CHAPTER 2 ‑ ENVIRONMENTAL MANAGEMENT
SUBCHAPTER 2O ‑ FINANCIAL RESPONSIBILITY REQUIREMENTS
FOR OWNERS AND OPERATORS OF UNDERGROUND STORAGE TANKS
SECTION .0100 ‑ GENERAL CONSIDERATIONS
15A NCAC 02O .0101 GENERAL
(a) The purpose of this Subchapter is to establish the
requirements for financial responsibility for owners and operators of
underground storage tanks located in North Carolina.
(b) The Department of Environment, Health, and Natural
Resources (Department) shall administer the underground storage tank financial
responsibility compliance program for the State of North Carolina.
(c) Department staff may conduct inspections as necessary
to ensure compliance with this Subchapter.
History Note: Authority G.S. 143‑215.3(a)(15);
143‑215.94H; 143B‑282(2)(h);
Eff. July 1, 1992.
15A NCAC 02O .0102 COPIES OF
REFERENCED FEDERAL REGULATIONS
(a) Copies of applicable Code of Federal Regulations
sections incorporated in this Subchapter are available for inspection at
Department of Environment, Health, and Natural Resources regional offices.
They are:
(1) Asheville Regional Office, Interchange
Building, 59 Woodfin Place, Asheville, North Carolina 28802;
(2) Winston‑Salem Regional Office, Suite
100, 8025 North Point Boulevard, Winston‑Salem, North Carolina 27106;
(3) Mooresville Regional Office, 919 North Main
Street, Mooresville, North Carolina 28115;
(4) Raleigh Regional Office, 3800 Barrett
Drive, Post Office Box 27687, Raleigh, North Carolina 27611;
(5) Fayetteville Regional Office, Wachovia
Building, Suite 714, Fayetteville, North Carolina 28301;
(6) Washington Regional Office, 1424 Carolina
Avenue, Farish Building, Washington, North Carolina 27889;
(7) Wilmington Regional Office, 127 Cardinal
Drive Extension, Wilmington, North Carolina 28405.
(b) Copies of such regulations can be made at these
regional offices for ten cents ($0.10) per page. Individual complete copies
may be obtained from the U.S. Environmental Protection Agency, Office of
Underground Storage Tanks, Post Office Box 6044, Rockville, Maryland 20850 for
no charge.
History Note: Authority G.S. 12‑3.1(c); 143‑215.3(a)(15);
143B‑282(2)(h);
Eff. July 1, 1992.
15A NCAC 02O .0103 SUBSTITUTED SECTIONS
(a) References to sections of the Federal Regulations
incorporated by reference will refer to those sections and any subsequent
amendments and editions.
(b) References to 40 CFR 280.93 are to be taken as references
to Rule .0204 of this Subchapter, with Paragraph correspondence being: 40 CFR
280.93(a) corresponds to 15A NCAC 2O .0204(a) and (b); 40 CFR 280.93(b)
corresponds to 15A NCAC 2O .0204(c) and (d); 40 CFR 280.93(c) and (d) have no
correspondence; and 40 CFR 280.93(e), (f), (g), and (h) correspond to 15A NCAC
2O .0204(f), (g), (h), and (i), respectively.
(c) References to 40 CFR 280.95 are to be taken as
references to Rule .0302 of this Subchapter, with Paragraph correspondence
being: 40 CFR 280.95(a), (e), (f), and (g) correspond to 15A NCAC 2O .0302(a),
(c), (d), and (e), respectively; 40 CFR 280.95(b) and (c) correspond to 15A
NCAC 2O .0302(b); 40 CFR 280.95(d) corresponds to 15A NCAC 2O .0302(f) and (g).
History Note: Authority G.S. 143‑215.94H; 143‑215.94T;
150B‑21.6;
Eff. July 1, 1992.
