Ala. Admin. Code r. 335-14-17-.05
(1) Applicability.
(a) General. Except as provided in 335-14-17-.05(1)(a)1. through (a)4., 335-14-17-.05 applies to all used oil transporters. Used oil transporters are persons who transport used oil, persons who collect used oil from more than one used oil generator and transport the collected oil, and owners and operators of used oil transfer facilities.
(d) Other applicable provisions. Used oil transporters who conduct the following activities are also subject to other applicable provisions of 335-14-17 as indicated in 335-14-17-.05(1)(d)1. through (d)5.
(2) Restrictions on transporters who are not also processors or re-refiners.
(3) EPA Identification Number and Alabama Used Oil Transport Permit.
(4) Financial Requirements. Any person, except for the State of Alabama and Federal government, proposing to transport used oil shall submit, with their application for an Alabama Used Oil Transport Permit, one of the following:
(a) A surety bond in which the applicant is the principal obligor and the Department is the obligee;
2. The wording of the surety bond must be identical to the following:
SURETY BOND
Date bond executed: ____________________
Effective date: Principal: ______________________________
____________________________________________________
____________________________________________________
[legal name, business address and EPA identification number of applicant]
Type of organization: _________________________________
[insert “individual”, “joint venture”, “partnership” or “corporation”]
State of incorporation: __________________________________
______________________________________________________
[name(s) and business address(es)]
Surety(ies): ___________________________________________
Total penal sum of bond: $___________________________
Surety's bond number: ______________________________
Know All Persons By These Presents, That we, the Principal and Surety(ies) hereto are firmly bound to the Alabama Department of Environmental Management (hereinafter, “the Department”), in the above penal sum for the payment of which we bind ourselves, our heirs, executors, administrators, successors and assigns jointly and severally; provided that, where the Surety(ies) are corporations acting as co-sureties, we, the Sureties, bind ourselves in such sum “jointly and severally” only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each Surety binds itself, jointly and severally with the Principal, for the payment of such sum only as is set forth opposite the name of such Surety, but if no limit of liability is indicated, the limit of liability shall be the full amount of the penal sum.
Whereas said Principal is required, under the Alabama Hazardous Wastes Management and Minimization Act of 1978, as amended (AHWMMA), to have a permit in order to transport used oil, and
Whereas said Principal is required by Code of Ala. 1975, §22-30-12(c)(4) to provide financial assurance for compliance with the AHWMMA, the regulations promulgated thereunder, the permit issued to the Principal and any orders issued to the Principal by the Department, and for damages to human health and the environment, including the costs of cleanups caused by spills.
Now, Therefore, the conditions of this obligation are such that if the Principal shall faithfully comply with the AHWMMA, the regulations promulgated thereunder, the permit issued to the Principal, any order(s) issued to the Principal by the Department, and correct any damages to human health or the environment, including the cleanup of spills as approved by the Department for the term of the permit issued to the Principal and the Surety(ies) gives notice of intent not to renew this Performance Bond not less than 90 days prior to the expiration of the permit issued to the Principal,
Or, if the Principal shall provide alternate financial assurance as specified in 335-14-17-.05(4)(b) or (c) of the Alabama Department of Environmental Management Administrative Code and obtain the Department's written approval of such assurance within 90 days after the date notice of cancellation is received by both the Principal and the Department from the Surety(ies) then this obligation shall be null and void, otherwise it is to remain in full force and effect.
The Surety(ies) shall become liable on this bond obligation only when the Principal has failed to fulfill the conditions described above.
Upon notification by the Department that the Principal has been found in violation of the AHWMMA, the regulations promulgated thereunder, the permit issued to the Principal or any order(s) issued to the Principal for activities regulated pursuant to the AHWMMA, the Surety(ies) shall correct the violation, including the cost of any remedial action, and pay any penalties assessed by the Department against the Principal or shall within 15 days after notification by the Department, pay to the Department the amount designated as the total penal sum of the bond or such amount as remains if previous violations have been assessed against this bond.
The Surety(ies) hereby waive(s) notification of amendments to permits, applicable laws and regulations and agrees that no such amendment shall in any way alleviate its (their) obligation on this bond.
The liability of the Surety(ies) shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in aggregate to the penal sum of the bond, but in no event shall the obligation of the Surety(ies) hereunder exceed the amount of said penal sum.
In Witness Whereof, The Principal and Surety(ies) have executed this Performance Bond and have affixed their seals on the date set forth above.
