ILLINOIS POLLUTION CONTROL BOARD

June

20, 1986

IN THE MATTER OF:

)

UIC UPDATE, USEPA REGULATIONS

)

R85—23

(THROUGH 6/30/85)

FINAL ORDER. ADOPTED RULES.

ORDER OF THE BOARD

(by J.

Anderson):

On February

6, 1986,

the Board proposed

to amend the UIC

(Underground Injection Control) regulations of

35 Iii.

Adrn. Code

702 and 704.

The Board also proposed to amend

35 Ill. Adm. Code

703

to correct an error

in the RCRA hazardous waste permit

regulations which affected

the UIC program.

The proposed rules

appeared on March

14, 1986 at 10

Ill. Reg.

4371.

Because the proposal

is identical

in substance

to United

States Environmental Protection Agency regulations adopted

through June

30,

1985, pursuant

to Sections 13(c) and 22.4(a)

of

the Environmental Protection Act

(Act),

neither Title VI

of the

Act nor Section

5

of the Administrative Procedure Act applies

to

this rulemaking.

However,

the Board has utilized

the Illinois

Register

to provide notice

to the public, and has allowed 45 days

for

receipt of public comment.

Such notice and comment

is

required for Part 703

by the RCRA procedural rules of 35 Ill.

Adm. Code 102,

as amended

in R84—10 on December

20, 1984.

The Board has received public comment,

and has modified the

rules

in response

to such comment, as

is detailed

in the

accompanying Opinion.

The complete text of the Sections affected

is as follows.

TITLE

35:

ENVIRONMENTAL PROTECTION

SUBTITLE G:

WASTE DISPOSAL

CHAPTER

I:

POLLUTION CONTROL BOARD

SUBCHAPTER

b:

PERMITS

PART 702

RCRA

AND UIC

PERMIT

PROGRAMS

SUBPART A:

GENERAL PROVISIONS

Section

702.101

Applicability

702.102

Purpose and Scope

702.103

Confidentiality

702.104

References

702.105

Rulemaking

702.106

Agency Criteria

70.336

---

—2—

702.107

702.108

702.109

702.110

Permit Appeals

Variances

Enforcement

Definitions

Section

702.120

702.121

702.122

702.123

702.124

702.125

702.126

Section

702.140

702.141

702.142

702.143

702.144

702.145

702.146

702.147

702.148

702.149

702.150

702.151

702.152

702.160

702.161

702.162

702.163

702.164

Section

702.181

702.182

702.183

702.184

702.185

702.186

702.187

Permit Application

Who Applies

Completeness

Information Requirements

Recordkeeping

Continuation of Expiring Permits

Signatories to Permit Applications and Reports

SUBPART C:

PERMIT

CONDITIONS

Conditions Applicable

to all Permits

Duty to Comply

Duty

to Reapply

Need

to Halt

or Reduce Activity Not

a Defense

Duty to Mitigate

Proper Operation and Maintenance

Permit Actions

Property Rights

Duty

to Provide Information

Inspection

and Entry

Monitoring and Records

Signatory Requirements

Reporting Requirements

Establishing Permit Conditions

Duration of Permits

Schedules of Compliance

Alternative Schedules of Compliance

Recording

and Reporting

SUBPART D:

ISSUED PERMITS

Effect of

a Permit

Transfer

Modification

Causes for Modification

Facility Siting

Revocation

Minor Modifications

AUTHORITY:

Implementing Section

13 and

22.4 and authorized by

Section

27

of the Environmental Protection Act

(Ill.

Rev.

Stat.

1983,

ch.

111

1,/2,

pars.

1013,

1022.4 and 1027).

SUBPART B:

PERMIT APPLICATIONS

70-337

---

—3—

SOURCE:

Adopted

in R8l—32,

47 PCB 93,

at

6 Ill.

Reg. 12479,

effective as noted

in 35 Ill.

Adm. Code 700.106; amended

in R82—

19

at at

7

Ill. Reg.

14352, effective as noted

in

35 Ill. Adm.

Code 700.106; amended

in R84—9 at

9 Ill. Reg.

11926,

effective

July 24,

1985;

amended

in R85—23

at

10

Ill. Reg.

effective

SUBPART C:

PERMIT CONDITIONS

Section 702.144

Duty to Mitigate

a)

For RCRA permits

in ~

the event

of noncompliance with

the permit, the permittee shall

take all reasonable

steps

to minimize releases to the environment,

and shall

carry out such measures as are reasonable

to prevent

significant adverse impacts

on human health or

the

environment.

For UIC permits,

the permittee shall

take all reasonable

steps

to minimize or correct any adverse im~acton

the

environment

resulting from non—compliance with the

permit.

(Board Note:

See

40 CFR 144.51(d) and 270.30(d).)

(Source:

Amended at 10 Ill.

Reg.

effective

)

Section 702.150

Monitoring and Records

a)

Samples and measurements taken for

the purpose of

monitoring shall be representative of the monitored

activity.

b)

The permittee

shall retain records

of all monitoring

information,

including all calibration and maintenance

records and all original strip chart recordings

for

continuous monitoring instrumentation, copies of all

reports required

by this permit,

and records

of

all data

used

to complete the application for this permit, for

a

period

of

at least

3 years from the date of the sample,

measurement,

report or application.

This period may

be

extended by request of

the Agency at any

time.

~I’~e

per~i~eesi~3~i~4i,~4nreee~s ~‘e~ ~

~4ef’4~g

we3~3~ar~e~ee4~edg~e ~w~er~ sdr?~ee

e3~eve~4er~s~

~ef ~1’~e~e~4ve ~4?e e~~I’~e?~et3t~y7~r~d?e~

dpe~3~?~e4~4~e~

fer ~

p~ —e~es~eear’e pef~4~d~

wefl~

c)

Records

of monitoring information

shall include:

70.338

---

—4—

1)

The date, exact place

and time

of sampling

or

measurements;

2)

The individual(s) who performed the sampling or

measurements;

3)

The date(s) analyses were performed;

4)

The

individual(s) who performed the analyses;

5)

The analytical

techniques or methods used;

and

6)

The results of

such analyses.

(Board Note:

See

40 CFR 144.51(j) and 270.3Ofjj.)

(Source:

Amended at

10 Ill. Reg.

effective

Section 702.152

Reporting Requirements

a)

Planned changes.

The permittee shall give notice to

the

Agency

as soon as possible of any planned physical

alterations or

additions to the permitted facility.

b)

Anticipated noncompliance.

The permittee shall give

advance

notice

to the Agency of any planned changes

in

the permitted facility or activity which may result

in

noncompliance with permit requirements.

c)

Transfers.

This permit

is not transferable

to any

person except after notice

to the Agency.

The Agency

may require modification of

the permit

to change

the

name of

the permittee and incorporate

such other

requirements as may be necessary under

the appropriate

Act.

(See Sections 702.182 •and 702.183,

in some cases

modification

is mandatory.)

d)

Monitoring reports.

Monitoring results shall

be

reported at the intervals specified

in the permit.

e)

Compliance schedules.

Reports

of compliance or non-

compliance with, or any progress reports

on,

interim and

final requirements contained

in any compliance schedule

of the permit shall be submitted no later than~~4 d~y~

f3~ew~rtgeae1~~e1’teth~3e

d~e~specified

in Section

702.162.

f)

Twenty—four hour reporting

as required

in

35 Ill.

Adin.

Code 703.245 or 704.181(d).

The pe~~~~ee

s1te~~epe~

~y

n

eemp34er~eewI’t4e1~

Wtey

e

ar~ge~

~

er~

~e

e

orn~er~~A~y

70-339

—5—

4efma~4en ahaH

be

pre~’4dedcr’a3~i~ywt~1’~4rt~4

ho~e ?r’o~

the

~4i~e

the

perm4~eebeee~eaewar~eof

the

eee~aneea~

engi

~+

fer’me~4on

eoneer~n4ngre~easeof any

~&ot~

wos~e

~1’~a~

~teyea~aean end

geri~ert~

th p~b~4e 4nk4ng wa~e~ pp34ee~

9+

Any

~4on

of a ~e~ee~e or d4se~arge

0?

ha2ardot~wa~e or of a f4re or exp3ee4en

?roi~’t

the

HWM

e4~4~yy

w~4e~’teeti~d

threa~ert

the

enven~en~or

n~an

~ea3~th

e~s4dethe

? ae 4~4~y

~

The deser4p~4enof the eeet~rrerteeand 4~e

eaase

5~a~4ne3~de~

A+

Na~e7oddreaa and ~eiep1~ene

rt~mberof

the

owner or opera~ert

B+

Ne~~te7 dresa

and

te3ep~enen~n,~berof

the

e4~4~y~

?+

Ba~e~

~#i~te and

type of 4ne4den~i~

9+

Name

and

~tian~4~yof ~e~er4a~fe+ 4nve~~edt

E~

The ex~en~

of 4n~r4es74?

anyt

F~

An

aei~ten~

of ae~t~a3or pe~en~4a3

?arde

~e

the

env4

nmen~and ~w~tor~

~‘tea3tho~a4de

the fae43~4~y~

w?~ere

th4a

4e epp~4eab~ei

and

?~

~4me~ed q~4~y

and

d4apes4~4enof

reeevered ~a~er4a3 ~he~ reat~3~ed

from

the

4ne4den~

3+

A wr4~en

sttbm4sa4on

eha3~3

a3ae be prov4ded

w4th4rt

S daya

of the ~4me

the

perm4~eebeeemea aware of

the e4re

aneea~

The

wr4~ensubm4es4en

s1’ta~3

eon~a4rta deaer4p~4onof

the

n

eo~p34artee

end

4~a

eet*set

the

per4ed of nep~4aneey 4nei~d4ngexae~

de~es

and

t4meei~

and

4?

the

neomp~4aneehea

no~

been eot’ree~ed~

the ert~4e4pa~edb4me 4~4s expected

to een~4rtueeand

steps

taken or p~annedto redt~eey

e~4m4neteand prevent reoeet~rreneeof the

noneomp~4anee~

g)

Other noncompliance.

The permittee shall

report

all

instances of noncompliance not

reported under

peregraphsubsections

(d),

(e) and

(f)

at the time

monitoring

reports are submitted.

The reports shall

contain the information ~4sted referenced

in

peregraphsubsection

(f).

70-340

---

—6—

h)

Other

information.

Where

the permittee becomes aware

that

it failed

to submit any relevant facts

in

a permit

application,

or submitted incorrect information

in

a

permit application or

in any report

to the Agency,

it

shall promptly submit such facts or

information.

(Board Note:

See 40 CFR 144.51(1)

and 270.30(1).)

(Source:

Amended at 10

Ill.

Reg.

effective

Section 702.160

Establishing Permit Conditions

a)

In addition

to conditions required

in permits for both

programs (Sees7 Sections 702.140

through 702.152),

the

Agency shall establish conditions,

as required on a

case—by—case basis,

in RCRA and UIC permits under Beer

Section 702.l5O(monitori~gand records),

702.161

(duration

of permits), ~ee~ Section 702.162

(schedulesof

compliance) Section 702.163

(alternate schedules

of

compliance)

arid

Section Gee- 702.164

(Recording

and

Reporting).

b)

1)

In addition to conditions required in all permits

for

a particular program (35 Ill. Adm. Code 703.241

et

seq.

for RCRA and

35 Ill. Adm. Code 704.181

et

seq.

for UIC),

the Agency shall

establish

conditions

in permits for the

individual programs,

as required on

a case—by—case basis,

to provide for

and

assure compliance with all applicable

requirements of the appropriate Act and

regulations.

2)

An applicable requirement

is

a statutory or

regulatory requirement which takes effect prior

to

final

administrative disposition of

a permit.

35

Ill.

Adm. Code 705.184

(reopening of comment

period) provides

a means for reopening permit

proceedings at the discretion

of the Agency where

new requirements become effective during

the

permitting process and are of sufficient magnitude

to make additional proceedings desirable.

An

applicable requirement

is also any requirement

which takes effect prior

to the modification of

a

permit,

to the extent allowed

in 35

Ill.

Adm. Code

705.201.

3)

New or

reissued permits,

and

to the extent allowed

under

35 Ill.

Adm. Code 705.201 modified permits,

shall

incorporate each of the applicable

requirements referenced

in

35 Ill. Adm. Code

70-341

---

—7—

703.241 et seq.

(RCRA)

and 35

Ill. Adm. Code

704.182 through 704.191

(UIC).

C)

Incorporation.

All permit conditions

shall

be

incorporated either expressly or by reference.

If

incorporated by reference,

a specific citation to

the

applicable regulations or requirements must be given in

the permit.

(Board Note:

See

40 CFR

~

144.51,

144.52 and

270.32)

(Source:

Amended

at

10

Ill. Reg.

effective

)

SUBPART

D:

ISSUED PERMITS

Section 702.182

Transfer

a)

Transfer

by modification.

