Administrative Rules of Montana
Department 17 - ENVIRONMENTAL QUALITY
Chapter 17.86 - ENERGY
Subchapter 17.86.1 - Wind Generation Facility Decommissioning and Bonding
Rule 17.86.117 - LETTERS OF CREDIT
Universal Citation: MT Admin Rules 17.86.117
Current through Register Vol. 6, March 22, 2024
(1) An owner may satisfy the bonding requirements of this subchapter by submitting a letter of credit that:
(a) is issued by a bank
organized or authorized to do business in the United States;
(b) is irrevocable prior to being released by
the department;
(c) is payable to
the department in part or in full upon demand and receipt from the department
of a notice of forfeiture issued in accordance with ARM
17.86.122;
(d) provides, upon expiration, if the
department has not notified the bank in writing that a substitute bond has been
provided or is not required, the bank shall immediately pay the department the
full amount of the letter of credit less any previous drafts;
(e) is not for an amount in excess of 10
percent of the bank's capital surplus account as shown on a balance sheet
certified by a certified public accountant and submitted to the department with
the letter of credit;
(f) is for an
amount that does not exceed three times the bank's maximum single obligation;
and
(g) is automatically renewable
annually on the letter of credit anniversary date.
(2) The department shall review a bank's qualifications annually before a letter of credit is renewed. If the department determines that a bank has become unable to fulfill its obligations under the letter of credit, the department shall, in writing, notify the owner and specify a reasonable period, not to exceed 90 days, in which the owner shall replace the bond.
AUTH: 75-26-310, MCA; IMP: 75-26-304, MCA
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