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 one hundred twenty 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 subsection 2 of section 33.1-24-08-88 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: $ ______________________