Except as provided

in

paragraphsubsection

(b),

a permit may

be transferred by

the permittee

to

a new owner or operator only

if the

permit has been modified or reissued

(under 6ee~-Section

702.183

through 702.185) or

a minor modification made

(under 6ee~Section702.187(d),

to

identify the new

permittee and incorporate such other requirements as may

be necessary under

the appropriate Act.

The new owner

or operator

to whom the permit

is transferred shall

comply with all the terms and conditions specified

in

such permit.

b)

Automatic transfers.

As an alternative

to transfers

under para~raphsubsection(a), any UIC permit for

a well

not injecting hazardous waste may be automatically

transferred

to a new permittee

if:

1)

The current perinittee notifies the Agency at least

30 days

in advance of the proposed

transfer date

in

paragraphsubsection

(b)(2);

2)

The notice includes a written agreement between the

existing and new perinittees containing

a specific

date for transfer of permit responsibility,

coverage and liability between them and

the notice

demonstrates

that the financial responsibility

requirements of

35

Ill.

Adm. Code 704.189 will be

met by the new permittee and that the new permittee

agrees

to comply with all the terms and conditions

specified

in the permit

to

be transferred under

paragrephsubsection

(b); and

3)

The Agency does not notify the existing permittee

and the proposed new permittee of its intent

to

70-342

---

—8—

modify

or

reissued

the permit.

A modification

under

this sdbparegrephsubsection may also be

a

minor modification under

Sec.

702.187.

If

this

notice

is not received, the transfer

is effective

on the date specified

in the agreement mentioned in

peragraphsubsection

(b) (2).

(Board Note:

See

40 CFR ~-~4.’

144.38

and

270.40.)

(Source:

Amended at

10

Ill. Reg.

effective

)

70.343

---

—9—

TITLE

35:

ENVIRONMENTAL PROTECTION

SUBTITLE G:

WASTE DISPOSAL

CHAPTER

I:

POLLUTION CONTROL BOARD

SUBCHAPTER

b:

PERMITS

PART

703

RCRA

PERMIT

PROGRAM

SUBPART

A:

GENERAL

PROVISIONS

Section

703.100

703.101

703.110

Section

703.120

703.121

703. 122

703.123

703.124

703.125

703.126

703.127

Section

703.140

703.141

703.150

703.151

703.152

703.153

703.154

703.155

703. 156

703.157

703.158

Section

703.180

703.181

703. 182

703.183

703.184

703.185

703.200

703.201

Scope and Relation to Other Parts

Purpose

References

SUBPART

B:

PROHIBITIONS

Prohibitions

in General

RCRA

Permits

Specific

Inclusions

in

Permit

Program

Specific Exclusions from Permit Program

Discharges of Hazardous Waste

Reappiications

Initial Applications

Federal Permits (Repealed)

SUBPART

C:

AUTHORIZATION BY

RULE AND INTERIM STATUS

Purpose

and

Scope

Permits

by

Rule

Application

by Existing HWM Facilities

Application by New HWM Facilities

Amended Part

A Application

Qualifying

for Interim Status

Prohibitions During

Interim Status

Changes During Interim Status

Interim Status Standards

Grounds

for

Termination

of

Interim

Status

Permits

for

Less

Than

an Entire Facility

SUBPART

D:

APPLICATIONS

Applications

in General

Contents of Part A

Contents

of

Part

B

General Information

Facility Location Information

Groundwater Protection Information

Specific Information

Containers

70.344

---

—10—

SUBPART E:

SHORT TERM AND

PHASED PERMITS

Emergency Permits

Incinerator Conditions Prior

to Trial Burn

Incinerator Conditions During Trial Burn

Incinerator Conditions After Trial Burn

Trial Burns for Existing Incinerators

Land Treatment Demonstration

SUBPART

F:

PERMIT CONDITIONS

Establishing Permit Conditions

Noncompliance Pursuant

to Emergency Permit

Monitoring

Notice of Planned Changes

Re3ease or 84seherge Reports Twenty—four Hour

Reporting

Reporting Requirements

AUTHORITY:

Implementing Section 22.4

and authorized

by Section

27

of the Environmental Protection Act

(Ill. Rev.

Stat.

1983,

ch.

l1l1/~ pars.

1022.4 and 1027).

SOURCE:

Adopted

in R82—19 at

7

Ill.

Reg.

14289, effective

October

12,

1983;

amended

in R83—24

at

8 Iii. Reg.

206, effective

December

27, 1983;

amended

in R84—9

at

9 Ill.

Reg.

11899,

effective July 24,

1984;

amended

in R85—23 at 10 Ill. Reg.

effective

SUBPART

F:

PERMIT CONDITIONS

Section 703.245

Re’ease or B4seharge Report Twenty—four Hour

Reporting

a)

The

?oi~ew4ngshe~be 4ne3~dedas 4n?ormet4on wh4eh

rrdst be reported The permittee

shall

report any non-

£~~liancewhich may endanger health or

the environment

orally within

24 hours

under ~3S~

AdmT ?ode

~f+t

after

the permitee

becomes aware of

the

circumstances,

including:

Tanks

Surface Impoundments

Waste Piles

Incinerators

Land Treatment

Landfills

703.202

703.203

703.204

703.205

703.206

703.207

Section

703.221

703.222

703.223

703. 224

703. 225

703.230

Section

703.241

703.242

703. 243

703. 244

703.245

703.246

70-345

---

—11—

1)

Information concerning release of any hazardous

waste that may cause

an endangerment to public

drinking water supplies;

2)

Any information of

a release or discharge of

hazardous waste,

or of

a fire or explosion from

a

UWM facility, which could threaten the environment

or human health outside the facility.

b)

The description of the occurrence and its cause shall

include:

1

A) Name,

address and telephone

number of the owner

or

operator;

2

B) Name, address and telephone number of

the facility;

3

e)

Date,

time and type of

incident;

4

9) Name and quantity

of material(s)

involved;

5

B) The extent

of injuries,

if any;

6

P) An assessment of actual

or potential hazards to the

environment and human health outside the facility,

where

this

is applicable;

and

7

G)

Estimated quantity and disposition of

recovered

material that resulted from the

incident;

cb)

A written submission

shall also be provided within

5

days of the time the permittee becomes aware

of

the

circumstances.

The written submission shall contain

a

description

of

the non—compliance and its cause;

the

p~iod of noncompliance including exact dates and times,

and

if the noncompliance has not been corrected,

the

anticipated

time is expected

to continue;

and steps

taken or planned

to reduce,

eliminate,

and prevent

reoccurrence of the noncompliance.

The Agency may

waive

the five day written notice requirement in favor

of

a

written report within fifteen days.

(Board Note:

See

40 CFR

~‘~fd~

270.30(k)(6).)

(Source:

Amended at

10 Ill.

Reg.

effective

)

70.346

---

—12—

TITLE

35:

ENVIRONMENTAL PROTECTION

SUBTITLE G:

WASTE DISPOSAL

CHAPTER

I:

POLLUTION

CONTROL

BOARD

SUBCHAPTER

b:

PERMITS

PART

704

UIC

PERMIT

PROGRAM

SUBPART

A:

GENERAL

PROVISIONS

Section

704.101

704.102

704.103

704.104

704.105

704.106

704.107

Section

704.121

704 .122

704.123

704.124

Content

Scope

of the Permit

or Rule Requirement

Identification of Aquifers

Exempted Aquifers

Specific

Inclusions

and

Exclusions

Classification

of

Injection

Wells

Definitions

SUBPART

B:

PROHIBITIONS

Prohibition

of

Unauthorized

Injection

Prohibition of Movement of Fluid

into USDW

Identification of USDW and Exempted Aquifers

E~4~4net4enProhibition of ?erta4n Class IV Wells

SUBPART C:

AUTHORIZATION OF UNDERGROUND INJECTION BY RULE

Section

704.141

704.142

704.143

704.144

704.145

704 .146

704.147

704.148

704.149

~To

4.150

Section

704.161

704.162

704.163

704.164

Existing Class

I and III Wells

Existing Class IV Wells, not

into USDW (Renumbered)

Expiration

of Authorization

?ond4t4orts Requirements

Existing Class

IV Wells 4nto ~SBW

Class V Wells

Requiring

a Permit

Inventory Requirements

ReQuiring other Information

Requirements for Class

I and 111 Wells

authorized

by Rule

SUBPART D:

APPLICATION FOR PERMIT

Application for Permit; Authorization by Permit

Area Permits

Emergency Permits

Signatories

to Permit Applications

‘i.181

SUBPART

E:

PERMIT CONDITIONS

Additional Conditions

70.347

---

—13—

704.182

704.183

704.184

704.185

704.186

704.187

704.188

704.189

704.190

704. 191

704.192

704.193

SUBPART

F:

Establishing UIC Permit Conditions

Construction Requirements

Corrective Action

Operation Requirements

Hazardous Waste Requirements

Monitoring and Reporting

Plugging

and Abandonment

Financial Responsibility

Mechanical Integrity

Additional Conditions

Waiver

of Requirements by Agency

Corrective Action

REQUIREMENTS FOR WELLS INJECTING HAZARDOUS WASTE

Section

704.201

704.202

704.20 3

SUBPART

G:

FINANCIAL RESPONSIBILITY FOR CLASS

I

HAZARDOUS WASTE INJECTION WELLS

Applicability

Definitions

Cost Estimate for Plugging and Abandonment

Financial Assurance for Plugging

and Abandonment

Trust

Fund

Surety Bond Guaranteeing Payment

Surety Bond Guaranteeing Performance

Letter

of Credit

Plugging and Abandonment Insurance

Financial Test and Corporate Guarantee

Multiple

Financial

Mechanisms

Financial

Mechanism

for Multiple Facilities

Release

of

the

Owner

or

Operator

Incapacity

Wording

of

the

Instruments

AUTHORITY:

Implementing

Sections

13 and 22.4 and authorized by

Section 27

of the Environmental Protection Act (Ill.

Rev.

Stat.

1981,

ch. 111 1/2,

pars.

1013, .1022.4 and 1027).

SOURCE:

Adopted in R8l—32,

at 47 PCB 95,

at

6 Ill. Reg.

12479,

effective as noted

in 35

Ill. Adm. Code 700.106;

amended

in R82—

19,

at

7

Ill. Reg.

14402,

effective as noted

in

35 Ill. Adm. Code

700.106;

amended

in R83—39,

at

55 PCB 319,

at

7

Ill..

Reg.

17338,

effective December 19, 1983;

amended in R85—23 at 10

Ill.

Reg.

,

effective

Applicability

Author ization

Requirements

Section

704.210

704

.

211

704.212

704.213

704.214

704

.

2~

704.216

704.217

704.218

704.219

704.220

704.221

704.222

704. 230

704. 240

70-348

---

—14—

SUBPART

B:

PROHIBITIONS

Section 704.124

B~4m4net4onProhibition of ?erta4n Class IV

Wells

a)

~

edd4t4en to the reqt~4rementof St~bpartFi The

following are prohibited,

except as provided in

subsection

(c):

1)

The construction of any Class IV well,

for the

4n~eet4en0? haz~ardo~s

waste d4reet~y4nte an

t~ndergret~ndse~treeof dr4nk4rig water 4s preh4b4tedt

2)

The 4njeet4on of hafardoi*s waste d4reet~y4nte en

~~ndergreertdse~reeof dr4nk4r~gwater throt~gha

?~ees~V weH

that was net 4n operet4on pr4er to

the effeet4,’e date of th4s Part 4s preh4b4tedt The

operation or

maintenance

of any Class IV well.

3)

Any increase in the amount of hazardous waste or

change

in the type of hazardous waste injected into

a Class

IV well. 4n~eet4nghe~ardo~swaste d4reet~y

+nto a 1~BW4s preh4b4ted~

4*

The operat4on of any ?iess ~V we3~4n~eet4ng

harar&e~swaste d4reet~y4nte a ~3SBW4s preh4b4ted~

5+

The e?feet4,e date of Beet4on ~O4

~44~+~-4*4s 6

months after the date of approve3

by US?PA ef the

~~4ne4s

~?

pregrem~

b+

The preh4b4t4en app~4eab~eto ?~ess ~V we~3sdoes not

epp3~yto 4n~eet4ensof he2ardotis wastes 4nte aqt~4fer~

or

port4ons thereof

wh4eh

have

been

exempted

p~rst~an~

t~35

~

Adm~?ode

~-~84~

b)

Class

IV wells must comp~with the re~uirementsof

—

Section

704.203,

and with the requirements of Section

704.145 regarding closure

of Class

IV wells.

C)

Wells used

to inject contaminated ~oundwater

that has

been

treated and

is being

reinjected into the

same

formation from which

it was drawn are not prohibited

b~y

this

Section

if

such

injection

is

approved

by

the

A~enc1

~irsuant

to provisions

in the Act for preventive or

corrective action,

or by the

tJSEPA pursuant

to

provisions

for cleanup of

releases under

the

Comprehensive Environmental Response Compensatior~,and

Liability Act

of 1980

(CERCLA),

42 U.S.C.

9601—9657,

or

pursuant

t, reQuirements and provisions under

the

Resource Conservation and Recovery Act

(RCRA),

42

U.S.C.

