Wyo. Code R. 020-0011-14
Effective Date: 10/02/2020 to Current
Rule Type: Current Rules & Regulations
Reference Number: 020.0011.14.10022020
(a) This Chapter is promulgated pursuant to the Wyoming Environmental Quality Act, Wyoming Statutes (W.S.) § 35-11-101 through § 35-11-2005, specifically § 306 and § 307.
(b) This Chapter governs all commercial oil field waste disposal facilities that are required to demonstrate financial assurance under W.S. § 35-11-306(c) and all commercial waste treatment, storage and disposal facilities used for the management of more than ten (10) tons of dried wastewater treatment sludges or the equivalent per operating day that are required to demonstrate financial assurance under W.S. § 35-11-307(a). This chapter does not apply to publicly owned facilities or facilities that receive non-domestic sludges.
(c) The following definitions supplement those contained in W. S. § 35-11-103 of the Wyoming Environmental Quality Act:
(i) 'Closure' means the process of securing and stabilizing a regulated facility pursuant to the requirements of this Chapter and a closure plan approved by the Department.
(ii) 'Corrective action' means all actions necessary to remedy, abate, and eliminate the public health threat, environmental threat, and damages from a release to the environment of pollutants from a regulated facility or from any violation of a permit, standard, rule, or other requirement established under the Wyoming Environmental Quality Act
(iii) 'Monitoring' means all procedures and techniques used to systematically collect, analyze and inspect data on operational parameters of the facility or on the quality of the air, groundwater, surface water, and soil.
(iv) 'Operator' means a person who owns or operates a regulated facility or a person who holds a permit to construct, install, modify, or operate a regulated facility.
(v) 'Regulated facility' means a commercial sludge facility or a commercial oil field waste disposal facility as specified in Section 1(b) of this chapter.
(vi) 'Release' includes, but is not limited to, any spilling, leaking, pumping, pouring, emptying, emitting, discharging, dumping, addition, escaping, leaching, or unauthorized disposal of any pollutant that enters, or threatens to enter, the air, land or waters of the State.
(a) All regulated facilities shall provide financial assurance for closure, post-closure, and corrective action in compliance with this Chapter.
(b) No new permit shall be issued for any regulated facility unless the applicant provides financial assurance that ensures there are adequate sources of funds to provide for closure, post-closure, and corrective action.
(i) The Department may deny a permit application if the documentation or proposed forms of financial assurance do not ensure that adequate funds will be available to provide for closure, post-closure, and corrective action.
(ii) A permit may be transferred to a new permittee only if the new permittee demonstrates compliance with the financial assurance requirements of this Chapter. Construction permit ownership will be transferred in accordance with Water Quality Rules and Regulations, Chapter 3, Section 12.
(c) Any operator of a regulated facility that violates a permit, standard, rule, or requirement established under the Wyoming Environmental Quality Act that results in a release of pollution or waste to the air, land, or water resources of the state shall provide financial assurance for the costs of completing corrective action to remedy or abate the violation or damages caused by the violation.
(d) An operator shall submit documentation of the financial assurance to the Department as part of any permit application for a regulated facility and shall update documentation of financial assurance as required by Sections 3(d)(iv), 3(e)(iv), 4(d)(iv), 5(c)(ii), and 5(d)(ii) of this Chapter. The Department shall determine whether the documentation and proposed forms of financial assurance are adequate and shall notify the applicant in writing of its determination.
(a) At least one hundred eighty (180) days prior to the anticipated date for initiation of closure of a regulated facility, the operator shall:
(i) Notify the Department in writing of the operator’s intention to close a regulated facility;
(ii) Notify the governing body of each locality and adjacent property owners by certified or registered mail of the operator’s intention to close a regulated facility;
(iii) Post at least one (1) sign at the regulated facility notifying all persons of the anticipated closing and prohibition against further receipt of waste materials; and (iv) Install barriers at all access points to prevent new waste from being deposited.
