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 33.1-24-08-89 - Letter of credit

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 an
				irrevocable standby letter of credit that conforms to the requirements of this
				section. The issuing institution must 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.
2. The letter of credit must 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 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
				  [insert, if more than one department is a beneficiary, "by any one of you"]
				  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 rules issued
				under authority of North Dakota Century Code Section 23.1-04-06".
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
				  "nonsudden 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:
[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.]
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
				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.
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 one hundred twenty 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 one hundred twenty 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 subsection 2 of section 33.1-24-08-89 as
				  such rules 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"].