SECTION .0200 ‑ PROGRAM SCOPE
15A NCAC 02O .0201 APPLICABILITY
(a) The provisions for "Applicability" contained
in 40 CFR 280.90 are hereby incorporated by reference including any subsequent
amendments and editions. Locations where this material is available are
specified in Rule .0102 of this Subchapter.
(b) The Rules contained in this Subchapter apply to all
dual usage tanks as defined in Rule .0203 of this Section.
History Note: Authority G.S. 143‑215.94A; 143‑215.94H;
143‑215.94T; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0202 COMPLIANCE DATES
The provisions for "Compliance Dates" contained in
40 CFR 280.91 are hereby incorporated by reference including any subsequent
amendments and editions. Locations where this material is available are
specified in Rule .0102 of this Subchapter.
History Note: Authority G.S. 143‑215.94A; 143‑215.94H;
150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0203 DEFINITIONS
(a) The definitions contained in 15A NCAC 2N .0203 and 40
CFR 280.92 are hereby incorporated by reference including any subsequent
amendments and editions, except for "Director of the Implementing
Agency", "Occurrence", and "Financial Reporting
Year". Locations where this material is available are specified in Rule
.0102 of this Subchapter.
(b) The following definitions are defined for the purposes
of this Subchapter:
(1) "Annual Operating Fee" is an
annual fee required to be paid by the owner or operator of each commercial
underground storage tank, as defined in G.S. 143-215.94A, in use on or after
January 1 of the year, beginning with 1989.
(2) "Dual Usage Tank" means an
underground storage tank which has had varied usage which would cause the tank
to be considered an underground storage tank regulated in accordance with 15A
NCAC 2N during certain times and an unregulated tank during other times and for
which both the regulated and unregulated usages were integral to the operation
or existence of the tank.
(3) "Director of the Implementing
Agency" means the Director of the Division of Environmental Management of
the Department of Environment, Health, and Natural Resources.
(4) "Financial reporting year" means
the latest consecutive twelve-month period for which any of the following
reports used to support a financial test is prepared:
(A) a 10K report submitted to the SEC;
(B) an annual report of tangible net worth submitted to
Dun and Bradstreet;
(C) annual reports submitted to the Energy Information
Administration or the Rural Electrification Administration; or
(D) a compilation report by a Certified Public
Accountant or Certified Public Accounting Firm.
(5) "Occurrence" means one or more
releases which result(s) in a single plume of soil, groundwater, and/or surface
water contamination (consisting of free product and/or associated dissolved
contaminants exceeding standards established under 15A NCAC 2L .0202 or any
other applicable laws, rules, or regulations) emanating from a given site.
History Note: Authority G.S. 143‑215.94A; 143‑215.94H;
150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0204 AMOUNT AND SCOPE OF REQUIRED FINANCIAL
RESPONSIBILITY
(a) Owners or operators of petroleum underground storage
tanks located in North Carolina must demonstrate financial responsibility for
at least one million dollars ($1,000,000) per occurrence 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.
(b) Compliance with all laws, rules, and regulations
relating to the Commercial Leaking Petroleum Underground Storage Tank Cleanup
Fund shall constitute demonstration of financial responsibility for that amount
specified in Paragraph (a) of this Rule which is in excess of the sum of the
amounts required to be paid per occurrence by the owner or operator for cleanup
and for third‑party claims.
(c) Owners or operators of petroleum underground storage
tanks located in North Carolina must 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 annual aggregate
amounts:
(1) For owners or operators of one to 100
petroleum underground storage tanks, one million dollars ($1,000,000); and
(2) For owners or operators of 101 or more
petroleum underground storage tanks, two million dollars ($2,000,000).
