HomeMy WebLinkAbout990872 COLORADO LANDFILL DIVISION
A WASTE MANAGEMENT COMPANY
2400 West Union Avenue
Englewood,CO 80110-5307
(303) 738.2821
(303) 797.9504 Fax
April 8, 1999
Mr. Glen Mallory
Solid Waste Unit Leader
Colorado Department of Public Health and Environment
Hazardous Materials and Waste Management Division
4300 Cherry Creek Drive South
Denver, CO 80246-1530
SUBJECT: CENTRAL WELD SANITARY LANDFILL (CWSL)
REVISED FINANCIAL ASSURANCE PLAN
Dear Mr. Mallory:
Enclosed is a revised financial assurance plan, which replaces the April 1997 plan for
CWSL. The enclosure reflects the annual cost adjustment to the post-closure cost
estimate for the remaining post-closure care period as well as a change in the related
financial assurance mechanism.
Annual Cost Adjustment
As provided in Appendix A of this plan, the post-closure cost estimate is $810,898. This
estimate, which is based on the site Closure and Post-Closure Plan dated April 1997, is in
1997 dollars. Section 1.8.3 (C) of the Colorado Regulations Pertaining to Solid Waste
Disposal Facilities, 6 CCR-1007-2, requires an annual adjustment to the closure and post-
closure financial assurance cost estimate by using the implicit price deflator (IPD) for the
gross domestic product. The adjustment is made by multiplying the cost estimate by an
adjustment factor, which is equal to the quotient of the most-recent IPD and the previous
year IPD. The resultant adjustment factors are calculated below:
1998 Adjustment Factor= 1997 IPD = 112.40 = 1.0199 (used for the 1998 adjustment)
1996 IPD 110.21 0Mla Qounty Nanning Dept.
1999 Adjustment Factor= 1998 IPD = 112.70 = 1.010 APR 12 1999'
1997 IPD = 111.57
The financial assurance cost estimate of$810,898 is adjusted as follows: RECEIVED _
$810,898 x 1.0199 x 1.010 = $835,305
a
D LI
. ( A Division of Waste Management Disposal Services of Colorado,Inc.
L' Cl, /IL
990872
®
Mr. Glen Mallory
April 8, 1999
Page Two
The facility has completed its third year of post-closure care and therefore 27 years of the
30-year post-closure care period remain. Because one less year of financial assurance is
required, the post-closure cost estimate is further adjusted as follows:
$835,305 x 27 years = $805,473
28 years
Change in Financial Assurance Mechanism
Waste Management has elected to use insurance to meet the financial assurance
requirements of the Regulations instead of the previously used letter of credit. The
insurance certificate is included in Appendix B of this plan and has insurance limits equal
to the facility's financial assurance cost estimate as adjusted above. With this submittal,
we request that the letter of credit for CWSL be released to Waste Management Disposal
Services of Colorado, Inc.
This document has been placed in the CWSL operating record.
Please call Alan Scheere at(303) 280-9336 or me at (303) 738-2809 if you have
questions concerning the revised financial assurance plan or our request to release the
CWSL letter of credit.
Sincerely,
d /
Tom Schweitzer, P.E.
Environmental Engineer
enclosure
cc: Trevor Jiricek, Weld County Health Department
Gloria Dunn, Weld County Planning Department
Tom Buchholz, Waste Management Disposal Services of Colorado, Inc.
Bill Hedberg/CWSL Operating Record, CSWL
Alan Scheere, Waste Management Disposal Services of Colorado, Inc.
Jim Lierman, Waste Management Closed-Sites
Steven Richtel, Waste Management Closed-Sites
f:data/tom/fnas99cw
FINANCIAL ASSURANCE PLAN
CENTRAL WELD SANITARY LANDFILL
Weld County, Colorado
Prepared by:
Waste Management Disposal Services of Colorado, Inc.
