{"data":{"id":"us-ok/okla.-stat.-tit.-17-17-327.3","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 17, § 17-327.3","heading":"Reimbursement for allowable costs from an eligible","body":"release.\n\nA. The Oklahoma Petroleum Storage Tank Indemnity Program shall\n\nprovide reimbursement to eligible persons for allowable costs\n\nresulting from an eligible release pursuant to the provisions of\n\nthis section.\n\nB. 1. The Oklahoma Petroleum Storage Tank Indemnity Fund:\n\na. may require that any corrective action taken as a\n\nresult of an eligible release, other than corrective\n\naction taken in an emergency situation, may be made by\n\nthe competitive bid of at least two bidders.\n\nAcquisition or contracts or subcontracts for\n\ncorrective action or for labor or equipment comprising\n\na single task or scope of work which exceeds Two\n\nThousand Five Hundred Dollars ($2,500.00) from any one\n\nvendor or subcontractor for any one site shall be\n\nawarded to the lowest and best bidder,\n\nb. shall require that an eligible person or a property\n\nowner whose off-site property has been contaminated by\n\na release shall not retain an environmental consultant\n\nto conduct the remediation of the release in which the\n\neligible person, property owner or impacted party has\n\nmore than a ten-percent interest ownership, is an\n\nemployee, or is an officer of the environmental\n\nconsultant, and\n\nc. may require the owner or operator to submit\n\ndocumentation evidencing proof of such competitive\n\nbidding.\n\n2. Any competitive bid submitted pursuant to this section shall\n\nbe accompanied by the sworn noncollusion statement contained in\n\nSection 85.22 of Title 74 of the Oklahoma Statutes, modified in\n\nwording as appropriate. In the event bids are not obtained pursuant\n\nto this subsection, expenditures made without bids shall only be\n\nreimbursed by the amount determined to be the reasonable value of\n\nthe equipment purchased or the task or scope of work performed.\n\n3. Professional engineering, geological, land surveying and\n\nother professional services or services provided by a Commission-\n\nlicensed storage tank environmental consultant required for\n\ninvestigation and the preparation of corrective action plans or\n\nproposed corrective action plans and oversight of corrective action\n\nshall be selected based upon professional qualifications and\n\ntechnical experience of the consultant at a fair and reasonable fee\n\nas negotiated between the eligible person and his or her\n\nenvironmental consultant.\n\nC. The eligible person responsible for taking the corrective\n\naction shall keep and preserve suitable records of hydrological and\n\nother site investigations and assessments, site rehabilitation\n\nplans, contracts and contract negotiations, and accounts, invoices,\n\nsales tickets, or other payment records from purchases, sales,\n\nleases, or other transactions or claims involving costs actually\n\nincurred related to such corrective action or injury or damage.\n\nSuch records shall be made available upon request to agents and\n\nemployees of the Oklahoma Petroleum Storage Tank Indemnity Fund\n\nduring regular business hours, and at other times upon written\n\nrequest. In addition, the employees, agents and representatives of\n\nthe Oklahoma Petroleum Storage Tank Indemnity Fund may from time to\n\ntime request submission of such site-specific information as it may\n\nrequire. All records of costs actually incurred shall be certified\n\nby affidavit to the Oklahoma Petroleum Storage Tank Indemnity Fund\n\nas being true and correct.\n\nD. 1. a. The Administrator shall deny or approve and pay, in\n\nwhole or in part, the application for reimbursement on\n\nbehalf of or to eligible persons and shall complete\n\ninitial reimbursement within ninety (90) days after\n\nreceipt of the complete application including but not\n\nlimited to all requisite supporting documents, unless\n\nthe time for review is extended by the Administrator\n\ngiving the applicant written notice of intent to\n\nextend no later than eighty (80) days from the date of\n\nreceipt of the application. The total review period\n\nshall not be extended beyond one hundred twenty (120)\nninety (90) days after\n\nreceipt of the complete application including but not\n\nlimited to all requisite supporting documents, unless\n\nthe time for review is extended by the Administrator\n\ngiving the applicant written notice of intent to\n\nextend no later than eighty (80) days from the date of\n\nreceipt of the application. The total review period\n\nshall not be extended beyond one hundred twenty (120)\n\ndays from the date of receipt of the complete\n\napplication including but not limited to all requisite\n\nsupporting documents, unless otherwise extended by\n\nwritten mutual agreement of the applicant and the\n\nAdministrator.