(d) If all laws, rules, and regulations relating to the Commercial
Leaking Petroleum Underground Storage Tank Cleanup Fund are complied with, the
owner or operator may meet the financial responsibility requirements of
Paragraph (c) of this Rule by providing an annual aggregate financial assurance
of at least the sum of the amounts specified in Subparagraphs (d)(1), (2), and
(3) of this Rule as follows, in addition to the assurance provided by the
Commercial Fund:
(1) The average maximum amount required to be
paid by an owner or operator per occurrence for cleanup as determined in
accordance with Paragraph (e) of this Rule;
(2) The average maximum amount required to be
paid by an owner or operator per occurrence for third party claims as
determined in accordance with Paragraph (e) of this Rule; and
(3) Three percent of the multiple of:
(A) the amount in Subparagraph (d)(1) of this Rule; and
(B) the number of tanks being covered.
(e) An owner or operator providing financial assurance for
more than one underground storage tank where the various tanks do not all
require the same maximum amounts to be paid per occurrence for cleanup and/or
third party claims shall calculate an average maximum amount to be paid per
occurrence as follows:
(1) Determine the maximum amount to be paid per
occurrence for each underground storage tank being assured;
(2) Sum the values determined in Subparagraph
(e)(1) of this Rule and divide by the number of underground storage tanks being
assured.
(f) Owners or operators shall annually review the amount of
aggregate assurance provided. The amounts of required financial responsibility
and annual aggregate assurance shall be adjusted at the time of the review to
that required in Paragraphs (a), (b), (c), and (d) of this Rule. All changes
in status, including installations and closures, shall be reported to the
Department, and all fees due shall be paid in accordance with applicable laws,
rules, and regulations.
(g) If an owner or operator uses separate mechanisms or
separate combinations of mechanisms to demonstrate financial responsibility for
different petroleum 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.
(h) The amounts of assurance required under this Rule
exclude legal defense costs.
(i) The required per‑occurrence and annual aggregate
coverage amounts do not in any way limit the liability of the owner or
operator.
(j) Assurance for petroleum underground storage tanks
located in North Carolina must be provided separately from that provided for
petroleum underground storage tanks not located in North Carolina.
History Note: Authority G.S. 143‑215.94H; 143‑215.94T;
Eff. July 1, 1992.
SECTION .0300 ‑ ASSURANCE MECHANISMS
15A NCAC 02O .0301 ALLOWABLE MECHANISMS AND COMBINATIONS OF
MECHANISMS
The provisions for "Allowable Mechanisms and
Combinations of Mechanisms" contained in 40 CFR 280.94 are hereby
incorporated by reference including any subsequent amendments and editions.
Locations where this material is available are specified in Rule .0102 of this
Subchapter. "Guarantee" and "Surety Bond" are acceptable
mechanisms in the State of North Carolina.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0302 SELF INSURANCE
(a) Assurance of financial responsibility may be provided
by an owner or operator or guarantor as a self‑insurer if the owner or
operator has complied with all of the laws, rules, and regulations relative to
the Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund and the
owner or operator or guarantor either establishes a Trust Fund as set out in
Paragraph (h) of this Rule or qualifies to be a self‑insurer by passing
the financial test in Paragraph (b) of this Rule or a financial test of 40 CFR
280.95.
(b) To qualify as an insurer, an owner, operator, or
guarantor, individually or collectively, must meet the following criteria based
on year‑end financial statements for the latest completed fiscal year.
(1) The owner or operator, or guarantor,
individually or collectively must have a total tangible net worth of at least:
(A) The sum of the amounts specified in Subparagraphs
(b)(1)(A)(i) and (ii) of this Rule as follows, not to exceed three million dollars
($3,000,000) and not to be less than one hundred fifty thousand dollars
($150,000):
(i) the multiple of:
(I) the number of tanks being covered by this
mechanism,
(II) the cleanup costs required to be paid by the
owner or operator per occurrence in accordance with G.S. 143‑215.94B(b),
(III) the proportion of the required financial
assurance required pursuant to Rule .0204 of this Subchapter being covered by
this mechanism, and
(IV) a constant representing an average value per
tank calculated from 0.05 for each underground storage tank covered by this
mechanism which is in compliance with any performance standards required on
December 22, 1998, and 0.18 for each underground storage tank covered by this
mechanism which is not in compliance with any performance standards required on
December 22, 1998.