2400 W. Union Avenue, Suite 300
Englewood, Colorado 80110
Revised April 1999
FINANCIAL ASSURANCE PLAN
CENTRAL WELD SANITARY LANDFILL
TABLE OF CONTENTS
Section Page
1.0 INTRODUCTION
1.1 Facility Description 1
2.0 REGULATORY REQUIREMENTS 2
2.1 Cost Estimates 2
2.2 Financial Assurance Activities 2
2.3 Financial Assurance Mechanism 2
3.0 POST-CLOSURE COSTS 3
4.0 FINANCIAL ASSURANCE MECHANISM 3
5.0 PROFESSIONAL ENGINEER'S SEAL 3
LIST OF APPENDICES
Appendix
A Post-Closure Care Costs
B Insurance Certificate for Post-Closure Care Costs
Financial Assurance Plan i April 1999
Central Weld Sanitary Landfill
FINANCIAL ASSURANCE PLAN
CENTRAL WELD SANITARY LANDFILL
REVISION LOG
DATE DESCRIPTION OF REVISION BY
4/99 Replaced letter of credit with insurance certificate. TSS
Financial Assurance Plan ii April 1999
Central Weld Sanitary Landfill
1.0 INTRODUCTION
1.1 Facility Description
Central Weld Sanitary Landfill (CWSL) is located in Weld County, Colorado, five miles
southwest of Greeley and three miles northeast of Milliken. Weld County Road 27% (771h
Avenue)bounds the site on the east. The site is approximately 210 acres, located in the southwest
quarter of Section 32, Township 5 North, Range 66 West. Of the 210 acres, approximately 100
acres act as a buffer zone for the landfill. The facility is owned and operated by Waste
Management Disposal Services of Colorado, Inc. (WMDSC)
The facility closed disposal operations on December 21, 1995. CWSL submitted the document
titled, "Closure Report for the Central Weld Sanitary Landfill", dated October 1996, in
accordance with Section 3.5.8 of the `Regulations Pertaining to Solid Waste Disposal Sites and
Facilities" (Regulations), 6 CCR 1007-2. This closure report was prepared by WMDSC and
documents that closure of CWSL has been completed in accordance with the Regulations. The
closure report was submitted to the Colorado Department of Public Health and Environment
(CDPHE) and Weld County Health Department (WCHD) on November 18, 1996.
This Financial Assurance Plan has been prepared in accordance with Section 1.8 of the Regulations
and describes the costs of post-closure care at the C'WSL. In addition, the plan describes the
financial mechanism which is in place to ensure the payment of all third party post-closure costs.
This Financial Assurance Plan is to be used in conjunction with the Closure/Post Closure Plan
prepared for CWSL.
Financial Assurance Plan 1 April 1999
Central Weld Sanitary Landfill
2.0 REGULATORY REQUIREMENTS
2.1 Cost Estimates
Section 1.8 of the Regulations list the specific financial assurance requirements for solid waste
disposal sites. These requirements are described below. All references to closure costs have been
disregarded, as the site has been closed
1. Maintain cost estimates, in current dollars, for conducting post-closure care.
2. The facility must establish financial assurance sufficient to ensure payment of the post-
closure care costs.
2.2 Financial Assurance Activities
The following are the requirements for financial assurance activities as described in Section 1.8
of the Regulations:
1. Notify the CDPHE when the required cost estimates have been placed in the operating
record;
2. Annually adjust cost estimates to account for inflation using the method prescribed by
CDPHE;
3. Replace original cost estimates with new cost estimates every five (5) years, unless
otherwise required by CDPHE;
4. Costs associated with post-closure and corrective actions may be adjusted, after
approval by CDPHE and the local governing authority;
5. Financial assurance must be provided continuously unless a release is granted by
CDPHE.
2.3 Financial Assurance Mechanisms
Several financial assurance mechanisms are available, and more than one mechanism may be
used. For corporate entities, these mechanisms include a trust fund, letter of credit, surety bond
and insurance.
WMDSC has chosen to use insurance to meet the financial assurance requirements. The
insurance certificate was prepared in accordance with the requirements set forth in Section 1.8.9
of the Regulations.
Financial Assurance Plan 2 April 1999
Central Weld Sanitary Landfill
3.0 POST-CLOSURE COSTS
Post-closure costs are those costs associated with post-closure care activities which are provided by
a third party. These costs are determined by calculating the cost to conduct all post-closure care
activities listed in the Post-Closure Plan. The unit cost values for post-closure activities were
determined by using unit cost values provided by the CDPHE, or costs that WMDSC has
determined. In situations where unit cost values differ from the default values provided by CDPHE,
an explanation is provided in the form of a footnote to the spreadsheet.
The detailed post-closure costs are provided in Appendix A. The costs provided in Appendix A are
based on 1997 dollars. The post-closure insurance limit included in Appendix B reflects the
required inflation adjustment factors for 1998 and 1999. As specified by CDPHE, a Professional
Engineer's Seal is provided in Section 5.0 for the engineering cost estimates.
4.0 FINANCIAL ASSURANCE MECHANISM
WMDSC has established insurance coverage to assure adequate funds are available for post-closure
care costs determined in the Closure/Post-Closure Plan. The insurance meets all requirements set
forth in Section 1.8.9 of the Regulations, "Insurance for Closure and Post-Closure". The insurance
certificate is provided in Appendix B.
