Department of Natural Resources and Environmental Control
Tank Management Section
1351 Underground Storage Tank Systems
Authenticated PDF VersionGuarantee made this [date] by [name of guaranteeing entity], a Local Government organized under the laws of [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].
(1) Guarantor meets or exceeds [select one: the Local Government bond rating test requirements of Part F, §2.8 of the Delaware Regulations Governing Underground Storage Tank Systems, the Local Government financial test requirements of Part F, §2.9 of the Delaware Regulations Governing Underground Storage Tank Systems, the Local Government fund under Part F, §2.11 of the Delaware Regulations Governing Underground Storage Tank Systems.]
(2) [Local Government Owner or Operator] owns or operates the following Underground Storage Tank System(s) covered by this guarantee:
Attach §3.18, Form R, Underground Storage Tank Schedule, of the Delwaware Regulations Governing Underground Storage Tank Systems for Financial Assurance listing all UST Systems assured by this Local Government Guarantee.
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) Incident to our Substantial Governmental Relationship with [Local Government Owner or Operator], 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 sixty (60) days after receipt of a notice of cancellation of this guarantee and the Department 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.
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 Systems, 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 that if at the end of any fiscal year before cancellation of this guarantee, the Guarantor fails to meet or exceed the requirements of the financial responsibility mechanism specified in paragraph (1), Guarantor shall send within one hundred twenty (120) days of such failure, by certified mail, notice to [Local Government Owner or Operator], as evidenced by the return receipt.
(5) Guarantor agrees to notify [Owner or Operator] by Verifiable 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.
(6) Guarantor agrees to remain bound under this guarantee notwithstanding any modification or alteration of any obligation of [Owner or Operator] pursuant to the Regulations.
(7) 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 Verifiable 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.
(8) 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, loaded 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 of the Delaware Regulations Governing Underground Storage Tank Systems.
(9) Guarantor expressly waives notice of acceptance of this guarantee by DNREC, 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 Part F, §3.16, Form P 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]
