NAC444.68535. Financial assurance: Surety bond guaranteeing payment or performance.

     1. An owner or operator may demonstrate financial assurance for closure or postclosure by obtaining a surety bond guaranteeing payment or performance which conforms to the requirements of this section. An owner or operator may demonstrate financial assurance for corrective action by obtaining a surety bond guaranteeing performance which conforms to the requirements of this section.

     2. A bond must:

     (a) If for closure and postclosure, be obtained by the owner or operator and become effective before April 9, 1997, or the initial receipt of waste, whichever is later.

     (b) If for corrective action, be obtained by the owner or operator and become effective no later than 120 days after the remedy for corrective action has been selected in accordance with the requirements of NAC 444.7497, 444.7498 and 444.7499.

     (c) Be maintained until the owner or operator is no longer required to demonstrate financial responsibility pursuant to NAC 444.6851, 444.68515 and 444.6852.

     3. The owner or operator shall notify the solid waste management authority that a copy of the bond has been placed in the operating records of the disposal site.

     4. The surety company issuing the bond must be among those listed as an acceptable surety on federal bonds in Circular 570 of the U.S. Department of the Treasury which is published each July in the Federal Register.

     5. Except as otherwise provided in NAC 444.6858, the sum of the bond must be in an amount at least equal to the current estimate for closure, postclosure or corrective action, whichever is applicable.

     6. The surety must become liable on the bond if the owner or operator fails to make payments or perform as guaranteed by the bond.

     7. In addition to obtaining the surety bond, the owner or operator shall establish a trust fund. The trust fund must meet the requirements of NAC 444.6853, except the requirements for initial payment and subsequent annual payments specified in that section.

     8. The surety shall deposit payments made under the terms of the bond directly into the trust fund. Payments from the trust fund must be approved by the trustee.

     9. The terms of the bond must authorize the surety to cancel the bond by sending notice of cancellation by certified mail to the owner or operator and to the solid waste management authority at least 120 days before cancellation. If the surety cancels the bond, the owner or operator shall obtain alternate financial assurance as specified in NAC 444.68525 to 444.6859, inclusive.

     10. The owner or operator may cancel the bond only if alternate financial assurance is substituted as specified in NAC 444.68525 to 444.6859, inclusive, or the owner or operator is no longer required to demonstrate financial responsibility in accordance with NAC 444.6851, 444.68515 or 444.6852.

     (Added to NAC by Environmental Comm’n, 11-8-93, eff. 4-9-95; A 11-9-95)