Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 640 - ABOVEGROUND STORAGE TANK AND PIPELINE FACILITY FINANCIAL RESPONSIBILITY REQUIREMENTS › Section 9VAC25-640-250:6 - APPENDIX VI. IRREVOCABLE STANDBY LETTER OF CREDIT

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.)
[Name and address of issuing institution]
[Name and address of the Director]
Dear Sir or Madam: We hereby establish our Irrevocable
				  Standby Letter of Credit No.________ in your favor, at the request and for the
				  account of [operator name] of [address] up to the aggregate amount of [in
				  words] U.S. dollars ($[insert dollar amount]), available upon presentation
				  of
(1) Your sight draft, bearing
				reference to this letter of credit, No._______; and
(2) Your signed statement reading as follows:
				"I certify that the amount of the draft is payable pursuant to regulations
				issued under authority of § 62.1- 44.34:16 of the Code of Virginia."
This letter of credit may be drawn on to cover containment
				  and clean up necessitated by discharges of oil arising from operating the
				  aboveground storage tank(s) and pipelines identified below in the amount of [in
				  words] $ [insert dollar amount] per occurrence and [in words] $ [insert dollar
				  amount] annual aggregate:
[List for each facility: the name and address of the facility
				  where tanks assured by this mechanism 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 mechanism. If more than one instrument is used to assure different
				  tanks at any one facility, list each tank covered by this instrument.
For pipelines, list: the home office address and the names of
				  the cities and counties in the Commonwealth where the pipeline is
				  located.]
The letter of credit may not be drawn on to cover 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 an operator that is not the direct result of a
				discharge of oil from an aboveground storage tank and/or pipeline;
(e) Bodily injury or property damage for
				which an 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
				9VAC25-640-50.
This letter of credit is effective as of [date] and shall
				  expire on [date], but such expiration date shall be automatically extended for
				  a period of [at least the length of the original term] on [expiration date] and
				  on each successive expiration date, unless, at least 120 days before the
				  current expiration date, we notify operator and the Department of Environmental
				  Quality by certified mail or overnight courier that we have decided not to
				  extend this letter of credit beyond the current expiration date. In the event
				  that operator and the Department of Environmental Quality are so notified, any
				  unused portion of the credit shall be available upon presentation of your sight
				  draft for 120 days after the date of receipt by the Department of Environmental
				  Quality, as shown on the signed return receipt, or until the current expiration
				  date, whichever is later.
Whenever this letter of credit is drawn on under and in
				  compliance with the terms of this credit, we shall duly honor such draft upon
				  presentation to us, and we shall pay to you the amount of the draft promptly
				  and directly in accordance with your instructions.
We certify that the wording of this letter of credit is
				  identical to the wording specified in Appendix VI of 9VAC25-640 as such
				  regulations were constituted on the date shown immediately below.
[Signature(s) and title(s) of official(s) of issuing
				  institution]
[Date]
This credit is subject to [insert "the most recent edition of
				  the Uniform Customs and Practice for Documentary Credits, published by the
				  International Chamber of Commerce" or "the Uniform Commercial
				  Code"].