6901—6987.

70-349

---

—15—

d)

Clarification.

The following wells are not prohibited

by this Section:

1)

Wells used

to inject hazardous waste into aquifers

or portions thereof that have been exempted

pursuant

to 35 Ill. Adm. Code 730.104

if the

ex~~ted

aquifer into which waste

is

injected

underlies the lowermost formation containing

a

USDW.

Such wells

are Class

I wells

as specified

in

Section 704.106(a)(1),

and the owner

or operator

must comply with

the requirements applicable

to

Class

I wells.

2)

Wells

used

to inj~ecthazardous waste where

no USDW

exists within one quarter mile

of the well bore

in

any underground

formation, provided that

the Agency

determines that such injection is

into

a

formation

sufficiently isolated to ensure

that injected

fluids

do not migrate from the injection zone.

Such wells

are Class

I wells

as specified

in

Section 704.l06(a)(l),

and

the owner

or operator

must comply with

the requirements applicable

to

Class

I wells.

(Board Note:

See 40 CFR 144.13.

~3~-)

(Source:

Amended at

10 Ill.

Reg.

effective

SUBPART

C:

AUTHORIZATION OF UNDERGROUND INJECTION BY RULE

Section 704.141

Existing Class

I and III Wells

a)

Injection into existing Class

I and III wells

is

authorized by ru~efor up to ?4ve years after approve3~

of

the

~

pregrem-~ A33~such we33s must be 4ssued

permits w4th4n the f4ve year period.

~j

Class III wells in existin~fields

or projects.

Notwithstandi~~j~e

prohibition

in Section 704.121,

this

section authorizes

Class

III wells or projects

in

existing

fields

or

projects

to continue normal

qperations untilpermitted,

including construction,

peration and plu~gging

and

abandonment

of wells as part

of the operation provided

the owner

or qperator

maintains compliance with all applicable requirements.

(Board Note:

See 40 CFR ~~7~a*f~

144.21 and

144.21(b).)

(Source:

Amended

at 10

Ill.

Reg.

effective

)

70.350

---

—16—

Section 704.143

Expiration of Authorization

The authorization provided

in Section 704.141 shall expire upon

the earliest of

the

following:

a)

Upon

the

effective

date

of

the

permit

or permit denial,

if

a

permit

application

has

been

filed

in

a

timely

manner as specified

in Section 704.l61(b)(l); or

b)

If

a permit application has not been filed in

a

timely

manner

as specified

in Section 704.161(b)(1);

or

C)

If the person authorized by rule under Section 704.141

or ~O4-~42 fails

to comply with Section 704.144

or

704.148;

or

d)

~f the person auther~edby ru~eunder Seet4en ~4~42

to eemp3~ywith Beet4on ~94~93~

or

e+

Pwe years after the date of epprove3

by ~SBPA ~n4ted

Btetes Bnv~ronmente~Preteet4en Ageney~of the ~Hne4s

U~? program February 2,

1986, unless,

at that time,

there is

a pending UIC permit application for the

injection previously authorized

by rule.

Authorization

by rule may continue during the pendency of the UIC

permit application, except that any such authorization

shall expire f4ve years after the date of eppreva3~by

USBPA of the

~ne~s

~

program~on February 2, 1989.

(Board Note:

See

40 CFR

3~*e+f~+f4*144.21(a).)

(Source:

Amended at 10 Ill. Reg.

effective

)

Section 704.144

?ond4t4ons Requirements

One year after

the

date of appreva3

by USEPA of the ~~4ne4s B~?

