Department of Natural Resources and Environmental Control
Tank Management Section
1351 Underground Storage Tank Systems
Authenticated PDF VersionGuarantee made this [date] by [name of State], herein referred to as Guarantor, to DNREC and to any and all third parties, and obliges, on behalf of [Local Government Owner or Operator].
(2) [Local Government Owner or Operator] owns or operates the following Underground Storage Tank System(s) (USTs) covered by this guarantee:
Attach Delaware Regulations Governing Underground Storage Tank Systems, §3.18, Form R, Underground Storage Tank Schedule, listing each UST System assured by this Local Government Guarantee Without Standby Trust Made by a State
This guarantee satisfies Part F of the Delaware Regulations Governing Underground Storage Tank Systems requirements for assuring funding for [insert: "taking corrective action" and/or "compensating third parties for Bodily Injury and Property Damage caused by" either "sudden Accidental Releases" or "nonsudden Accidental Releases" or "Accidental Releases"; (if coverage is different for different UST Systems or locations, indicate the type of coverage applicable to each UST System or location)] arising from operating the above-identified UST System(s) in the amount of [insert: dollar amount] per Occurrence and [insert: dollar amount] Annual Aggregate.
(3) Guarantor guarantees to the Department and to any and all third parties and obliges that:
In the event that [Local Government Owner or Operator] fails to provide alternative coverage within 60 days after receipt of a notice of cancellation of this guarantee and the DNREC has determined or suspects that a Release has occurred at an UST System covered by this guarantee, the Guarantor, upon written instructions from the Department shall make funds available to pay for corrective actions and compensate third parties for Bodily Injury and Property Damage in an amount not to exceed the coverage limits specified above.
In the event that the Department determines that [Local Government Owner or Operator] has failed to perform corrective action for Releases arising out of the operation of the above-identified UST-System(s) in accordance with Part E of the Delaware Regulations Governing Underground Storage Tank Systems, the Guarantor upon written instructions from the Department shall make funds available to pay for corrective actions in an amount not to exceed the coverage limits specified above.
In the event that the Department determines that [Local Government Owner or Operator] has failed to perform corrective action for Releases arising out of the operation of the above-identified UST Systems in accordance with Part E of the Delaware Regulations Governing Underground Storage Tank Systems, the Guarantor upon written instructions from the Department shall make funds available to pay for Corrective Actions in an amount not to exceed coverage limits specified above.
If [Owner or Operator] fails to satisfy a judgment or award based on a determination of liability for Bodily Injury or Property Damage to third parties caused by ["sudden" and/or "nonsudden"] Accidental Releases arising from the operation of the above-identified UST System(s), or fails to pay an amount agreed to in settlement of a claim arising from or alleged to arise from such injury or damage, the Guarantor, upon written instructions from the Department, shall make funds available to compensate third parties for Bodily Injury and Property Damage in an amount not to exceed the coverage limits specified above.
(4) Guarantor agrees to notify [Owner or Operator] by Verified Service of a voluntary or involuntary proceeding under Title 11 {Bankruptcy}, U.S. Code naming Guarantor as debtor, within ten (10 days) after commencement of the proceeding.
(5) Guarantor agrees to remain bound under this guarantee notwithstanding any modification or alteration of any obligation of [Owner or Operator] pursuant to the Delaware Regulations Governing Underground Storage Tank Systems.
(6) Guarantor agrees to remain bound under this guarantee for so long as [Local Government Owner or Operator] must comply with the applicable financial responsibility requirements of Part F of the Delaware Regulations Governing Underground Storage Tank Systems for the above identified UST Systems, except that Guarantor may cancel this guarantee by sending notice by Verified Service to [Owner or Operator], such cancellation to become effective no earlier than one hundred twenty (120) days after receipt of such notice by [Owner or Operator], as evidenced by the return receipt. If notified of a probable Release, the Guarantor agrees to remain bound to the terms of this guarantee for all charges arising from the Release, up to the coverage limits specified above, notwithstanding the cancellation of the guarantee with respect to future Releases.
(7) The Guarantor's obligation does not apply to any of the following:
(a) Any obligation of [Local Government 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 Local Government Owner or Operator] arising from, and in the course of, employment by [insert: Local Government Owner or Operator];
(d) Property Damage to any property owned, rented, loaned to, in the care, custody, or control of, or occupied by [insert: Local Government Owner or Operator] that is not the direct result of a Release from an UST System;
(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 Part F,§1.3 of the Delaware Regulations Governing Underground Storage Tank Systems.
(8) Guarantor expressly waives notice of acceptance of this guarantee by the Department, by any or all third parties, or by [Local Government Owner or Operator].
I hereby certify that the wording of this guarantee is identical to the wording specified in §3.15, Form O of the Delaware Regulations Governing Underground Storage Tank Systems as such Regulations were constituted on the effective date shown immediately below.
[Name of Guarantor]
[Authorized signature for Guarantor]
[Name of Person signing]
[Title of Person signing]
