reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1602 - PROCEDURES FOR CLASSIFYING A STORAGE TANK OR FACILITY AS INELIGIBLE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Mandatory
				ineligibility. Notice of intent to red tag: Upon identification of a condition
				or conditions at one or more storage tanks at a facility under Subsection A of
				20.5.116.1601 NMAC, the department shall issue the owner and operator a notice
				of intent to red tag stating the violations and providing the owner or operator
				30 days from the date of the notice to correct the violations. The notice of
				intent to red tag shall inform the owner and operator that the department will
				prohibit delivery to each storage tank with one or more conditions identified
				under 20.5.116.1601 NMAC at the facility if the violations are not corrected.
				The notice of intent to red tag shall state if the facility is in a rural and
				remote area as defined in 20.5.101.7 NMAC, and shall grant a deferral as
				provided in 20.5.116.1608 NMAC.
B.
				Discretionary ineligibility.
(1) Notice of
				violation. Upon identification of a condition or conditions at one or more
				storage tanks at a facility under Subsection B of 20.5.116.1601 NMAC, the
				department shall issue the owner and operator a notice of violation stating the
				violation and providing the owner or operator 30 days from the date of the
				notice to correct the violation. The notice of violation shall inform the owner
				and operator that the violation cited could subject the owner and operator to
				delivery prohibition at the identified tanks if the violations are not
				corrected.
(2) Notice of
				deficiency. If the owner or operator fails to correct the violations within the
				timeframe provided in the notice of violation, the department shall issue the
				owner or operator a notice of deficiency re-stating the violations and
				providing the owner or operator an additional 30 days from the date of the
				notice to correct the violations. The notice of deficiency shall inform the
				owner and operator that the violations cited could subject the owner and
				operator to delivery prohibition at the identified tanks if the violations are
				not corrected.
(3) Notice of intent
				to red tag. If the owner or operator fails to correct the violations within the
				timeframe provided in the notice of deficiency, the department shall issue the
				owner or operator a notice of intent to red tag re-stating the violations and
				providing the owner or operator an additional 30 days from the date of the
				notice to correct the violations. The notice of intent to red tag shall inform
				the owner and operator that the department will prohibit delivery to the
				identified tanks at the facility if the violations are not corrected. The
				notice of intent to red tag shall state if the facility is in a rural and
				remote area as defined in 20.5.101.7 NMAC, and shall grant a deferral as
				provided in 20.5.116.1608 NMAC.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1603 - IDENTIFICATION OF INELIGIBLE STORAGE TANKS OR FACILITIES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Red tag. In order to prevent the delivery,
				deposit or acceptance of product at or to a storage tank or a facility that has
				been identified by the department as ineligible under 20.5.116.1601 NMAC and
				20.5.116.1602 NMAC, the department shall affix a tamper-proof red tag to the
				fill pipe of every storage tank with one or more conditions identified under
				20.5.116.1601 NMAC at the facility 48 hours after posting the name and address
				of the facility on the department's website list of facilities that are
				ineligible for delivery. The department shall document the level of stored
				product in each storage tank with one or more conditions identified under
				20.5.116.1601 NMAC prior to affixing a red tag to the fill pipe(s) of the
				storage tank.
B. Certificate. In
				order to prevent the delivery, deposit or acceptance of product at or to a
				storage tank or a facility that has been classified by the department as
				ineligible under 20.5.116.1601 NMAC, the department shall post a certificate,
				conspicuously displayed at the facility, clearly prohibiting the delivery,
				deposit or acceptance of product at every storage tank at the facility to which
				the department has affixed a red tag.
C. Red tag tampering prohibited. It shall be
				unlawful for any person, other than an authorized representative of the
				department, to remove, tamper with, destroy or damage a red tag affixed to any
				storage tank or a certificate posted at a storage tank facility by department
				personnel.
D. Performance
				standards. Owners and operators shall continue to adhere to all performance
				standards of 20.5 NMAC after placement of one or more red tags and a
				certificate at a facility, including but not limited to leak detection,
				corrosion protection and monthly inspections.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1604 - REGULATED SUBSTANCE REMOVAL

