Figure: 30 TAC §37.840(b)
PERFORMANCE BOND
Date bond executed: _________________________________
Period of coverage: _________________________________
Principal: (insert legal name and business address of owner or operator) __________________
Type of organization: (insert "individual," "joint venture," "partnership," or "corporation") _______
State of incorporation (if applicable): _______________
Surety(ies): (insert name(s) and business address(es)) ________________________________
Scope of Coverage: (List the number of tanks at each facility, the name(s) and address(es) of the facility(ies) where the tanks are located and, for those facilities located in Texas, the TCEQ facility identification number. If more than one instrument is used to assure different tanks at any one facility, for each tank covered by this instrument, list the name and address of the facility and the tank identification number provided in the registration information submitted under §334.7 of this title (relating to Registration for USTs). List the coverage guaranteed by the bond for taking corrective action and compensating third parties for bodily injury and property damage caused by accidental releases arising from operating the underground storage tank.)
Penal sums of bond: Per occurrence $_____________Annual aggregate $_____________
Surety's bond number: ___________________________
Know All Persons by These Presents, that we, the Principal and Surety(ies), hereto are firmly bound to the Texas Commission on Environmental Quality (TCEQ) in the above penal sums for the payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns jointly and severally; provided that, where the Surety(ies) are corporations acting as co-sureties, we, the Sureties, bind ourselves in these sums jointly and severally only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each Surety binds itself, jointly and severally with the Principal, for the payment of these sums only as is set forth opposite the name of this Surety, but if no limit of liability is indicated, the limit of liability shall be the full amount of the penal sums.
Whereas said Principal is required under Texas Water Code, Chapter 26, Subchapter I, as amended, to provide financial assurance for taking corrective action and compensating third parties for bodily injury and property damage caused by accidental releases arising from operating the underground storage tanks identified above; and
Whereas said Principal shall establish a standby trust fund as is required when a surety bond is used to provide this financial assurance;
Now, therefore, the conditions of the obligation are that if the Principal shall faithfully take corrective action, in accordance with Chapter 334, Subchapter D of this title (relating to Release Reporting and Corrective Action) and the Executive Director of the TCEQ’s instructions, and compensate injured third parties for bodily injury and property damage caused by accidental releases arising from operating the tank(s) identified above, or if the Principal shall provide alternate financial assurance, as specified in Chapter 37, Subchapter I of this title (relating to Financial Assurance for Petroleum Underground Storage Tank Systems) within 120 days after the date the notice of cancellation is received by the Principal from the Surety(ies), then this obligation shall be null and void; otherwise it is to remain in full force and effect.
This obligation does not apply to any of the following:
a. Any obligation of (insert owner or operator) under a workers' compensation, disability benefits, or unemployment compensation law or other similar law;
b. Bodily injury to an employee of (insert owner or operator) arising from, and in the course of, employment by (insert owner or operator);
c. Bodily injury or property damage arising from the ownership, maintenance, use, or entrustment to others of any aircraft, motor vehicle, or watercraft;
d. Property damage to any property owned, rented, loaned to, in the care, custody, or control of, or occupied by (insert owner or operator) that is not the direct result of a release from a petroleum underground storage tank; or
e. Bodily injury or property damage for which (insert owner or operator) is obligated to pay damages by reason of the assumption of liability in a contract or agreement other than a contract or agreement entered into to meet the requirements of 30 TAC §37.815.
The Surety(ies) shall become liable on this bond obligation only when the Principal has failed to fulfill the conditions described above.
Upon notification by the Executive Director of the TCEQ that the Principal has failed to take corrective action, in accordance with 30 TAC Chapter 334, Subchapter D and the executive director's instructions, and/or compensate injured third parties as guaranteed by this bond, the Surety(ies) shall either perform corrective action in accordance with 30 TAC Chapter 334, Subchapter D and the executive director's instructions, and provide third-party liability compensation or place funds in an amount up to the annual aggregate penal sum into the standby trust fund as directed by the Executive Director of the TCEQ under §37.880 of this title (relating to Drawing on Financial Assurance Mechanisms).
Upon notification by the TCEQ Executive Director that the Principal has failed to provide alternate financial assurance within 60 days after the date the notice of cancellation is received by the Principal from the Surety(ies) and that the executive director has determined or suspects that a release has occurred, the Surety(ies) shall place funds in an amount not exceeding the annual aggregate penal sum into the standby trust fund as directed by the executive director under 30 TAC §37.880.
The Surety(ies) hereby waive(s) notification of amendments to applicable laws, statutes, rules, and regulations and agrees that no amendment shall in any way alleviate its (their) obligation on this bond.
The liability of the Surety(ies) shall not be discharged by any payment or succession of payments hereunder, unless and until this payment or payments shall amount in the annual aggregate to the penal sum shown on the face of the bond, but in no event shall the obligation of the Surety(ies) hereunder exceed the amount of said annual aggregate penal sum.
The Surety(ies) may cancel the bond by sending notice of cancellation by certified mail to the Principal, provided, however, that cancellation shall not occur during the 120 days beginning on the date of receipt of the notice of cancellation by the Principal, as evidenced by the return receipt.
The Principal may terminate this bond by sending written notice to the Surety(ies).
In Witness Thereof, the Principal and Surety(ies) have executed this Bond and have affixed their seals on the date set forth above.
The persons whose signatures appear below hereby certify that they are authorized to execute this surety bond on behalf of the Principal and Surety(ies) and that the wording of this surety bond is identical to the wording specified in §37.840(b) of this title (relating to Surety Bond), as this regulation was constituted on the date this bond was executed.
PRINCIPAL
(Insert signature(s)) ________________________________________
(Insert name(s)) ___________________________________________
(Insert title(s)) __________________________
(Insert corporate seal)
CORPORATE SURETY(IES)
(Insert name and address) ______________________________________________________
State of Incorporation: _________________________
Liability limit: $______________________________
(Insert signature(s)) ________________________________________
(Insert name(s) and titles(s)) _________________________________
(Insert corporate seal)
(For every co-surety, provide signature(s), corporate seal, and other information in the same manner as for Surety above.)
Bond premium: $______________________________