5.0 PROFESSIONAL ENGINEER'S SEAL
The Post-Closure engineering cost estimates for the Central Weld Sanitary Landfill were reviewed
by: eiiiinurop
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4176 EL:o
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i/,"ONA�tt'' \`\`
Thomas S. Schweitzer
Registered Professional Engineer
State of Colorado - License#24176
Financial Assurance Plan 3 April 1999
Central Weld Sanitary Landfill
APPENDIX A
POST-CLOSURE CARE COSTS
Form C-2: Financial Assurance Cost Estimate for Post-Closure Care
CENTRAL WELD SANITARY LANDFILL
ITEM BASIS FOR COST UNIT UNITS UNIT EVENTS ITEM COST
QTY COST Comments PER YR PER YEAR
• Site Inspections/Reporting Includes one person one day varies° ea 850.00 1 $1,020.00
plus summary report See Note I
• Maintenance/Repairs
Erosion damage repair Assumes soil loss of 0.9 cy/ac 86 cy 15.00 See Note 2 1 $1,290.00
Vegetation and Soil Amendments Assumes 10%of site
requires amendments 5 acre 400.00 See Note 3 1 $2,000.00
_
Gas collection/treatment system 5%of system cost 0 LS 5% $0.00
Groundwater&gas wells pump repair/replacement 1 LS 500.00 l $500.00
(average per year)
Leachate collection system line cleaning 0 LF 0.32 $0.00
* Monitoring
Groundwater
mobilize/demobilize 0 hr 35.00 0 $0.00
sampling and analysis 31u/sample+Append IA&IB 4 well 330.00 2 $2,640.00
4 well 330.00 1 $1,320.00
report preparation 1 LS 3000.00 1 $3,000.00
Leachate lhr/sample+Append IA&IB+ 0 location 760.00 1 $0.00
+report per sump location
Gas Al 2 well locations per hr 19 well 20.00 4 $1,520.00
• Treatment/Disposal
Leachate disposal At treatment plant 0 gal 0.02 1 $0.00
Gas condensate disposal At treatment plant 0 gal 0.02 0 $0.00
• Other
Security-Fencing Repair I LS 80.00 I $80.00
Surface Water-drainage regrading 1 LS 650.00 1 $650.00
Corrective Action GW Remedial Activities 1 LS 10000.00 See Note 4 1 $10,000.00
Underdrain Monitoring I LS 1400.00 See Note 5 1 $1,400.00
SUBTOTAL $25,420.00
Administrative Cost(5%) 1 LS 0.05 $1,271.00
Contingency Cost(5%) I LS 0.05 $1,271.00
TOTAL COST PER YEAR $27,962.00
TOTAL COST PER 29 YEAR PERIOD See Note 6 $810,898.00
Note 1: Quarterly site inspections,post-closure years 1-2;annual inspections thereafter. Average annual cost is:[8($850)+28($850)[/30 years=$1020/yr
Note 2: The assumed erosion damage repair unit cost of$15/cy is based on soil that is readily available from the on-site stockpiles or borrow areas.
Note 3: Revegetation is assumed to be performed at the rate of 5%of the site per year. This rate,combined with the vegetation performed at
closure,is sufficient to vegetate the entire site 2.5 times prior to completion of the post-closure care period. The vegetation unit cost is
$400/acre based on recent WMC projects.
Note 4: Annual cost is based on a projected 20 year operating period.
Note 5: Annual cost is based on a projected 10 year operating period.
Note 6: Site has completed one year of post-closure care. The post-closure cost is based on the remaining 29 years.
APPENDIX B
INSURANCE CERTIFICATE FOR
POST-CLOSURE CARE COSTS
INSURANCE CERTIFICATE FOR CLOSURE AND POST-CLOSURE CARE
COSTS
ANNUAL ADJUSTMENT TO CLOSURE, AND POST-CLOSURE COST
ESTIMATES
The CWSL Financial Assurance Plan as revised April 1999 includes a post-closure cost
estimate of$810,898 in Appendix A. These estimates are based on 1997 dollars;
therefore an inflation adjustment needs to be applied in accordance with the Regulations.