Current through Register Vol. 35, No. 13, July 16, 2024
Owners and operators shall empty all regulated substances
				  from storage tanks that have been affixed with a red tag if the violations have
				  not been corrected within 30 days of the placement of the red tag. This section
				  shall not limit or supersede the application of 20.5.118 NMAC in the event of a
				  suspected or confirmed release. If no suspected or confirmed release exists,
				  owners and operators shall:
A. empty
				all regulated substances from each storage tank at the facility that has been
				affixed with a red tag in accordance with 20.5.115 NMAC, and shall provide
				written notice to the inspector who issued the red tag when each tank has been
				emptied, with the name, address, telephone number and email address of the
				person who removed the regulated substances from the tank; and
B. continue to meet all requirements for
				temporary closure in 20.5.115.1501 NMAC, including operation of cathodic
				protection and release detection equipment and payment of the annual fee, or
				shall permanently close the storage tank system in accordance with
				20.5.115.1502 NMAC.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1605 - PERMANENT CLOSURE

Current through Register Vol. 35, No. 13, July 16, 2024
Owners and operators shall permanently close a storage tank
				  system that has been affixed with a red tag if the violations associated with
				  the red tag have not been corrected within 12 months of the placement of the
				  red tag. Permanent closure must meet the requirements in 20.5.115.1502 NMAC,
				  including notification requirements.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1606 - RED TAG PLACEMENT AND NOTIFICATION PROCESSES FOR STORAGE TANK OWNERS AND OPERATORS AND PRODUCT DELIVERERS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Owners and operators. Notification of red tag placement, including a tank's
				status as being ineligible for deliveries, shall be provided to an owner or
				operator in the following manner:
(1) Owner
				or operator present. If the owner or operator is present on the site, the
				department shall provide to the owner or operator the notice of red tag
				placement and ineligibility for delivery.
(2) Owner and operator not present. If
				neither the owner nor operator is present on the site, the department shall
				immediately notify an employee in charge of the facility, if such employee is
				present, of red tag placement and ineligibility for delivery and shall send a
				copy of the written notice to the owner and operator within 24 hours of
				notifying the employee in charge of the facility or of affixing a red tag and
				certificate.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1607 - RECLASSIFYING INELIGIBLE STORAGE TANKS OR FACILITIES AS ELIGIBLE TO RECEIVE PRODUCT

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Statement of compliance from owner or operator. In order for an owner or
				operator of a storage tank or facility which has been determined by the
				department as ineligible under this rule to have the storage tank or facility
				reclassified by the department as eligible to receive delivery of product, the
				owner or operator shall provide a written statement of compliance to the
				department and the inspector listed in the notice that the conditions listed in
				the notice of intent to red tag have been corrected. The written statement
				shall contain the date, owner or operator's name, how the conditions have been
				corrected, by whom, and the date of correction.
B. Department confirmation. The department
				shall, in its sole discretion, determine whether the conditions listed in the
				notice of intent to red tag have been corrected as soon as practicable but
				within no more than three business days after receipt of the owner's written
				statement of compliance. If the conditions have not been corrected, the
				department shall notify the owner or operator in the manner prescribed by
				20.5.116.1606 NMAC.
C. Removal of
				red tag and notice of ineligibility. Upon verification of compliance,
				department personnel shall:
(1) immediately
				remove each red tag and certificate at the facility, and document the level of
				product in each tank; and
(2) as
				soon as practicable, but in no event longer than three business days, remove
				the facility from the department's website list of facilities that contain
				storage tanks which are ineligible for delivery.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1608 - DELIVERY PROHIBITION DEFERRAL IN RURAL AND REMOTE AREA AND FOR MATTERS OF NATIONAL SECURITY

Current through Register Vol. 35, No. 13, July 16, 2024
The department shall defer classifying a storage tank or
				  facility as ineligible for delivery, deposit or acceptance of product if such
				  classification would jeopardize the availability of, or access to, motor fuel
				  in a rural and remote area as defined in 20.5.101.7 NMAC, or where the United
				  States department of defense operates a storage tank and notifies the
				  department that continued operation of the tank is a matter of national
				  security. The department may only defer application of delivery prohibition for
				  up to 180 days from the date of the issuance of the notice of intent to red tag
				  pursuant to Subsection A of 20.5.116.1602 NMAC or Paragraph (3) of Subsection B
				  of 20.5.116.1602 NMAC.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1609 - DELIVERY AUTHORIZATION IN EMERGENCY SITUATIONS OR FOR TANK TESTING

