Mich. Admin. Code R. 299.9705 - Surety bond guaranteeing performance of closure and/or postclosure care
Rule 705.
(1) An
owner or operator may satisfy the financial assurance requirements of R
299.9703 by obtaining a surety bond which is executed on a form approved by the
director and which conforms to the requirements of this rule. The surety
company issuing the bond shall, at a minimum, satisfy both of the following
requirements:
(a) The surety company shall be
among those listed as acceptable sureties on federal bonds in circular 570 of
the United States department of the treasury.
(b) The surety company shall be independent,
separate, and unrelated to the owner or operator.
(2) The bond shall guarantee that the owner
or operator will do either of the following:
(a) Perform final closure or postclosure care
in accordance with the closure or postclosure plan and other requirements of
the operating license for the facility when required to do so.
(b) Within 90 days after receipt by both the
owner or operator and the director of a notice of cancellation of the bond from
the surety, provide alternate financial assurance as specified in this part and
obtain the director's written approval of the assurance provided.
(3) Under the terms of the bond,
the surety shall become liable on the bond obligation under the following
circumstances:
(a) When the owner or operator
fails to perform as guaranteed by the bond.
(b) Following issuance of a notice of
violation or other order by the director alleging that the owner or operator
has failed to perform final closure or postclosure care, or both, in accordance
with the closure and postclosure plans and other operating license requirements
when required to do so and after providing the owner or operator 7 days notice
and an opportunity for a hearing.
(4) The penal sum of the bond shall be in an
amount at least equal to the current closure and postclosure cost
estimates.
(5) When the current
closure or postclosure cost estimate, or both, increases to an amount more than
the penal sum, the owner or operator, within 60 days after the increase, shall
either cause the penal sum to be increased to an amount at least equal to the
current closure or postclosure cost estimate, or both, and submit evidence of
such increase to the director or obtain other financial assurance as specified
in this part. When the current closure or postclosure cost estimate decreases,
the penal sum may be reduced to the amount of the current closure or
postclosure cost estimate following written approval by the director.
(6) Under the terms of the bond, the surety
may cancel the bond by sending notice of cancellation, by certified mail, to
the owner or operator and to the director. Cancellation shall not occur,
however, during the 120 days beginning on the date of receipt of the notice of
cancellation by both the owner or operator and the director, as evidenced by
the return receipts.
(7) The owner
or operator may cancel the bond if the director has given prior written
consent. The director shall provide such written consent when either of the
following occurs:
(a) An owner or operator
substitutes alternate financial assurance as specified in this part.
(b) The director releases the owner or
operator from the requirements of this part in accordance with R
299.9703(5).
(8) The
surety shall not be liable for deficiencies in the performance of closure or
postclosure care, or both, by the owner or operator after the director releases
the owner or operator from the requirements of this part in accordance with R
299.9703(5).
(9) Upon receipt of a
notice of cancellation of the bond from the surety, the owner or operator shall
obtain alternate financial assurance approved by the director within 60 days.
If the owner or operator fails to so provide, the director may issue a notice
of violation or other order rendering the surety liable on the bond
obligation.
Notes
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