The persons whose signatures appear below hereby certify that they are authorized to execute this surety bond on behalf of the Principal and Surety(ies) and that the wording of this surety bond is identical to the wording specified in rule 335-14-17-.05(4)(a) of the Alabama Department of Environmental Management Administrative Code as such rule was constituted on the date this bond was executed.
PRINCIPAL
[Signature(s)] __________________________________________
_______________________________________________________
[Name(s)] _____________________________________________
_______________________________________________________
(Title(s)] _______________________________________________
_______________________________________________________
[Corporate seal]
CORPORATE SURETY(IES)
[Name and address] _______________________________________
__________________________________________________________
__________________________________________________________
State of incorporation: _____________________________________
Liability limit: $_________________________________
[Signature(s)] _____________________________________________
_________________________________________________________
[Name(s) and title(s)] _______________________________________
_________________________________________________________
[Corporate seal]
[For every co-surety provide the above required information, signature(s) and corporate seal.]
Bond premium: $________________________________
3. The amount of the surety bond for environmental restoration shall be established as follows:
(b) Evidence satisfactory to the Department that the person proposing to transport used oil has a net worth equal to ten times the value of the proposed surety bond. Such evidence shall be submitted in the form of a letter from the Chief Financial Officer of the applicant and shall be in a form identical to the following:
DEMONSTRATION OF NET WORTH
Letter From the Chief Financial Officer
(To demonstrate net worth as required by Code of Ala. 1975, §22-30-12(c)(4) in order to demonstrate financial responsibility for noncompliance with the Alabama Hazardous Wastes Management and Minimization Act of 1978, the regulations promulgated thereunder and any permits or orders issued to the applicant and to demonstrate financial responsibility for damages to human health and the environment, including the costs of cleanups, caused by spills. This demonstration may be used in conjunction with other allowable mechanisms in order to provide the required coverage.)
[Address to the Director, Alabama Department of Environmental Management, P.O. Box 301463, Montgomery, Alabama 36130-1463]
I am the chief financial officer of [applicant's name, address and EPA transporter identification number]. This letter is in support of the use of the demonstration of net worth to demonstrate financial responsibility as required by Code of Ala. 1975, §22-30-12(c)(4) and Rule 335-14-17-.05 of the Alabama Department of Environmental Management Administrative Code.
This applicant [insert “is required” or “is not required”] to file a Form 10K with the Securities and Exchange Commission (SEC) for the latest fiscal year.
The fiscal year of this applicant ends on [month, day]. The figures for the following items marked with an asterisk are derived from a year-end financial statement(s) for the latest completed fiscal year, ended [date], prepared for the applicant by an independent auditor.
Net Worth
Amount of annual aggregate financial responsibility to be demonstrated . . .
$_______________
*2. Total assets . . . . . . . . . . . . . $_______________
*3. Total liabilities. . . . . . . . . . . $_______________
*4. Net worth (line 2 minus line 3). . . . $_______________
*5. If less than 90% of assets are located in the U.S. give total U.S. assets. . .
$_______________
6. Is line 4 at least 10 times line 1?. . _____Yes _____No
I hereby certify that the wording of this letter is identical to that in Rule 335-14-17-.05(4)(b) of the Alabama Department of Environmental Management Administrative Code.
[Signature] _______________________________________
[Name] __________________________________________
[Title] ___________________________________________
[Date] ___________________________________________
(5) Used oil transportation.
(a) Deliveries. A used oil transporter must deliver all used oil received to:
(c) Used oil discharges.
3. An air, rail, highway, or water transporter who has discharged used oil must:
6. In addition to the reporting requirements of 335-14-17-.05(5)(c)3., a transporter must notify the Department of any discharge of greater than 25 gallons of used oil during transportation no later than 24 hours after any such discharge. The notification must include the following:
(6) Rebuttable presumption for used oil.
(b) The transporter must make this determination by:
(c) If the used oil contains greater than or equal to 1,000 ppm total halogens, it is presumed to be a hazardous waste because it has been mixed with halogenated hazardous waste listed in Rule 335-14-2-.04. The owner or operator may rebut the presumption by demonstrating that the used oil does not contain hazardous waste [for example, by showing that the used oil does not contain significant concentrations of halogenated hazardous constituents listed in Appendix VIII of Chapter 335-14-2].
(7) Used oil storage at transfer facilities. Used oil transfer facilities are subject to all applicable Spill Prevention, Control and Countermeasures (40 CFR Part 112) in addition to the requirements of 335-14-17-.05. Used oil transporters are also subject to the Underground Storage Tank (Division 335-6, Volume II) standards for used oil stored in underground used oil tanks whether or not the used oil exhibits any characteristics of hazardous waste, in addition to the requirements of 335-14-17-.05.
