New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1759 - FORM DOCUMENT FOR LETTER OF CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
To satisfy the requirements of 20.5.117.1709 NMAC, the letter
				  of credit shall be worded as follows, except that instructions in brackets are
				  to be replaced with the relevant information and the brackets deleted:
IRREVOCABLE STANDBY LETTER OF
								CREDIT
[Name and address of issuing institution]
[Name and address of the Secretary of the New
								Mexico Environment Department]
Dear Sir or Madam:
We hereby establish our Irrevocable Standby Letter
								of Credit No. in your favor, at the request and for the account of [owner or
								operator name] of [address] up to the aggregate amount of [in words] U.S.
								dollars ($[insert dollar amount]), available upon presentation of:
(1) your sight draft, bearing reference to this
								letter of credit, No. _____, and
(2) your signed statement reading as follows: "I
								certify that the amount of the draft is payable pursuant to regulations issued
								under authority of Subtitle I of the federal Solid Waste Disposal Act, as
								amended, and the New Mexico Hazardous Waste Act, as amended."
This letter of credit may be drawn on to cover
								[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"] arising
								from operating the underground storage tank(s) identified below in the amount
								of [in words] $[insert dollar amount] per occurrence and [in words] $[insert
								dollar amount] annual aggregate and the above ground storage tank(s) identified
								below in the amount of [in words] $[insert dollar amount] per occurrence and
								[in words] $[insert dollar amount] annual aggregate:
[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
								this instrument is used to assure both underground and above ground storage
								tanks, identify each storage tank as underground and above ground and list the
								tank identification number provided in the notification submitted pursuant to
								20.5.102.202 New Mexico Administrative Code (NMAC). 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 20.5.102.202 NMAC and the name and address
								of the facility.]
The letter of credit may not be drawn on to cover
								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 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 20.5.117.1703 NMAC.
This letter of credit is effective as of [date] and
								shall expire on [date], but such expiration date shall be automatically
								extended for a period of [at least the length of the original term] on
								[expiration date] and on each successive expiration date, unless, at least 120
								days before the current expiration date, we notify [owner or operator] by
								certified mail that we have decided not to extend this letter of credit beyond
								the current expiration date. In the event that [owner or operator] is so
								notified, any unused portion of the credit shall be available upon presentation
								of your sight draft for 120 days after the date of receipt by [owner or
								operator], as shown on the signed return receipt.
Whenever this letter of credit is drawn on under
								and in compliance with the terms of this credit, we shall duly honor such draft
								upon presentation to us, and we shall deposit the amount of the draft directly
								into the standby trust fund of [owner or operator] in accordance with your
								instructions.
We certify that the wording of this letter of
								credit is identical to the wording specified in 20.5.117.1759 NMAC, as such
								regulations were constituted on the date shown immediately below.
[Signature(s) and title(s) of official(s) of
								issuing institution]
[Date]
This credit is subject to [insert "the most recent
								edition of the Uniform Customs and Practice for Documentary Credits, published
								by the International Chamber of Commerce," or "the Uniform Commercial
								Code".