224.60-120 Financial responsibility of petroleum storage tank owner or operator -Administrative regulations.
(1)
(2)
(3)
(4)
Each petroleum storage tank owner or operator shall establish and maintain
evidence of financial responsibility, as provided for in this section, for taking
corrective action and for compensating third parties for bodily injury and property
damage.
(a) For petroleum storage tank owners or operators of eleven (11) or more tanks,
the level of financial responsibility to be established and maintained shall be
twelve thousand five hundred dollars (,500) per occurrence for taking
corrective action and twelve thousand five hundred dollars (,500) per
occurrence for compensating third parties for bodily injury and property
damage.
(b) For petroleum storage tank owners or operators of six (6) to ten (10) tanks
who have not been issued a closure letter from the cabinet, the level of
financial responsibility to be established and maintained shall be two thousand
five hundred dollars (,500) per occurrence for taking corrective action and
two thousand five hundred dollars (,500) per occurrence for compensating
third parties for bodily injury and property damage.
(c) For petroleum storage tank owners or operators of five (5) or less tanks who
have not been issued a closure letter from the cabinet, the level of financial
responsibility to be established and maintained shall be five hundred dollars
(0) per occurrence for taking corrective action and for compensating third
parties for bodily injury and property damage.
Evidence of financial responsibility may be established by any combination of the
following:
(a) Commercial or private insurance, including risk retention groups;
(b) Qualification as a self-insurer;
(c) A guarantee, surety bond, or letter of credit; or
(d) Any other reasonable and economically practicable means in a form
acceptable to the division.
To qualify as a self-insurer, the petroleum storage tank owner or operator shall
demonstrate a net worth in excess of the amounts specified in subsection (1) of this
section. "Net worth" shall mean the monetary value of assets that remain after
deducting liabilities. "Assets" shall mean all existing and all probable future
economic benefits obtained or controlled by a particular entity as a result of past
transactions.
The total liability of any guarantor under KRS 224.60-105 to 224.60-160 is limited
to the aggregate amount which the guarantor has provided as evidence of financial
responsibility to the petroleum storage tank owner or operator pursuant to this
section. This subsection does not limit any other state or federal statutory,
contractual, or common law liability of a guarantor to a petroleum storage tank
owner or operator, including, but not limited to, the liability of the guarantor for bad
faith either in negotiating or in failing to negotiate the settlement of any claim.
(5)
(6)
"Guarantor" shall mean any person, other than the petroleum storage tank owner or
operator, who provides evidence of financial responsibility for a petroleum storage
tank owner or operator pursuant to this section.
It is the intent of the General Assembly that the fund established pursuant to KRS
224.60-140, combined with the financial responsibility required by this section, may
be used by petroleum storage tank owners or operators to demonstrate their
compliance with any financial responsibility requirements promulgated under
federal regulations.
The Department for Environmental Protection, Division of Waste Management,
shall promulgate administrative regulations to implement this section. In
promulgating administrative regulations, the division shall not restrain or limit the
use of any of the means of establishing financial responsibility specified in this
section. The administrative regulations may allow a twenty-five percent (25%)
reduction in the level of financial responsibility set in subsection (1) of this section
for the timely completion of corrective action.
Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 123, sec. 25, effective June 20, 2005. -- Amended
1998 Ky. Acts ch. 284, sec. 4, effective July 15, 1998; and ch 498, sec. 3, effective
July 15, 1998. -- Amended 1994 Ky. Acts ch. 421, sec. 4, effective July 15, 1994. –
Amended 1992 Ky. Acts ch. 450, sec. 2, effective April 13, 1992. -- Created 1990
Ky. Acts ch. 370, sec. 4, effective April 9, 1990.
Formerly codified as KRS 224.817.
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