(ii) two percent of the multiple of:
(I) the number of tanks being covered by this
mechanism,
(II) the amount for third party claims required to
be paid by the owner or operator per occurrence in accordance with G.S. 143‑215.94B(b),
and
(III) the proportion of the required financial
assurance required pursuant to Rule .0204 of the Subchapter being covered by
this mechanism;
(B) Any amount of tangible net worth used to assure
financial responsibility for petroleum underground storage tanks not located
in North Carolina;
(C) Ten times the sum of the corrective action cost
estimates, the current closure and post‑closure care cost estimates, and
amount of liability coverage for Hazardous Waste Management Facilities and
Hazardous Waste Storage Facilities for which a financial test is used to
demonstrate financial responsibility to EPA under 40 CFR Parts 264.101,
264.143, 264.145, 265.143, 265.145, 264.147, and 265.147 or to a state
implementing agency under a state program authorized by EPA under 40 CFR Part
271; and
(D) Ten times the sum of current plugging and
abandonment cost estimates for injection wells for which a financial test is
used to demonstrate financial responsibility to EPA under 40 CFR Part 144.63 or
to a state implementing agency under a state program authorized by EPA under 40
CFR Part 145.
(2) In addition to any other requirements of
this Section, a Guarantor must have a net worth of at least two hundred
thousand dollars ($200,000) greater than any tangible net worth used by the
guarantor in Subparagraph (b)(1) of this Rule.
(3) The owner or operator, or guarantor,
individually or collectively, must each have a letter signed by the chief
financial officer, worded as specified in Paragraph (g) of this Rule, and must
do one of the following:
(A) Obtain annually a compilation report issued by an
independent certified public accountant or certified public accounting firm;
(B) File financial statements annually with the U.S.
Securities and Exchange Commission, the Energy Information Administration, or
the Rural Electrification Administration; or
(C) Report annually the firm's tangible net worth to Dun
and Bradstreet, and Dun and Bradstreet must have assigned the firm a financial
strength rating of 4A or 5A.
(4) The firm's year‑end financial
statements must be independently compiled and cannot include an adverse
accountant's report or a "going concern" qualification.
(c) If an owner or operator is acting as a self‑insurer
in accordance with Paragraph (b) of this Rule and finds that he or she no
longer meets the requirements of the test in Paragraph (b) of this Rule based
on the year‑end financial statements, the owner or operator must obtain
alternative coverage within 150 days of the end of the year for which financial
statements have been prepared.
(d) The Department may require reports of financial
condition at any time from a guarantor and from an owner or operator who is
self insuring. If the Department finds, on the basis of such reports or other
information, that the owner, operator, or guarantor no longer meets the
financial test requirements of Paragraph (b) of this Rule, the owner or
operator must obtain alternate coverage within 30 days after notification of
such a finding.
(e) If the owner or operator fails to obtain alternate
assurance within 150 days of finding that he or she no longer meets the
requirements of the financial test based on the year‑end financial
statements, or within 30 days of notification by the Department that he or she
no longer meets the requirements of the financial test, the owner or operator
must notify the Department of such failure within 10 days.
(f) To demonstrate that it meets the financial test under
Paragraph (b) of this Rule, the chief financial officer of each owner or
operator or guarantor must sign, within 120 days of the close of each financial
reporting year, as defined by the 12‑month period for which financial
statements used to support the financial test are prepared, a letter worded
exactly as in Paragraph (g) of this Rule, except that the instructions in
brackets are to be replaced by the relevant information and the brackets
deleted.
