Texas Administrative Code › Title 30 - ENVIRONMENTAL QUALITY › Part 1 - TEXAS COMMISSION ON ENVIRONMENTAL QUALITY › Chapter 37 - FINANCIAL ASSURANCE › Subchapter W - FINANCIAL ASSURANCE FOR QUARRIES › Section 37.9215 - Insurance Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) An owner or
				  operator may satisfy the requirements of financial assurance by obtaining
				  insurance that conforms to the requirements of this subchapter and submitting
				  an originally signed certificate to the executive director.
(b) At a minimum, the insurer must be
				  licensed to transact the business of insurance, or eligible to provide
				  insurance as an excess or surplus lines insurer, in Texas.
(c) The wording of the certificate of
				  insurance must be identical to the wording specified in §
										37.9220
				  of this title (relating to Certificate of Insurance Wording).
(d) The insurance policy must be issued for a
				  face amount at least equal to the current cost estimate for reclamation or
				  restoration, except when a combination of mechanisms are used in accordance
				  with §
										37.41
				  and §
										37.9170
				  of this title (relating to Use of Multiple Financial Assurance Mechanisms and
				  Financial Assurance Requirements for Reclamation and Restoration). Actual
				  payments by the insurer shall not change the face amount, although the
				  insurer's future liability shall be lowered by the amount of the
				  payments.
(e) The insurance policy
				  must guarantee that funds shall be available to provide for reclamation at the
				  quarry or restoration related to the quarry. The policy shall also guarantee
				  that once reclamation at the quarry or restoration related to the quarry
				  begins, the issuer shall be responsible for paying out funds, up to an amount
				  equal to the face amount of the policy, upon the direction of the executive
				  director, to such party or parties as the executive director
				  specifies.
(f) An owner or operator
				  or any other person authorized to perform reclamation or restoration may
				  request reimbursement for expenditures for reclamation at the quarry or
				  restoration related to the quarry by submitting itemized bills to the executive
				  director. The request shall include an explanation of the expenses and all
				  applicable itemized bills. The owner or operator may request reimbursement for
				  partial reclamation at the quarry or restoration related to the quarry only if
				  the remaining value of the policy is sufficient to cover the maximum remaining
				  costs of reclamation at the quarry or restoration related to the quarry. Within
				  60 days after receiving bills for reclamation at the quarry or restoration
				  related to the quarry, the executive director shall determine whether the
				  reclamation or restoration expenditures are in accordance with the approved
				  reclamation or restoration activities or are otherwise justified, and if so,
				  shall instruct the insurer to make reimbursement in such amounts as the
				  executive director specifies in writing. If the executive director has reason
				  to believe that the maximum cost of reclamation or restoration will be greater
				  than the face amount of the policy, the executive director may withhold
				  reimbursement of such amounts as deemed prudent until the executive director
				  determines, in accordance with this subchapter, that the owner or operator is
				  no longer required to maintain financial assurance requirements for reclamation
				  at the quarry or restoration related to the quarry of the facility. If the
				  executive director does not instruct the insurer to make such reimbursements,
				  the executive director shall provide the owner or operator with a detailed
				  written statement of reasons.
(g)
				  The owner or operator shall maintain the policy in full force and effect until
				  the executive director consents to termination of the policy. Failure to pay
				  the premium, without substitution of alternate financial assurance as specified
				  in this subchapter, shall constitute a violation of these regulations,
				  warranting such remedy as the executive director deems necessary. Such
				  violation shall be deemed to begin upon receipt by the executive director of a
				  notice of future cancellation, termination, or failure to renew due to
				  nonpayment of the premium, rather than upon the date of expiration of the
				  policy.
(h) The policy must provide
				  that the insurer may not cancel, terminate, or fail to renew the policy except
				  for failure to pay the premium. The automatic renewal of the policy shall, at a
				  minimum, provide the insured with the option of renewal at the face amount of
				  the expiring policy. If there is a failure to pay the premium, the insurer may
				  elect to cancel, terminate, or fail to renew the policy by sending notice by
				  certified mail to the owner or operator and the executive director.
				  Cancellation, termination, or failure to renew may not occur, however, during
				  120 days beginning with the date of receipt of the notice by both the executive
				  director and the owner or operator, as evidenced by the return
				  receipts.
(i) Cancellation,
				  termination, or failure to renew may not occur and the policy shall remain in
				  full force and effect in the event that on or before the date of expiration:
(1) the executive director deems the quarry
				  abandoned;
(2) the permit expires,
				  is terminated, is revoked, or a new or renewal permit is denied;
(3) reclamation or restoration is ordered by
				  the executive director of the commission or by a United States district court
				  or other court of competent jurisdiction;
(4) the owner or operator is named as debtor
				  in a voluntary or involuntary proceeding under Title 11 (Bankruptcy), United
				  States Code; or
(5) the premium due
				  is paid.