Current through Register Vol. 35, No. 13, July 16, 2024
A. Emergency
				situations. The department may authorize delivery or deposit of product to an
				emergency generator tank that is otherwise ineligible for delivery or deposit
				if the owner or operator can demonstrate to the satisfaction of the department
				that:
(1) a commercial power failure or other
				declared state of emergency exists; and
(2) the emergency generator tank:
(a) provides power supply;
(b) stores petroleum; and
(c) is used solely in connection with an
				emergency system, legally required standby system or optional standby
				system.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1610 - ADDITIONAL REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Storage
				tank equipment tampering prohibited. It shall be unlawful for any person,
				including product deliverers, to remove, tamper with, destroy, damage or
				disable storage tank equipment, including but not limited to release detection
				and other safety mechanisms, in the course of delivery of any
				product.
B. Compliance with rules.
				A product deliverer shall be responsible for ensuring that all deliveries are
				made in compliance with 20.5 NMAC.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 116 - DELIVERY PROHIBITION › Section 20.5.116.1611 - ADMINISTRATIVE APPEALS

Current through Register Vol. 35, No. 13, July 16, 2024
Any owner or operator of a facility that contains storage
				  tanks to which the department has affixed a red tag prohibiting delivery
				  pursuant to this part may appeal to the secretary by submitting a written
				  request for hearing.
A. Timelines. The
				request must be made in writing to the secretary by the owner or operator
				within five business days after the notice of red tag placement has been issued
				or the decision of the department shall be final. If an appeal is received
				within the five-business day time limit, the secretary shall hold a hearing
				within seven business days after receipt of the request, unless the parties
				agree to an alternate timeframe. The secretary shall notify the person who
				requested the hearing of the date, time and place of the hearing by certified
				mail.
B. Burden of proof. In the
				appeal hearing, the burden of proof is on the person who requested the
				hearing.
C. Procedures.
(1) Appeal hearings shall be held at a place
				designated by the secretary, unless other mutually agreed upon arrangements are
				made. The secretary may designate a person to conduct the hearing and make a
				final decision or make recommendations for a final decision. The secretary's
				hearing notice shall indicate who will conduct the hearing and make the final
				decision.
(2) The department shall
				make an audio recording of the hearing. If either party wants the hearing
				transcribed, that party shall bear the costs of transcription.
(3) In appeal hearings, the rules governing
				civil procedure and evidence in district court shall not apply. Hearings shall
				be conducted so that all relevant views, arguments and testimony are amply and
				fairly presented without undue repetition. The secretary shall allow department
				staff and the hearing requestor to call and examine witnesses, to submit
				written and oral evidence and arguments, to introduce exhibits and to
				cross-examine persons who testify. All testimony shall be taken under oath. At
				the end of the hearing, the secretary shall decide and announce if the hearing
				record will remain open, for how long, and for what reason it will be left
				open.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to owners and operators of petroleum
				  storage tanks as defined in 20.5.101 NMAC. This part also applies to owners and
				  operators of AST systems with capacities of 55,000 gallons or more associated
				  with airport hydrant fuel distribution systems and owners and operators of AST
				  systems with capacities of 55,000 gallons or more associated with UST systems
				  with field-constructed tanks as these terms are defined in 20.5.101 NMAC. If
				  the owner and operator are separate persons, only one person is required to
				  demonstrate financial responsibility; however, both parties are liable in the
				  event of noncompliance.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
This part is promulgated pursuant to the provisions of the
				  Hazardous Waste Act, Sections
				  74-4-1
				  through
				  74-4-14
				  NMSA 1978, and the general provisions of the Environmental Improvement Act,
				  Sections
				  74-1-1
				  through
				  74-1-15
				  NMSA 1978.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
July 24, 2018, unless a later date is indicated in the
				  bracketed history note at the end of a section.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this part is to require owners and operators
				  of petroleum storage tanks systems to demonstrate financial responsibility for
				  their systems and to protect the public health, safety and welfare and the
				  environment of the state.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1700 - APPLICABILITY

Current through Register Vol. 35, No. 13, July 16, 2024
A. This part
				applies to owners and operators of all petroleum storage tank systems except as
				otherwise provided in this section.
B. Owners and operators of petroleum above
				ground storage tank systems are subject to these requirements in accordance
				with 20.5.117.1701 NMAC.
C. State
				and federal government entities whose debts and liabilities are the debts and
				liabilities of a state or the United States are exempt from the requirements of
				this part.
D. The requirements of
				this part do not apply to owners and operators of storage tank systems
				described in Subsection B or D of 20.5.101.2 NMAC.
E. If the owner and operator of a petroleum
				storage tank are separate persons, only one person is required to demonstrate
				financial responsibility; however, both parties are liable in the event of
				noncompliance.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1701 - PHASE-IN FOR ABOVE GROUND STORAGE TANKS

