20.9.10.13

ALLOWABLE MECHANISMS.

1. A. The owner or operator shall establish a financial assurance mechanism to ensure that the funds necessary to meet the costs of closure, post-closure care, phase I and phase II assessments, and corrective action for known releases will be available whenever they are needed. The allowed mechanisms are:

   (1) trust fund;

   (2) surety bond;

   (3) irrevocable letter of credit;

   (4) insurance;

   (5) risk management pool;

   (6) local government financial test;

   (7) local government guarantee;

   (8) local government reserve fund;

   (9) corporate financial test; or

   (10) multiple mechanisms.

2. B. Owners or operators shall implement one or more of the financial assurance mechanisms specified in 20.9.10.14 - 20.9.10.23 NMAC. Each selected mechanism shall be made payable to or name the New Mexico governmental entity or entities that own or operate the facility as the beneficiary of the instrument, but if no New Mexico governmental entity or entities own or operate the facility, then the instrument shall be made payable to or name the New Mexico environment department as the beneficiary.

[20.9.10.13 NMAC - Rp, 20 NMAC 9.1.IX.906, 8/2/2007]