7 Del. Admin. Code § 7202-5.0

Current through Register Vol. 28, No. 4, October 1, 2024

Section 7202-5.0 - Bonding

5.1 Bond Required. Unless excepted under the provisions of Subsection 502, as a requirement for keeping a Permit issued under these regulations, a person shall file with the Department a bond or other security in a form approved by the Department. The bond shall be payable to the Department and the obligation of the bond shall be conditioned upon the fulfillment of all requirements related to the permit.

5.2 Exceptions. Bond is not required for the following persons or entities:

5.2.1 A landfill, which is owned and operated by the Delaware Solid Waste Authority pursuant to state laws and regulations;

5.2.2 Persons using treated sludge that complies with all the requirements for distribution of these regulations and that is distributed in accordance with a valid permit issued by the Department;

5.2.3 Any local, municipal, county, state, or federal governmental agency, or political subdivision; or

5.2.4 Septage land treatment systems utilizing a limited application rate of 7,100 gallons per acre per year or less.

5.3 Amount of Bond. The amount of the bond shall be:

5.3.1 $5,000 for transportation permits and research projects;

5.3.2 $25,000 for permits to apply sludge to land at agricultural rates;

5.3.3 $50,000 for permits to land apply sludge for land reclamation;

5.3.4 $125,000 for land disposal facilities;

5.3.5 $75,000 for projects other than those in Subsection 503(1)-(4).

5.3.6 $10,000 for distribution and marketing.

5.4 Consolidation of Bonds. For permits to apply sludge to land at agricultural rates or at land reclamation rates the Department may allow a sludge utilizer to file one bond to cover more than one utilization site. The amount of the bond shall be the amount shown in Subsection 503 for the first site plus 40 percent of the amount shown in Subsection 503 for each additional site up to a minimum total of $200,000.

5.5 Liability. Liability under the bond shall remain in effect until the expiration date of the permit. The Department shall release the bond after the Department determines that all of the conditions of the permit or permits covered by the bond have been fulfilled.

5.6 Execution and Payment of Bond.

5.6.1 The bond shall be executed by the applicant and by a corporate surety licensed to do business in this State. Instead of having a bond executed by a corporate surety, the applicant may elect to deposit, with the Department, cash or negotiable bonds of the federal government or of this State or any other securities acceptable to the Department. The amount of the cash deposit or the market value of any securities shall be at least equal to the required sum of the bond. The Department shall receive and hold the cash or securities in trust, for the purposes for which the deposit is posted.

5.6.2 The obligation of the applicant and of any corporate surety under the bond shall become due and payable, and all or any part of any cash or securities shall be applied to payment of the costs of properly fulfilling any requirement of the Permit if the Department has:

5.6.2.1 Notified the applicant and any corporate surety that the conditions of the Permit have not been fulfilled, and specified in the notice the particular deficiencies in the fulfillment of the permit conditions;

5.6.2.2 Given the applicant and any corporate surety a reasonable opportunity to correct the deficiencies and to fulfill all of the conditions of the permit; and

5.6.2.3 Determined that, at the end of a reasonable length of time, some or all of the deficiencies specified under Subsection 506(2)(a), above, remain uncorrected.

7 Del. Admin. Code § 7202-5.0