Current through Register Vol. 35, No. 13, July 16, 2024
Owners and operators of above ground storage tanks shall
				  comply with the requirements of 20.5.117 NMAC by July 1,
				  2007.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1703 - AMOUNT AND SCOPE OF REQUIRED FINANCIAL RESPONSIBILITY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Owners and operators of petroleum storage
				tanks shall demonstrate financial responsibility for taking corrective action
				and for compensating third parties for bodily injury and property damage caused
				by accidental releases arising from the operation of petroleum storage tanks in
				at least the following per-occurrence amounts:
(1) For owners or operators of petroleum
				storage tanks that are located at petroleum marketing facilities, or that
				handle an average of more than 10,000 gallons of petroleum per month based on
				annual throughput for the previous calendar year, $1,000,000; and
(2) For all other owners or operators of
				petroleum storage tanks, $500,000.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1704 - ALLOWABLE MECHANISMS AND COMBINATIONS OF MECHANISMS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Subject to the limitations of Subsections
				B and C and the requirements of Subsection D of this section:
(1) an owner or operator may use any one or
				combination of the mechanisms listed in 20.5.117.1705 NMAC through
				20.5.117.1713 NMAC to demonstrate financial responsibility under this part for
				one or more storage tanks; and
(2)
				a local government owner or operator may use any one or combination of the
				mechanisms listed in 20.5.117.1705 NMAC through 20.5.117.1717 NMAC to
				demonstrate financial responsibility under this part for one or more storage
				tanks.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1705 - FINANCIAL TEST OF SELF INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
A. An owner or operator, or guarantor, may
				satisfy the requirements of 20.5.117.1703 NMAC by passing a financial test as
				specified in this section. To pass the financial test of self-insurance, the
				owner or operator, or guarantor, shall meet the criteria of Subsection B or C
				of this section based on year-end financial statements for the latest completed
				fiscal year.
B. Criteria for option
				one.
(1) The owner or operator, or guarantor,
				shall have a tangible net worth of at least 10 times:
(a) the total of the applicable aggregate
				amounts required by 20.5.117.1703 NMAC based on the number of storage tanks for
				which a financial test is used to demonstrate financial responsibility to the
				department under this section;
(b)
				the sum of the corrective action cost estimates, the current closure and
				post-closure care cost estimates, and amount of liability coverage for which a
				financial test is used to demonstrate financial responsibility to EPA under
				40
				CFR 264.101, Sections
				264.143,
				264.145,
				265.143,
				265.145,
				264.147,
				and
				265.147
				or to a state implementing agency under a state program authorized by EPA under
				40 CFR Part 271; and
(c) The sum of
				current plugging and abandonment cost estimates for which a financial test is
				used to demonstrate financial responsibility to EPA under
				40 CFR Sections
				144.63 or to a state implementing agency
				under a state program authorized by EPA under 40 CFR Part
				145.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1706 - GUARANTEE

Current through Register Vol. 35, No. 13, July 16, 2024
A. An owner or
				operator may satisfy the requirements of 20.5.117.1703 NMAC by obtaining a
				guarantee that conforms to the requirements of this section. The guarantor
				shall be:
(1) a firm that:
(a) possesses a controlling interest in the
				owner or operator;
(b) possesses a
				controlling interest in a firm described under Subparagraph (a) of Paragraph
				(1) of Subsection A of this section; or
(c) is controlled through stock ownership by
				a common parent firm that possesses a controlling interest in the owner or
				operator; or
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1707 - INSURANCE AND RISK RETENTION GROUP COVERAGE

Current through Register Vol. 35, No. 13, July 16, 2024
A. An owner or operator may satisfy the
				requirements of 20.5.117.1703 NMAC by obtaining liability insurance that
				conforms to the requirements of this section from a qualified insurer or risk
				retention group. Such insurance may be in the form of a separate insurance
				policy or an endorsement to an existing insurance policy.
B. Each insurance policy shall be amended by
				an endorsement worded as specified in Subsection A of 20.5.117.1757 NMAC or
				evidenced by a certificate of insurance worded as specified in Subsection B of
				20.5.117.1757 NMAC, except that instructions in brackets shall be replaced with
				the relevant information and the brackets deleted.
C. Each insurance policy shall be issued by
				an insurer or a risk retention group that, at a minimum, is licensed to
				transact the business of insurance or eligible to provide insurance as an
				excess or surplus lines insurer in one or more states.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1708 - SURETY BOND

