Wyoming Administrative Code › Agency 020 - Environmental Quality, Dept. of › Sub-Agency 0006 - Land Quality - Coal › Chapter 20 - LETTERS OF CREDIT › Section 20-1 - Conditions on the Letter of Credit

Current through July 13, 2024
(a) Letters of
				credit as authorized by W.S. §
									
										35-11-418, shall be subject to the following
				conditions:
(i) The letter shall be
				irrevocable during its term, which shall coincide with the annual bonding
				period. The Administrator may approve the use of letters of credit as security
				in accordance with a schedule approved with the permit. Any bank issuing a
				letter of credit shall notify the Director in writing at least 90 days prior to
				the maturity date of such letter or the expiration of the letter of credit
				agreement. Letters of credit utilized as security in areas requiring continuous
				bond coverage shall be forfeited and collected by the Director if not replaced
				by other suitable evidence of financial responsibility at least 30 days before
				the expiration date of the letter of credit agreement;
(ii) The letter must be payable to the
				Department in part or in full upon demand and receipt from the Director of a
				notice of forfeiture issued in accordance with W.S. §
										
											35-11-421;
(iii) The letter shall not be in excess of
				ten percent of the bank's capital surplus account as shown on a balance sheet
				certified by a certified public accountant;
(iv) The Administrator shall not accept
				letters of credit from a bank for any person, on all permits held by that
				person, in excess of three times the limitation imposed by W.S. §
										
											13-3-402;
(v) The letter of credit shall provide that:
(A) The bank will give prompt notice to the
				permittee and the Director of any notice received or action filed alleging the
				insolvency or bankruptcy of the bank, or alleging any violations of regulatory
				requirements which could result in suspension or revocation of the bank's
				charter or license to do business;
(B) In the event the bank becomes unable to
				fulfill its obligations under the letter of credit for any reason, notice shall
				be given immediately to the permittee and the Director; and
(C) Upon the incapacity of a bank by reason
				of bankruptcy, insolvency, or suspension or revocation of its charter or
				license, the permittee shall be deemed to be without performance bond coverage
				in violation of the Act. The Director shall issue a notice of violation against
				any operator who is without bond coverage, specifying a reasonable period to
				replace bond coverage, not to exceed 90 days. During this period the Director
				or his designated representative shall conduct weekly inspections to ensure
				continuing compliance with other permit requirements, the regulations and the
				Act. Such notice, if abated within the period allowed, shall not be counted as
				a notice of violation for purposes of determining a pattern of violations under
				W.S. §
											
												35-11-409(c), and need not
				be reported as a past violation in permit applications under Chapter 2, Section
				2(a)(ii)(B). If the notice
				is not abated in accordance with the schedule, a cessation order shall be
				issued.