New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1758 - FORM DOCUMENT FOR SURETY BOND

Current through Register Vol. 35, No. 13, July 16, 2024
To satisfy the requirements of 20.5.117.1708 NMAC, the surety
				  bond shall be worded as follows, except that instructions in brackets shall 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 this instrument is used to assure both underground and
								above ground storage tanks, identify each storage tank as underground or 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. List the coverage guaranteed by the bond:
								"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 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 New Mexico
								Environment 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 Subtitle I
								of the federal Solid Waste Disposal Act, as amended, and the New Mexico
								Hazardous Waste Act, as amended, 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
								"non-sudden 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 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 20.5.119 NMAC and the instructions of the Secretary of the New
								Mexico Environment Department for," and/or "compensate injured 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 tank(s) identified above, or if the Principal shall provide
								alternate financial assurance, as specified in 20.5.117 NMAC, within 120 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 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.
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 Secretary that the
								Principal has failed to ["take corrective action, in accordance with 20.5.119
								NMAC and the Secretary's instructions," and/or "compensate injured third
								parties"] as guaranteed by this bond, the Surety(ies) shall either perform
								["corrective action in accordance with 20.5.119 NMAC and the Secretary'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 Secretary under 20.5.117.1713 NMAC.
Upon notification by the Secretary that the
								Principal has failed to provide alternate financial assurance within 60 days
								after the date the notice of cancellation is received by the Principal from the
								Surety(ies) and that the Secretary 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
								Secretary under 20.5.117.1713 NMAC.
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 120 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 20.5.117.1758 NMAC, as such regulations 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: $____________