<<Prev Rule

Texas Administrative Code

Next Rule>>
TITLE 30ENVIRONMENTAL QUALITY
PART 1TEXAS COMMISSION ON ENVIRONMENTAL QUALITY
CHAPTER 336RADIOACTIVE SUBSTANCE RULES
SUBCHAPTER KCOMMERCIAL DISPOSAL OF NATURALLY OCCURRING RADIOACTIVE MATERIAL WASTE FROM PUBLIC WATER SYSTEMS
RULE §336.1019Liability Coverage and Funding for Naturally Occurring Radioactive Material Waste Disposal Facility Closure and Stabilization

(a) The applicant shall provide assurance 60 days prior to the initial receipt of waste that sufficient funds will be available to carry out closure and stabilization of the naturally occurring radioactive material (NORM) waste disposal facility, including:

  (1) decontamination or dismantlement of NORM waste disposal facility structures;

  (2) disposal of any radioactive material remaining at the NORM waste disposal facility at closure; and

  (3) closure and stabilization of the NORM waste disposal facility so that the site may be released for unrestricted use.

(b) The assurance must be based on cost estimates approved by the executive director that reflect the approved plan for closure and stabilization of the NORM waste disposal facility. The applicant's cost estimates must take into account total costs that would be incurred if an independent contractor were hired to perform the closure and stabilization work.

(c) Financial assurance mechanisms submitted to comply with subsection (a) of this section must meet the requirements specified in Chapter 37, Subchapter S of this title (relating to Financial Assurance for Radioactive Material). The licensee's financial assurance mechanism and cost estimates must be reviewed by the executive director annually to assure that sufficient funds are available for completion of the closure plan, assuming that the work has to be performed by an independent contractor.

(d) The amount of financial assurance must be adjusted as required to meet the predicted cost of future closure and stabilization. Factors affecting cost estimates for closure and stabilization include inflation, increases in the amount of disturbed land, changes in engineering plans, closure and stabilization that have already been accomplished, and any other conditions affecting costs. The closure amount must be at least sufficient at all times to cover the costs of closure of the NORM waste disposal facility.

(e) Sixty days prior to the initial receipt of NORM waste, the licensee shall establish and maintain financial assurance for liability coverage for sudden and nonsudden bodily injury and property damage to third parties caused by accidental occurrences arising from operations of the NORM waste disposal facility that meets the requirements of this subsection, in addition to the requirements specified under Chapter 37, Subchapters A, E, F, and G of this title (relating to General Financial Assurance Requirements; Financial Assurance Requirements for Liability Coverage; Financial Assurance Mechanisms for Liability; and Wording of the Mechanisms for Liability, respectively).

  (1) A licensee shall establish and maintain liability coverage for sudden accidental occurrences in the amount of at least $1 million per occurrence with an annual aggregate of at least $2 million, exclusive of legal defense costs.

  (2) A licensee shall establish and maintain liability coverage for nonsudden accidental occurrences in the amount of at least $3 million per occurrence with an annual aggregate of at least $6 million, exclusive of legal defense costs.

  (3) A licensee who combines coverage for sudden and nonsudden accidental occurrences shall maintain liability coverage in the amount of at least $4 million per occurrence and $8 million annual aggregate.

  (4) A licensee may use any of the mechanisms specified in Chapter 37, Subchapter F of this title to demonstrate financial assurance for sudden and nonsudden liability.

  (5) A licensee may not use a claims-made insurance policy as security unless the licensee places in escrow, as provided by the executive director, an amount sufficient to pay an additional year of premium for renewal of the policy by the state on notice of termination of coverage.


Source Note: The provisions of this §336.1019 adopted to be effective July 21, 2005, 30 TexReg 4127

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page