(c) Storage units. Owners or operators of used oil transfer facilities may not store used oil in units other than used oil tanks, containers, or units subject to regulation under Chapters 335-14-5 or 335-14-6.
2. The owner/operator must use appropriate controls and/or practices to prevent spills and overflows from used oil tanks. These include, but are not limited to:
3. Special requirements for the management of ignitable used oil.
(d) A used oil transfer facility must be able to demonstrate the length of time that the used oil has been accumulated from the date it is received. The handler may make this demonstration by:
(e) Condition of units. Containers and aboveground used oil tanks used to store used oil at transfer facilities must be:
(f) Secondary containment for containers. Containers used to store used oil at transfer facilities must be equipped with a secondary containment system.
1. The secondary containment system must consist of, at a minimum:
(g) Secondary containment for existing aboveground used oil tanks. Existing aboveground used oil tanks used to store used oil at transfer facilities must be equipped with a secondary containment system.
1. The secondary containment system must consist of, at a minimum:
(h) Secondary containment for new aboveground used oil tanks. New aboveground used oil tanks used to store used oil at transfer facilities must be equipped with a secondary containment system.
1. The secondary containment system must consist of, at a minimum:
(i) Labels. Labels must be legible from a distance of at least 25 feet.
(j) Response to releases. Upon detection of a release of used oil to the environment that is not subject to the corrective action requirements of Division 335-6, Volume 2 of the ADEM Administrative Code, which has occurred after the effective date of these Rules, the owner/operator of a transfer facility must perform the following cleanup steps:
(k) Closure.
1. Aboveground used oil tanks. Owners and operators who store used oil in aboveground tanks must comply with the following requirements:
2. Containers. Owners and operators who store used oil in containers must comply with the following requirements:
(8) Tracking.
(a) Acceptance. Used oil transporters must keep a record of each used oil shipment accepted for transport. Records for each shipment must include:
4. The date of acceptance; and
5.(i) Except as provided in 335-14-17-.05(8)(a)5.(ii), the signature, dated upon receipt of the used oil, of a representative of the used oil generator, used oil transporter, or used oil processor/re-refiner who provided the used oil for transport.
(b) Deliveries. Used oil transporters must keep a record of each shipment of used oil that is delivered to another used oil transporter, or to a used oil burner, used oil processor/re-refiner, or disposal facility. Records of each delivery must include:
4. The date of delivery;
5.(i) Except as provided in 335-14-17-.05(8)(b)5.(ii), the signature, dated upon receipt of the used oil, of a representative of the receiving facility or used oil transporter.
(d) Residues from the Storage or Transport of Used Oil. Used oil transporters must keep a record of each shipment of residues resulting from the storage or transport of used oil that is delivered or offered to another transporter or facility. Records of each shipment must include:
(9) Recordkeeping.
Author: James T. Shipman, C. Edwin Johnston, Lawrence A. Norris, Abe Oberkor, Bradley N. Curvin; Clethes Stallworth, Linda J. Knickerbocker
Statutory Authority: Code of Ala. 1975, §§22-22A-4(n), 22-22A-5(3), 22-22A-5(4), 22-22A-5(20), 22-30-9(5).
History: New Rule: Filed November 30, 1994 effective January 5, 1995. Amended: Filed December 8, 1995; effective January 12, 1996. Amended: Filed February 2, 1996; effective March 8, 1996. Amended: Filed February 26, 1999; effective April 2, 1999. Amended: Filed March 9, 2001; effective April 13, 2001. Amended: Filed February 8, 2002; effective March 15, 2002. Amended: Filed March 13, 2003; effective April 17, 2003. Amended: Filed April 22, 2004; effective May 27, 2004. Amended: Filed February 24, 2005; effective March 31, 2005. Amended: Filed February 28, 2006; effective April 4, 2006. Amended: Filed February 27, 2007; effective April 3, 2007. Amended: Filed April 22, 2008; effective May 27, 2008. Amended: Filed February 24, 2009; effective March 31, 2009. Amended: Filed February 23, 2010; effective March 30, 2010. Amended: Filed February 23, 2011; effective March 30, 2011. Amended: Filed February 28, 2012; effective April 3, 2012. Amended: Filed February 19, 2013; effective March 26, 2013. Amended: Filed February 19, 2019; effective April 6, 2019. Amended: Published December 31, 2025; effective February 14, 2026.