Wyoming Administrative Code
Agency 020 - Environmental Quality, Dept. of
Sub-Agency 0011 - Water Quality
Chapter 14 - FINANCIAL ASSURANCE REQUIREMENTS
Section 14-6 - Forms of Financial Assurance
Universal Citation: WY Code of Rules 14-6
Current through September 21, 2024
(a) An operator of a regulated facility shall provide financial assurance in an amount at least equal to the established financial assurance amount for closure, post-closure, and corrective action in one (1) or a combination of the following:
(i) Surety bond;
(ii) Federally insured certificates of
deposit;
(iii) Government-backed
securities;
(iv) Cash.
(b) Surety Bonds:
(i) A corporate surety shall not be
considered good and sufficient for purposes of W.S. §
35-11-307 or W.S. §
35-11-306 unless:
(A) It is licensed to do business in the
State;
(B) The estimated bond
amount does not exceed the limit of risk as provided for in W.S. §
26-5-110, nor raise the total of all bonds
held by the applicant under that surety above three (3) times the limit of
risk; and
(C) The surety agrees:
(I) Not to cancel bond, except as provided
for in W.S. §
35-11-307 or W.S. §
35-11-306 or where the Department gives prior
written approval of a good and sufficient replacement surety with transfer of
the liability that has accrued against the operator on the permit
area;
(II) To be jointly and
severally liable with the permittee.
(III) To provide immediatewritten notice to
the Department and operator once it becomes unable or may become unable due to
any action filed against it to fulfill its obligations under the
bond.
(ii)
The provisions applicable to cancellation of the surety's license in W.S.
§ 35 - 11 - 307 or W.S. §
35-11-306 shall also apply if for any other
reason the surety becomes unable to fulfill its obligations under the bond.
Upon such occurrence, the operator shall provide the required notice. Failure
to comply with this provision shall result in suspension of the
permit.
(c) In lieu of a bond, the facility operator shall deposit federally insured certificates of deposit payable to the Wyoming Department of Environmental Quality, cash, or government securities, or all three (3).
(i)
Securities that are unencumbered shall only include those that are United
States Government securities or State Government securities that are acceptable
to the Director. Government securities must be endorsed to the order of the
Department and placed in possession of the Department. Possession shall be in
the form of the cash value of the irrevocable trust for the full amount of the
reclamation obligation and payable to the Department and federally
insured.
(ii) An operator shall
satisfy the requirements of this subsection by establishing an irrevocable
trust that conforms to the requirements below and submitting an originally
signed duplicate of the trust agreement to the Administrator for consideration.
(A) The irrevocable trust must be submitted
to the Director on the Wyoming Department of Environmental Quality Irrevocable
Trust Form and be signed by the operator or guarantor as principal and the
financial institution as Trustee, and made payable to the Department;
(B) The Trustee must be a bank organized to
do business in the United States that has the authority to act as a trustee and
whose trust operations is regulated and examined by a Federal Agency;
(C) The irrevocable trust must be cash funded
for the full amount of the financial assurance obligation to be provided in the
irrevocable trust before it may be approved to satisfy the requirements of
financial assurance in lieu of a bond. For purposes of this subsection, "the
full amount of the financial assurance obligation to be provided" means the
amount of coverage for Closure, Post-Closure and Corrective Action required to
be provided for the permit/facility, less the amount of financial assurance
obligation that is being provided by other financial assurance mechanisms being
used to demonstrate financial assurance by the operator or guarantor;
(D) Cancellation of an irrevocable trust
shall follow the same procedures detailed in W.S. §
35-11-306(j) for performance
bonds; and
(E) Forfeiture
proceeding for an irrevocable trust shall follow the same procedures detailed
in W.S. §
35-11-306(m) for performance
bonds.
Disclaimer: These regulations may not be the most recent version. Wyoming may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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