(g) LETTER FROM CHIEF FINANCIAL OFFICER
I, [insert: name of chief financial officer], the chief
financial officer of [insert: name and address of the owner or operator, or
guarantor] have prepared this letter in support of the use of [insert:
"the financial test of self‑insurance," and/or
"guarantee"] to demonstrate financial responsibility for [insert:
"taking corrective action" or "compensating third parties for
bodily injury and property damage"] caused by [insert: "sudden
accidental releases" and/or "nonsudden accidental releases"] in
the amount of at least [insert: dollar amount] per occurrence and [insert:
dollar amount] annual aggregate arising from operating (an) underground storage
tank(s).
Underground storage tanks at the following facilities are
assured by this financial test by this [insert: "owner or operator,"
or "guarantor"]:
[List or attach the following information for each
facility: the name and address of the facility where tanks assured by this
financial test are located, facility number(s) assigned by the Department, and
date(s) of last payment of annual tank operating fee(s). If separate mechanisms
or combinations of mechanisms, other than the Commercial Leaking Petroleum
Underground Storage Tank Cleanup Fund are being used to assure any of the tanks
at this facility, list each tank assured by this financial test.]
[When appropriate, include the following for Hazardous Waste
Management Facilities, Hazardous Waste Storage Facilities, and Injection Wells:
A {insert: "financial test," or
"guarantee"} is also used by this {insert: "owner or
operator," or "guarantor"} to demonstrate evidence of financial
responsibility in the following amounts under EPA regulations or state programs
authorized by EPA under 40 CFR Parts 271 and 145:
EPA Regulations Amount
Closure (including 264.143 and 265.143) $____________
Post‑Closure Care (including 264.145 and
265.145) $____________
Liability Coverage (including 264.147 and
265.147) $____________
Corrective Action (including 264.101(b)) $____________
Plugging and Abandonment (including 144.63) $____________
Total $____________]
This [insert: "owner or operator," or
"guarantor"] has not received an adverse report or a "going
concern" qualification from an independent accountant on his financial
statements for the latest completed fiscal year.
1. a. Number of USTs
being covered __________
b. Average maximum amount of cleanup costs __________
(Rule .0204(d) (1))
c. Average maximum amount of third‑party
costs __________
(Rule .0204(d) (2))
d. proportion covered __________
e. constant (Rule .0302(b)(1)(A)(i)) __________
f. Cleanup Total (a x b x d x e) $____________
g. Third‑Party Total (0.02 x a x c x d) $____________
h. If Guarantor, list $200,000 $____________
2. Tangible assets applied to USTs not in North
Carolina $____________
3. Ten times the costs for Hazardous Waste
Facilities and Injections Wells $____________
4. Sum of lines 1f, 1g, 1h, and 2 $____________
5. Total tangible assets $____________
6. Total liabilities [if any of the amount
reported on line 4 is included in total liabilities,
you may deduct that amount from
this line and add that amount to line 7] $____________
7. Tangible net worth [subtract line 6 from line
5] $____________
Yes No
8. Is line 7 at least [for an owner or
operator: $150,000; for a guarantor: $350,000]? _____ _____
9. Is line 7 equal to or greater than line 4? _____ _____
10. Has a compilation report been issued by an certified
public accountant or certified
public accounting firm? _____ _____
11. Have financial statements for the latest fiscal year
been filed with the Securities
and Exchange Commission? _____ _____
12. Have financial statements for the latest fiscal year
been filed with the Energy Information
Administration? _____ _____
13. Have financial statements for the latest fiscal year
been filed with the Rural Electrification
Administration? _____ _____
14. Has financial information been provided to Dun and
Bradstreet, and has Dun and
Bradstreet provided a financial strength rating of 4A
or 5A? [Answer "Yes" only
if both criteria have been met] _____ _____
I hereby certify that the wording of this letter is
identical to the wording specified in 15A NCAC 2O .0302, as such regulations
were constituted on the date shown immediately below, and that the information
contained herein is complete and accurate.
[Signature of chief financial officer]
[Name]
[Title]
[Date]
(h) The provisions for "Trust Fund" contained in
40 CFR 280.102 are hereby incorporated by reference including any subsequent
amendments and editions. Locations where this material is available are
specified in Rule .0102 of this Subchapter.