pregramy any

Any person authorized

by rule under Section 704.141

shall comply with the fe3~ew4ngru’es epp3~eab~eto perm~4t~ees7

except

the

terms ~perm4t~ and ~perm~teelishafl

be reed to 4ne~ude

ru~esand these persons author~sedby ru~e~~pplicable

~~~rements

of Section 704.148 and 35 Ill.

Adm. Code 730.

5+

Seet~en~94-~8~’?a+

—

+exempt4ort from ru’e where

auther4fed by temporary perm~ts+~and

b+

Seet4en ~O4-~8~fb+

—

fretenti~onof reeords*t and

e~

Seet4on

~O4~9~d*

—

~report4ng w4th4n ~4 heurs+r and

d~r

Seet~on

4-~~fe*

—

f~89days

not4ce

of

abandonment+t

end

70-351

---

—17—

e+

Section ~94~48?

and 35

~

Adm~?ode

~

fp~ugg~ngend ebartdertment+t and

?~

Operet4ngy men4tor4ngi and report~n~requ4rements

~exeept meehan4ee3~5ntegr4ty+ under

5 H3~Adm~?ode

~4~3

~Q3a~

~+

and 35

~

Adm~?ede ~

~~+t

and

g+

Seet4on ~94-~89

—

~f4nanc~a3~respens4b434ty+t and

h+

Sect~en~O4~9

—

fre~u4rementfor we33s ~n~ect5ng

he~ardeuswaste* app~eab~eto ?4ass ~ we~3s4n~eet~ng

hazardous waste en3~y~

(Board Note:

See 40 CFR

3~+a+(4+f444+144.21(c).)

(Source:

Amended at

10 Ill. Reg.

effective

Section 704.145

Existing Class IV Wells ~nte UBBW

a)

Injection into ex4st4rtg Class IV wells

as defined

in

Section 704.106(d)(l)

is not authorized for

a per4od net

to exceed

stx

months after approva3 of the

u~e

program.

The owner

or operator

of

any such well must

comply with Sections 704.124 and 704.203.

b+

~rt~eet4on~nte ex~st~ng?i~ess~V wefls as def4ned 4n

~eet4erts

496+d+f~-~end ~d*f3~ are euthor4fed unt4~

s4x months after approva’ of the

u~e

program~ The owner

or operator of any such we3~smust eemp~y

with

Seet4on

b)

Closure.

1)

Prior

to abandoning~y Class

IV well,

the owner

or

operator shall plug or otherwise close

the well

in

a manner acceptable

to the Agency.

2)

Within 60 days afteL_the effective date of

this

Section,

the owner

and operator

of any Class

IV

well shall

submit to the Agency a plan for plugging

or otherwise closing and abandonin9

the well.

3)

The owner

or operator of

a Class

IV well shall

notify the Agency of

intent

to abandon the well at

least 30 days prior

to_abandonment.

(Board Note:

See 40 CFR

~3~a+f3+

144.23.)

(Source:

Amended at

10

Ill. Reg.

effective

70-352

---

—18—

Section 704.147

Requiring

a Permit

a)

The Agency may require any Class

I,

III,

IV or V

injection well authorized

by

a rule to apply

for and

obtain

an individual

or area UIC permit.

Cases where

individual or area UIC permits may

be required

include:

1)

The injection well is not in compliance with any

requirement

of

this subpart;

(Board Note:

Any underground injection which

violates any rule under

this Subpart

is subject

to

appropriate enforcement action.)

2)

The injection well is not or

no longer

is within

the category

of wells and types of well operations

authorized

in

the rule;

3)

The protection of USDW5 requires

that the

injection

operation be regulated

by requirements, such as

for

corrective action, monitoring and reporting,

or

operation, which are not contained

in this Subpart.

4)

When the inlection well

is

a Class

I

or III well,

Thaccordance with

a schedule established

by the

~ency

pursuant

to Section 704.161(b).

b)

The Agency may require the owner or operator authorized

by

a rule

to apply for an individual or area UIC permit

under this paragraph subsection only

if

the owner or

operator has been notified in writing that

a permit

application

is required.

The injection activities

are

no longer authorized

by rule upon the effective date of

a permit or

a permit denial,

or upon the failure

of the

owner or çperator

to submit an ~pp1ication in

a timel~y

manner

as specified

in the notice.

The notice

shall

include

a brief statement of the reasons for this

decision;

an application form;

a statement setting

a

time for the owner

or operator

to file the application;

and

a statement thaty upon the effect4ve date of

the

~Q

perm±t7the ru~eme 3onger app3~esto the aet4v~t4es

regu’ated under the ~?

pregrams- of the consequences of

denial

or issuance of the permit,

or

failure

to submit

an application, asdesc~ibed in this subsection.

c)

Any owner

or operator authorized by

a rule may request

to be excluded from the coverage of

the rule by applying

for

an

individual or area UIC permit.

The owner

or

operator shall submit

an application under Section

704.161 with reasons supporting

the request,

to the

Agency.

The Agency may grant

any such request.

(Board Note:

See

40 CFR ~2r~b+

144.25.)

70.353

---

—19—

(Source:

Amended

at

10

Ill.

Reg.

effective

)

Section 704.148

Inventory Requirements

All injection wells authorized by rule shall submit inventory

information

to

the

Agency.

Notwithstanding

any

other

provision

of this Section,

any authorization by rule granted under this

Section shall

terminate

if

the person

so authorized

by rule fails

to submit inventory information

to the Agency within the time

specified

in paragraph subsection ~e+ j~j.

a)

Contents.

As part of the inventory,

the owner

or

operator

shall submit at least

the following

information:

1)

Facility name and location;

2)

Name and address of legal contact;

3)

Ownership of facility;

4)

Nature and type of injection wells;

and

5)

Operating status of

injection wells.

(Board Note:

This information

is requested on

national form Inventory of

Injection Wells,” 0MB

No. l58—R0170).

b)

Additional

contents.

The

owner

or

operator

of

a

well

listed

in subsection

(b)(l)

shall provide

the

information listed

in subsection

(b)(2).

1)

This Section applies to the following wells:

A)

Class

IV

wells

B)

The following Class V wells:

1)

Sand

or other backfill wells,

35

Ill.

Adm. Code 730.105(e)(8);

iij

Radioactive waste disposal wells, 35

Ill.

Adm. Code 730.l05(e)(11);

iii) Geothermal energy_f~cc~verywells,

35 Ill.

Adm.

Code

730.l05(e)(12);

iv)

Brine

return

flow

wells,

35

Ill.

Adm.

Code

730.105(e)(l4)

70.354

---

—‘u—

!I

Wells used

in experimental technologies,

35 Ill.

Adm. Code 730.105(e)(l5);

vi)

Municipal and industrial disposal

wells

other than Class

I;

and

vii) Any other Class V wells

at the discretion

of the Agency.

2)

The owner or operator of

a well

listed

in

subsection

(b)(l)

shall provide

a listing of all

wells owned

or operated setting forth

the fol1owi~pq

information

for each well.

(A sin~ledescription

~f wells at

a single facility with substantially

the

same characteristics

is acceptable).

A)

Location of each well or project given

by~

~i~inship,Range,

Section and Quarter—Section

B)

Date of completion of each well

C)

Identification and dep~j~_ofthe formation(s)

into which each well

is injecting

D)

Total depth

of each well

E)

Casing

and cementing record, tubin~sizeand

depth of packer

F)

Nature of the injected fluids

G)

Average and maximum injection

p~~ssureat

the

wellhead

H)

Averag~eand maximum injection

rate;

and

I)

Date of

the

last mechanical integrity tests,

if

any.

b+

Not4ee~ upon approve3~of the U~? program ~n ~~tnotsy

the Agency sha~ net4fy owners or operators of ~n~eet4on

weH~sof the4r duty to submit 4nventory 5nformet~om~

The method of not4fteat4~onse~eetedby the Agency must

assure that the owners or operators w~3 be made aware

of the inventory re~u4rement-

c)

Deadlines.

Owners

or operators of injection wells must

submit inventory information no later than one year

after

the authorization by rule.

The

information need

not be submitted if

a complete application

is submitted

within this time.

Inventory information from any

facility with interim status under R?RA

35

Ill.

Adm.

Code 703

is not required.

70.355

---

—21—

(Board Note:

Wells

which were

in existence

as

of

February 1,

1984,

were required to submit inventory

information

by

February

1,

1985.

Since

all

wells

other

than Class V wells

are now either prohibited

or required

to file permit apaiications,__the inventory~requirement

will apply only to new Class V wells.)

(Board Note:

See 40 CFR ~~~+e+

144.26.)

(Source:

Amended at

10 Ill.

Reg.

effective

Section 704.149

Reguirin9 other

Information

a)

1)

In addition to the inventory reqpirements

of

Section 704.148,

the Agency ~y

require the owner

~~erator

of any well authorized by~ruleunder

this Subpart

to submit information

as deemed

necessary by the Ag~ncyto determine whether

a well

may

be endangeri

anunde~groundsource of

drinking water

in violation of Section 704.122.

2)

Such information requirements may include, but are

not limited

to:

A)

Performance of groundwater monitoring

and

the

~

submission of

reports of such

monitoring.

B)

An anal~sisof injected fluids,

including

periodic submission of such analyses; and

C)

A description of the ~

strata through

and into which

injection is taking place.

3)

Any request

for information under

this Section

shall

be made

in writing,

and

include

a

brief

statement of

the reasons

for requiring the

information.

An

owner

or operator

shall submit

thei!lformation_wjthin the time period(s) provided

in the notice.

b)

A~y

authorization

by

rule

under

this

Subpart

automatically terminates

for

any owner

or operator who

fails

to comply with

a request

for

information under

this Section.

(Board Note:

See

40 CFR 144.27.)

(Source:

Added at 10

Ill. Reg.

effective

)

70-356

---

—22—

Section 704.150

~uireinentsfor Class

I

and III Wells

authorized

by Rule

The ~

to the owner

or operator

of

a

____

or III well authorized

~riile,

as provided by Section

7tiT.

144.

a)

The

owner

or~e

ra

tor

shall

comply with all

applicable

—

~uirements

of this Sub~artand with Sections

704.121,

704.122,

704.124, 704.201, 704.202,

704.203.

Any

noj~~jiancewith theseJ~juirements constltutes

a

violation of

the Act and the Safe Drinking Water Act and

isS~nds fof

n~orcement action,

except that the owner

or~rator_need_not corn~l~

with

these

requirements to

~

the duration such

non

cornpliance is

authorized by an emer9ency permit under

Section

704.163.

b)

Twenty-four

hour

r

epor t ing.

The owner

operato r

~eportap~nonc2~j2liance

which

mayendanger health or

the environment,

including:

1)

Any monitorin_____

her

information

which

ind icat~

that any contaminant may cause

an endange~ént to

a

USD~ or

2)

~ynonco~pj4ance

or

rnalfunction of ~~nj~ct

ion

system which may cause

fluid migration into or

between USDW’s.

3)

A~Linformation

shall

be provided orally within

hours~fromthe time

the owne~or qperatof~becomes

aware

of the cifcumstances.

A written_submission

shall also

be provided within five days of

the time

the

owner

or qperator becomes aware of

the

circumstances.

The written submission shall

contain

a descrjption

of the noncompliance and

its

cause,__the~riodof noncompliance, inc1~udinq exact

dates and times,

and

if

the noncompliance has not

been

corrected,

the anticipate~time

i

exp_ect~

to

continue;

and

stejs

taken

or~pianned

to

reduce,

eliminate and pfevent recurrence of

the

noncompliance.

c)

Plu_9~in9and abandonment plan.

1)

The owner

or qperator shall

pre~pare,

maintain and

complyw

ith

aJ21an~

U9~

and

aba

nd

o~n t~f

the wells oryroject that_meets

the reQuirements

p1

35111. Adn~

Code

730

Forp~~psesôf

this

subsection,_tern

~y_Jnt~ittent

cessation

of

i~ectionoperations

is not abandonment.

2)

70-357

---

—23—

A)

The owner

or operator shall submit

the plan on

any for~prescribedby the Agency.

B)

The owner

or operator shall submit any

proposed sl9nificant revision to the method of

~jn~_Leflect~J~the

plan no later than

the notice of pl~99ifl~required by subsection

~j) (i.e.,

45 days prior

to plugging unless

shorterñoticeisap~roved).

C)

The plan shall

include the following

information:

i)

The nature

and quantity and material

to

be used

in plugging;

ii)

The location ap~_e

___

j~y~~thof the

p,~.ug s;

iii) ~

propps

_~.es~

or measurement

to

be

made

iv)

The_amount, size

arid location (b~depth)

of casi~9to be

left in the well

v)

The method and location where casing

is

to be parted; and

vi)

The

estimated cost of plugging the well.

D)

After

a cessation o~_~perationsof tw~l!~~

the ~

shall ~1u

and abandon

the well

in accordance with the plan unless

he:

i)

Provides notice

to the Agency;

ii)

Describe actions or procedures,

~~isfactory~9_the

Agency that the owner

or operator will take to ensure that the

well will _n9~~ndan9e~~DW’s

during

the

~!riodof

temporary aband5nment.

These

actions and procedures shafl include

£~~.lian~e

with the technf~al

re~uirernentsa~p1icableto active

injection wells un~~_t_2perator

obtains

a

variance

from

the

technical

re94~~entspursuant to 351l1. Adiñ~

Code 104 and Title

IX

of the

Environmental Protection Act.

E)

The owner or_operator~~well that has

been

tempora~Ilyab~ndone_d(ceased operations

for more than ~.wo~ears and has met the

70.358

---

—24—

~~r~jnents

of subsection

(c)(2)(D)(i)

and

ifl)

shall notify the Agency prior

to

resuming operation of the well.

d)

Financial responsibility.

~ll.

oir

or_~p~r of

a Class br

III well is

required

?0

maintain f~inancialres~9~st~l3fl~

and

resources to close,

abandon

the

~

operation

in

a manner

~

~hall show evidence of such financial

~

ubmiss

ion of~,

~ybond,oroteradeq~uate_assurance

such as

a

financial statement.

2)

~

ayrequirethe~~_g~jerator

to

submit

a revised demonstration of

financial

responsibil4~yif the Agency has

reason to believe

tha~~~riinaldemonstration

is

nolong~

~,~uateto_cover

the cost of

ci

~1ugging

and

abandoning

the well.

3)

The owner

or operator

of

a well in1e~in9hazardous

waste

shall comply with the financial

responsibility requirements

of Subpart

F.

e)

~rating_re~uirernents.

1)

No person shall

cause

allow

injection between

the

utermost

casin~rote~n~u

round sources

of drinkin~gwater

and

the well bore.

2)

For Class

I wells, unless an alternative

to

a

~acker has been~p

under

35

Ill.

Adm.

Code

73O~ll2~c~,

the

owner

or

oJ?erator shall

fill

the

anriulus ~

lon9 string of

casin9swithafluid_p~d~y

the Agency and

maintain

a ~ressure,

also ap~9 db

he_~ency,

on the annulus.

The o~ineror~peratorof aClas~j

well

co~t~

wfth

tubin9~

ershall

fi11

the

annulus

betwe~n

tubing

and casiflg_with

a non—

corrosive fluid

and maintain

a positive pressure

on

the

annulus.

For

other

Class

I wells,

the owner

or

operator ~hall ineure that the alternative

co~_letionmethod will reliabiy~~rovide

a

comparable level

of

otection

of undergçound

sources

of drinking water.

3)

Injection_pressure_forCs

and

III

wells:

A)

~p~_during

stimulation,

the owner

or

operator ah 11 not exceed an injection

pressure at the wellhead which shall

be

70.359

---

—25—

calculated

so as

to assure that~pressure

dunn9_injection does not initiate new

fractur~~~~jate existi~fractures

in

the

~j_ection

zone;

and

B)

The_owner

or qperator

shall no~j~je~ç_t

at

a

~reesure which will

initiate

fractures

in the

confinIn~~oheor

cause

the movement of

inj_ection or

formation fluids into an

underground source of drinkir~9~

water.

f)

Monitoring_Req~i~rnents_~_

The

ow_

_oroerator

shall

p~rform~he monitoring

as

escribed

in this

-

subsectiàn.

Monitori

ng~pf the

nature of the

injected

fluids

must

co~

tha~p1icablean~tical

methods

cited

in Table

I

of

40 CFR 136.3

(1985)

or

in Appendix

III

of

40 CFR

261

(1985),

or with óther methods which

have

been approved_

the Agency.

1)

The owner

or operator

of aCl

ass

I

well

shall:

A)

AnalIze

the nature

of the _injec

ted

flu i d S

Wi

th

sufficient frequen~toyield data

re~p~esentative

of

their characteristics;

B)

Install

and use continuous recording devices

to

rnonf~ofinjection_pressure,

flow rate and

volume_and

the pressure on_the annülus between

the

tubing and the _l~n9

strin9

of

casi~

C)

Install and use monitori?9~~lswith

in

the

area of_review,

if

required~__~~éhcy,

to

rnonito~anhjni~rationoffluids into and

~re~rein

the under9round sources of

drinkin9_water.

The~ype,nurnberand

location

of

the wells,

the_parameters to

be

theaCured

and the frequenqyof monitonin9 must be

approved by the~ency.

2)

A)

For

Class III wells

the owner

or qperator

sha1l_p~ovide_tothe

c~a~üàl

itative

a~~sis_andran~_in concentrations of all

constituents

of injected fluids at least once

within

the

firit

~ear

of

au th o

riza~ion

and

thereafter whenever

the

injection

fl~id

is

modified to the extent that the initIal data

are incor rect or

thcornpléte

~

owner on

~ratorma~r~uest

confident i~

lity~ursuant

to Section

7 and 7.1 of

the Act,

and 35

Ill.

Adm. Code 120.

If the information

is

ar~tt~_r_y_the_owner

o~_2peratôr

m~yin lieu

of

the

ranges

in concentrations 5h~ose~o

submit maximum concentrations whi’~~hal1not

be exceeded.

In such

a case the owner o~

70.360

---

—26—

operator shall

retain records

of the

undisclosed concentration

and_~ro~7id~vide

them

~

part of any

enforcement investigation; and

B)

Monitorj~j~ction_pressureand either flow

~2E_yol~!mi—rnonlthly,

or

meter

and

record dailyJ~j!~~andproduced fluid

volumes as appropriate

C)

Monit~_~e_fluiQlevel_Jn~_einjection

zone

~~—mofl~fl!y,

where

apEropriate

D)

All

class

iii wells

may, be monitored on a

field or project basis ratp~_~hanan

individual well basis

by manifoTd

mon1tor1j~9.

Manifold

monitor

1n9_~~ay

be used

in

cases

of_facilities

consistin~of

more

than

one 1nJ~t1onwell,

~peratir~9

with

a common

ma

ni f

old._~anatemonitori~_~stems

for

each

well

are

not

regufred

~rovidedtheowner

or

_2perator

demonstrates

to

the~ency

that

manifold monitoring

is comparable to

individual well monitor~

9j~

~

_requirements.

The

owner or operator shall

submit reports

to the A~ncy as follows:

1)

For Class

I wells_1_~!terlyreports

on:

A)

The physical,

chemical

and

other

relevant

characteristics of

the injection fluids

B)

Monthly

aver~j~_,maximum

and

minimum

values

for

4~jectionpressure flow rate á~r~a

volume,

and annular_pressure;

C)

The results from groundwater monitoring wells

£rescribed

in subsection

(9) (1) (C)

D)

The results of a!~y_test of

the

injection well

conducted~_~owneroroperator during

the

r

_____

and

E)

~y

well

work

~

dunn9

the

~ported

quarter.

2)

For Class

III wells

A)

Quar~~yr~pprtinl9_onallmoni

toring,

as

r_~_q~_~__~n

subsections (~

)~)_(~i!~LB)

and

(C)

70-361

---

—27—

B)

Quarterly repor~

periodic tests required by_the Agency that are

performed during

the re~rtedquarter

C)

Monitor~rn~y

re r_~p9rted on

a proje ct or

field_basis ra?h~ than an

individual well

basis where manif6ld. monitoring

is

used.

h)

Retention of records.

The owner

or

o_perator

shall

retain_records of

all monitoring

information,

including

thé followipj~

1)

Calibration_and maintenance records and all

o~j~nalstrip chart recordings

for continuous

monitorinq

instrumentation, and

co_pies of all

reportsre~ird b~this

sec tion,

for_~_p~_i

od

of

at

least

thr e

ars

from

the

date_of

the_~p~1

~

isp~~q~_~lpy

be

extended

by request

of

the _~_n~

at

aj~y

time;

and

2)

The

nature

and

cornpositionof

all ~jected

fluids

until_three

years

after

the

completion

of

any

~

ied under

Section 704.188.

The

owner

or

operator shall

retain

the re~rdsafte~the thre~year retention

aeniod unless

it

delivers

the

records

to

the

Agency

or

obtains

written

approval

from _the

A~gencyto

discard the records.

1)

Notice

of

abandonment.

The owner or operator shall

not1f~y__the_A9encyat least 45 days before conversion or

abandonment 6f The well.

i_L

~~9ging_and

abandonment

report.

Within 60 days after

~9~ifl9~ratthe

time of the nex t ~uarte r1y

owner or operator

shall

submit

a ~pgrt

to t~~ency~ If the quarterly report

is

due less than 15 day

re_co~pletionofplu~ging,

then the report i~ll be submitted within 6Od~s.

The

reaort

shall be cent fiedas accurat!_~_the person who

~

Such report shall

consist

of

either:

1)

A statement

that the well was pq~edJn_a_~cordance

with thej2lan previousl~submitted

to the A9ency

or

2)

Where actual plu~9in~_~iffered

from the plan

arevious1i_~ubm1tted,anupdate~_v ~~_5f

the

~

supplied by the Agency,

~pecifyin~ the_different p_rocedures

used.

k)

ian~eof owner

hip.

The owner orop~rator shall

notify

the A9encyofatran~ferof ownership of~hewell within

30 day~__~~~ch

transfer.

--

70-362

---

—28—

~j

Re~uirements

of

Cl

ass

I Hazardous Was

te

Wel Is

.

-

The

hazardous waste shal

comDy_~th_Section 704203.

In

addition

the

owner

o~_~jator

sHall~idispose

of,or_decontaminate b~rernovi~all hazardous waste

residsal

injection well equipment.

(Board

Note:

See

40

CFR

144.28.)

(Source:

Added

at

10

Ill. Reg.

effective

)

