COMPLIANCE INFO_1986-2001 - Laserfiche WebLink

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HOW DO YOU COMPLY WITH THE FINANCIAL RESPONSIBILITY REQUIREMENTS? How Can You Show Financial Responsibility For Your USTs? You can demonstrate financial responsibility for your USTs in several ways: ♦ Show that your firm can meet the costs of potential releases. If your firm has a tangible net worth of at least $10 million, you can prove your financial responsibility by passing one of these two financial tests described on page 15. ♦ Show that someone else is responsible for cleanup and damage costs. You may arrange to have someone else be responsible for paying the costs of leaks from your USTs. This may be done in a number of ways (all are described in detail in the rule): 1. Obtain insurance coverage from an insurer or a risk retention group (page 8); or 2. Obtain a guarantee for the amount you are responsible for from a corporate parent, grandparent, sibling, or from another firm with whom you have a substantial business relationship. The provider of the guarantee has to pass one of the financial tests described on page 15; or 3. Obtain a surety bond for the amount you are responsible for; or 4. Obtain a letter of credit for the amount you are responsible for. ♦ Use State funds. If your State has established a State fund that will pay for the cleanup costs of a leak from your tank systems, then you may not need additional coverage to show you can pay for the same costs (page 7). You need to check to see if the State fund covers your tanks. You may also still need to show financial responsibility for the costs of compensating those injured by leaks, unless the State fund would also pay for those costs. ♦ Use State approved methods. You may also use any method of coverage approved by your State. ♦ Set up a trust fund. You may set up a fully -funded trust fund to cover your financial responsibility requirement. yovR WALL OF PROTECTION --6--