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E. PLUGGING AND ABANDONMENT <br />1. Notice of Plug;g~e and Abandonment. The permittee shall notify the Director <br />forty-five (45) days before abandonment of the well. <br />2. Pluggins and Abandonment Plan. The permittee shall plug and abandon the well as <br />provided in the Plugging and Abandonment Plan, Appendix C. The Director <br />reserves the right to change the manner in which the well will be plugged if the well <br />is modified during its permitted life or if the well is not made consistent with EPA <br />requirements for construction and mechanical integrity. The Duector may ask the <br />pernuttee to update the estimated plugging cost periodically. Such estimates shall <br />be based upon costs which a third party would incur to plug the well according to <br />the plan. <br />3. Inactive Wells. After a two (2) yeaz period of injection inactivity, the permittee <br />shall plug and abandon the well in accordance with the Plugging and Abandonment <br />Plan, unless the permittee: <br />(a) has provided notice to the Director; and <br />(b) has demonstrated that the well will be used in the future; and <br />(c) has described actions or procedures, satisfactory to the Director, that will be <br />taken to ensure that the well will not endanger underground sources of <br />drinking water during; the period of temporary abandonment. <br />4. Pluggiing_and Abandonment Report. Within sixty (60) days after plugging the <br />well, the permittee Shall submit a report on Form 7520-13 to the Director. The <br />report shall be certified as accurate by the person who performed the plugging <br />operation and the report shall consist of either: (1) a statement that the <br />well was plugged in accorda~ice with the plan; or (2) where actual plugging differed <br />from the plan, a statement that specifies the different procedures followed. <br />F. FINANCIAL RESPONSIBIL:[TY <br />Demonstration of Financial Responsibility. The permittee is required to maintain <br />continuous financial responsibility and resources to close, plug and abandon the <br />injection well as provided in the plugging and abandonment plan. <br />(a) American Soda has chosen to demonstrate financial responsibility through a <br />Standby Trust Agreement and a SAFECO Insurance Company of America <br />Surety Performance)3ond (issued to American Soda, L.L.P., the well <br />operator), in an amount sufficient to carry out plugging and abandonment <br />required by the Permit. This bond is part of the overall bonding instrument <br />EPA Draft Permit No. CO 10932-04664 <br />Page 17 of 77 <br />