Current through Register Vol. 35, No. 13, July 16, 2024
A. An owner or
				operator may satisfy the requirements of 20.5.117.1703 NMAC by obtaining a
				surety bond that conforms to the requirements of this section. The surety
				company issuing the bond shall be among those listed as acceptable sureties on
				federal bonds in the latest
Circular 570
of the United States
				department of the treasury.
B. The
				surety bond shall be worded as specified in 20.5.117.1758 NMAC.
C. 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.
D. The owner or operator who uses a surety
				bond to satisfy the requirements of 20.5.117.1703 NMAC 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 secretary
				under 20.5.117.1722 NMAC. This standby trust fund shall meet the requirements
				specified in 20.5.117.1713 NMAC.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1709 - LETTER OF CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
A. An owner or
				operator may satisfy the requirements of 20.5.117.1703 NMAC by obtaining an
				irrevocable standby letter of credit that conforms to the requirements of this
				section. The issuing institution shall be an entity that has the authority to
				issue letters of credit in each state where used and whose letter-of-credit
				operations are regulated and examined by a federal or state agency.
B. The letter of credit shall be worded as
				specified in 20.5.117.1759 NMAC.
C.
				An owner or operator who uses a letter of credit to satisfy the requirements of
				20.5.117.1703 NMAC shall also establish a standby trust fund when the letter of
				credit is acquired. Under the terms of the letter of credit, all amounts paid
				pursuant to a draft by the secretary will be deposited by the issuing
				institution directly into the standby trust fund in accordance with
				instructions from the secretary under 20.5.117.1722 NMAC. This standby trust
				fund shall meet the requirements specified in 20.5.117.1713 NMAC.
D. The letter of credit shall be irrevocable
				with a term specified by the issuing institution. The letter of credit shall
				provide that credit be automatically renewed for the same term as the original
				term, unless, at least 120 days before the current expiration date, the issuing
				institution notifies the owner or operator by certified mail of its decision
				not to renew the letter of credit. Under the terms of the letter of credit, the
				120 days will begin on the date when the owner or operator receives the notice,
				as evidenced by the return receipt.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1710 - USE OF STATE REQUIRED MECHANISM

Current through Register Vol. 35, No. 13, July 16, 2024
A. An owner or operator may use a
				state-required financial mechanism to meet the requirements of 20.5.117.1703
				NMAC if the secretary determines that the state mechanism is at least
				equivalent to the financial mechanisms specified in this part.
B. The secretary will evaluate the
				equivalency of a state-required mechanism principally in terms of: certainty of
				the availability of funds for taking corrective action or for compensating
				third parties; the amount of funds that will be made available; and the types
				of costs covered. The secretary may also consider other factors as is
				necessary.
C. The state, an owner
				or operator, or any other interested party may submit to the secretary a
				written petition requesting that one or more of the state-required mechanisms
				be considered acceptable for meeting the requirements of 20.5.117.1703 NMAC.
				The submission shall include copies of the appropriate state statutory and
				regulatory requirements and shall show the amount of funds for corrective
				action or for compensating third parties assured by the mechanism(s). The
				secretary may require the petitioner to submit additional information as is
				deemed necessary to make this determination.
D. Any petition under this section may be
				submitted on behalf of all of the state's petroleum underground storage tank
				owners and operators, petroleum above ground storage tank owners and operators,
				or both petroleum underground and above ground storage tank owners and
				operators.
E. The secretary will
				notify the petitioner of the determination regarding the mechanism's
				acceptability in lieu of financial mechanisms specified in this part. Pending
				this determination, the owners and operators using such mechanisms will be
				deemed to be in compliance with the requirements of 20.5.117.1703 NMAC for
				storage tanks located in the state for the amounts and types of costs covered
				by such mechanisms.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1711 - STATE FUND OR OTHER STATE ASSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
A. An owner or operator may satisfy the
				requirements of 20.5.117.1703 NMAC for storage tanks located in New Mexico if
				the state assures that monies will be available from a state fund or state
				assurance program to cover costs up to the limits specified in 20.5.117.1703
				NMAC or otherwise assures that such costs will be paid if the secretary
				determines that the state's assurance is at least equivalent to the financial
				mechanisms specified in this part.
B. The secretary will evaluate the
				equivalency of a state fund or other state assurance principally in terms of:
				certainty of the availability of funds for taking corrective action; the amount
				of funds that will be made available; and the types of costs covered. The
				secretary may also consider other factors as is necessary.
C. The secretary shall consider a description
				of the state fund or other state assurance to be supplied as financial
				assurance, along with a list of the classes of storage tanks to which the funds
				may be applied. The secretary may also consider additional information as is
				deemed necessary to make a determination regarding the acceptability of the
				state fund or other state assurance. Pending the determination by the
				secretary, the owner or operator of a covered class of storage tanks will be
				deemed to be in compliance with the requirements of 20.5.117.1703 NMAC for the
				amounts and types of costs covered by the state fund or other state
				assurance.
D. Within 60 days after
				the secretary determines the state's fund or other assurance is acceptable in
				lieu of other financial mechanisms specified in 20.5.117 NMAC the secretary
				shall provide to each owner or operator for which it is assuming financial
				responsibility a letter or certificate describing the nature of the state's
				assumption of responsibility. The letter or certificate from the secretary
				shall include, or have attached to it, the following information: the
				facility's name and address and the amount of funds for corrective action or
				for compensating third parties that is assured by the state. The owner or
				operator shall maintain this letter or certificate on file as proof of
				financial responsibility in accordance with Paragraph (8) of Subsection B of
				20.5.117.1721 NMAC.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1712 - TRUST FUND

