New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 9 - SOLID WASTE › Part 10 - FINANCIAL ASSURANCE › Section 20.9.10.16 - IRREVOCABLE STANDBY LETTER OF CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
An owner or operator may demonstrate financial assurance for
				  closure, post-closure care, phase I and phase II assessments, and corrective
				  action by obtaining an irrevocable standby letter of credit worded as in forms
				  supplied by the department and payable to a trust fund or standby trust fund
				  established in conformance with
				  20.9.10.14
				  NMAC.
A. In the case of closure,
				post-closure care, and phase I and phase II assessments, the letter of credit
				shall be effective prior to the initial receipt of waste. In the case of
				corrective action, the letter of credit shall be effective no later than 120
				days after the corrective action remedy has been approved by the
				secretary.
B. The issuing
				institution shall be an entity that has the authority to issue letters of
				credit and whose letter of credit operations are regulated and examined by a
				federal or state of New Mexico agency. The issuing institution shall be
				authorized to transact business in the state of New Mexico.
C. A letter from the owner or operator
				referring to the letter of credit by number, issuing institution, issue date,
				and providing the name and address of the facility, and the amount of funds
				assured, shall be submitted to the secretary along with the letter of credit. A
				copy of the letter from the owner or operator and a copy of the letter of
				credit shall be placed in the operating record.
D. The institution issuing the letter of
				credit shall be an institution with assets of at least one billion dollars
				($1,000,000,000). If the assets of the issuing institution are less than this
				amount, the letter of credit shall be fully collateralized by the owner or
				operator.
E. The letter of credit
				shall be irrevocable and issued for a period of at least one year. The letter
				of credit shall provide that the expiration date will be automatically extended
				for a period of at least one year unless the issuing institution has canceled
				the letter of credit by sending notice of cancellation by certified mail to the
				owner or operator and to the secretary 120 days in advance of cancellation. If
				the issuing institution notifies the owner or operator that it plans to cancel
				the letter of credit, the owner or operator shall obtain alternate financial
				assurance at least 30 days prior to the cancellation date. If the owner or
				operator fails to obtain alternate financial assurance in a timely manner, the
				secretary shall draw funds guaranteed by the letter of credit and place them in
				the trust fund or standby trust fund.
F. The trust fund or standby trust fund
				established by the owner or operator shall be worded as in forms supplied by
				the department.
G. The owner or
				operator may cancel the letter of credit only if alternate financial assurance
				is substituted as specified in 20.9.10.13 - 20.9.10.23 NMAC or if the owner or
				operator is notified in writing by the secretary that financial assurance is no
				longer required.
H. The owner or
				operator shall file an originally signed duplicate of the standby trust
				agreement and originally signed duplicate of the letter of credit with the
				department.