Wisconsin Administrative Code › Department of Natural Resources › NR 700-799 - Environmental Protection - Investigation and Remediation of Environmental Contamination › Chapter NR 756 - Financial Responsibility At Contaminated Sediment Sites With Engineering Controls › Section NR 756.06 - Methods of providing proof of financial responsibility

Current through June 24, 2024
A person required to submit proof shall establish proof of
				  financial responsibility made payable to or established for the benefit of the
				  department. A person submitting financial assurances for a plan and compliance
				  schedule shall specify, as part of the plan and compliance schedule, the
				  methods of providing proof of financial responsibility that will be used. To
				  provide proof of financial responsibility, the person required to submit proof
				  may use the method under s. NR 756.15, if applicable, and up to 2 of the
				  following methods for each of the types of costs listed under s. NR 756.04(2)
				  (b):
Note:
The reference to s. NR 756.15 is an error
				  and will be corrected in future rulemaking by the department.
(1) PERFORMANCE OR FORFEITURE BOND.
(a) A person required to submit proof may
				submit a performance or forfeiture bond. The performance or forfeiture bond
				shall be in the amount determined under s. NR 756.08 and conditioned upon
				faithful performance by the person required to submit proof and any successor
				in interest of all requirements of the approved plan and compliance schedule or
				subsequent remedial actions required by the department. A bond shall be
				delivered to the department for approval. A bond shall be established using a
				form supplied by the department.
(b) A bond shall be issued by a surety
				company among those listed as acceptable sureties for federal bonds in Circular
				570 of the U.S. department of the treasury. At the option of the owner, a
				performance bond or a forfeiture bond may be filed. The department shall be the
				obligee of the bond. Surety companies may have the opportunity to complete the
				respective requirements of the plan and compliance schedule in lieu of cash
				payment to the department if the person required to submit proof, or any
				successor in interest, fails to carry out the respective requirements of the
				approved plan and compliance schedule. The department shall mail notification
				of the department's intent to use the funds for that purpose to the last known
				address of the person required to submit proof.
Note:
Copies of Circular 570, "Companies Holding
				  Certificates of Authority as Acceptable Sureties on Federal Bonds and as
				  Acceptable Reinsuring Companies" can be obtained from surety bond branch,
				  financial management service, department of the treasury, Washington D.C.
				  20227, phone (202) 874-6850.
(c) Each bond shall provide that, as long as
				any respective obligation of the plan and compliance schedule remains, the bond
				may not be canceled by the surety, unless a replacement bond or other proof of
				financial responsibility under this section is provided to the department by
				the person required to submit proof. If the surety proposes to cancel a bond,
				the surety shall provide notice to the department and to the owner in writing
				by registered or certified mail not less than 90 days prior to the proposed
				cancellation date. Not less than 30 days prior to the expiration of the 90-day
				notice period, the owner shall deliver to the department a replacement bond or
				other proof of financial responsibility under this section, and the bond or
				other proof of financial responsibility shall remain in effect as long as any
				respective obligation of the person required to submit proof remains under the
				plan and compliance schedule. The surety may discharge its obligation under the
				bond at any time by paying the unused portion of the bond to the
				department.
(d) If the surety
				company becomes bankrupt or insolvent or if its authorization to do business is
				revoked or suspended, the person required to submit proof shall, within 30 days
				after receiving written notice of the bankruptcy, insolvency, revocation, or
				suspension, deliver to the department a replacement bond or other proof of
				financial responsibility under this section, and the replacement bond or other
				proof of financial responsibility shall remain in effect as long as any
				respective obligation of the person required to submit proof remains under the
				plan and compliance schedule.