SUBPART D: APPLICATION FOR PERMIT

Section 704.161

Application for Permit; Authorization by

Permit

a)

Permit application.

Except fo~_o~s__~erators

authorized_b~rule es pr~e~ ~

~

by ~

all underground injections ~r~e

~

we~3sare prohibited unless authorized

by

permit.

~1~ose

Persons

currentiy

authorized

by

rule

wider S~bpsr~

G

must

still

a~1y

for

a

permit

as

specified

in

psragrspI~

subsection

(b)

unless

the

authorization was for

a Cláss

V

well

under

Section

704.146.

Rules auth~àrfzIngwell Tñjections for which

permit applications have been submitted shall

lapse for

a particular well injection or project upon

the

effective date of the permit or

permit denial

for that

well injection or project.

Procedes

application

issuance

and

adminis t

ration o~em~rqe~cy__~its

are

found

excl~ive1y

in

Siction7O4.l63.

b)

Time

to

apply.

Any person who performs

or proposes an

underground

injection

for

which

a

permit

is

or

will

be

required

shall

submit

an

application

to

the Agency as

follows:

1)

For existing wells:

A)

Within

180

days

after

the Agency notifies such

person

that

an

application

is

required;

or

B)

If

the

waste

being

injected

into

the

well

is

a

hazardous waste accompanied by

a manifest or

delivery

document,

w4th4r~

~89 ~

~

~he

spprev~3

by

~SEPA

e?

~1’~e~~4s

p~egr~~yAugust

1, 1984

or

C)

Except

as

otherwise

provided

in

p~r~g~p~

subsections

(b)(l)(A)

and

(b)(l)(B),

w~~n

twe

years after the dste e~~

by &6EP~

70-363

---

—29—

ef

the

~~ne~s

u~e

p~egrstn by

February

1,

1986.

2)

For new injection wells, except new wells

in

projects authorized under 6ee~Section 704.141 or

covered by an existing area permit under 6ee~

Section 704.162(c),

a reasonable time before

construction

is expected

to begin.

c)

Contents of UIC application.

The applicant shall

demonstrate

that the underground injection will not

endanger drinking water sources.

The form and content

of

the

UIC

permit

application

may

be

prescribed by the

Agency including the materials regu~~g_~y~5_Il1.

Adm.

Code 702.123.

d)

In

addition

to

the materials required by 35

Ill.

Adm.

Code_702

123, ~eapp~~ntshafl

i

dentify_ and submit on

alist

with

the

~errnit~pplication

the

names

and

addresses

for

all

owners

of

record

of

land

within

one—

quarter

mile

(401

meters)

of

the

facility

boundary.

This

rementth~b~aived_b~t

Aenc

where the

site

is

located ma

populous

area

such

that

the

regpirement

would

be

impracticable.

(Board

Note:

See

40

CFR

~~38

144.31(a),

(c),

(g)

and

(e) (9)

(Source:

Amended

at 10

Ill.

Reg.

effective

)

Section

704.163

Emergency

Permits

a)

Coverage.

Notwithstanding any other provision of this

Part

or

35

Ill.

Adm.

Code 702 or

705,

the

Agency

may

temporarily

permit

a

specific

underground

injection

wh4eh

has

net

her~wise been

st~ther4~edby

r~e

at’

pet’i~t if

an imminent and substantial endangerment to

the

health

of

persons

will

result

unless

a

temporary

emergency

permit

is

granted.

b)

Requirements

for

issuance.

1)

Any temporary permit under peragr~phsubsection

(a)

shall

be

for no longer term than required

to

prevent

the

hazard.

2)

Notice

of

any

temporary permit under

this ~agr~ph

subsection shall be published in accordance with 35

Ill. Adm. Code 705.163 within

10 days of

the

issuance of

the permit.

70.364

---

—30—

3)

The

temporary

permit

under

this

section

may

be

either oral or written.

If oral,

it

must

be

followed

within

5

calendar

days

by

a

written

temporary

emergency

permit.

4)

The Agency shall condition the temporary permit

in

any manner

it determines

is necessary

to ensure

that

the

injection

will

not

result

in

the

movement

of

fluids

into

an

underground

source

of

drinking

water.

(Board

Note:

See

40

CFR

~~i-49

144.34.)

(Source:

Amended

at 10 Ill. Reg.

effective

Section 704.

164

~9natoriestoPermitA~lications

For

~urp

_9f__3~_~jJ. Adm.

Code

702.126(a)(l),

a

responsible

~r~orat

e

o ~_~er

means aprincipalexec utive officer

of

at ~ast

th~ level_of

vice~resident.

(Board Note:

See 40CFR144..32( a) (i).)

(Source:

Added

at

10

Ill.

Reg.

effective

SUBPART

E:

PERMIT

CONDITIONS

Section 704.181

Additional Conditions

The

following

conditions

in

addition

to

those

set forth

in 35

Ill.

Adm.

Code

702.140 through 702.152 apply

to

all

UIC

permits

and

shall

be

incorporated

into all permits either expressly or

by

reference.

If

incorporated

by

reference,

a

specific

citation

to

these

regulations must

be given in the permit.

a)

In addition

to 35

Ill. Adm. Code 702.141 (duty

to

comply):

the

permittee

need

not

comply

with

the

provisions of this permit

to the extent and for

the

duration such noncompliance

is authorized

in a temporary

emergency permit under Section 704.163.

(Board

Note:

See

40

CFR

144.51(a).)

b)

In

addition

to

35

Ill.

Adm.

Code 702.150(b)

(monitoring

and

records):

the

permittee shall

retain records

concerning

the nature and composition of all

injected

fluids until three years after

the completion of any

plugging

and

abandonment

procedures

specified

under

Section

704.188.

The

Ageney

i~~ay

re~t~t’ethe

The

owner

or operator te de~ve~shaJ

continue

to retain the

70.365

---

—31—

records

ter the three year retentio~_Eeriodunless the

owner

or

2perator

delivers

the

records

to

the

Agency

at

the

eene~s4en

of

the

retent4en

per’4ed~

or

obtains

written approval from_~_~~.2yto discard

~

(Board Note:

See

40

CFR144.5lcjj_(2)(ii).)

c)

In addition to 35 Ill. Adm. Code 702.152(a)

(notice of

planned changes):

except

for all new wells

authorized by

an area permit under Section 704.162(c),

a new injection

well

may

not

commence

injection

until

construction

is

complete, and

1)

The permittee has submitted notice

of completion of

construction

to the Agency;

and

2)

A)

The

~gency

has

inspected

or otherwise reviewed

the

new

injection

well

and

finds

it

is

in

compliance

with

the

conditions

of

the

permit;

or

B)

The

permittee

has

not

received notice from the

Agency

of

its

intent

to

inspect

or otherwise

review the new injection well within 13 days

of the date of the notice

in paragraph

subsection

(c)(1),

in

which

case

prior

inspe~?ionor review

is waived and the

permittee

may

commence injection.

The Agency

shall

include

in

its

notice

a

reasonable

time

period

in

which

it

will

inspect

the

well.

(Board

Note:

See

40

CFR

144.51(m).)

d)

The

fe3~ew4ng sha~

be

4ne~8ed

as

4nferi~et4en

wh4eh

~st

be reported w4th4n 24 het~rsunder 3? H3~AdM~?ede

1)

Twenty-four_h~_~p_ortinq~_

The

permittee

shall

r~port

j~oncompliance

which

may

enda~e~ health

or the environment,

including:

A)~ Any monitoring or other information which

indicates that any contaminant may cause an

endangerment

to

a

tJSDW.

B)~ Any noncompliance with

a permit condition or

malfunction

of

the

injection

system

which

may

cause

fluid

migration

into

or between USDWs.

2)

Any

information

shall

be

provided orally within

24

hours

from

the

time

th~_~ermittee

be~omes a~á~e

of

the

circumstances.

A

written

submis~ioi~ifi~l1

also

be provided within

5 da

gLt.~etime the permittee

becomes

aware

of

the circumstances.

The written

70.366

---

—32—

submission_shall_contain a desc~4~ionof

the

nonco~Uance ~

the period of

noncomEliance,__inc1ud~

xact dates and times and,

if

the

nonc~~nc~ha

s_not

been

corrected,

the

anticipated

time

is

expec te~ ~ocontinuean~~p~

taken or~anned to reduce, eliminate anQ~revent

reoccurrence

of

the

noncomp1iancé~ of

the

noncompliance.

-

(Board

Note:

See

40

CFR

144.51(l)(6).)

e)

The

permittee

shall

notify

the

Agency

at

such

times

as

the

permit

requires

before

conversion

or

abandonment

of

the

well

or,

in

the

case

of

area

permits,

before

closure

of

the

project.

(Board

Note:

See

40

CFR

~

144.51(n).)

f)

Pluggin~_and

abandonment

report.

Within

60 da~ysa~~

plu9~

II

or

at

the

time of the next ~uarter~y

report

(whichever

is

less)

the

owner

or

operator

shall

submitar~9rtt

o

theA9ency.Ift~arte~J~E2rt

isdue~essthan1~da\7~beforecornpj~ior1

of

plugg ing~

then

the

re~port shall

be

submitted

within

60

days.

The

report

shall

be

certif

ied

as

accurate

~y

thepe

r son

~

~~medthep~2in~

operation

Such

report

shall

consist

of

either:

1)

A statement that

the well_was~pla~edin acc~~ce

wit~~fa~ipreviousiy submitted

ot~eAgençy~

2)

Where actuala~!~differ

ed

from

the

plan

~reviouslysu

bmitted,

an

upda ted

version

of

the

£lan

on

___

form

supplied

by

the

A~n~yspecifX~.j

the_difference~.~

(Board

Note:

See

40

CFR

144.51(o).)

~)

Mechanicalin~jri~ydeTnoflstration.

The

~~çy

by

~

r

or

operator

to

cornpjIw

i th

a

schedule describi

mechan

i ~a 1

integr it~demonstrations

must

be

made.

(Board Note:

See 40 CFR 144.51(p).)

(Source:

Amended

at

10

Ill.

Reg.

effective

)

Section

704.187

Monitoring

and

Reporting

UIC permits shall require by condition monitoring and reporting

requirements

as

set

forth

in

35

Ill.

Adm.

Code

730.

The

permittee

shall

be

required

to

identify

types

of

tests

and

70.367

---

—33—

methods used

to generate the monitoring

data.

Monitorinqof

the

nature of the inj~cted_fluidsmustc

with

~p~c

able

ana~ticalmethods cited

and

described

in

Table

I

of

4OCFR

136.3

(1985) or

in Appendix III

of 4OCFR_261

(1985)

or,

in

certain

circumstances,_bI

other

methods

wh ich

have

been_~p~roved

b~

the

~e

n~

(Board

Note:

See

40

CFR

~4~+e)-

l44.52(a)(5).)

(Source:

Amended at

10 Ill.

Reg.

effective

Section 704.188

Plugging and Abandonment

Any

?~e~s

~

or

~i

permit

shall

include7

and

any

e~assV permit

may ~ne3t~de7eend4t4ons to ensure

that

p~ugg4ng and

abandonment

of

the

wefl~wi~3~

riot

aHow

the

movement

of

f~t~4dse4ther

4nto

an

underground source of dr4~nI~ngwater or from one underground

source of dr4nk~ngwater to enother~ Any app3~4cantfor a

perm’4t sha~ be r’e~u4redto subm4~ta p3~anfar p3ugg~ngand

abandenment~

Where

the

p~an meets

the

requ4rements

of

th4s

paragraph~

the

Agency

sha~

~neorparate

4t

~nte

the

perm4t

as

a

eend~t~on~Where the Ageney~sr’evtew of an app~eat~an~nd~eates

that

the

perm~ttee1s

pi~an 4s

4nade~uatey the

Agency

shaH

requ4re

the app34eant to revise the pi~an7preser4be eendtt4ons meeting

the

re~u~rementsof

this

Seeti~ony or

deny

the

app

eat±en~

For

purposes

of

this

Seet~on~temporary

4nterm~ttent

cesset4on

of

4n~eet4ori eperat4ons

4s

riot

abendonment-

a~j~nent

that,

after

a_ce~satioriof o~erationsoftwo years the

owner

or

~perator shall_plus

and

abandon

the

well

in

accordance with the

p lan

unless

he

a)

Provides_notice

to the Agency;

and

b)

Describesac

tio nsor~~ocedures

sati sf a

ct~to

the

~L~~that

the

owner

or

operator

will

take

to ensure

~

the

well

will

not

endanger

USDWs

du~peeriod

of temporar1abandànment.

-

These actions a~j~rocedures

shall

include

compliance

with

the

technical

re~uirements

~p~_to_~~ve

inj~ection

wells

unless

waived

by

the

A9ency.

(Board

Note:

See

40

CFR

2~42+f~l44.52(a)(6).)

(Source:

Amended

at

10

Ill.

Reg.

effective

)

Section 704.189

Financial Responsibility

a)

The permit for

~

well_which does not

~ect

hazardous

waste

shall

require the permittee

to maintain financial

responsibility

and

resources

to

close,

plug

and

abandon

70-368

---

—34—

the

underground

injection

we3~s 2~eration

in

a

manner

prescribed

by

the

Agency.

The

permittee

must

show

evidence

of

financial

responsibility

to

the

Agency

by

the

submission

of

a

surety

bond,

or other adequate

assurance,

such

as

financial

statements

or

other

materials acceptable

to the Agency.

The

~gency

~

aeriodic basis

r

ujre the holder ofalife—tirn~j~errni.

to

submit

an estimate

of the

resources

needed

to

p1 ~

and abandon the well re~isedto ref1e~? infiitionof

such ~osts, and a_revised demonitratlon of financial

responsibility

if necessary.

Where appropriate,

the

Agency may require a~performancebond with the

following:

1)e3- A corporate surety such as an insurance or bonding

company;

or

2)b+

Individual

sureties,

such

as

officers

or

stockholders of

a corporation requesting a permit;

or

3)e-~

Any

other

lawful

security, including real estate,

personal property, marketable securities or

certificates

of deposit.

b)

The owner oroparatorofawell_injecti~_hazardous

waste

must_comply

with

the

finan cial

responsib

i 1

~

req~irements

of

Subpa

r~C.

(Board

Note:

See

40

CFR

~

!~.~~2_~.)(’)•)

(Source:

Amended at

10 Ill.

Reg.

effective

SUBPART

F:

REQUIREMENTS

FOR

WELLS

INJECTING

HAZARDOUS

WASTE

WE~S

Section 704.201

Applicability

The regulations

in this seet4~onPart apply to all generators of

hazardous

waste,

and

to

the

owners

or

operators

of

all

hazardous

waste

management

facilities,

using

any

class

of

well

to

inject

hazardous

wastes

accompanied

by

a

manifest.

(See

also

6ee~

Section 704.124.)

(Board

Note:

See

40

CFR

~~4S~a)

144~l4(a).)

(Source:

Amended

at

10

Ill.

Reg.

effective

70.369

---

—35—

Section 704.202

Authorization

The

owner

or

operator

of

any

well

that

is

used

to

inject

hazardous

wastes

accompanied

by

a

manifest

or

delivery

document

eha~

was

re~uired

to

apply

for

authorization

to

inject,

as

specified

in

6ee~ Section

704.16l(b)(l)(B),

w4th~ri 6

months

after

the

date

of

approve3~ by

~SEPA

of

the

~~i~no4s

~?

pragrem~ j~

(Board Note:

See

40 CFR

~4S~b~

144.14(b)..)

(Source:

Amended

at

10

Ill.

Reg.

effective

Section 704.203

Requirements

In

addition

to

requiring

compliance

with

the

applicable

requirements

of

this

Part,

5

~

Adm-~Gode

~

arid

Subparts

B

through

F

of

and

35

Ill.

Adm.

Code

730,

the

owner

or

operator

of

any

weH

that

4s

used

to

4n~eet harardous

wastes

and

wh4ch

~s

author~red

by

ru’e

under

Sect4en

~94~427

or

the

owner

or

operator of any we~ that

4s used to 4n~eethasardous wastes

aecompan4ed

by

a

mari~fest or

de3~very document,

any

facility

described in

Section

704.202 shall comply with the following:

a)

Notification.

The owner

or operator shall comply with

the notification requirements of Section 3010 of the

Resource Conservation

and

Recove~y Act

(42

U.C.

6901

etseg..)

RQRA

-(Pub~ ~

94—589~

b)

Identification

number.

The

owner

or

operator

shall

comply with the requirements of 35

Ill.

Adm. Code

724.111 and 40 CFR 264.11

(1985).

c)

Manifest system.

The owner

or operator shall comply

with

the

applicable

recordkeeping

and

reporting

requirements

for

manifested

wastes

in

35

Ill.

Adm.

Code

724.171 and

40 CFR 264.71

(1985).

d)

Manifest

discrepancies.

The

owner

or

operator

shall

comply

with

35

Ill.

Adm.

Code

724.172

and

40

CFR

264.72

(1985).

e)

Operating

record.

The

owner

or

operator

shall

comply

with

35

Ill. Adm. Code 724.173(a),

(b)(1), and (b)(2)

and 40 CFR 264.73(a),

(b)(1)

and (b)(2)

(1985).

f)

Annual

report.

The owner

or operator shall comply with

35

Ill.

Adm.

Code

724.175

and

40

CFR

264.75

(1985).

g)

Unmanifested

waste

report.

The

owner

or

operator

shall

comply

with

35

Ill.

Adm.

Code

724.176

and

40

CFR

264.76

(1985).

70.370

---

—36—

h)

Personnel training.

The owner or operator shall comply

with the applicable personnel

training requirements of

35

Ill.

Adm.

Code

724.116

and

40

CFR

264.16

(1985)_.

i)

Certification

of

closure.

When

abandonment

is

completed,

the owner or operator must submit to

the

Agency certification by the owner

or operator and

certification by an

independent registered professional

engineer that the facility has been closed in accordance

with

the specifications in Beer Section 704.188

and 4G

?FR ~64-~~

(Board Note:

See 40 CFR

~~-r4~~+

144.14(c).)

(Source:

Amended at

10

Ill. Reg.

effective

SUBPART G:

FINANCIAL RESPONSIBILITY_FOR CLASS

I HAZARDOUS

—-

--

WASTE INJECTION WELLS

Section 704.210

The reg~irementsof Sections

704.212, 704.213and704.240 apply~

~~5iners_anQ~9peratorsof_all

exlstIn9

and

new Class

I

Hazardous

waste

injection_wells,

ex

as~rovided

otherwise

in

this

Subpart.

(Board Note:

See

40 CFR 144.60.)

(Source:

Added

at 10

Ill. Reg.

effective

)

Section_704.211

Definitions

a)

‘Plu~~in~and

abar

donrnent .Elafl

lan”

means

the

plan

—

for

~lu~in~

ánd abandonment prepared

in

accordance

with

the

reuj

mi~Ei of

Sections 704.150 an~704.l81(~).

b)

“Current

~lu

n

abandonment_cost estimate”

or

—

“current

cost_estimate” means the_most recent

of the

estimate~raredinaccordance

with Sections

704.212(a),

(b)

and

(c).

c)

“Parent corporation” ineansacorporation which ~~ctl

ownsat1eas~50~ercent~of_thevoti~jstock of

the

corporation which

is the

i

ectionweiI~ow~Ieror

~

tion_4~_d~meda

“subsidiary”

~f

~!j1arent_corporation.

d)

The

following

terms

are

u~eL_~n

the saecifications for

the

financiltest

for ~2lu9~1n9 and_ abandonment.

The

definitions are_intended

to repre~en~t~

con

70-371

---

—37—

meanin~sof

the

terms

as

they

are

9enerally

used

by

the

business

community.

“Assets” means all existin9and all probable future

economicThenefit~obtained

or

controlled

by

a

2art

i

cu1a~~~t~

“Current assets” means_cash or other assets or

resources commonly identified

as

those

which are

reaso~ablyex~ec?edto_berealiied

in cash or sold

orconsur~ed~flnthenorrnaloperatirtg cycle

of

the business.

“Current_liabilities”

means

obli~tions

whose

daisreasonablye~p!c ted to re~uire the

use

of existin~resources J~ope

r.1y classifiable as

current assets

or the creation of

other current

liabilities.

“Independently

audited”

refers

toan

audit

~erformed byan independent

-

certif

ied

~u bl i c

accountant

in

accordance with ~eneral~L accepted

auditinj standards.

“Liabilities”_means arobable future sacrifices of

economic benefits arisin~from preSentObli9atiOns

to

transfer

assets

~_p~ide

services

to other

entities

in the fut

re as

a result

of past

transactions or events.

-

~

current assets minus

current liabilities.

--

“Net worth” means total_assets minus

total

liabilitie~and

is

equiva

lie

nt

to

~5wner’s equity

“Tan~iblenet worth” means the tan9ible assets that

remain

after

deduct

in~

liabili

ties;

such assets

wouid

not

include

inta

essuchas~~odwill

and

~

t I es.

(Board Note:

See 40 CFR 144.61.)

(Source:

Added at

10

Ill.

Reg.

effective

)

Section 704.212

Cost Estimate for Plu~ing and Abandonment

~J..

~

c~_2~!~ra~t

orm

_p~a~_~te

n

estimate,

~

the

c Os

tof~1~~

h.g

the

-

in~ectionwel

1

i

n accordance w1

ththe4~9_~

abando~lan~s~ecifiedin_Section

704 .150

and

704.181(f).

The cost estimate mus~~1 th~costof

70-372

---

—38—

~l~gin~andabandonrnentat

the point

in the facility’s

2p~ratin~ life

when

the

extent_and manner

of

its

2p.erationwou

1dm~

~_~n~La~andon~pt the

most

~j~ensive, as

indicated by its plan.

b)

The owner or o~ratormust_adjust

the cost estimate

for

inflation within 30 da~safter each anniversary

of

the

~

adjustment must bern

assafiedin

subsections

(b)(l) and (2),_~sia~

an

inflation factor derived from

the annual Oil ~

~s

Field E~~ent Cost Index.

The

Tnflation fa~tori~the result of dividing the latest

~Lb1ished_annual Index

by the Index

for the~revious

y~ars.

1)

The first

adj~stment

is made byjnu1tJ~fln~j~e

is

the adj~stedcost estimate.

2)

Subse~uentadjustments are made_byn~~

latest ~djusted cost

estimate

by

the

latest

inflation

factor.

C)

The owner

or operator must review_the cost

estimate

wheneverachan~einthe~lanincrease~thecost of

~1u9~ingand

abandonment.

The revised cost estimate

~e_Ls_~dfoL~flat~

on ass~cified

in

subsection(b).

d)

The

owner

or operator must kee~the followin

at the

faci1i~durin9~the_92eratin~

life of the

f

acili~ the

latestcostestmate~re~aredinaccordancewith

subsections

(a) and

(c)

and, when this estimate has been

ad4ustedinaccor

dance

with_subsection

(b),

the

latest

adjusted cost estimate.

--

(Board_Note:

See

40 CFR 144.62.)

(Source:

Added

at

10

Ill.

Reg.

effective

Section 704.213

Financial Assurance for Plug9ing and

Abandonment

An owner

o~eratorof each facility

must

esta

bi i

sh”financ i~

assurance”

for

the

lu~i~

and

abandonment_oféà~~n

and

______

The owner or

~~tor

must choose from the

folio

financial assurance

mechanisms:

a)

Trust

fund (Section 704.214)

b)

~

(Section 704.215)

70-373

---

—39—

~

Surety bond g~arantee~~p!rforTnance

(Section 704.216)

d)

Letter of credit

(Section 704.217)

e)

Insurance__(Section 704.218);

or

~

