Amount and Scope of Required Financial Responsibility

PURPOSE: This rule establishes the amount of the required financial responsibility. (1) Owners or operators of petroleum underground storage tanks (USTs) shall demonstrate financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum USTs in at least the following per occurrence amounts: (A) One (1) million dollars for owners or operators of petroleum USTs that are located at petroleum marketing facilities or that handle an average of more than ten thousand (10,000) gallons of petroleum per month based on annual throughput for the previous calendar year; or (B) Five hundred thousand dollars ($500,000) for all other owners or operators of petroleum USTs. (2) Owners or operators of petroleum USTs must demonstrate financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum USTs in at least the following annual aggregate amounts: (A) One (1) million dollars for owners or operators of one to one hundred (1—100) petroleum USTs; and (B) Two (2) million dollars for owners or operators of one hundred one (101) or more petroleum USTs. (3) For the purposes of sections (2) and (6) of this rule, a petroleum UST means a single containment unit and does not mean combinations of single containment units. (4) Except as provided in section (5) of this rule, the amount of assurance provided by each mechanism or combination of mechanisms must be in the full amount specified in sections (1) and (2) of this rule if the owner or operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial responsibility for— (A) Taking corrective action; (B) Compensating third parties for bodily injury and property damage caused by sudden accidental releases; or (C) Compensating third parties for bodily injury and property damage caused by nonsudden accidental releases. (5) If an owner or operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial responsibility for different petroleum USTs, the annual aggregate required shall be based on the number of tanks covered by each separate mechanism or combination of mechanisms. (6) Owners or operators shall review the amount of aggregate assurance provided whenever additional petroleum USTs are acquired or installed and shall revise their financial responsibility to comply with the following: (A) If the number of petroleum USTs for which assurance must be provided exceeds one hundred (100), the owner or operator shall demonstrate financial responsibility in the amount of at least two (2) million dollars of annual aggregate assurance by the anniversary of the date on which the mechanism demonstrating financial responsibility became effective; and (B) If assurance is being demonstrated by a combination of mechanisms to meet the requirements of section (6), the owner or operator shall demonstrate financial responsibility in the amount of at least two (2) million dollars of annual aggregate assurance by the first occurring effective date anniversary of any one (1) of the mechanisms combined (other than a financial test or guarantee) to provide assurance. (7) The amounts of assurance required under this rule exclude legal defense costs. (8) The required per occurrence and annual aggregate coverage amounts do not in any way limit the liability of the owner or operator. AUTHORITY: section 319.114, RSMo 2000.* This rule originally filed as 10 CSR 2011.093. Original rule filed Feb. 7, 1991, effective Aug. 30, 1991. Moved and amended: Filed April 15, 2011, effective Dec. 30, 2011. *Original authority: 319.114, RSMo 1989.