History Note: Authority G.S. 58‑2‑205; 143‑215.94H;
150B‑21.6;
Eff. August 3, 1992.
15A NCAC 02O .0303 GUARANTEE
The provisions for "Guarantee" contained in 40 CFR
280.96 are hereby incorporated by reference including any subsequent amendments
and editions. Locations where this material is available are specified in Rule
.0102 of this Subchapter.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0304 INSURANCE AND RISK RETENTION GROUP
COVERAGE
The provisions for "Insurance and Risk Retention Group
Coverage" contained in 40 CFR 280.97 are hereby incorporated by reference
including any subsequent amendments and editions, except that "licensed to
transact the business of insurance or eligible to provide insurance as an
excess or surplus lines insurer in one or more states" in
280.97(b)(1), (b)(2), and (c) is replaced by "licensed,
registered, or otherwise authorized to provide insurance in North
Carolina". Locations where this material is available are specified in
Rule .0102 of this Subchapter.
History Note: Authority G.S. 58‑2‑125; 58‑22;
143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0305 SURETY BOND
The provisions for "Surety Bond" contained in 40
CFR 280.98 are hereby incorporated by reference including any subsequent
amendments and editions. Locations where this material is available are
specified in Rule .0102 of this Subchapter.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0306 LETTER OF CREDIT
The provisions for "Letter of Credit" contained in
40 CFR 280.99 are hereby incorporated by reference including any subsequent
amendments and editions. Locations where this material is available are
specified in Rule .0102 of this Subchapter.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0307 STANDBY TRUST FUND
The provisions for "Standby Trust Fund" contained
in 40 CFR 280.103 are hereby incorporated by reference including any subsequent
amendments and editions. Locations where this material is available are
specified in Rule .0102 of this Subchapter.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0308 INSURANCE POOLS
(a) Insurance Pools established by owners and operators may
be used alone or in combination to demonstrate financial assurance in
accordance with Rules .0204 and .0301 of this Subchapter.
(b) To be an eligible mechanism, Insurance Pools must
comply with the requirements of G.S. 143‑215.94I and any other
requirements imposed by the Commissioner of Insurance of the State of North
Carolina and any relevant law, rule, or regulation.
(c) Each owner and operator provided financial assurance
through an Insurance Pool must maintain a certificate of insurance issued by
the Insurance Pool listing, at least:
(1) the name and address of the member;
(2) the location of the facilities owned by
that member where underground storage tanks are being insured by the pool;
(3) the number of insured underground storage
tanks at each facility;
(4) the capacity of each insured underground
storage tank;
(5) the amount of insurance provided for each
underground storage tank; and
(6) the name, address, and signature of the
Administrator of the Insurance Pool.
History Note: Authority G.S. 143‑215.94H; 143‑215.94I;
Eff. July 1, 1992.
15A NCAC 02O .0309 SUBSTITUTION OF FINANCIAL ASSURANCE
MECHANISMS
The provisions for "Substitution of Financial Assurance
Mechanisms by Owners or Operators" contained in 40 CFR 280.104 are hereby
incorporated by reference including any subsequent amendments and editions.
Locations where this material is available are specified in Rule .0102 of this
Subchapter.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0310 CANCELLATION OR NONRENEWAL BY A PROVIDER
OF ASSURANCE
The provisions for "Cancellation or Non‑renewal
by a Provider of Financial Assurance" contained in 40 CFR 280.105 are
hereby incorporated by reference including any subsequent amendments and
editions. Locations where this material is available are specified in Rule
.0102 of this Subchapter.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
SECTION .0400 ‑ RESPONSIBILITIES OF OWNERS AND OPERATORS
15A NCAC 02O .0401 REPORTING BY OWNER OR OPERATOR
The provisions for "Reporting by Owner or
Operator" contained in 40 CFR 280.106 are hereby incorporated by reference
including any subsequent amendments and editions. Locations where this
material is available are specified in Rule .0102 of this Subchapter.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0402 RECORD KEEPING
(a) The provisions for "Record Keeping" contained
in 40 CFR 280.107 are hereby incorporated by reference including any subsequent
amendments and editions. Locations where this material is available are
specified in Rule .0102 of this Subchapter.
