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 37.9185 - Trust Fund Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) An owner or
				  operator may satisfy the requirements of financial assurance by establishing a
				  fully funded trust that conforms to the requirements of this subchapter and by
				  submitting an originally signed duplicate of the executed trust agreement to
				  the executive director.
(b) The
				  trustee must be an entity that has the authority to act as a trustee and whose
				  trust operations are regulated and examined by a federal or state
				  agency.
(c) The wording of the
				  trust agreement must be identical to the wording specified in §
										37.9190(a)
				  of this title (relating to Trust Agreement Wording), including a formal
				  certification of acknowledgment as specified in §
										37.9190(b)
				  of this title.
(d) Schedule A of
				  the trust agreement as specified in §
										37.9190(a)
				  of this title must be updated within 60 days after an approved change in the
				  amount of the current cost estimate.
(e) A fully funded trust requires that the
				  initial payment into the trust fund be at least equal to the current cost
				  estimate, or when a combination of mechanisms are used in accordance with
				  §
										37.41
				  of this title (relating to Use of Multiple Financial Assurance Mechanisms), the
				  initial payment plus the amount of the combined mechanism(s) must be at least
				  equal to the current cost estimate. A receipt from the trustee for the initial
				  payment must be submitted by the owner or operator to the executive director
				  with the originally signed duplicate of the trust agreement.
(f) After the initial payment for a fully
				  funded trust, whenever the current cost estimate changes, the owner or operator
				  must compare the new estimate with the trustee's most recent annual valuation
				  of the trust fund. If the value of the fund is less than the amount of the new
				  estimate, the owner or operator, within 30 days after the change in the current
				  cost estimate, must either deposit an amount into the fund so that its value
				  after this deposit at least equals the amount of the current cost estimate, or
				  obtain an additional financial assurance mechanism as specified in this
				  subchapter to cover the difference.
(g) If the value of the trust fund is greater
				  than the total amount of the current cost estimate, the owner or operator may
				  submit a written request to the executive director for release of the amount in
				  excess of the current cost estimate.
(h) Within 60 days after receiving a request
				  from the owner or operator for release of funds as specified in subsection (g)
				  of this section, the executive director shall instruct the trustee to release
				  to the owner or operator such funds as the executive director specifies in
				  writing.
(i) An owner or operator
				  or any other person authorized by the executive director to perform reclamation
				  at the quarry or restoration related to the quarry, may request reimbursement
				  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 reimbursements for partial reclamation or
				  restoration only if sufficient funds are remaining in the trust fund to cover
				  the maximum remaining costs for reclamation at the quarry or restoration
				  related to the quarry. After receiving bills for reclamation or restoration
				  activities, the executive director shall instruct the trustee to make
				  reimbursement in such amounts as the executive director specifies in writing,
				  if the executive director determines that the partial or final reclamation or
				  restoration expenditures are in accordance with the approved reclamation or
				  restoration plan activities, or are otherwise justified. If the executive
				  director has reason to believe that the cost of reclamation at the quarry or
				  restoration related to the quarry will be greater than the value of the trust
				  fund, the executive director may withhold reimbursement of such amounts as
				  deemed prudent until it is determined, in accordance with Subchapters A and B
				  of this chapter (relating to General Financial Assurance Requirements and
				  Financial Assurance Requirements for Closure, Post Closure, and Corrective
				  Action) that the owner or operator is no longer required to maintain financial
				  assurance for reclamation or restoration.
(j) If an owner or operator substitutes other
				  financial assurance as specified in this section for all or part of the trust
				  fund, the owner or operator may submit a written request to the executive
				  director for release of the amount in excess of the current cost estimate
				  covered by the trust fund.