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received written notice from the Director that such demonstration is satisfactory. The permittee shall notify the Director of his intent to demonstrate mechanical in- tegrity at least 30 days prior to such demonstration. 3. Subsoguent 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 in- tegrity 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 ap- proved by the Director when conducting mechanical integrity demonstrations. The permittee 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 recommence 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 determine the extent that fluids may have moved into any USDWs, including, if deemed necessary, the instal- lation of monitoring wells. 5. Mechanical Integrity Demonstration Reouest From Director The Director may, by written notice, require the permittee to demonstrate mechani- cal integrity at any time. I. FINANCIAL RESPONSIBILITY 1. Financial Resvonsibility The permittee is required to maintain financial responsibility and resources to close, plug, and abandon the underground injection operation in a manner consistent with the underground injection control regulations. The financial statements shall be updated periodically, and the Director may require reports of financial condition from the applicant at any time. Attachment R provides a schedule for periodic up- dating of the financial information and the cost estimates for plugging and aban- donment of the well. 2. Notification The owner or operator must also notify the Director by certified mail of the com- mencement of voluntary OR INVOLUNTARY proceedings under Title 11 (Bankruptcy), U.S. Code naming the owner or operator as debtor, within 10 business days after the commencement of the proceeding. A guarantor of a corporate guarantee must make such a notification if he is named as debtor, as required under the terms of the guarantee. J. CORRECTIVE ACTION 9