Kentucky Statutes 224.60-120 – Financial responsibility of petroleum storage tank owner or operator — Administrative regulations
Current as of: 2024 | Check for updates
|
Other versions
(1) 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 ($12,500) per occurrence for taking corrective action and twelve thousand five hundred dollars ($12,500) 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 ($2,500) per occurrence for taking corrective action and two thousand five hundred dollars ($2,500) 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 ($500) per occurrence for taking corrective action and for compensating third parties for bodily injury and property damage.
(2) 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.
(3) 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.
(4) The total liability of any guarantor under KRS § 224.60-105 to KRS § 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.
“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.
(5) 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.
(6) 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.
(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 ($12,500) per occurrence for taking corrective action and twelve thousand five hundred dollars ($12,500) per occurrence for compensating third parties for bodily injury and property damage.
Terms Used In Kentucky Statutes 224.60-120
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- any other state: includes any state, territory, outlying possession, the District of Columbia, and any foreign government or country. See Kentucky Statutes 446.010
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Cabinet: means the Energy and Environment Cabinet. See Kentucky Statutes 224.1-010
- Closure: means the time at which a waste treatment, storage, or disposal facility permanently ceases to accept wastes, and includes those actions taken by the owner or operator of the facility to prepare the site for post-closure monitoring and maintenance or to make it suitable for other uses. See Kentucky Statutes 224.1-010
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Storage: means the containment of wastes, either on a temporary basis or for a period of years, in such a manner as not to constitute disposal of such wastes. See Kentucky Statutes 224.1-010
- Waste: means :
(a) "Solid waste" means any garbage, refuse, sludge, and other discarded material, including solid, liquid, semi-solid, or contained gaseous material resulting from industrial, commercial, mining (excluding coal mining wastes, coal mining by-products, refuse, and overburden), agricultural operations, and from community activities, but does not include those materials including, but not limited to, sand, soil, rock, gravel, or bridge debris extracted as part of a public road construction project funded wholly or in part with state funds, recovered material, post-use polymers or recovered feedstocks, tire-derived fuel, special wastes as designated by KRS §. See Kentucky Statutes 224.1-010
(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 ($2,500) per occurrence for taking corrective action and two thousand five hundred dollars ($2,500) 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 ($500) per occurrence for taking corrective action and for compensating third parties for bodily injury and property damage.
(2) 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.
(3) 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.
(4) The total liability of any guarantor under KRS § 224.60-105 to KRS § 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.
“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.
(5) 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.
(6) 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.