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G. FINANCIAL RESPONSIBILITY 1. Demonstration of Financial Responsibility The Permittee is required to demonstrate and maintain financial responsibility and resources sufficient to close, plug, and abandon the underground injection operation as provided in the Plugging and Abandonment Plans and consistent with 40 CFR §144 Subpart D,which the Director has chosen to apply. (a) The Permittee shall maintain a bond rating within the four highest categories of Standard and Poor's (AAA, AA, A, or BBB), Moody's (Aaa, Aa, A, or Baa)or Fitch(AAA,AA,A, or BBB). If the most recent bond rating does not fall within the four highest categories, the the Permitee shall post a financial instrument such as a surety bond with a standby trust agreement or arrange other financial assurance for each well constructed in the amount of$314,400 per well,to guarantee closure. (b) The financial responsibility mechanism and amount shall be reviewed and updated periodically, upon request of EPA. The permittee may be required to change to an alternate method of demonstrating financial responsibility. Any such change must be approved in writing by EPA prior to the change. (c) The Permitee must provide proof to EPA of its bond rating or renewal every year by March 31. 1. Insolvency of Financial Institution The Permittee must submit an alternate instrument of financial responsibility acceptable to EPA within sixty(60) days after either of the following events occurs: (a) The institution issuing the band or financial instrument files for bankruptcy; or (b) The authority of the trustee institution to act as trustee, or the authority of the institution issuing the financial instrument, is suspended or revoked. Failure to submit an acceptable financial demonstration will result in the termination of this permit pursuant to 40 CFR §144.40(a)(1). 2. Insolvency of Owner or Operator An owner or operator must notify EPA by certified mail of the commencement of voluntary or involuntary proceedings under U.S. Code Title 11 (Bankruptcy), naming the owner or operator as debtor, within ten (10) business days. A guarantor of a corporate guarantee must make such a notification if he/she is named as debtor, FINAL UIC Permit CAI 0910003 Page 24 of 29