KRS 224.40-650: Bond of operator -- Release -- Forfeiture to solid waste disposal site

restoration fund -- Amendment of permit -- Successor operator -- Reclamation

by intergovernmental cooperation.

(1) Before the cabinet may issue a permit to operate a solid waste disposal facility, the

operator shall file with the cabinet a bond payable to the Commonwealth of

Kentucky with surety satisfactory to the cabinet in a sum to be determined by the

cabinet on the recommendation of the secretary of each acre or fraction the reof of

the area of land affected, with a minimum bond of ten thousand dollars ($10,000)

per site, conditioned upon the faithful performance of the requirements in this

chapter and of the rules and administrative regulations of the cabinet to insure

satisfactory closure of the facility. The cabinet may accept liquid or semi -liquid

assets deposited in an escrow account for the operating life of the landfill plus not

less than two (2) additional years as an alternative guarantee of adequate financial

responsibility for closure of the facility. The cabinet may accept other satisfactory

financial assurance as adequate financial responsibility for a waste site or facility

which is generated exclusively by a solid waste generator on property owned by the

solid waste generator for the purpose of accepting industrial solid waste exclusively

from the solid waste generator.

(2) An operator may at any time during the term of the permit apply to the cabinet for

an amendment of the permit so as to increase or reduce the a creage affected by it.

The operator shall file an application and map in the same form and with the same

content as required for an original application under this chapter and shall pay a

basic fee set by administrative regulation bearing a reasonable rela tionship to the

cost of processing the permit application and shall file with the cabinet a

supplemental bond for each acre or fraction of an acre of the increase approved. If

the cabinet approved a reduction in the acreage covered by the original or

supplemental permit, it shall release the bond for each acre reduced but in no case

shall the bond for the site be reduced below ten thousand dollars ($10,000).

(3) When the facility has been filled, covered, graded, seeded, and revegetated

according to regulations promulgated by the cabinet and approved by the cabinet the

secretary shall release the bond or other guarantee of financial responsibility that

has been provided to the cabinet. However, the bond or other guarantee of financial

responsibility shall no t be released earlier than two (2) years from the date of the

last placement of waste at the facility. If such closure requirements are not

accomplished by the operator of the facility, the cabinet shall forfeit the bond or

demand release of the moneys held to guarantee financial responsibility.

(4) All funds from the forfeiture of bonds or other sureties required pursuant to this

section shall be placed in the State Treasury and credited to a special trust and

agency account which shall not lapse. Such acc ount shall be known as the "Solid

Waste Disposal Site Restoration Fund" and moneys placed in the fund shall be used

for the proper closure of solid waste disposal facilities and insofar as practicable be

used to correct the problems at the same site for wh ich the bond or other sureties

were originally provided.

(5) No operator or person shall be eligible to receive another permit to operate a solid

waste management facility who has forfeited any bond or other surety provided

pursuant to this section, unless the land for which the bond or other surety was

forfeited has been reclaimed without cost to the state, or the operator or person has

paid such sum as the cabinet finds is adequate to reclaim such lands.

(6) Where one (1) operator succeeds another at any solid waste disposal facility prior to

final closure, either by sale, assignment, lease, or otherwise, the cabinet may release

the first operator from all liability under this section, provided that the successor

operator meets the requirements of this sec tion and assumes, as part of his

obligation under this chapter, all liability for the reclamation and final closure of the

area of land affected by the former operation.

(7) In the reclamation of land affected by incomplete or improper closure of a solid

waste disposal facility for which it has the funds available, the cabinet may avail

itself of any services which may be provided by other state agencies or by agencies

of the federal government, and may compensate them for such services. The cabinet

may cause the reclamation work to be done by its own employees, by employees of

other governmental agencies, or through contracts with qualified persons.

(8) The cabinet may also receive any federal funds, state funds or any other funds for

the closure of solid waste disposal facilities.

(9) The cabinet, any other agency, and any person under a contract with the cabinet

pursuant to this section shall have the right of access to the land affected to carry

out such reclamation.

(10) No city, county, urban -county government or agency of a city, county, or urban -

county government, or taxing district, or other political subdivision of the

Commonwealth shall be required to file any surety bond with the cabinet pursuant

to this section for the operation of a solid waste d isposal facility by such city,

county, urban-county government, or agency thereof, or taxing district, or any other

political subdivision of the Commonwealth.