R315-309-5. Surety Bond Guaranteeing Payment or Performance

  (1) The owner or operator of a solid waste facility may provide a surety bond for a financial assurance mechanism. The bond must be effective, for a new facility or a lateral expansion of an existing facility, before the initial receipt of waste or, for an existing facility, in accordance with the effective dates specified in Subsection R315-309-1(3).

  (2) The surety company issuing the bond must, at a minimum, be among those listed as acceptable sureties on Federal bonds in Circular 570 of the U.S. Department of the Treasury and the owner or operator must notify the Director that a copy of the bond has been placed in the operating record.

  (3) The penal sum of the bond must be in an amount at least equal to the closure, post-closure, or corrective action cost estimates of Subsection R315-309-2(3) or Subsection R315-309-2(5), whichever is applicable.

  (4) Under the terms of the bond, the surety will become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond.

  (a) In the case of a payment bond, the surety shall pay the costs of closure and post-closure care if the owner or operator fails to complete closure and post-closure care activities.

  (b) In the case of a performance bond, the surety shall perform closure and post-closure care on behalf of the owner or operator if the owner or operator fails to complete closure and post-closure care activities.

  (5) The surety bond guaranteeing payment or performance shall contain provisions preventing cancellation except under the following conditions:

  (a) if the surety sends notice of cancellation by certified mail to the owner or operator and the Director 120 days in advance of the cancellation date; or

  (b) if an alternative financial assurance mechanism has been obtained by the owner or operator.