Section 1.8.3 (C) of the Regulations requires an annual adjustment to the closure and
post-closure financial assurance cost estimate by using the implicit price deflator(IPD)
for the gross domestic product. The adjustment is made by multiplying the cost estimate
by an adjustment factor which is equal to the quotient of the most-recent IPD and the
previous year IPD. The resultant adjustment factors are calculated below:
1998 Adjustment Factor= 1997 IPD = 112.40 = ].0199 (used for the 1998 adjustment)
1996 IPD 110.21
1999 Adjustment Factor= 1998 IPD = 112.70 = 1.010
1997 IPD = 111.57
The financial assurance cost estimate of$810,898 is adjusted as follows:
$810,898 x 1.0199 x 1.010 = $835,305
The facility has completed its third year of post-closure care and therefore 27 years of the
30-year post-closure care period remain. Because one less year of financial assurance is
required, the post-closure cost estimate is further adjusted as follows:
$835,305 x 27 years = $805,473
28 years
The accompanying insurance certificate reflects this adjusted amount.
fdata/tom/fnas99cw
ACORD CERTIFICATE OF LIABILITY INSURANCE DATEIMMIDDIYYI
0 /23/99
PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
NATIONAL GUARANTY INSURANCE COMPANY OF VERMONT ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
7 Burlington Square, 6th Floor HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
g 9 > ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
P.O. Box 530
•
Burlington, Vermont 05402-0530 INSURERS AFFORDING COVERAGE
INSURED -- - --- -- - -
WASTE MANAGEMENT DISPOSAL SERVICES OF INSURERA NATIONAL GUARANTY INSURANCE COMPANY
COLORADO, INC. , INSURERS OF VERMONT (800) 876-6442
INSURER C
2400 W. Union Avenue LINSURERD
Englewood, Colorado 80110 F INSURER E
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWTHSTANDING
ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WTH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
POLICY EFFECTIV LTR TYPE OF INSURANCE POLICY NUMBER DATEIMDD/YYE IPDAITE IMMIDD/YYIICY N
M/ LIMITS ---
GENERAL LIABILITY EACH OCCURRENCE j S
COMMERCIAL GENERAL LIABILITY FIRE DAMAGE(Any one fire) $
CLAIMS MADE OCCUR ' MED EXP(Any one person) $
• PERSONAL SADV INJURY $
-- ' GENERAL AGGREGATE S
GENT AGGREGATE LIMIT APPLIES PER.! PRODUCTS-COMP/OP AGG 5
-- , PRO-
POLICY JEOT LOC
AUTOMOBILE LIABILITY
COMBINED SINGLE LIMIT
ANY AUTO (Ea accident E
ALL OWNED AUTOS
' SCHEDULED AUTOS BODILY INJURY
(Per person) I S
HIRED AUTOS
BODILY INJURY $
NON-OWNED AUTOS (Per accident)
•
PROPERTY DAMAGE S
(Per accident
GARAGE LIABILITY AUTO ONLY.EA ACCIDENT I5
I ANY AUTO
OTHER THAN _EA ACC $
•
AUTO ONLY AGG $
EXCESS LIABILITY EACH OCCURRENCE i S
• OCCUR CLAIMS MADE AGGREGATE IS
• 5
I DEDUCTIBLE
RETENTION S $S
WORKERS COMPENSATION AND • I WCSTATU- I 0TH-I
EMPLOYERS'LIABILITY TORY LIMITS ER
E L EACH ACCIDENT 5
•
•
E L DISEASE-EA EMPLOYEE $
E L DISEASE-POLICY LIMIT $
• OTHER
•
• Post—Closure CPCS99-0008 04/09/1999 04/09/2000 $805,473.00
SCRIPTION OF OPERATIONSILOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS
Central Weld Sanitary Landfill
6037 77th Avenue
Greeley, Colorado 80634
This certificate certifies that the policy to which this certificate applies,provides post-closure care in connection with the Insured's obligation to demonstrate financial responsibility under Section
1.8.9 of the regulations pertaining to Solid Waste Disposal Sites and Facilities 6 CCR 1007-2,as amended.
CERTIFICATE HOLDER I I ADDITIONAL INSURED;INSURER LETTER: CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
OLORADO DEPARTMENT OF PUBLIC HEALTH DATE THEREOF.THE ISSUING INSURER WILL regragyorio MAIL 60 DAYS WRITTEN
AND ENVIRONMENT NOTICE'r0 THE CERTIFICATE HOLDER NAMED TO THE LEFT,Bxk*tx =1«
inallat
"azardous Materials/Waste Management Division ItJc9PltaIx9L9L9Fl&axatlXLlfl x mmt wank k Mt
300 ,Cherry Creek Drive0246 So1530h R
Denver, Colorado 80246-1530 AUTHORIZED REPRESENTATIVE
Leo J. Winstead, At ey—in—fact
C ORD 25-S(7/97) 0 ACORD CORPORATION 1988
NATIONAL GUARANTY
INSURANCE COMPANY
OF VERMONT
CLOSURE
AND
POST-CLOSURE
INSURANCE POLICY
NATIONAL GUARANTY
INSURANCE COMPANY OF VERMONT
7 BURLINGTON SQUARE,6TH FLOOR
BURLINGTON, VT 05401
(A STOCK INSURANCE COMPANY,HEREINAFTER CALLED THE'COMPANY')
CLOSURE & POST - CLOSURE POLICY
DECL AR ATIONS
Certified True & Correct Copy
3/ '1l99
POLICY NUMBER CPCS99-0008
NAMED INSURED Waste Management Disposal Services of Colorado, Inc.