~~~Jtest_apd

corporate

~a~~_(

Section

704.219)

(Board_Note:

See

40

CFR

144.63.)

(Source:

Added at

10 Ill.

Reg.

effective

)

Section 704.214

Trust Fund

An

owner

or

operator may sa~y_the

f inanc ial

assurance

re~~u

iremen~~establishin9_a trust_fund

which conforms

ç~uireme sof

his Section and submitting

an

ori9nal,s~neddupl

i c ate

the_trust

a9reernen

t

to

the

~nc1.An

owner

or o~ratorof

a Class

I

well

injectin~hazardous waste_must submit_the ~

siSned duplicate of

the trust a.sLeement

to the Agency

with th~permit~pplica

t ion

or for_~~~altoopera

te

under

rule.

The_trustee must be

an entity_which

has

the

a~i~tas

~

s

ope

rations

U

la

ted

and

exarnined~a

Federal

or

State

~g

en cy

b)

The wordin9 of

the

trust a9reement must

be

as ~pecified

~

trust agreement must be

accomp~niedj~y

formal c~rtification of

ac k nowled~ment.

S cheduleAo

f

the

trust a9reement must

~

amount

of

the current cost estimate coveredb~thea9reernent.

c)

~y

ie_-

trust fund must

be made annua1ly by

the owner

or o~eratorover the term

of

the

mit

ial

pe

~

i £e

-

of the

1nj~ction well

as estimated

in

th~plan,

whichever

aeriod

is shorter this_~tod is hereafter ~eferred

to

as

the “j~—in_period”. The~ayments into the trust

fund must

be made as

follows:

U

ranewwth~fir~~nust

be made

~

Ste.

A

receiptfromthet

ru

1~_y~ej~_mu

s

t

be

~y~_~y_~_or

opera~ort2_~~~

before_this ml

injection

a

zardous

waste.

The

fir

st_Eayment

must

be

at

leas~e~~_~o

the

current

Os

estimate, ex~pta~prov1de

d

in

Section

704. 240!

d1v1ded~X_the

number

of~ears

in

~

be

made

no

later

than

30

days

after_each

anniveri~ry

70.374

—40—

date

of the

fir

ayment.

