Louisiana Administrative Code
Title 33 - ENVIRONMENTAL QUALITY
Part XI - Underground Storage Tanks
Chapter 11 - Financial Responsibility
Section XI-1107 - Amount and Scope of Required Financial Responsibility

Universal Citation: LA Admin Code XI-1107

Current through Register Vol. 50, No. 9, September 20, 2024

A. Owners or operators of petroleum or motor fuel underground storage tanks shall demonstrate financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum underground storage tanks in at least the following per-occurrence amounts:

1. for owners or operators of petroleum or motor fuel underground storage tanks that are located at petroleum marketing facilities, or that handle an average of more than 10,000 gallons of petroleum or motor fuel per month based on annual throughput for the previous calendar year, $1,000,000; and

2. for all other owners or operators of petroleum or motor fuel underground storage tanks, $500,000.

B. Owners or operators of petroleum or motor fuel underground storage tanks shall demonstrate financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum or motor fuel underground storage tanks in at least the following annual aggregate amounts:

1. for owners or operators of one to 100 petroleum or motor fuel underground storage tanks, $1,000,000; and

2. for owners or operators of 101 or more petroleum or motor fuel underground storage tanks, $2,000,000.

C. For the purposes of Subsections B and F of this Section only, a petroleum or motor fuel underground storage tank means a single containment unit and does not mean combinations of single containment units.

D. Except as provided in Subsection E of this Section, the amount of assurance provided by each mechanism or combination of mechanisms shall be in the full amount specified in Subsections A and B of this Section if the owner or operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial responsibility for:

1. taking corrective action;

2. compensating third parties for bodily injury and property damage caused by sudden accidental releases; or

3. compensating third parties for bodily injury and property damage caused by nonsudden accidental releases.

E. If an owner or operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial responsibility for different petroleum or motor fuel underground storage tanks, the annual aggregate required shall be based on the number of tanks covered by each such separate mechanism or combination of mechanisms.

F. Owners or operators shall review the amount of aggregate assurance provided whenever additional petroleum or motor fuel underground storage tanks are acquired or installed. If the number of petroleum or motor fuel underground storage tanks for which assurance shall be provided exceeds 100, the owner or operator shall demonstrate financial responsibility in the amount of at least $2,000,000 of annual aggregate assurance by the anniversary of the date on which the mechanism demonstrating financial responsibility became effective. If assurance is being demonstrated by a combination of mechanisms, the owner or operator shall demonstrate financial responsibility in the amount of at least $2,000,000 of annual aggregate assurance by the first-occurring effective date anniversary of any one of the mechanisms combined (other than a financial test or guarantee) to provide assurance.

G. The amounts of assurance required under this Section exclude legal defense costs.

H. The required per-occurrence and annual aggregate coverage amounts do not in any way limit the liability of the owner or operator.

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:2001 et seq.

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