(a) To apply for payment of a third-party claim, an owner or operator must meet the requirements for coverage set forth in 8 CAR § 80-403 and meet the application requirements of either:

1. (1) Subsection (c) of this section for judgments; or
2. (2) Subsection (e) of this section for settlements.

(b)

1. (1) Unless otherwise stated in writing, an item is considered satisfied or compensated if it is:

   1. (A) Contained in any information submitted to support a third-party claim;
   2. (B) Presented for payment; and
   3. (C) Approved and paid.
2. (2) A third-party claim is not reimbursable as corrective action under Subpart 3 of this part unless otherwise agreed to in writing before it is approved for payment.

(c) An owner or operator against whom a judgment has been entered, by either a valid final court order or valid final order of the Arkansas State Claims Commission, for compensatory damages caused by an accidental release from a qualified petroleum storage tank system, must submit:

1. (1) A copy of the order;
2. (2) Proof that the judgment, or a portion of the judgment, is for compensatory damages, if the proof is not clearly shown on the face of the order; and
3. (3) Before payment is made from the Petroleum Storage Tank Trust Fund, proof of payment of the deductible of seven thousand five hundred dollars ($7,500).

(d)

1. (1) An owner or operator shall cooperate with and assist the Division of Environmental Quality and, if applicable, the office of the Attorney General in connection with the third-party claim.
2. (2) At a minimum, cooperation shall include active participation by the owner or operator throughout the litigation and providing assistance as required by the division or the office of the Attorney General during resolution of a third-party claim.
3. (3) Reimbursement or payment of a third-party claim may be denied if an owner or operator fails to comply with the requirements of subdivisions (d)(1) and (2) of this section.

(e)

1. (1) An owner or operator who has entered into a settlement agreement with a third party resolving a claim for compensatory damages caused by an accidental release from a qualified petroleum storage tank system must submit to the division:

   1. (A) A copy of the legally binding settlement agreement, including a dismissal with prejudice of the third-party’s cause of action in accordance with the Arkansas Rules of Civil Procedure or Federal Rules of Civil Procedure, that releases the owner or operator from all future liability to the third-party claimant for the occurrence;
   2. (B) Documentation supporting each claim for which payment is sought;
   3. (C) A notarized certification from the owner or operator and the third-party claimant that the third-party claim should rightfully be paid; and
   4. (D) Before payment is made from the trust fund, proof of payment of the deductible of seven thousand five hundred dollars ($7,500).

2. (2)

   1. (A) As an alternative to providing a legally binding settlement agreement under subdivision (e)(1)(A) of this section, an owner or operator may submit a copy of a proposed settlement agreement and request a preliminary division review of the agreement before it is made binding.
   2. (B) However, the settlement agreement must be made binding, except as provided in subdivision (e)(3) of this section, before it is submitted to the Advisory Committee on Petroleum Storage Tanks.
3. (3) Any otherwise binding settlement agreement submitted under this subsection may be conditioned upon approval of payment from the trust fund.