The

amount

of

~

this

formula:

Next ~ay~nt

=(PE-

CV)/Y

where

PE

is

the

current

cost

estimate,

CV

is

the

current_value

of the trust fund and

Y

is

the

number

of yrs

remaining in the pa’—in period.

2)

if

an

owner oj~peratorestablishes a~rust

fund

as

Epecified

in

this_Section,

and the value

of

that

trust_fund

is less_than_the current cost estimate

when ap~rmi

t

-

is issued fo_~_4~jection well!

the

amount

of current costestimate~1t~_~e

aid

into the trust

fund must bepaid

in over the ~

p~riodas defined

in subsection_(c)Pa1~ts must

continue

to

be

made

no

later

than

after

each

anniversary

date

of

the first payjnent

made

pursuant tothisPart.Theamount_L~~j~am~

must

be determined

by

this

rmula

Next payrnent

=

(PE-CV)/Y

where PE

is the current cost estimate, CV is the

current value

of the trust fund and Y is the number

of

years rernainin~

in

the

pay-in

period

d)

The owner

or 9perator_maX accelera

sinto th~

trust fund or

the owner or_opera or

os~tth~

full

amount

of the current cost estimate at the

time the fund

is established

However,

the owner

or operator

must

maintain the value of the_fund at

no less than the value

that the

fund

would have

if

annual payments were made as

specified in subsection

(c)

e)

If

theoerprbl

ishesa

trust

fund afte r

ha~T~j~done or more alternate financial assurance

mechanisms,

the owner or ope

sfir

ajñie~tmust

be

in at least

the amount that the fund would contain

if

the trust

fund

were

established

initi~flLjndannüál

p~ymentsmade accordln9

to saecificatlons

of

this

Section.

f)

After

the pa~in p!riod

is

cojppleted,

wheneve r

the

current costestimate chap~s the owne r or~rator must

co~parethe new estimate with the truste e

‘s

most

recent

annual

valuation

of

the

trust

fund.

If the~7áiiueo~the

fund

is_less

than

the

amount

of

the

nee~timátè,the

owner

or o~perator,within

60 d~s after

thechangie in

the

cost

estimate,

must_either deposit

an

amount

Into

the

fund

so

that its value after this~~ositat least

e~ials_the

arnountof the current cost estirnat~or

70-375

---

—41—

obtain

other

financial

assurance

to

cover

the

difference.

If the value of the trust fund is~reaterthan the total

amount

of_the current cost estimate,__the owner

or

2p!ratorma~subrnitaw~I~t

en

r~u

est to

the

-

A~encyfor

release of the amounE~inexcéss

of the current cost

estimate.

h)

If

an

owner

or

o2erator_substitutes

other

financial

assurance

for

all_o~~r~

5U

the

trust

fund

the

owner

or

op!rator

rna~

submit

a

w

for

release

of

the

amouii~in

excess

of

the

current

cost

estimate

covered~y

the

trust

fund.

i)

Within

60

days

after

receiving_~

euest

from

the

owner

22~or~e1e~e

of

funds

as

specified

in

subsection

(9)

or

(h),

the

~g~p~y

will

instruct the

___

to the own!r_~_9perator uç~_funds

as

the

Agenqy

specifies

in

writing

jj

After

be~4nni~

final_plu9~in9

and

abandonment,

an

owner

and

2pera

tor

or_~otherper!on

authorized

perform

plu~ln9and

andonment

rnay_~~uestreimbursement for

~9in~

and_abandonment expenditures

by

submitting

itemized bills

to

the

A~nc1.

With~_~d!~s

after

~

activitie s,

the

~ency

will determine whethe r

the

plu99 i ng

and

abandonment e~enditures_arein accordance with

the ~plan

or

otherwise

justified,

and

if

so,

will

instruct

the

trustee

to make_reimbursement

in such amounts

as the

A9ency~p~cifiesinwrit~_If_the_~ency_has

reason

to believe that the cost of p1

and abàThdonme

nt

will

be

si~ficantly9reater thanthe_value

of

the

amounts as

it deemsRrudent

until

it

determines,

in

accordance

with

Section

704.222

that

the owner or

2perator

is n~ion~er_~t2_j’naintai~financial

assurance.

k)

The~ency

will a~_~_terminationof the trust when:

1)

An owner

or o2erator substitutes alternate

financ~l assurance;

or

2)

The ~ncy

releases the owner

perator

in

accordance with Section 704.222.

(Board

Note:

See

40

CFR

144.63(a).)

(Source:

Added

at

10

Ill.

Reg.

effective

)

70.376

---

—42—

Section

704.2?5

~

Bond Guaranteeing

Payment

a)

~

assur

—

r

e~irernen

t ~yobtainingasuç~~y_bondwhich

conforms to

~

submitting thbond

~o

the~~ppUcati~for

ap~rmitor

-

for

~provalto

operate

under

rule.

The

bond

must

be

effec tive

before

the initial~

ectionof

hazardous

waste.

The

surety_comp~ny_issu~

the

bond

must,

at

a

~

sureties on

C i r Cu

lar 570 of the U.S. ~partment_of

b)

The

wor~~of the su re~~nd

must

be

as~cif

i ed

in

Section 704.240.

C)

The_owner or operator who uses

a

~

—

~

establish

~~~P~X_trust

fund.A~y~nts

made_under the_?~s

of

the bond will

be

d~positedby the suret~irectJ~y

into

the

standby

trust

fund

in

a~corda~!_with

instruct ions from the A~encj~.

-

This

standbX

trustJ~

~

in

Sect io~._19j~214,

ex~p~th

at:

1)

An

original,

signed

d~pj~ate

of

the

trust

aq~ement

must

be

submitted

to

the

A~ency wit~~

sur~y~~d;and

2)

(intil

the standby trust_fund is_funde~p~rsuant

to

the re9uirementsof_thi~ection,_thefollowTh

are

not re~uired:

A)

Pa)~pents into the trust fund as specified

in

Section 704.214

B)

~pdatin~ofSch

eduleAof

-

the trust

a~9reernent

to

show

current

cost

estimates;

C)

Annual valuations as

re9~uired

by

the

trust

agreement; and

~i

Nott~e~oL~on-paXmentasre~u

i red

by

the

tr~9~ment.

d)

The

bond must ~uarante etha

t

the owner

or

operatorwilU

1)

Fund the standbX trust

fund

itegualto

the penal ~

~

ng and abandonment

of

the in~ecti

on

-

well;

or

21

~~X~tY

p_~~2Uflt_e9~1tO

th

esum

within

15 ~

after an ~er

to

b~p1~~~abandonment

I

s~i

S

sue

70-377

---

—43—

Board

or

a U.S. district court or other

court of

competent jurisdiction;

or

3)

Provide

alternate

financial

assurance,__and

obtain

the Agency~written ~j~roval_of

the

assurance

~

by

bo?h

the

owneroroperator~~~eAencj

of

a

notice

of

cancellation of the bond

from the surety.

e)

~

terms

of

the

bond,

the surety will

become

liable on

the

bond~oblijà~ion

when

the

owner

or 2perator

fails

to p~rformas guaranteed bythe

bond.

f)

~

be

n amount at least

egual

to

the

current

cost

estimate,

except as provided

in

Section

704.220.

9j~

Whenever

the

current

cost

estimate

increases

to

an

amount

reater_than

th~~al

sum,

the

owner

or

2a2cl~~I~c~e_increas

mustei

the r

cause

the penal

sum

to

be

increased

to

an

amoun~

at

least

equal

to

the

current

cost

estimate

and

submit

evidence

such increase

to

th~en

orobt

áI

n

oth e r

financial assurance

to cover

the increase.

Whené~er_the

current_cost estimate decreáses,

the

sum ma~be

reduced

to the amount of the current cost_estimate

following written ~pEró~al ~ythe

Agency.

h)

tinder

the

terms

of

the

bond,

the

suret~~ cance 1 the

bond~~innotice~f_cancellation_bI

tified mail

O~2OOrO

the~ency.

~

dur in9

120

days

beginning on the date

of

the_receipt

of

?he

n5?fce

of

canc

ation

b1

both

owner or

2perator

and

the

A~y

as

evidenced

by

the

returned

receipts.

i)

The

owner

or

operator

may~~_~h

ond

if

the

Agency

has

9iv~~riorwritten consent based

on

rec e ipt

of

-

evidence of alternate financial assurance.

(Board Note:

See 40 CFR

144.63(b).)

(Source:

Added at

10

Ill.

Reg.

effective

Section 704.216

Sure!y Bond Guaranteei~ Performance

a)

An owner

or operator

sati~y_thefinancial assurance

re2.~irernentby obtaining

a sure~ bond which_co~j~ms

to

the~~~irements

of

this

Section

and

submittin~the

bond

to

heAenc1.

An owner or Qeerator

of

a new facility

must submit the_bond

to the Agency with~the_pe~it

application_o_~~~al

tooperate~ñ~érr~i1e.

The

70-378

---

—44—

bondrnustbeeffe

c

tive befor~j~jectionofhazardous

waste

~

must,mum,beax~~tho~~ceptable

sureties

on

Federal

bonds

in_Circular

570

of

the

U.S.

~partmentoftheTreas

u

ry.

b)

The

word~ of

the suretX bond must

be

as specified in

Section 704.240.

21

The owner

or

ator who usesasur~y bond

to

sati

s~

the

financial

assurance

re~uire

rnent must_also estabiish

a

sta

trust fund

All_pa~ymentsmade_under

the te

~

by the surety_direc~

into the standby trust fund

in accordance with

instructions from the

C.

This standby_trust fund

must meet the r~ufrements~p~cified in Section 704.214,

ex~c~that:

1)

An ori~ina

stgned duplicate of the trust

~

~~~y_Withthe

surety

bond;

and

21

Until

the_stand

trust

fund is

funded pursuant

to

the regurér~nents

of

this

Section,

the

follo~~re

not rred:

~

~y~ents

into the tust fund assecif led

in

Section 704.214

B)

~datin~ofScheduleAofthet

rust

a~

reement

to show current cost estimates

C)

Annual valuations

as re~u

fred

ythetr ust

a9reement;

and

2!

Not

of non-p~ment_asre~uired~y ~

trust

agreement.

d)

The

bond must~uarant

e e

that the owner

orw

ill:

PerfOrU~91j~and_abandonment

in accordance

with

~

the permit

for

the_injection

well

whenever re~red

to

do

so;

or

2)

Provide_alternate financial assurance, and obtain

the Agenc

writn

oval of

the assurnce

J~Eovided,within

90 d

receipt_bbo th

the

~

___

cancellation

of

the

bond

from

the

surety.

e)

Under the terms_of thebond,

the surety

will

become

liable on the bond

ob~ation

when

the owne~_~~tor

~

FoIl~~a

determination that the owner

or

opera to rha~i

1 ed~

70.379

---

—45—

~erforrnj~gi~

and abadonment

in

accordance

with

the

~

‘~beñre~uiredto do

so,

under

terms of

the bond the surety will per

form

plu~9gin~

and

abandonment

as_9uaranteed

by

the

bond

or

will deposit the amount of the penal sum into the

st~j~y

trust fund.

f)

!~_penal_sum

of

the

bond

mu~

~J~_an

amount at least

equal

to the curreñtco~t~è~timate.

~j

Whenever the current cost estimate increases to

an

amou

reater than the penal

sum,

the owner

or

op~rator,within 60 daX! after the increase, must either

c ause

th ~enal~tobeincreas

ed

toan

amount

at

~

~

estimate

and

subndt

evidence

of

such

increase

to

the Ag~n~y,or obtain other

financial assurance.

Whenever

the current cost estimate

decreases,

the pen

sum may

be reduced

to the amount of

the

current cost estima

te

followingw r

itt

en

~ppr

oval

by

the Agency.

h)

Under

the

terms of

the bond,_the suret~

Thai

cancel

the

~

i ~

rt

ified mail

to the owner

or operator and

to

the

Agency.

Cancellation may not occur,

however, during

120 days

beginh~ on the date of

the

réce

fthenoti~e of

cancellationb,~bothowner

or ope ra

tor

and the

A9~en

cy

as

evidenced

b~ the

returned_receipts.

i)

The

owner

or

operator

niay

cancel

the

bond

if the Agency

~~given

prior

written consent.

~hC A~en~will

provide such written content when:

-

1)

An owner

or op~ratorsubstitute

aiternate financia 1

assurance

or

21

Tb

Aencj~releases the

owner

or

operator

in

accordance

with Section 704.2~

--

jj

The

surety

~

the

performanceofpiu~jaj~pandonment~theowne r

or

operator after

the Aj~nc~_~leases_the

owner

or operator

in

accordance

with

Section

704.222.

-

(Board Note:

See 40

CFR

144.63(c).)