\n\nb. The Administrator, within thirty (30) days of receipt\n\nof the complete application including but not limited\n\nto all requisite supporting documents, shall determine\n\nwhether such person is eligible for reimbursement and\n\nshall notify such applicant as to his or her\n\neligibility in writing.\n\nc. An application deemed to be incomplete shall not\n\ntrigger the time allowed for review.\n\n2. Disposition of an application shall be provided to the\n\napplicant in writing, accompanied by a written explanation setting\n\nforth in detail the reason or reasons for the approval or denial of\n\na claim, in whole or in part. If the Administrator fails to make a\n\ndetermination on an application or payment within the time provided\n\nor denies an application, or if a dispute otherwise arises with\n\nregard to reimbursement, the applicant may seek appropriate legal\n\nremedies.\n\n3. For claims submitted subsequent to submittal of the\n\napplication, the Administrator shall have thirty (30) days from the\n\ndate of receipt of the supplemental claim in which to approve or\n\ndeny the supplemental claim. If a supplemental claim is made\n\nsubsequent to the date of the application but prior to the\n\ncompletion of the review of the application, the thirty-day review\n\nperiod shall not commence until the Oklahoma Petroleum Storage Tank\n\nIndemnity Fund has completed its review of the application. This\n\ntime for review may be extended by the Administrator giving the\n\napplicant written notice of intent to extend no later than twenty\n\n(20) days from the date of receipt of the claim.\n\n4. For eligible releases requiring extensive corrective action,\n\nthe Administrator is authorized to make an initial payment and\n\nperiodic supplemental payments for reimbursements to eligible\n\npersons for ongoing reimbursable costs actually incurred. An\n\neligible person intending to file for supplemental payments for\n\nreimbursement shall submit work plans for implementation of the\n\ncorrective action plan approved by the Commission's regulatory\n\nprogram pursuant to the Oklahoma Petroleum Storage Tank\n\nConsolidation Act, or for other work which is proposed to be\n\nperformed. Such work plans shall include, but not be limited to,\n\nthe work to be completed, schedule of actions to be taken and\n\nestimates of costs to be reimbursed. Such information may be\n\nsubmitted with the application for reimbursement or whenever\n\nappropriate. Such work plans shall be submitted for informational\n\npurposes only. After approval of the application, the Administrator\n\nshall have thirty (30) days from the date of receipt of a claim for\n\nsupplemental payment in which to approve and pay or deny the\n\nsupplemental claim. The thirty-day time for review may be extended\n\nby the Administrator for an additional thirty (30) days upon giving\n\nthe applicant written notice of such intent to extend no later than\n\ntwenty (20) days from the date of receipt of the claim. If the\n\nclaim for payment is included with the application for\n\nreimbursement, paragraph 1 of this subsection shall control.\n\nE. 1. For reimbursement to any person the following conditions\n\napply:\n\na. the person claiming reimbursement must be an eligible\n\nperson,\n\nb. the eligible person must have been in substantial\n\ncompliance with the applicable rules promulgated\nhe date of receipt of the claim. If the\n\nclaim for payment is included with the application for\n\nreimbursement, paragraph 1 of this subsection shall control.\n\nE. 1. For reimbursement to any person the following conditions\n\napply:\n\na. the person claiming reimbursement must be an eligible\n\nperson,\n\nb. the eligible person must have been in substantial\n\ncompliance with the applicable rules promulgated\n\npursuant to the provisions of the Oklahoma Petroleum\n\nStorage Tank Indemnity Fund and the Oklahoma Storage\n\nTank Consolidation Act at the time of the reporting of\n\nthe release,\n\nc. allowable costs resulting from a release must have\n\nbeen incurred on or after December 23, 1988,\n\nd. the Commission determined that the release no longer\n\nposes a threat to the public health and welfare or the\n\nenvironment,\n\ne. the Commission was given adequate notice by such owner\n\nor operator of the release pursuant to Section 309 of\n\nTitle 17 of the Oklahoma Statutes, and\n\nf. such owner or operator, to the extent possible, fully\n\ncooperated with the Commission in responding to the\n\nrelease.