Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 640 - ABOVEGROUND STORAGE TANK AND PIPELINE FACILITY FINANCIAL RESPONSIBILITY REQUIREMENTS › Section 9VAC25-640-250:2 - APPENDIX II. GUARANTEE

Current through Register Vol. 40, No. 24, July 15, 2024
(Note: The instructions in brackets are to be replaced by the
				  relevant information and the brackets deleted.)
Guarantee made this [date] by [name of guaranteeing entity],
				  a business entity organized under the laws of the state of [insert name of
				  state], herein referred to as guarantor, to the Department of Environmental
				  Quality of the Commonwealth of Virginia and obligees, on behalf of [operator]
				  of [business address].
Recitals.
(1)
				Guarantor meets or exceeds the financial test criteria of
				9VAC25-640-70
				B or C and D and agrees to comply with the requirements for guarantors as
				specified in
				9VAC25-640-80.
(2) Operator operates the following
				aboveground storage tank(s) and/or pipelines covered by this guarantee:
[List for each facility: the name and address of facility
				  where tanks assured by this financial test are located, either the registration
				  identification number assigned by the Department or the Oil Discharge
				  Contingency Plan facility identification number, and whether tanks are assured
				  by this guarantee. If more than one instrument is used to assure different
				  tanks at any one facility, list each tank assured by this mechanism.
List for each pipeline: the home office address and the names
				  of the cities and counties in the Commonwealth where the pipeline is
				  located.]
This guarantee satisfies the requirements of 9VAC25-640 for
				  assuring funding for taking containment and clean up measures necessitated by a
				  discharge of oil; [if coverage is different for different tanks or locations,
				  indicate the type of coverage applicable to each tank or location] arising from
				  operating the above-identified aboveground storage tank(s) and/or pipelines in
				  the amount of [insert dollar amount] per occurrence and [insert dollar amount]
				  annual aggregate.
(3)
				[Insert appropriate phrase: "On behalf of our subsidiary" (if guarantor is
				corporate parent of the operator); "On behalf of our affiliate" (if guarantor
				is a related firm of the operator); or "Incident to our business relationship
				with" (if guarantor is providing the guarantee as an incident to a substantial
				business relationship with operator)] [operator], guarantor guarantees to the
				Department of Environmental Quality that:
In the event that operator fails to provide alternate
				  coverage within 60 days after receipt of a notice of cancellation of this
				  guarantee and the Department of Environmental Quality has determined or
				  suspects that a discharge has occurred at an aboveground storage tank and/or
				  pipeline covered by this guarantee, the guarantor, upon instructions from the
				  Department of Environmental Quality, shall pay the funds to the Department of
				  Environmental Quality in accordance with the provisions of
				  9VAC25-640-180,
				  in an amount not to exceed the coverage limits specified above.
In the event that the Department of Environmental Quality
				  determines that operator has failed to perform containment and clean up for
				  discharges arising out of the operation of the above-identified tank(s) and/or
				  pipelines in accordance with 9VAC25-91, the guarantor upon written instructions
				  from the Department of Environmental Quality shall pay the funds to the
				  Department of Environmental Quality in accordance with the provisions of
				  9VAC25-640-180,
				  in an amount not to exceed the coverage limits specified above.
(4) Guarantor agrees that if, at
				the end of any financial reporting year before cancellation of this guarantee,
				the guarantor fails to meet the financial test criteria of
				9VAC25-640-70
				B or C and D, guarantor shall send within 120 days of such failure, by
				certified mail, notice to operator and the Department of Environmental Quality.
				The guarantee will terminate 120 days from the date of receipt of the notice by
				operator and the Department of Environmental Quality, as evidenced by the
				return receipt.
(5) Guarantor
				agrees to notify operator and the Department of Environmental Quality by
				certified mail of a voluntary or involuntary proceeding under Title 11
				(Bankruptcy), U.S. Code, naming the guarantor as debtor, within 10 days after
				commencement of the proceeding.
(6)
				Guarantor agrees to remain bound under this guarantee notwithstanding any
				modification or alteration of any obligation of operator pursuant to 9VAC25-91
				or 9VAC25-640.
(7) Guarantor agrees
				to remain bound under this guarantee for so long as operator shall comply with
				the applicable financial responsibility requirements of 9VAC25-640 for the
				above-identified tank(s) and/or pipelines, except that guarantor may cancel
				this guarantee by sending notice by certified mail to operator and the
				Department of Environmental Quality, such cancellation to become effective no
				earlier than 120 days after receipt of such notice by operator and the
				Department of Environmental Quality, as evidenced by the return
				receipt.
(8) The guarantor's
				obligation does not apply to any of the following:
(a) Any obligation of operator under a
				workers' compensation, disability benefits, or unemployment compensation law or
				other similar law;
(b) Bodily
				injury to an employee of operator arising from, and in the course of,
				employment by 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 operator
				that is not the direct result of a discharge from an aboveground storage tank
				and/or pipeline;
(e) Bodily damage
				or property damage for which 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 9VAC25-640.