(Source:

Added

at

10 Ill.

Reg.

effective

)

Section

704.217

Letter

of

Credit

a)

An owner or operator

may

satisfy the financial assurance

~

1et~e

r

70.380

---

—46—

of

credit which confor

to ~

this

Sectionandsubmittij~the1etteotheA3ency~_~

owner

or

torofaninjection

well must_submit the

letter

of credit

to the Aq~n~y~during

submission

of

the

~

~

rule.

The letter

of credit_must be effective before

initial i~j~~ction

of ha zardous waste.

Theissui ng

institutionniustbeentity which has the

authorfly~_~~

issue letters of credit and whose letter—of—credit

~ret

ions are ~~la

ted

and examined~a

Federal or

~j

9g~_~t_~_gfl~credit_but

be as specified

in

Section

704.240.

Ar!~2~e~at9rwhousesaj~tter2

credit

to

satisfj~the financial

assurance

re~uirementmust also

fu~.p~t!rms2L~

letter

of credit,

all

amounts

paid

p~uant to

a draft

the ~en~

will

be d~p~Jt

ed by_~fl~Jssu

ing

~

~trust_fund

utmeet_the

re~uirernentsofthe

trust fund_specIfied in SectIon 704.214,_excep~that:

1)

~or

~

the

trust

~g5eement_must

be

submitted

to the~wi~~

letter of

credit;

and

2)

Un 1ess the standbL trust

fund isfunded_pursuant

to

the re~uirementsof this Section,

the follow~

not reuired:

A)

P~ents into the trust fund

as ~pecifiedin

Section 704.214

B)

~datin~_2~_ScheduleAof

the trust_a9reement

to show current_cost estimates

C)

Annual

valuations as re~uiredby th~_trust

~SLeement; and

D)

Notices of no

-

a~mentas

reguired by the

trust agreement.

d)

The_letter

of credit must be acco

ed

etter

nthe_owner

or op

torreferrin.a to the

let te~~

credit_bynumbe

i

~

~

~

i~~a_tion__the

EPA

~caticnN~~_andad

dress of the f~j~j~

and

the

amount

of

funds assured ~g~_plugging and

abandonment_of the well ~y

the_letter

of

credit.

70.381

---

—47—

e)

The letter of credit_must

be

irrevocable and issued for

a period of

at 1ea~t1 year.

Thelette r of credit must

~ovide_that

the expiration_date will

be automatically

extendedforaperiodóf

at least

1 year unless,

at

least

120 days before the current expiration date,

the

1SSUlfl9 institution notifies both the owner o~_~9pera

to r

and the A~n~by certified_mall of

a decision not to

extend_the_expiration~át~.Under

the terms of

the

letter

of

credit,__the

120 days will begin on the date

~

A~e

ncy

-

have

received

the notice,

as evidenced bLthe

return

receipt

s.

f)

The letter of credit must

be issued

in an amount

at

lea

_!U

2the_~LLe.at

cos~_estima te,

except

-

as

provided

in Section 704.220.

~j

whenever_the current cost estimate increases to an

amount ~eater

than the amount

of the credit,

the owner

or~perator, within 6O~d~safter

the

increase, must

either cause_~thè~àmountof the letter

of credit

to be

increased so that it

least equalsth

current cost

estimate and submit evidence

of such increase to

t~he

Agency,

or obtain

other financial assurance

to cover the

increase.

~hene~er_the current cost es?imate decreases,

the amount

of the

letter of credft_m~be reduced

to

-

the

amo

at

of the current cost estimate following_written

~pro~L~

the Agency.

h)

Followinga_determination that

the

owner or o2erator

has

failed

to~rform fin

gj~_~abandonment in

accordance with thèjlan and other permit_requirements

when re~uired_t~

p~~9~~y_mayd

raw on the

letter

of crédit.

i)

If

the

owner

or

~perator

does

not

establish alternate

financial assurance and obtain written approval

of such

alternate assurance

fr

omtheA~en~Lwith

in ~

s after

rece~pt~bot

~

the A~encyof

anoticefró~theissuing institution

tha t it has

decided_not

to extend

the letter

of crethtbe1ond

the

current

e

____

n date,

théTh~enciwill draw on the

letter

of credit.

The_A~enc~rn~y_de1a~the drawin~if

the

issuing institution_grants_a~__x~

~_9~h~

term

~_~~e_credit.

During

the last 30 d~

of any such

~

let ter of

credi t

th~_2.~wneror_operator

failed

to provide alternate

financial_á~surance_andobtain written approal

of such

assur nce from the~ency.

--

ji

The A

1

return

the

tofcredit

to the

~uing_~tu~on_for

termination when:

70.382

---

—48—

1)

An owner

or operator substitutes alternate

financial assurance or

2)

The Agency~releases the owner or ~pe

ra tor

in

accordance wit1~Section 704.222.

(Board Note:

See

40 CFR

144.63(d).)

(Source:

Added

at 10

Ill.

Reg.

effective

)

Section 704.218

Plu~~gand Abandonment Insurance

a)

~

r~r ement

by obtaining insurance which conforms

to

-

the~

regui rements of this Section

arid submitting

a

certif icete

of such insurance

to the

A~e

n~.

An

owne r

oroperatorofanewinj~ction well must submit_the~

certificateofi~urancothe_~9encywiththeper~it

application or

for_approval

operate

under

rule.

The

insurance must be effective before injection starts.

At

a minimum,

the insurer must be licensed

to transact the

busfness

of

insurance,

or e1~ib1e_~_provideinsurán~

asanexcessorsurpluslinesinsurer,__in_on~_o_rrnore

States.

b)

The wording of thecertificate of

insurance must be as

~J~j~ix~_Sect

4

C)

Th~oli2y_~t be issued for aface amount at

lea st

~ualto

the current cost_estimate,

except as provided

in Section 704.220.

The term “face_amount” means

____

total amount

the insurer

is obli~ated

to pay

under

the

~

the face amount, although the

insurer

‘s future 1iabili~y

wil

1

be

lowered

by_the amount

of

th&pa~yments

.

d)

Th~po

m~uarantee~tfundswi1

I

be_ava

i lb.

e

whenever

final

plu~gi~

and

~

at_~2~c~rs.__Th~

p~lic~mustasoq~arane

that

once p

abandonment_begins,

the

issurerwi1l_~~ble

for

~yin~out

funds, u~pt

a~bunt

ual

to

the

face

~

~

to

such party

or

par~i~_~s

ti

A~enç~specifies.

e)

Aft~r_~n~ng_p~9ing_and

abandonment,__an

owner

or

op~_oa~nau~ri

z éd

~

per

f6~m

pj~g~j

and abandonment may re9uest reirnursement

for

~

and abandonment expeditures~~i~n

itemized bills

to the ~nc1

Within

60

~

receiving bills fo~1u9~1ngand abandonment

activities,

the Ag_ency will determine whether the~lugg

ing

and

aba~onmer~~tures

are

in accordance with

the plan

70-383

---

—49—

or

otherwise

ju ~

t ruç~the

insurer

to make reimbursement

in such amounts

as the

~gency_specifies

in writ~_If

the Agen~has reason

to~belIevèthat

the

cost

of

;iuggixig and abandonment

of

thepolic1,it~~withholdrei1nbursemen

t

of

such

amounts

as

it

deems_prudent. until

it determines,

in

accordance with Section 704~2, that the owner

or

qperatorisflolon~er~uire9_j~~financial

~

injection

well.

f)

The_owner

or

rmustmai

ritain

the policyin full

force and effect until

the Agency consents

to

~

or o~eratoras

~ecifiedinsubsection(j).Fa

i lure

topay

the

p~emium,without

su bst itut

ion of alte

nate

insncial

ion

of

~

remedyas

the

Agency

deems

necessary~

Such

vio

io

edeemed

to

begin

~

cancellation,

termination or failure to_renew due to

non—pajment of the_premium,

rather_than_u_pon

the date

of

~pi_~at

ion.

L~

Each policy must contain ~

ccessor owñe~6r operator.

Such assignment may

be

conditional_upon consent

of

the

insurer,provided

suh_con~èntJs

not

unreasonab2~Lrefused.

h)

~fl_~e_~olicy

m

~_p~yi

~_~he_insurer

m~ynot cancel,

terminate 6r fail to renew

the~j~Olici_~xc~pt

for

failure

topa~_~he

pr

emium

The

au t

omatic

renewal

of the

poiicy

inust,ataminimum,__provide the

insured wit

theotion

~

If there isafailure_~_p~th~_premiwn,the insurer

ye~cttocancef

terminate

or

fat

t~~new

the

p~lic~ by

sending

notice

b~

~t~_~1

to

the _~wner

q~_9p~~ and the Agency.

Cancellation,__termination

or failure

tO~ènewmaj

n5t_occur,

however, during 120

-_

dais_beginni~g~iththe date of

recei~pt

of

the

notice

by

both

the

~gency

and

the

owner or_9Q~rator

,

as_~ençe

d

by

the

return

of_receiRt~. Can~j_l~tion,termination or

failure

to

renew

may

not

occur

and

th~_p~~cywill

remain 1n full force aria_effect

in the event that on or

~

ion:

1)

The

Agen2y

deems the injection well abandoned

2)

The_p~ermitis

terminated or revoked

or

a new permit

—

~

_______

70-384

---

—50—

~

P1u~gin~and abandonment

i

___

a U.S. district_court_or other court of competent

j~flsdiction; or

4)

~he_~~n~roro_peratorJs

n~med ~_~~9j_in

a

vo1unt~ç~orinvo1unta~y_proceedingun~er

11 U.S

(Bankruptc~);or

5)

~_p~emiurn

due

is paid.

i)

Whenever the_current cost_estimate increases to an

amount j~ater than the face amount

of

ths_p

,_the

~

must either cause the face amount to

be increased

to

an

amount at

least~ual

to the

current

cost

e

stima te

and

submft

evidence of

suchincreasetot~~gen~y_or

obtain other financial assurance

to cover

the

increase.

Whenever

the current cost estimate decreases,

the

if

ace

amount

rn~y_be

reduced

to

the

amount

of

the

current

tefol

lowin~ wrir

oval j~y the

~enc~.

jj

~

_A

y

2~p_~~to_the

owner

or

~eratorthattheowner

or

-

ope

rator mn~y

termina

t

the

insurance policy when:

1)

An owner

or operator substitutes alternate

financial assurance or

!L

_~g.~y

~

operator in

accordance with Section 704.222~

2~!_~!~

144.63 (e).)

(Source:

Added

at 10

Iii. Reg.

effective

)

Sect

ion

704

.219

Financial Test and Co~orateGuarantee

a)

An owner or operator may satisfy

the

financial assu ra

rice

rement

~

dernonstratin~

that

the

owner or ope

to r

passesafinancial_test

as specified_iñ~t

Scion.

ToJ~ass this test

the

owner or

2perator

must meet t

criteria of_either subsection

(a)(l)

or

(a)(2):

1)

The owner o_~_~atormusthave:

A)

Two

of

the followi~gthree

ratios

:

A

ratio

of

total liabilities_to net wor?h 1e~sthan 2.0

a ratio of

the sum

of

net income plus

d~preciation,dej~1 etion,

and

amortization

to

total

liabilities 9Seater_than

0.1;

and a

70.385

---

—51—

ratio of current assets to current liabilities

Lreater than

1.5;

and

B)

Net wor~_~_capitaland

tangible

net

worth

each at_least

six times the sum of the current

cost estimate;

and

C)

~flj~_~orth

of

at least

$10 million;

and

D)

Assets

in the United States amounting

to at

~

0

qperator’s

total assets or

at least six times

the sum of

the curreiit cost estimate.

?i

~

A)

A

current rating for the owner or~perator’

S

most recent_bond

issuance of

AAA,

AA,

A or BBB

as issued

J?Y

Standard and Poor’s or_Aaa, Aa, A

or Baa

as issued

by Moody’s

and

B)

Tangible net worth

at least six times

the sum

of the current_cost estfl~ate; and

C)

Tangible net worth of

at least

$10 million;

and

D)

Assets located

in the United States amounting

to

at l~

_29~~

ohowner

or

2j~ator’stotal_ass~t~_~~a~

e

six__times

the sum of the current cost estimates.

~j

The

5~_r~p!

cost

estimat_~j~_j~çtion

L~~_t9!__9~t

estimate

_

_~9___~ho~n

in

~ra~raphs1thro~h4ofthLefter

from the owner’s

or

~perator’s chief financial officer as

specifted

in

Section 704.240.

c)

that

the

owner

or

tor

meets

this

~

must submit the following

items tothe_~ency:

1)

A letter signed

by the

owner’s_~rator’s

chief

financial officer and

worded as sped

fied

in

Section 704.240;

and

Acopy9

the inde~endentcertifiedpublic

accountant’s

rep~~ on_examination

of

the

owner

‘

s

or

operator’s

financial statements

for the

latest

completed

fiscal

year;

and

70-386

---

—52—

~J.

As~cialre_po~t

f

owner’s9ro_perator’s

indep~entcertlfiedpublicaccounta~_to

the

owne~_~

ator stating

that:

~L