(b) An operator or permit applicant shall submit a closure plan and a post-closure plan with each permit application for a regulated facility. Additionally, a permittee shall submit a revised closure plan and revised post-closure plan to the Department whenever changes to facility operations, conditions, or anticipated closure necessitate changes to the plans.
(c) The closure plan shall:
(i) Describe the work necessary to minimize or eliminate, to the extent necessary to protect human health and the environment, the post-closure escape of leachate, surface runoff, or waste decomposition products to the groundwater, surface water, or the atmosphere;
(ii) Minimize the need for post-closure maintenance and controls; and
(iii) Include a cost estimate.
(d) The closure plan cost estimate shall:
(i) Include an itemized written estimate of the cost of completing all work described in the closure plan;
(ii) Be based on the cost required for a third-party contractor to complete the work described in the closure at the most expensive point in the life of the facility;
(iii) Account for the following factors:
(A) The size and topography of the site;
(B) The total waste material storage capacity at the site;
(C) Availability of cover and fill material needed for site grading;
(D) The type of waste to be received at the site;
(E) Disposal method and sequential disposal plan;
(F) The location of the site and the character of the surrounding area;
(G) Requirements for surface drainage;
(H) Operation and maintenance of the leachate collection and treatment system, and, the off-site disposal of leachate;
(I) Environmental monitoring system;
(J) Structures and other improvements to be dismantled and removed. Salvage values cannot be used to offset demolition costs;
(K) Site storage capacity for solid waste, incinerator residue, and compost material;
(L) Off-site disposal requirements;
(M) Vector control requirements;
(N) A minimum of fifteen percent (15%) variable contingency fee to cover other closure costs as determined appropriate by the Department; and
(O) Any other relevant site-specific factors.
(iv) Be updated, revised, and submitted to the Department by April 1 of each year.
(e) The post-closure plan shall:
(i) Describe the monitoring, maintenance, and controls necessary to confirm that:
(A) Post-closure escape of leachate, surface runoff, or waste decomposition products to the groundwater, surface water, or the atmosphere has been minimized or eliminated to the extent necessary to protect human health and the environment; and
(B) The facility has been stabilized and closed in accordance with the most recent approved closure plan.
(ii) Establish the monitoring period necessary to ensure that the regulated facility has been stabilized and closed in accordance with the most recent approved closure plan. The monitoring period shall continue for a minimum of five (5) years after the date of completing closure of the regulated facility, but the Department may require a longer monitoring period or extend the post-closure monitoring period if the Department determines a longer monitoring period is necessary to protect human health and the environment; and (iii) Include a cost estimate. However, an incinerator, resource recovery facility, compost facility, or storage surface impoundment may omit the post-closure plan cost estimate from its post-closure plan if onsite disposal of wastes or residues is not planned or required.
(f) The post-closure plan cost estimate shall:
(i) Include a written estimate of the cost of completing all work described in the post-closure plan;
(ii) Be based on the cost required for a third-party contractor to complete the work described in the post-closure plan;
(iii) Account for the following factors :
(A) The size and topography of the site;
(B) The type and quantity of waste that can be received;
(C) Disposal method and sequential disposal plan;
(D) The potential for significant leachate production and the possibility of contaminating water supplies;
(E) Environmental monitoring systems;
(F) Soil conditions;
(G) The location of the site and the character of the surrounding area;
(H) A minimum of fifteen percent (15%) contingency fee to cover other post-closure costs as determined appropriate by the Department; and
(I) Other site-specific factors.
(iv) Be updated, revised, and submitted to the Department by April 1 of each year.
(g) Inspection:
(i) The Department shall inspect all closed regulated facilities to determine if the closure is complete and adequate in accordance with the approved plan after being notified by the operator that closure has been completed. The Department shall provide written inspection results to the operator of a closed facility after the inspection. If the closure is not satisfactory, the Department shall specify necessary construction or such other steps that may be appropriate to bring unsatisfactory sites into compliance with closure requirements.
(ii) Notification by the Department that the closure is satisfactory does not relieve the operator of responsibility for corrective action in accordance with regulations of the Department to prevent or abate problems caused by the regulated facility that are subsequently discovered.