ADDRESS 2400 W. Union Avenue
Englewood, Colorado 80110
ITEM I. LIMITS OF LIABILITY: COVERAGE A. C $0.00
COVERAGE B. PC: $805,473.00
ITEM 2. LOCATION OF INSURED: Central Weld Sanitary Landfill
6037 77th Avenue
Greeley, Colorado 80634
ITEM 3. POLICY PERIOD: 04/09/1999 TO 04/09/2000
u UI AM STANDARD nmt n1 n a.NN.&AS o1 nu NAMED NUVW] SHOWN mwv!
ITEM 4. ATTACHMENTS AT INCEPTION:CLOSURE AND POST-CLOSURE INSURANCE
FORM AND ENDORSEMENTS None THROUGH
ITEM S. PREMIUM: $2,215.05
AUTHORIZED AGENT DATE
NATIONAL GUARANTY INSURANCE COMPANY OF VERMONT
7 Burlington Square, 6th Floor
Burlington, VT 05401
National Guaranty Insurance Company of Vermont ("Company") agrees with the Insured named in
the declarations made a part hereof, in consideration of payment of the premium and in reliance upon
the statements in the application and declarations and subject to the limits of liability, exclusions,
conditions and other terms of this policy:
INSURING AGREEMENTS
COVERAGE A:
To pay on behalf of the Insured to any authorized party at the direction of the regulatory body
only those reasonable and necessary expenses for which the Insured becomes legally
obligated for closure costs by reason of the full and final closure of the entire solid waste
facility designated in the declarations, where such closure has been made necessary by the
ending of the term of the solid waste facility in accordance with designated life or where an
earlier closure is made necessary for any reason, such as emergency, termination or
revocation of the permit to operate the solid waste facility, bankruptcy, abandonment, or
court order, and where claim for closure is first made during the effective policy period, and
the Insured has failed to itself pay such expenses.
COVERAGE B:
To pay on behalf of the Insured to any authorized party at the direction of the regulatory body
only those reasonable and necessary expenses for which the Insured becomes legally
obligated for post-closure costs by reason of the full and final closure of the entire solid
waste facility designated in the declarations, where such post-closure care has been made
necessary by the ending of the term of the solid waste facility in accordance with the
designated life or where an earlier closure is made necessary for any reason, such as
emergency, termination or revocation of permit to operate for the solid waste facility,
bankruptcy, abandonment, or by court order, and where claim for such post-closure care is
first made during the effective policy period, and the Insured has failed to itself pay such
expenses.
II. LIMITS OF LIABILITY
The Company's limit of liability shall not exceed the amount stated in Item I of the
declarations for each coverage provided and for which premium has been paid.
Payment of premium shall be considered the payment of the total amount due in cash on or
before the effective date of this policy. Further, this policy shall not take effect unless
payment of premium has been actually received by the Company.
1
If more than one coverage part is in effect under this policy, the limits of liability
stated in the declarations for each coverage part are separate and independent limits
of liability.
Coverage A, if provided, shall be further limited to only those reasonable and
necessary expenses for closure of the solid waste facility designated in the
declarations.
Coverage B, if provided, shall be further limited to only those reasonable and
necessary expenses for post-closure care of the solid waste facility designated in the
declarations.
If Coverage B is provided, and claim is first made during its effective policy period,
the limit of liability for Coverage B only shall increase annually, beginning on the
date the Company becomes obligated to make payments for post-closure, such annual
increase being equivalent to the limit of liability, less any payments made, multiplied
by an amount equivalent to either 85 percent of the most recent published investment
rate for newly issued 26-week Treasury securities or of the equivalent coupon issue
yield announced by the U.S. Treasury for newly issued 26-week Treasury securities.
Notwithstanding the effective date of this policy's term as stated in the declarations,
the Company will maintain this policy in effect under certain conditions as set out in
Section V Conditions, Cancellation and Non-Renewal. Any claim for closure or
post-closure expenses made during any such extension of the policy term shall be
subject to a limit of liability stated in the declarations of this policy.
