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<br />F. FINANCIAL RESPONSIBILITY <br />1. Demonstration of Financial Responsibility. The <br />Permittee is required to maintain continuous financial <br />responsibility and resources to close, plug and abandon <br />the injection well as provided in the plugging and <br />abandonment plan, <br />(a) American Soda has chosen to demonstrate financial <br />responsibility through a Standby Trust Agreement <br />and a SAFECO Insurance Company of America Surety <br />Performance Bond (issued to American Soda, L.L.P., <br />the well operator), in the amount of $68,400. <br />This bond will increase as required by the <br />addition of new wells. The Performance Bond names <br />EPA as beneficiary in the event of Permittee <br />default on the plugging and abandonment <br />requirements and is hereby incorporated as part of <br />this Permit. The Standby Trust Agreement <br />established by the Permittee shall remain in <br />effect for the duration of this Permit, unless <br />part (b), below, has been complied with. <br />(b) The Permittee may, upon written request to EPA, <br />change the type of financial mechanism or <br />instrument utilized. A change in demonstration of <br />financial responsibility must be approved by the <br />Director. A minor Permit modification shall be <br />made to reflect any change in financial <br />mechanisms, without further opportunity for public <br />comment. <br />2. Insolvency of Financial Institution. In the event <br />that an alternate demonstration of financial <br />responsibility has been approved under (b) above, the <br />Permittee must submit an alternate demonstration of <br />financial responsibility acceptable to the Director <br />within sixty (60) days after either of the following <br />events occur: <br />(a) The institution issuing the trust or financial <br />instrument files for bankruptcy; or <br />(b) The authority of the trustee institution to act as <br />trustee, or the authority of the institution <br />issuing the financial instrument, is suspended or <br />revoked. <br />EPA FINAL Area Permit No. C03858-00000 <br />Page 29 of 164 <br />