\n\nA person seeking reimbursement who has not been in substantial\n\ncompliance with the applicable rules as required in subparagraph b\n\nof this paragraph or who failed to give adequate notice as required\n\nin subparagraph e of this paragraph will remain ineligible until all\n\ncorrective action ordered by the Commission has been accomplished\n\nand all fines paid. Payment of fines and documentation of\n\ncorrective action shall be shown by a certification signed by the\n\nDirector of the Petroleum Storage Tank Division. The certificate\n\nmust state that all fines resulting from noncompliance have been\n\npaid and any required corrective action has been completed and no\n\nadditional enforcement actions are required.\n\n2. For reimbursement to any person, the following conditions\n\napply:\n\na. the person claiming reimbursement must be an eligible\n\nperson,\n\nb. the person, to the extent possible, has fully\n\ncooperated with the Commission, and\n\nc. allowable costs for any corrective action must have\n\nbeen incurred on or after December 23, 1988.\n\nF. Except as otherwise provided by the Oklahoma Petroleum\n\nStorage Tank Indemnity Fund, a reimbursement shall not be made to\n\nany eligible person who has received or is eligible for payment or\n\nreimbursement from any other state or federal agency or other third-\n\nparty payor for the corrective action taken or the damages or the\n\ninjuries associated with a release. If a state or federal agency or\n\nother third-party payor does not fully compensate the eligible\n\nperson, then the eligible person may seek compensation for the\n\nuncompensated amount from the Indemnity Fund.\n\nG. 1. An eligible person shall be reimbursed from the\n\nIndemnity Fund for allowable costs in excess of the copayment of one\n\npercent (1%) of the reimbursable costs for the corrective action.\n\nCopayments shall not exceed a maximum of Five Thousand Dollars\n\n($5,000.00). The Indemnity Fund shall charge the eligible person\n\ndirectly for an initial one-thousand-dollar copayment and thereafter\n\nin one-thousand-dollar increments as warranted by the progressive\n\ntotal case costs. When the total case cost is finalized, the\n\nPetroleum Storage Tank Indemnity Fund shall reimburse the eligible\n\nperson any overpayment of the one-percent copayment. For releases\n\nthat occurred prior to June 4, 2004, eligible persons shall pay the\n\nfive-thousand-dollar deductible as a copayment which may be paid in\n\ninstallments.\n\n2. An impacted party whose on-site or off-site property has\n\nbeen contaminated by a release who elects the procedure authorized\n\nby this subsection shall not be required to remit copayments in\n\norder to receive reimbursement from the Petroleum Storage Tank\n\nIndemnity Fund. The impacted party or adjacent owner submits to the\nsand-dollar deductible as a copayment which may be paid in\n\ninstallments.\n\n2. An impacted party whose on-site or off-site property has\n\nbeen contaminated by a release who elects the procedure authorized\n\nby this subsection shall not be required to remit copayments in\n\norder to receive reimbursement from the Petroleum Storage Tank\n\nIndemnity Fund. The impacted party or adjacent owner submits to the\n\njurisdiction of the Commission by applying for Indemnity Fund\n\nreimbursement.\n\n3. Reimbursements shall not exceed Two Million Five Hundred\n\nThousand Dollars ($2,500,000.00) per occurrence, and:\n\na. Four Million Dollars ($4,000,000.00) annual aggregate\n\nfor owners of one to one hundred storage tank systems,\n\nor\n\nb. Five Million Dollars ($5,000,000.00) annual aggregate\n\nfor owners of more than one hundred storage tank\n\nsystems.\n\nThe reimbursement limits in this paragraph shall not include funds\n\nexpended on city, county, state or political subdivision property\n\nwhere the city, county, state or political subdivision is an\n\nimpacted party or adjacent property owner.\n\n4. Reimbursement shall not be made from the Petroleum Storage\n\nTank Indemnity Fund pursuant to this section until the Administrator\n\nhas determined that the costs for which reimbursement is requested\n\nwere actually incurred and were reasonable.