| (-b-) the permit is terminated or revoked or a new
permit is denied;
(-c-) closure is ordered by the director or a United
States district court or other court of competent jurisdiction;
(-d-) the owner or operator is named as debtor in a
voluntary or involuntary proceeding under Title 11 (Bankruptcy), U.S.
Code; or
(-e-) the amount due is paid.
(E) During the active life of the geologic storage
project, the owner or operator must adjust the cost estimate for inflation
within 60 days prior to the anniversary date of the establishment
of the financial instruments used to comply with paragraph (2)(C)(i)
of this subsection and provide this adjustment to the director. The
owner or operator must also provide to the director written updates
of adjustments to the cost estimate within 60 days of any amendments
to the area of review and corrective action plan, the injection well
plugging plan, the post-injection storage facility care and closure
plan, and the emergency and remedial response plan.
(F) The owner or operator of a geologic storage facility
must provide to the director, and the director must approve, annual
written updates of the cost estimate to increase or decrease the cost
estimate to account for any changes to the AOR and corrective action
plan, the emergency response and remedial action plan, the injection
well plugging plan, and the post-injection storage facility care and
closure plan. The Director must approve any decrease or increase to
the initial cost estimate. During the active life of the geologic
storage project, the owner or operator must revise the cost estimate
no later than 60 days after the director has approved the request
to modify the AOR and corrective action plan, the injection well plugging
plan, the post-injection storage facility care and closure plan, and
the emergency and response plan, if a change in any of these plans
increases the cost. If a change to a plan decreases the cost, any
withdrawal of funds must be approved by the director. Any decrease
to the value of a financial assurance instrument must first be approved
by the director. The revised cost estimate must be adjusted for inflation
as specified at paragraph (2)(E) of this subsection. The owner or
operator must provide to the director, within 60 days of notification
by the director, an adjustment of the cost estimate if the director
determines during the annual evaluation of the qualifying financial
responsibility instruments that the most recent demonstration is no
longer adequate to cover the cost of corrective action, injection
well plugging and post-injection storage facility care and closure,
and emergency and remedial response.
(G) Whenever the current cost estimate increases to
an amount greater than the face amount of a financial instrument currently
in use, the owner or operator, within 60 days after the increase,
must either cause the face amount to be increased to an amount at
least equal to the current cost estimate and submit evidence of such
increase to the director or obtain other financial responsibility
instruments to cover the increase. Whenever the current cost estimate
decreases, the face amount of the financial assurance instrument may
be reduced to the amount of the current cost estimate only after the
operator has received written approval from the director.
(H) The requirement to maintain adequate financial
responsibility is directly enforceable regardless of whether the requirement
is a condition of the permit.
(i) The owner or operator must maintain financial responsibility
until:
(I) the director receives and approves the completed
post-injection storage facility care and closure plan; and
(II) the director issues the certificate of closure.
(ii) The owner or operator may be released from a financial
instrument in the following circumstances:
(I) The owner or operator has completed the phase of
the geologic storage project for which the financial instrument was
required and has fulfilled all its financial obligations as determined
by the director, including obtaining financial responsibility for
the next phase of the geologic storage project, if required; or
(II) The owner or operator has submitted a replacement
financial instrument and received written approval from the director
accepting the new financial instrument and releasing the owner or
operator from the previous financial instrument.
(3) The director may consider allowing the phasing
in of financial assurance for only corrective action based on project-specific
factors.
(4) The director may approve a reduction in the amount
of financial assurance required for post-injection monitoring and/or
corrective action based on project-specific monitoring results.
(5) The owner or operator must maintain the required
financial responsibility regardless of the status of the director's
review of the financial responsibility demonstration.
(d) Notice of adverse financial conditions.
(1) The owner or operator must notify the Commission
of adverse financial conditions that may affect the owner's or operator's
ability to carry out injection well plugging and post-injection storage
facility care and closure. An owner or operator must file any notice
of bankruptcy in accordance with §3.1(f) of this title (relating
to Organization Report; Retention of Records; Notice Requirements).
The owner or operator must give such notice by certified mail.
(2) The owner or operator filing a bond must ensure
that the bond provides a mechanism for the bond or surety company
to give prompt notice to the Commission and the owner or operator
of any action filed alleging insolvency or bankruptcy of the surety
company or the bank or alleging any violation that would result in
suspension or revocation of the surety or bank's charter or license
to do business.
(3) Upon the incapacity of a bank or surety company
by reason of bankruptcy, insolvency or suspension, or revocation of
its charter or license, the Commission must deem the owner or operator
to be without bond coverage. The Commission must issue a notice to
any owner or operator who is without bond coverage and must specify
a reasonable period to replace bond coverage, not to exceed 60 days.
|
| Source Note: The provisions of this §5.205 adopted to be effective December 20, 2010, 35 TexReg 11202; amended to be effective September 19, 2022, 47 TexReg 5797; amended to be effective September 11, 2023, 48 TexReg 5022 |
