NAC444.6854. Financial assurance: Letter of credit.

     1. An owner or operator may satisfy the requirements of NAC 444.685 by obtaining an irrevocable letter of credit which conforms to the requirements of this section.

     2. A letter of credit 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 letter of credit has been placed in the operating records of the disposal site.

     4. The issuing institution must be an entity which has the authority to issue letters of credit and whose operations are regulated and examined by a federal or state agency.

     5. A letter from the owner or operator must be filed with the letter of credit in the operating records that includes:

     (a) A reference to the letter of credit by number;

     (b) The issuing institution;

     (c) The date of issuance;

     (d) The name of the owner or operator;

     (e) The address of the disposal site; and

     (f) The amount of money assured.

     6. Except as otherwise provided in this section, the letter of credit must be irrevocable and issued for a period of at least 1 year in an amount at least equal to the current estimate for closure, postclosure or corrective action, whichever is applicable. The letter of credit must provide that the expiration date will be automatically extended for a period of at least 1 year unless the issuing institution has cancelled the letter of credit.

     7. The terms of the letter of credit must authorize the issuing institution to cancel the letter of credit 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 the cancellation. If the letter of credit is cancelled by the issuing institution, the owner or operator shall obtain alternate financial assurance.

     8. The owner or operator may cancel the letter of credit only if alternate financial assurance is substituted as specified in NAC 444.68525 to 444.6859, inclusive, or the owner or operator is released from the requirements of this section 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)