Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 650 - CLOSURE PLANS AND DEMONSTRATION OF FINANCIAL CAPABILITY › Part III - Closure Plans and Financial Assurance Criteria › Section 9VAC25-650-100 - Surety bond

Current through Register Vol. 40, No. 24, July 15, 2024
A. An owner or
				  operator may satisfy the requirements of this chapter by obtaining a surety
				  bond that conforms to the requirements of this section and by submitting an
				  originally signed duplicate of the bond to the department. The surety company
				  issuing the bond shall be licensed to operate as a surety in the Commonwealth
				  of Virginia and be among those listed as acceptable sureties on federal bonds
				  in the latest Circular 570 of the U.S. Department of the Treasury.
B. The surety bond shall be on surety company
				  letterhead and worded as follows, except that instructions in parentheses shall
				  be replaced with the relevant information and the parentheses deleted.
PERFORMANCE BOND
Date bond executed: _____________
Period of coverage: _____________
Effective date: _____________
Principal: (legal name and address of owner or operator)
					 _____________
Type of organization: (insert "individual" "joint venture,"
					 "partnership," "corporation," or appropriate identification of type of
					 organization) _____________
State of incorporation (if applicable):
					 _____________
Surety: (name(s) and business address) _____________
Scope of Coverage:
(List the name of and the address where the private sewage
					 treatment facility assured by this mechanism is located. List the coverage
					 guaranteed by the bond: operation, maintenance, and closure of the privately
					 owned sewage treatment facility)
Penal sum of bond: $ _____________
Surety's bond number: _____________
Know All Persons by These Presents, that we, the Principal
					 and Surety(ies), hereto are firmly bound to the Department of Environmental
					 Quality, Commonwealth of Virginia, ("DEQ") in the above penal sum 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 sum.
Whereas said Principal is required under §
					 62.1-44.18:3 of the State Water Control Law of the Code of Virginia to provide
					 financial assurance to implement a plan to abate, control, prevent, remove, or
					 contain any substantial or imminent threat to public health or the environment
					 that is reasonably likely to occur if such facility ceases operations (closure
					 plan);
Now, therefore, the conditions of the obligation are such
					 that if the Principal shall faithfully implement the closure plan in accordance
					 with the Director of the DEQ's instructions to implement the plan for the
					 facility described above, or if the Principal shall provide alternate financial
					 assurance, acceptable to DEQ and obtain the Director's written approval of such
					 assurance, within 60 days after the date the notice of cancellation is received
					 by the Director of the DEQ from the Surety(ies), then this obligation shall be
					 null and void; otherwise it is to remain in full force and effect.
The Surety(ies) shall become liable on this bond when the
					 Principal has failed to fulfill the conditions described above. Upon
					 notification by the Director of the DEQ that the owner or operator has failed
					 to fulfill the conditions above or that the DEQ has determined that the
					 facility has ceased operations, the Surety(ies) shall either implement the
					 closure plan or forfeit the full amount of the penal sum as directed by the
					 Director of the DEQ under
					 9VAC25-650-140.
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 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 penal sum.
The Surety(ies) may cancel the bond by sending notice of
					 cancellation by certified mail to the Principal and to the Director of the DEQ,
					 Commonwealth of Virginia, 1111 East Main Street, Suite 1400, Richmond, Virginia
					 23219, provided, however, that cancellation shall not occur (1) during the 120
					 days beginning on the date of receipt of the notice of cancellation by the
					 Principal and Director of the DEQ as shown on the signed return receipt; or (2)
					 while a compliance procedure is pending.
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 9VAC25-650-100 B 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: $ ______________
C. Under the terms of the bond, the surety
				  will become liable on the bond obligation when the owner or operator fails to
				  perform as guaranteed by the bond.
D. The bond shall guarantee that the owner or
				  operator or any other authorized person will:
1. Implement the closure plan in accordance
				  with the approved closure plan and other requirements in any permit for the
				  facility;
2. Implement the closure
				  plan following an order to do so issued by the department or by a
				  court.