III. EXCLUSIONS
This policy does not apply to expenses, losses, liabilities of, or damages of any kind incurred
by, accruing to, or alleged to be liabilities of the Insured in connection with closure or
post-closure by reason of:
1. Any criminal or civil penalties imposed by reason of the violation of any law or
regulation;
2. Third-party claims for bodily injury or property damage of any nature arising or
alleged to arise at any time from the premises, operations, closure or post-closure of
the solid waste facility;
3. Environmental impairment liability, whether sudden and accidental or gradual,
before or after closure or post-closure, including any diminution or other interference
with any other environmental right or amenity protected by law;
4. Off-premises clean-up costs of any type incurred by any person at any time for any
reason as a result of the operation of the solid waste facility.
2
5. In the event only one coverage part is provided by this policy. all coverages
contained in the part not provided are excluded in their entirety.
IV. DEFINITIONS
BODILY INJURY: Bodily injury, sickness or disease, mental anguish and mental injury, or
disability including care, loss of services or death resulting from any of the foregoing.
CLAIM: The occurrence of all of the following: Notice received by the Company within
the effective dates of the policy that closure will commence within 120 days of such notice;
receipt of final volume of solid material; actual commencement of the closure plan within
120 days of notice to the Company.
CLEAN-UP COSTS: Expenses for the removal or neutralization of contaminants, irritants,
or pollutants, or any of the conditions included in environmental impairment.
CLOSURE: Full permanent closing of a solid waste facility pursuant to a closure plan.
CLOSURE PLAN: The written closure plan, including all revisions, accepted by the
regulatory body for the solid waste facility designated in the declarations.
DESIGNATED LIFE: The period of time designated in the closure plan during which the
solid waste facility will be in actual operation.
ENVIRONMENTAL IMPAIRMENT: The emission, discharge, dispersal, disposal,
seepage, release or escape of any liquid, solid, gaseous or thermal irritant, contaminant or
pollutant into or upon land, the atmosphere or any watercourse or body of water, including
but not limited to the generation of smells, noises, vibration, light, electricity, radiation,
changes in temperature or any other sensory phenomena.
SOLID WASTE FACILITY: The entire facility designated by legal description in the
declarations which has been authorized by the regulatory body to engage in the treatment,
storage or disposal of solid waste.
INSURED: The person or organization named in the declarations.
MOST RECENT PUBLISHED INVESTMENT RATE: The last published investment
rate prior and closest in time to the date upon which the Company becomes obligated to
make payment for post-closure; as to applicable annual increases as provided in Section II.
Limits of Liability, the last published investment rate prior and closest in time to the
anniversary of the date upon which the Company became obligated to make payment for
post-closure.
POST-CLOSURE: The maintenance of a solid waste facility following closure, continuing
for the period of time required by the regulatory body after the date of completing the
closure.
3
POST-CLOSURE PLAN: The plan, including all revisions, accepted by the regulatory
body for the solid waste facility designated in the declarations.
PROPERTY DAMAGE: (a) Physical injury to, or destruction of tangible property,
including loss of use at any time resulting from the physical injury or destruction; (b) the loss
of use of tangible property which has not been physically injured or destroyed; and (c) any
injury to, impairment of or destruction of any intangible property or rights of any nature,
whether related to tangible property or not.
REASONABLE AND NECESSARY EXPENSES: Those expenditures for closure or
post-closure, as coverage may be provided, approved in writing by the regulatory body and
expended in accordance with the closure plan or post-closure plan, or as otherwise justified
and approved by the regulatory body for closure or post-closure. Any payments to claims by
or damages of third parties for bodily injury, property damage or environmental impairment
relating in any way to closure or post-closure or to the premises or operation of the solid
waste facility shall not be considered reasonable and necessary expenses.
REGULATORY BODY: The federal or state agency in charge of regulating the solid waste
facility named in the declarations.
V. CONDITIONS
Premium: The premium for the coverages designated in the declarations shall be computed
upon the basis stated in the declarations. Should this policy be terminated, cancelled or
non-renewed for non-payment of premium, or for any other reason, the Insured shall have no
right to any interest in any premiums paid prior to such termination. Should more than one
coverage part be provided under this policy, it is an absolute condition of coverage under
each part that the full amount of premium due he actually received by the Company for that
coverage part to be effective.
The Insured shall maintain records of such information as is necessary for premium
computation, and shall provide copies of such records to the Company at such times as the
Company shall direct.