(h) Within sixty (60) days after receiving certification from the owner or operator that closure has been accomplished in accordance with the closure plan and the provisions of this Chapter, the Director shall verify that proper closure has occurred. Unless the Director has reason to believe that closure has not been in accordance with the closure plan, the Director shall notify the owner or operator in writing that the Director is no longer required to maintain financial assurance for closure of the particular facility. Such notice shall release the owner or operator only from the requirements for financial assurance for closure of the facility; it does not release the Director from legal responsibility for meeting the closure or post-closure standards. If no written notice or termination of financial assurance requirements or failure to properly perform closure is received by the owner or operator within sixty (60) days after certifying proper closure, the owner or operator may petition the Director for an immediate decision, in which case the Director shall respond within ten (10) days after receipt of such petition.
(a) The Department shall notify the operator of the need to take corrective action to remedy a violation of a permit condition, standard, rule or requirement relating to a regulated facility. The notification shall describe the nature of the violation.
(i) If deemed necessary by the Department, the operator will be required to close the facility and cease further receipt of waste materials.
(ii) If the facility is closed, the operator shall post one (1) sign notifying all persons of the closing and prohibition against further receipt of waste materials. Further, suitable barriers shall be installed at former accesses to prevent new waste from being deposited.
(b) Remediation Activities: In the event of a release, the operator shall:
(i) Initiate immediate measures to:
(A) Prevent further release to the environment;
(B) Prevent further migration of the released substance into surrounding soils and Waters of the State; and (C) Identify, monitor and mitigate any safety hazards or health risks associated with the violation.
(ii) Comply with all applicable requirements of Wyoming Water Quality Rules and Regulations, Chapter 4; and
(iii) If more than 10 barrels (420 gallons) of crude oil, petroleum condensate, produced water, or a combination thereof, or more than 25 gallons of refined crude oil products (including but not limited to gasoline; diesel motor fuel; aviation fuel; asphalt; road oil; kerosene; fuel oil; and derivatives of mineral, animal, or vegetable oils) are released:
(A) Prepare a plan to conduct an investigation of the release, the release site and any surrounding area that may be affected by the release. The plan shall include:
(I) A comprehensive subsurface investigation to define the extent and degree of contamination.
(II) A schedule for conducting the investigation.
(III) A cost estimate for a third-party to perform the tasks identified by the plan.
(B) Submit the investigation plan to the Department within thirty (30) days. The extent of contamination study should begin as soon as the plan has been approved and all necessary permits obtained.
(C) Conduct the extent of contamination study in accordance with the approved plan and submit a written report of the findings to the Department.
(D) If required by the Department, develop a comprehensive plan for mitigation and clean-up. The remediation plan shall be submitted to the Department for approval. The remediation plan shall be implemented as soon as the Department has approved the plan and all necessary permits have been obtained. The remediation plan shall contain an estimate of the costs for a third-party to perform the tasks identified by the plan.
(c) Cost Estimate for Corrective Action:
(i) The operator of a commercial oil field disposal system regulated under W.S. § 35-11-306 or a commercial sludge facility regulated under W.S. § 35-11-307 in submitting an application for a construction permit as required by Chapter 3, Wyoming Water Quality Rules and Regulations shall include a written estimate of the cost of corrective actions to remediate a release from the facility. The estimated cost of corrective action and clean-up of a release shall be determined by the Department on a case-by-case basis considering information submitted by the operator. Such costs shall be based on the work required for a third-party contractor.
(ii) The factors to be considered in estimating the cost of corrective actions and clean-up of a release shall include the following:
(a) The Department shall establish the amount of financial assurance required for regulated facilities based on the plans and cost estimates for closure, post-closure, and corrective action. Upon receipt of a cost estimate, the Department shall determine whether the cost estimate meets the requirements of this Chapter and notify the operator in writing of its determination.
