11 AAC 63.080. Required security

(a) For any aquatic farmsite lease, a bond, cash deposit, certificate of deposit, or other form of security acceptable to the commissioner must be posted and maintained in an amount determined by the commissioner to be sufficient to cover the cost of site cleanup and restoration and any associated cleanup costs after termination of the lease, including any unpaid rentals or other obligations accruing until site restoration is complete.

(b) The minimum security amount for a lease is $2500. However, if three or more lessees post an association bond to cover all of their leases, the minimum security amount is 50 percent of the amount individually calculated for each lease. The association must designate an agent for notification purposes. The association has the right to be notified of the termination of a lease covered by its association bond. If neither the former lessee nor the association completes the site restoration as required by AS 38.05.090 , the department will use the association bond for this purpose, up to 100 percent of the amount individually calculated for that lease. The association may remove a lease in good standing from the coverage of its association bond after 60 days' notice to the department, during which time the affected lessee must make other arrangements to comply with this section. A lease that is in default or that has been terminated with site restoration still pending may not be removed from the coverage of an association bond.

(c) Factors that the commissioner will use in the commissioner's discretion in determining to require a higher amount of security include travel costs to reach the site for cleanup or inspection; the planned size and extent of improvements; whether the improvements, including associated facilities on state land, could be towed away for use by other operators, burned onsite, or disposed of at an authorized landfill; and whether heavy equipment would be needed for upland site restoration. The commissioner will, in the commissioner's discretion, subsequently change the amount of the required security, based on changes in the level of site development, new information, or other appropriate factors.

(d) When the former lessee restores the site to a condition acceptable to the commissioner, the security posted for the former lease will be released.

History: Eff. 7/1/89, Register 110; am 6/14/98, Register 146

Authority: AS 38.05.020

AS 38.05.035

AS 38.05.083

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