\n\nH. The Petroleum Storage Tank Indemnity Fund shall cover\n\ncorrective action taken and other actual physical damage caused by\n\nan eligible release. The Petroleum Storage Tank Indemnity Fund\n\nshall also cover any medical injuries incurred as a result of the\n\neligible release to persons other than employees of the eligible\n\nperson of the storage tank system or their agents and independent\n\ncontractors retained to perform any such corrective action. The\n\nPetroleum Storage Tank Indemnity Fund shall not be used to:\n\n1. Recover payments for loss of time;\n\n2. Recover payment of costs which may be associated with but\n\nare not integral to corrective action such as the cost of\n\nrenovating, removing or disposing of storage tanks unless the\n\nremoving of any petroleum storage tanks, concrete, concrete\n\naccessories, lines, dispensers or other site improvements is\n\nnecessary as required by a corrective action plan approved by the\n\nCommission's regulatory program;\n\n3. Pay for punitive damages from any civil action resulting\n\nfrom the eligible release;\n\n4. Recover costs for loss of business and taking of property\n\nassociated with the corrective action; or\n\n5. Pay legal expenses.\n\nI. The right to apply for reimbursement and the receipt of\n\nreimbursement does not limit the liability of an owner or operator\n\nfor damages, injuries or the costs incurred as a result of an\n\neligible release.\n\nJ. The right to file the initial application, supplemental\n\nclaims, and resubmittals for reimbursement and the right to certify\n\nthat costs are true, correct and actually incurred shall not be\n\nassigned to a person rendering services for corrective action on the\n\nsubject site.\n\nK. Any person who prevails in an action brought pursuant to the\n\nOklahoma Petroleum Storage Tank Indemnity Fund to recover disallowed\n\nclaims upon an application, supplemental claim or resubmittal\n\nrequesting reimbursement shall be entitled to recover interest, the\n\ncosts of the action and attorney fees. Costs of the action shall\n\ninclude filing fees, administrative costs, witness fees and expenses\n\nrelated to the proceeding.\n\nL. 1. In any case that has been determined to be eligible for\n\nreimbursement from the Petroleum Storage Tank Indemnity Fund, a\n\nproperty owner whose property has been contaminated by an eligible\n\nrelease may remediate his or her own property and make direct\n\napplication to and receive reimbursement from the Petroleum Storage\n\nTank Indemnity Fund for any of the following:\n\na. the costs of investigation,\n\nb. participation in the determination of activities to be\n\nconducted upon the site,\noleum Storage Tank Indemnity Fund, a\n\nproperty owner whose property has been contaminated by an eligible\n\nrelease may remediate his or her own property and make direct\n\napplication to and receive reimbursement from the Petroleum Storage\n\nTank Indemnity Fund for any of the following:\n\na. the costs of investigation,\n\nb. participation in the determination of activities to be\n\nconducted upon the site,\n\nc. corrective action, and\n\nd. remediation of his or her property.\n\n2. Reimbursement shall be subject to the same requirements as\n\nrequests for reimbursement made by the eligible person on such sites\n\nand shall be handled in the same manner as other sites which have\n\nadjacent release or overlapping or commingled plumes. The amount\n\nreimbursed to the property owner and eligible person shall not\n\nexceed the statutory limits of subsection G of this section.\n\nM. In the event the Petroleum Storage Tank Indemnity Fund fails\n\nto reimburse a claim as provided by this section, any person who\n\nprevails in an action brought pursuant to the Oklahoma Petroleum\n\nStorage Tank Release Indemnity Program to recover claims disallowed\n\nby an administrative action of the Oklahoma Petroleum Storage Tank\n\nIndemnity Fund upon an application, supplemental claim or\n\nresubmittal requesting reimbursement shall be entitled to receive\n\ninterest upon such claim at the rate provided for in subsection I of\n\nSection 727 of Title 12 of the Oklahoma Statutes.\n\nN. 1. Claims for reimbursement pursuant to the Petroleum\n\nStorage Tank Indemnity Fund must be made within two (2) years of\n\nJune 9, 1998, or two (2) years after site closure, whichever is\n\nlater.\n\n2. Eligible persons should be encouraged to submit claims for\n\nreimbursement as the costs are incurred and in the order they are\n\nincurred. However, the right to submit a claim or the time during\n\nwhich to submit a claim for reimbursement shall not be limited or\n\nrestricted except as provided in this subsection.\n\n3. All claims, including but not limited to resubmitted claims,\n\nshall be evaluated by the Petroleum Storage Tank Indemnity Fund\n\nunder the system of evaluation employed by the Indemnity Fund at the\n\ntime the costs were incurred.