020-27 Wyo. Code R. § 27-19

Current through April 27, 2019

Section 27-19 - Financial responsibility

(a) The permittee of any Class I well shall demonstrate and maintain financial responsibility and resources to close, plug, abandon, reclaim, and maintain post-closure care for the underground injection operation in a manner prescribed by the Administrator. The permittee shall show evidence of such financial responsibility to the Administrator.

(b) All Class I hazardous waste and non-hazardous waste underground injection facilities and Class V coalbed methane produced water underground injection facilities that are permitted, are issued a permit renewal, or are issued a permit transfer after July 1, 2018, shall provide financial assurance in accordance with W.S. 35-11-302(a)(viii).

• (i) Permittees shall provide financial assurance within ninety (90) days of the effective date of the rule or as described below, whichever is later:
  • (A) Thirty (30) days prior to drilling of the permitted well(s) for new facilities; or
  • (B) Prior to authorization of a permit renewal for existing facilities; or
  • (C) Prior to authorization of a permit transfer; or
  • (D) The well has been converted in compliance with the requirements of 40 CFR 144.51(n), in effect as of July 1, 2018.

(c) At a minimum, the permittee shall prepare a written estimate, in current dollars, of the cost of plugging and abandonment of the well, surface reclamation, post-closure care, removal of infrastructure including but not limited to piping, above and below ground tanks, buildings, impoundments, access roads, fencing, electrical facilities, or any other physical materials used in the operation and maintenance of the injection well.

• (i) The permittee shall adjust the cost estimate for inflation and increases in costs:
  • (A) For Class I hazardous waste underground injection facilities, within thirty (30) days after each anniversary of the date on which the first cost estimate was prepared.
  • (B) For Class I non-hazardous waste underground injection facilities and Class V coalbed methane produced water underground injection facilities, within sixty (60) days after each anniversary of the date on which the first cost estimate was prepared.

• (ii) The permittee shall revise the cost estimate whenever a change in the plan increases the cost, and adjust the revised cost estimate for inflation.

• (iii) For Class I hazardous waste wells, the cost estimate must equal the cost at the point in the facility's operating life when the extent and manner of its operation would be the most expensive.

(d) The permittee shall keep the following at the facility during the operating life of the facility:

• (i) The latest cost estimate and;

• (ii) The latest adjusted cost estimate when the cost estimate in paragraph (i) above has been adjusted.

(e) The amount of the funds available shall be no less than the amount identified as the estimated cost.

(f) The obligation to maintain financial responsibility survives the termination of a permit or the cessation of injection. The requirements to maintain financial responsibility are enforceable regardless of whether the requirement is a condition of the permit

(g) The permittee of each facility shall establish financial assurance for each new and existing Class I hazardous waste or non-hazardous waste underground injection facility or Class V coalbed methane produced water injection facility and shall choose from the qualifying instruments below:

• (i) Corporate surety bonds,

• (ii) Federally insured Automatically Renewable Certificates of Deposit (C.D.),

• (iii) U.S. Treasury Bonds, Bills, or Notes,

• (iv) Cash,

• (v) Letters of Credit, or

• (vi) A combination of the above instruments may be submitted.

(h) Upon completion of any of the activities identified in the cost estimate, the amount of the financial surety required may be reduced by the Administrator.

(i) In addition to the other requirements of this section, the permittee of a Class I well injecting hazardous waste shall comply with the financial responsibility requirements of 40 CFR 144 Subpart F, which are in effect as of July 1, 2018.

020-27 Wyo. Code R. § 27-19

Adopted, Eff. 9/15/2015.

Amended, Eff. 12/3/2018.