Current through Register Vol. 35, No. 13, July 16, 2024
A. An owner or
				operator may satisfy the requirements of 20.5.117.1703 NMAC by establishing a
				trust fund that conforms to the requirements of this section. The trustee shall
				be an entity that has the authority to act as a trustee and whose trust
				operations are regulated and examined by a federal agency or an agency of the
				state in which the fund is established.
B. The wording of the trust agreement shall
				be identical to the wording specified in 20.5.117.1763 NMAC with the addition
				of the addendum required by Subsection D of 20.5.117.1704 NMAC, and shall be
				accompanied by a formal certification of acknowledgment as specified in
				Subsection B of 20.5.117.1763 NMAC.
C. The trust fund, when established, shall be
				funded for the full required amount of coverage, or funded for part of the
				required amount of coverage and used in combination with other mechanism(s)
				that provide the remaining required coverage.
D. If the value of the trust fund is greater
				than the required amount of coverage, the owner or operator may submit a
				written request to the secretary for release of the excess.
E. If other financial assurance as specified
				in this part is substituted for all or part of the trust fund, the owner or
				operator may submit a written request to the secretary for release of the
				excess.
F. Within 60 days after
				receiving a request from the owner or operator for release of funds as
				specified in Subsection D or E of this section, the secretary will instruct the
				trustee to release to the owner or operator such funds as the secretary
				specifies in writing.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1713 - STANDBY TRUST FUND

Current through Register Vol. 35, No. 13, July 16, 2024
A. An
				owner or operator using any one of the mechanisms authorized by 20.5.117.1706,
				1708, or 1709 NMAC shall establish a standby trust fund when the mechanism is
				acquired. The trustee of the standby trust fund shall be an entity that has the
				authority to act as a trustee and whose trust operations are regulated and
				examined by a federal agency or an agency of the state in which the fund is
				established.
B. The standby trust
				agreement shall be worded as specified in 20.5.117.1763 NMAC.
C. The secretary will instruct the trustee to
				refund the balance of the standby trust fund to the provider of financial
				assurance if the secretary determines that no additional corrective action
				costs or third-party liability claims will occur as a result of a release
				covered by the financial assurance mechanism for which the standby trust fund
				was established.
D. An owner or
				operator may establish one trust fund as the depository mechanism for all funds
				assured in compliance with this rule.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1716 - LOCAL GOVERNMENT GUARANTEE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				A local government owner or operator may satisfy the requirements of
				20.5.117.1703 NMAC by obtaining a guarantee that conforms to the requirements
				of this section. The guarantor shall be either the state or a local government
				having a "substantial governmental relationship" with the owner and operator
				and issuing the guarantee as an act incident to that relationship. A local
				government acting as the guarantor shall do one of the following:
(1) demonstrate that it meets the bond rating
				test requirement of 20.5.117.1714 NMAC and deliver a copy of the chief
				financial officer's letter as contained in 20.5.117.1764 NMAC to the local
				government owner or operator;
(2)
				demonstrate that it meets the worksheet test requirements of 20.5.117.1715 and
				20.5.17.1765 NMAC and deliver a copy of the chief financial officer's letter as
				contained in 20.5.117.1765 NMAC to the local government owner or operator;
				or
(3) demonstrate that it meets
				the local government fund requirements of Subsection A, B or C of 20.5.117.1717
				NMAC and deliver a copy of the chief financial officer's letter as contained in
				20.5.117.1767 NMAC to the local government owner or operator.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1718 - SUBSTITUTION OF FINANCIAL ASSURANCE MECHANISMS BY OWNER OR OPERATOR

