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satisfactory. The permittee shall notify the Director of his in- tent to demonstrate mechanical integrity at least 30 days prior to such demonstration. 3 . Subsequent Mechanical Integrity Demonstrations A demonstration of mechanical integrity in accordance with 40 CFR §146 . 8 shall be made on an annual basis. Mechanical integrity shall also be demonstrated any time the tubing is removed from the well , the packer is reset, or a loss of mechanical integrity becomes evident during operation. The permittee shall notify the Director of his intent to demonstrate mechanical integrity at least 30 days prior to such demonstration. The permittee shall only apply methodologies that have been approved by the Director when conducting mechanical integrity demonstrations. The per- mittee shall report the results of a mechanical integrity demonstration within 90 days after completion. 4 . Loss Of Mechanical Integrity If the permittee or the Director finds that the well fails to demonstrate mechanical integrity during a test, or a loss of mechanical integrity as defined by 40 CFR §146 . 8 becomes evident during operation, the operation shall be halted immediately and shall not be resumed until the Director gives approval to recom- mence injection. The permittee shall notify the Director of the loss of mechanical integrity in accordance with the reporting procedures in Part I, Section E, item 12 (d) . The permittee shall take such actions as deemed necessary by the Director to deter- mine the extent that fluids may have moved into any USDWs, in- cluding, if deemed necessary, the installation of monitoring wells. 5. Mechanical Integrity Demonstration Request From Director The Director may, by written notice, require the permittee to demonstrate mechanical integrity at any time. I. FINANCIAL RESPONSIBILITY 1 . Financial Responsibility The permittee is required to maintain financial responsibility and resources to close, plug, and abandon the underground injec- tion operation in a manner consistent with the underground injec- tion control regulations. The financial statements shall be up- dated periodically, and the Director may require reports of financial condition from the applicant at any time. Attachment R provides a schedule for periodic updating of the financial infor- mation and the cost estimates for plugging and abandonment of the well . 12