Inspection and Audit: The Company shall be permitted but not obligated to inspect the
Insured's solid waste facility at any time. Neither the Company's right to make inspections
nor the making thereof nor any report thereon shall constitute an undertaking, on behalf of or
for the benefit of the Insured or others, to determine or warrant that such property or
operations are safe or healthful or are in compliance with any law, rule or regulation.
The Company may examine and audit the Insured's books and records at any time during the
policy period and extensions thereof, as far as they relate to the subject matter of this
insurance, and within any closure or post-closure for which coverage is provided whether or
not this policy has expired at the time.
Action Against the Company: No action shall lie against the Company unless as a
condition thereto, the Insured shall have fully complied with all the terms and conditions
hereof, including full payment of premium due. In no event shall action lie against the
Company by any party not a party to this contract, except that the regulatory body may bring
4
•
action against the Company to the extent of its interest herein and subject to the terms and
conditions hereof.
Assignment: 'this policy may not be assigned to a successive owner or operator of the solid
waste facility without the consent of the Company, which shall not be unreasonably
withheld, provided the Company shall have received 60 days prior written notice of such
intent to assign.
Other Insurance: The insurance afforded by this policy is primary insurance. When this
insurance is primary and the Insured has other insurance which is stated to be applicable to
the loss on an excess or contingent basis, the amount of the Company's liability shall not be
reduced by the existence of such other insurance.
When both this insurance and other insurance apply to the loss on the same basis, whether
primary, excess or contingent, the Company shall not be liable under this policy for a greater
proportion of the loss than that stated in the applicable contribution provision below:
A. Contribution by Equal Shares. If all of such other valid and collectible insurance
provides for contribution by equal shares, the Company shall not be liable for a
greater proportion of such loss than would be payable if each insurer contributes an
equal share until the share of each insurer equals the lowest applicable limit of
liability under any one policy or the full amount of the loss is paid, and with respect
to any amount of loss not so paid the remaining insurers then continue to contribute
equal shares of the remaining amount to the loss until each such insurer has paid its
limit in full or the full amount of the loss is paid.
B. Contribution by Limits. If any of such other insurance does not provide for
contribution by equal shares, the Company shall not be liable for a greater proportion
of such loss than the applicable limit of liability under this Policy for such loss bears
to the total applicable limit of liability of all valid and collectible insurance against
such loss.
Regulatory Provisions: Any term or condition of this policy to which any federal or state
administrative or regulatory provision applies shall be governed by those regulations or
provisions in effect when a closure or post-closure policy was first issued by the Company
covering the solid waste facility.
Renewal: The coverage provided under this policy shall be renewed with a subsequent
policy, issued by the Company at the expiration of the policy period stated in the declarations
of this policy, in an amount at least equal to the limit of liability of this policy, subject to the
cancellation provision below, and conditioned upon timely payment in full of the premium
due on such subsequent policy prior to the expiration of this policy. The Company retains
the right to maintain the limit of liability in any subsequent policy at the level of this policy.
Cancellation and Non-Renewal: This policy may be cancelled by the Insured by surrender
thereof to the Company or any of its authorized agents, or after receiving written notice from
the regulatory body, by mailing to the Company written notice stating when the cancellation
shall be effective. If the Insured cancels, the return premium shall be computed in
accordance with the customary short-rate table and procedure according to the Rule of 78s;
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provided, if claim is made prior to cancellation by the Insured, the premium shall be
considered fully earned and therefore non-refundable in whole or in part.
The Company shall not cancel, terminate, or fail to renew the coverages provided herein
except for failure to pay the premium. In the event of non-payment of premium for renewal,
the Company may send written notice of intent to non-renew by certified mail to the Insured
and the regulatory body addressed to Virginia DEQ, Director, Waste Operations, P.O. Box
10009, Richmond, VA 23240-0009. Such non-renewal shall be effective as of the expiration
of the last policy period for which premium in full was paid, but only if premiums for the
renewal policy are not paid in full before the expiration of 120 days beginning with the date
of receipt of the non-renewal notice by both the regulatory body and the Insured. The return
receipt shall be conclusive evidence as to receipt of notice of non-renewal. In the event of a
claim for closure or post-closure first made during the 120 day period, whether or not made
during the policy effective dates, the limit of liability shall be that limit of liability listed in
the declarations of this policy.
Further, the Company shall not cancel, terminate or fail to renew in the event that on or
before the date of expiration of the policy or the date 120 days following notice of
non-payment of premium as described above; (a) the regulatory body deems the solid waste
facility abandoned; or (b) the permit is terminated, revoked, or a new permit is denied; or (c)
closure is ordered by the regulatory body or a court; or (d) the Insured is named as a debtor in
a voluntary or an involuntary proceeding under Title II (Bankruptcy) U.S. Code; or (e) the
premium is paid.