Current through Register Vol. 35, No. 13, July 16, 2024
A. Owners and
				operators may substitute any alternate financial assurance mechanisms as
				specified in this part, provided that at all times they maintain an effective
				financial assurance mechanism or combination of mechanisms that satisfies the
				requirements of 20.5.117.1703 NMAC.
B. After obtaining alternate financial
				assurance as specified in this part, an owner or operator may cancel a
				financial assurance mechanism by providing notice to the provider of financial
				assurance.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1719 - CANCELLATION OR NON-RENEWAL BY A PROVIDER OF FINANCIAL ASSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Except as
				otherwise provided, a provider of financial assurance may cancel or fail to
				renew an assurance mechanism by sending a notice of termination by certified
				mail to the owner or operator.
(1)
				Termination of a local government guarantee, a guarantee, a surety bond, or a
				letter of credit may not occur until 120 days after the date on which the owner
				or operator receives the notice of termination, as evidenced by the return
				receipt.
(2) Termination of
				insurance or risk retention group coverage, except for non-payment or
				misrepresentation by the insured, or state-funded assurance may not occur until
				60 days after the date on which the owner or operator receives the notice of
				termination, as evidenced by the return receipt. Termination for non-payment of
				premium or misrepresentation by the insured may not occur until a minimum of 10
				days after the date on which the owner or operator receives the notice of
				termination, as evidenced by the return receipt.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1720 - REPORTING BY OWNER OR OPERATOR