(b) If the Department determines that a cost estimate meets the requirements of this Chapter:
(i) The Department shall establish the amount of financial assurance required and notify the operator in writing of the amount established; and
(ii) The operator shall submit documentation of financial assurance in an amount at least equal to the Department's established financial assurance amount within thirty (30) days of the Department's establishment of the financial assurance amount.
(c) If the Department determines that a cost estimate does not meet the requirements of this Chapter:
(i) The Department shall notify the operator of the deficiencies in the cost estimate, and the operator shall revise and resubmit the cost estimate to the Department within thirty (30) days of the Department's determination; or
(ii) The Department shall establish the amount of financial assurance required and notify the operator in writing of the amount established, and the operator shall submit documentation of financial assurance in an amount at least equal to the Department's established financial assurance amount within thirty (30) days of the Department's establishment of the financial assurance amount.
(a) An operator of a regulated facility shall provide financial assurance in an amount at least equal to the established financial assurance amount for closure, post-closure, and corrective action in one (1) or a combination of the following:
(i) Surety bond;
(ii) Federally insured certificates of deposit;
(iii) Government-backed securities;
(iv) Cash.
(b) Surety Bonds:
(i) A corporate surety shall not be considered good and sufficient for purposes of W.S. § 35-11-307 or W.S. § 35-11-306 unless:
(A) It is licensed to do business in the State;
(B) The estimated bond amount does not exceed the limit of risk as provided for in W.S. § 26-5-110, nor raise the total of all bonds held by the applicant under that surety above three (3) times the limit of risk; and
(C) The surety agrees:
(I) Not to cancel bond, except as provided for in W.S. § 35-11-307 or W.S. § 35-11-306 or where the Department gives prior written approval of a good and sufficient replacement surety with transfer of the liability that has accrued against the operator on the permit area;
(II) To be jointly and severally liable with the permittee.
(III) To provide immediate written notice to the Department and operator once it becomes unable or may become unable due to any action filed against it to fulfill its obligations under the bond.
(ii) The provisions applicable to cancellation of the surety’s license in W.S. § 35-11-307 or W.S. § 35-11-306 shall also apply if for any other reason the surety becomes unable to fulfill its obligations under the bond. Upon such occurrence, the operator shall provide the required notice. Failure to comply with this provision shall result in suspension of the permit.
(c) In lieu of a bond, the facility operator shall deposit federally insured certificates of deposit payable to the Wyoming Department of Environmental Quality, cash, or government securities, or all three (3).
(i) Securities that are unencumbered shall only include those that are United States Government securities or State Government securities that are acceptable to the Director. Government securities must be endorsed to the order of the Department and placed in possession of the Department. Possession shall be in the form of the cash value of the irrevocable trust for the full amount of the reclamation obligation and payable to the Department and federally insured.
(ii) An operator shall satisfy the requirements of this subsection by establishing an irrevocable trust that conforms to the requirements below and submitting an originally signed duplicate of the trust agreement to the Administrator for consideration.
(A) The irrevocable trust must be submitted to the Director on the Wyoming Department of Environmental Quality Irrevocable Trust Form and be signed by the operator or guarantor as principal and the financial institution as Trustee, and made payable to the Department;
(B) The Trustee must be a bank organized to do business in the United States that has the authority to act as a trustee and whose trust operations is regulated and examined by a Federal Agency;
(C) The irrevocable trust must be cash funded for the full amount of the financial assurance obligation to be provided in the irrevocable trust before it may be approved to satisfy the requirements of financial assurance in lieu of a bond. For purposes of this subsection, “the full amount of the financial assurance obligation to be provided” means the amount of coverage for Closure, Post-Closure and Corrective Action required to be provided for the permit/facility, less the amount of financial assurance obligation that is being provided by other financial assurance mechanisms being used to demonstrate financial assurance by the operator or guarantor;
(D) Cancellation of an irrevocable trust shall follow the same procedures detailed in W.S. §35-11-306(j) for performance bonds; and
(E) Forfeiture proceeding for an irrevocable trust shall follow the same procedures detailed in W.S. §35-11-306(m) for performance bonds.