Notwithstanding the above, the Company shall have the right to collect the premium due for
renewal as of the expiration date stated in the declarations of this policy.
Insured's Duties in the Event of Claim:
a. In the event of the Insured's intent to close the solid waste facility, or if closure or
post-closure is ordered by the regulatory body for any reason, the Insured shall
provide the Company with immediate written notice of such intent or order, as well
as reasonably obtainable information with respect to the time, place and
circumstances thereof.
b. The Insured shall immediately forward to the Company any demand or notice
regarding the closure or post-closure received by the Insured or his representative.
c. The Insured shall cooperate with the Company and, upon the Company's request,
assist in obtaining information relative to any claims made. The Insured shall not,
except at his own cost, voluntarily make any payments, assume any obligations or
incur any expense relating to closure or post-closure without the Company's or the
regulatory body's permission.
d. Any notices required by these conditions shall be sent to the Company at 7
Burlington Square, 6th Floor, Burlington, VT 05401.
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Application and Declarations:
By acceptance of this policy, the Insured agrees that the statements in the application and the
declarations are his agreements and representations and that they form a part of this policy,
that this policy is issued in reliance upon the truth of such representations and that this policy
embodies all agreements existing between the Insured and the Company or any of its agents,
relating to this insurance.
Concealment, fraud:
In the event that, either before or after claim for closure or post-closure is first made, the
Insured has willfully concealed or misrepresented any material fact or circumstance
concerning this insurance or the subject of it, including any claim for loss, or the interest of
the Insured in it or in any case of any fraud or false swearing by the Insured relating to this
insurance or its subject, then the Insured shall indemnify the Company in full for any and all
loss, damage or expense which the Company sustains or will sustain by reason of such
actions by the Insured.
Changes:
Notices to any agent or broker or knowledge possessed by any agent, broker or by any other
person shall not effect a waiver or a change in any part of this policy or estop the Company
from asserting any right under the terms of this policy; nor shall the terms of this policy be
waived or changed nor shall any privilege or permission affecting the insurance under this
policy exist or be claimed by the Insured, except by endorsement issued to form a part of this
policy.
Service of Suit:
It is agreed that in the event of the failure of the Company to pay any amount claimed to be
due hereunder, the Company, at the request of the Insured, will submit to the jurisdiction of
any court of competent jurisdiction within the United States of America and will comply
with all requirements necessary to give such Court jurisdiction and all matters arising
hereunder shall be determined in accordance with the law and practice of such Court.
It is further agreed that service of process in such suit may be made upon the Company's
President, or his nominee, at 7 Burlington Square, 6th Floor, Burlington, VT 05401, and that
in any suit instituted against one of them upon this policy the Company will abide by the
final decision of such Court or of any Appellate Court in the event of an appeal.
The above-named is authorized and directed to accept service of process on behalf of the
Company in any such suit and/or upon the request of the Insured to give a written
undertaking to the Insured that it or they will enter a general appearance upon this
Company's behalf in the event such a suit shall be instituted.
Further, pursuant to any state, territory or district of the United States of America, which
makes provisions therefor, the Company hereby designates the Superintendent,
Commissioner or Director of Insurance or other Officer specified for that purpose in the
statute or his successor or successors in office, as their true and lawful attorney upon whom
may be served any lawful process in any action, suit or proceeding instituted by or on behalf
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Further, pursuant to any state, territory or district of the United States of America, which
makes provisions therefor, the Company hereby designates the Superintendent,
Commissioner or Director of Insurance or other Officer specified for that purpose in the
statute or his successor or successors in office, as their true and lawful attorney upon whom
may be served any lawful process in any action, suit or proceeding instituted by or on behalf
of the Insured or any beneficiary hereunder arising out of this contract of insurance, and
hereby designate the above-named as the person to whom the said Officer is authorized to
mail such process or a true copy thereof.
THIS POLICY IS MADE AND ACCEPTED SUBJECT TO THE FOREGOING STIPULATIONS
AND CONDITIONS AND TO THE EXCLUSIONS AND CONDITIONS WHICH ARE HEREBY
SPECIALLY REFERRED TO AND MADE A PART OF THIS POLICY, together with such other
provisions, agreements or conditions as may be endorsed hereon or added hereto.
IN WITNESS WHEREOF, National Guaranty Insurance Company of Vermont has caused this
policy to be signed by its President, but this policy shall not be valid unless countersigned by a duly
authorized representative.
Ea) , � -fpresident Authorized Re entative
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