(b) In addition to the requirements incorporated in
Paragraph (a) of this Rule, the following are required as evidence of financial
responsibility:
(1) An owner or operator using an
"Insurance Pool" must maintain a copy of the signed insurance
certificate as specified in Rule .0308(c) of this Subchapter.
(2) Each owner or operator must maintain copies
of cancelled checks for payment of annual tank operating fees for the preceding
three years or any alternate evidence of payment of the annual operating fees
supplied by the Department.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
SECTION .0500 ‑ CHANGES IN STATUS
15A NCAC 02O .0501 DRAWING ON FINANCIAL ASSURANCE
MECHANISMS
The provisions for "Drawing on Financial Assurance
Mechanisms" contained in 40 CFR 280.108 are hereby incorporated by
reference including any subsequent amendments and editions. Locations where
this material is available are specified in Rule .0102 of this Subchapter.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0502 RELEASE FROM THE REQUIREMENTS
The provisions for "Release From the Requirements"
contained in 40 CFR 280.109 are hereby incorporated by reference including any
subsequent amendments and editions. Locations where this material is available
are specified in Rule .0102 of this Subchapter.
History Note: Authority G.S. 143‑215.94H; 150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0503 INCAPACITY OF OWNER OR OPERATOR OR
PROVIDER OF ASSURANCE
(a) The provisions for "Bankruptcy or Other Incapacity
of Owner or Operator or Provider of Financial Assurance" contained in 40
CFR 280.110, except for Subsection 280.110(d), are hereby incorporated by
reference including any subsequent amendments and editions. Locations where
this material is available are specified in Rule .0102 of this Subchapter.
(b) Within 30 days after receipt of notification that the
Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund has become
incapable of paying for assured corrective action or third‑party
compensation costs, the owner or operator must obtain financial assurance for
the full amounts specified in Rule .0204, Paragraphs (a) and (c), of this
Subchapter.
(c) Within 30 days after receipt of notification that the
Noncommercial Leaking Petroleum Underground Storage Tank Cleanup Fund has
become incapable of paying for additional cleanup actions to be undertaken by
the Department, any owner or operator or guarantor who self insures or
guarantees based on Rule .0302, Paragraph (b), of this Subchapter must obtain
financial assurance for at least twice the amount specified in Rule .0204,
Paragraph (d), of this Subchapter assured in accordance with Rule .0302,
Paragraph (b), of this Subchapter.
History Note: Authority G.S. 143‑215.94H; 143‑215.94T;
150B‑21.6;
Eff. July 1, 1992.
15A NCAC 02O .0504 REPLENISHMENT
(a) The provisions for "Replenishment of Guarantees,
Letters of Credit, or Surety Bonds" contained in 40 CFR 280.111 are hereby
incorporated by reference including any subsequent amendments and editions.
Locations where this material is available are specified in Rule .0102 of this
Subchapter.
(b) If at any time after a standby trust is funded upon the
instruction of the Department with funds drawn from a guarantee, letter of
credit, or surety bond, and the amount in the standby trust is reduced to less
than the amount for which the owner or operator is responsible per occurrence
for third party claims, the owner or operator shall within 60 days from which
the funds were drawn:
(1) Replenish the value of financial assurance
to equal the full amount of coverage required, or
(2) Acquire another financial assurance
mechanism for the full amount of coverage provided by the Standby Trust.
History Note: Authority G.S. 143‑215.94H; 143‑215.94T;
150B‑21.6;
Eff. July 1, 1992.