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Owners and operators shall submit the appropriate forms listed in Subsection B
				of 20.5.117.1721 NMAC documenting current evidence of financial responsibility
				to the secretary:
(1) within 30 days after
				the owner or operator identifies a release from a storage tank required to be
				reported under 20.5.102.204 NMAC or 20.5.118 NMAC;
(2) if the owner or operator fails to obtain
				alternate coverage as required by this part, within 30 days after the owner or
				operator receives notice of:
(a) commencement
				of a voluntary or involuntary proceeding under the Bankruptcy Code, 11 U.S.C.,
				naming a provider of financial assurance as a debtor,
(b) suspension or revocation of the authority
				of a provider of financial assurance to issue a financial assurance
				mechanism,
(c) failure of a
				guarantor to meet the requirements of the financial test, or
(d) other incapacity of a provider of
				financial assurance, except as provided in Paragraph (3) of this
				subsection;
(3) if the
				owner or operator fails to obtain alternate coverage as required by this part,
				within 60 days after the owner or operator receives notice that a state fund or
				other state assurance has become incapable of paying for assured corrective
				action or third-party compensation costs; or
(4) as required by Subsection G of
				20.5.117.1705 NMAC and Subsection B of 20.5.117.1719 NMAC.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1722 - DRAWING ON FINANCIAL ASSURANCE MECHANISMS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The secretary shall require the guarantor,
				surety, or institution issuing a letter of credit to place the amount of funds
				stipulated by the secretary, up to the limit of funds provided by the financial
				assurance mechanism, into the standby trust under certain conditions:
(1) The owner or operator fails to establish
				alternate financial assurance within 60 days after receiving notice of
				cancellation of the guarantee, surety bond, letter of credit, or, as
				applicable, other financial assurance mechanism; and the secretary determines
				or suspects that a release from a storage tank covered by the mechanism has
				occurred and so notifies the owner or operator or the owner or operator has
				notified the secretary pursuant to 20.5.102 or 20.5.118 NMAC of a release from
				a storage tank covered by the mechanism; or
(2) The conditions of Paragraph (1) or
				Paragraph (2) of Subsection B of this section are satisfied.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1723 - RELEASE FROM THE REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
An owner or operator is no longer required to maintain
				  financial responsibility under this part for a storage tank after the tank has
				  been permanently closed or undergoes a change in service or, if corrective
				  action is required, after corrective action has been completed and the tank has
				  been permanently closed or undergoes a change in service as required by
				  20.5.115 NMAC.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1724 - BANKRUPTCY OR OTHER INCAPACITY OF OWNER OR OPERATOR OR PROVIDER OF FINANCIAL ASSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Within
				10 days after commencement of a voluntary or involuntary proceeding under the
				Bankruptcy Code, 11 U.S.C., naming an owner or operator as debtor, the owner or
				operator shall notify the secretary by certified mail of such commencement and
				submit the appropriate forms listed in Subsection B of 20.5.117.1721 NMAC
				documenting current financial responsibility.
B. Within 10 days after commencement of a
				voluntary or involuntary proceeding under the Bankruptcy Code, 11 U.S.C.,
				naming a guarantor providing financial assurance as debtor, such guarantor
				shall notify the owner or operator by certified mail of such commencement as
				required under the terms of the guarantee specified in 20.5.117.1706
				NMAC.
C. Within 10 days after
				commencement of a voluntary or involuntary proceeding under the Bankruptcy
				Code, 11 U.S.C., naming a local government owner or operator as debtor, the
				local government owner or operator shall notify the secretary by certified mail
				of such commencement and submit the appropriate forms listed in Subsection B of
				20.5.117.1721 NMAC documenting current financial responsibility.
D. Within 10 days after commencement of a
				voluntary or involuntary proceeding under the Bankruptcy Code, 11 U.S.C.,
				naming a guarantor providing a local government financial assurance as debtor,
				such guarantor shall notify the local government owner or operator by certified
				mail of such commencement as required under the terms of the guarantee
				specified in 20.5.117.1716 NMAC.
E.
				An owner or operator who obtains financial assurance by a mechanism other than
				the financial test of self-insurance will be deemed to be without the required
				financial assurance in the event of a bankruptcy or incapacity of its provider
				of financial assurance, or a suspension or revocation of the authority of the
				provider of financial assurance to issue a guarantee, insurance policy, risk
				retention group coverage policy, surety bond, letter of credit, or
				state-required mechanism. The owner or operator shall obtain alternate
				financial assurance as specified in this part within 30 days after receiving
				notice of such an event. If the owner or operator does not obtain alternate
				coverage within 30 days after such notification, he shall notify the
				secretary.
F. Within 60 days after
				receipt of notification that a state fund or other state assurance has become
				incapable of paying for assured corrective action or third-party compensation
				costs, the owner or operator shall obtain alternate financial
				assurance.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1725 - REPLENISHMENT OF GUARANTEES, LETTERS OF CREDIT, OR SURETY BONDS

Current through Register Vol. 35, No. 13, July 16, 2024
A. If at any time
				after a standby trust is funded upon the instruction of the secretary with
				funds drawn from a guarantee, local government guarantee with standby trust,
				letter of credit, or surety bond, and the amount in the standby trust is
				reduced below the full amount of coverage required, the owner or operator shall
				by the anniversary date of the financial mechanism from which the funds were
				drawn:
(1) replenish the value of financial
				assurance to equal the full amount of coverage required; or
(2) acquire another financial assurance
				mechanism for the amount by which funds in the standby trust have been
				reduced.
New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1771 - FORM DOCUMENT FOR RECORD KEEPING

Current through Register Vol. 35, No. 13, July 16, 2024
A. An owner or operator using an assurance
				mechanism specified in 20.5.117.1705 through 20.5.117.1717 NMAC shall maintain
				an updated copy of a certification of financial responsibility worded as
				follows, except that instructions in brackets are to be replaced with the
				relevant information and the brackets deleted:
CERTIFICATION OF FINANCIAL
							 RESPONSIBILITY
[Owner or operator] hereby certifies that it is in
							 compliance with the requirements of 20.5.117 New Mexico Administrative Code
							 (NMAC).
The financial assurance mechanism[s] used to
							 demonstrate financial responsibility under 20.5.117 NMAC is [are] as
							 follows:
[For each mechanism, list the type of mechanism, name
							 of issuer, mechanism number (if applicable), amount of coverage, effective
							 period of coverage and whether the mechanism covers "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."]
[Signature of owner or operator]
[Name of owner or operator]
[Title]
[Date]
[Signature of witness or notary]
[Name of witness or notary]
[Date]
B.
				The owner or operator shall update this certification whenever the financial
				assurance mechanism(s) used to demonstrate financial responsibility
				change(s).