\n\nO. 1. The Petroleum Storage Tank Indemnity Fund is authorized\n\nto enter into contracts for site remediation or corrective action\n\nwhich may be performance-based. Parties to such contracts shall be\n\nthe eligible person, the off-site owner, the impacted party, the\n\nlicensed environmental consultant and the Petroleum Storage Tank\n\nIndemnity Fund which may guarantee the remediation or corrective\n\naction. Each party must execute the contract before it is\n\neffective. Costs of equipment used in the performance-based\n\ncontract may be reimbursed separate and apart from the performance-\n\nbased contract as determined by the Administrator.\n\n2. If:\n\na. an owner or operator is not available and a storage\n\ntank system has made a release into the environment,\n\nor\n\nb. where there is a suspicion of a release onto any\n\nproperty where tanks are located and/or onto property\n\nproximate thereto, or where tanks are located and a\n\nsite assessment is necessary to confirm a release or\n\nperform tank closure, and\n\nc. such property is located within the limits of the\n\ntown, city or political subdivision,\n\nthe town, city or political subdivision may obtain assignments from\n\nproperty owners in order to assume the rights of an eligible party\n\nfor the purpose of reimbursement of the costs associated with the\n\nassessment, investigation and remediation of any site.\n\n3. The Administrator of the Petroleum Storage Tank Indemnity\n\nFund may also designate a town, city or political subdivision to be\n\nan eligible party for the purpose of reimbursement of the costs\n\nassociated with the assessment, investigation and remediation of any\n\nsite.\n\n4. If the town, city or political subdivision has title to the\nith the\n\nassessment, investigation and remediation of any site.\n\n3. The Administrator of the Petroleum Storage Tank Indemnity\n\nFund may also designate a town, city or political subdivision to be\n\nan eligible party for the purpose of reimbursement of the costs\n\nassociated with the assessment, investigation and remediation of any\n\nsite.\n\n4. If the town, city or political subdivision has title to the\n\nproperty or is the recipient of proceeds from a sale or auction of\n\nthe property, the town or city shall reimburse the Petroleum Storage\n\nTank Indemnity Fund for any required copayment within three (3)\n\nyears from the closure of the case.\n\n5. Terms of pay-for-performance contracts shall include, but\n\nnot be limited to, the total amount to be paid for completion of the\n\nremediation or corrective action provided for by the contract and\n\nthe length of time necessary to implement and complete the\n\nremediation or corrective action. Performance payments under pay-\n\nfor-performance contracts shall be based upon the actual reduction\n\nof contamination upon the site being remediated. For those sites\n\nupon which it is estimated that remediation will take more than six\n\n(6) months and will require the installation and operation of a\n\nmechanical remediation system, payments under such contracts for the\n\nremediation to be accomplished by such system shall be as follows:\n\na. twenty percent (20%) of the total contract price for\n\nthe first twenty-five-percent reduction in\n\ncontamination to be accomplished by such system,\n\nb. an additional twenty percent (20%) of the total\n\ncontract price, for a total of forty percent (40%) for\n\nthe next twenty-five percent (25%), for a total fifty-\n\npercent reduction in contamination to be accomplished\n\nby such system,\n\nc. an additional twenty percent (20%) of the total\n\ncontract price, for a total of sixty percent (60%) for\n\nthe next first twenty-five percent (25%), for a total\n\nseventy-five-percent reduction in contamination to be\n\naccomplished by such system,\n\nd. an additional twenty percent (20%) of the total\n\ncontract price, for a total of eighty percent (80%)\n\nfor the next first twenty-five percent (25%), for a\n\ntotal one-hundred-percent reduction in contamination\n\nto be accomplished by such system, and\n\ne. with a final payment of the remaining twenty percent\n\n(20%) of the contract price to be paid after the site\n\nremains clean for six (6) months.\n\n6. Any environmental consultant or company who fails to\n\ncomplete corrective action or remediation as provided in a pay-for-\n\nperformance contract, or who has failed or fails, before requesting\n\nand receiving the first payment under a pay-for-performance\n\ncontract, to install equipment upon a site which was proposed or\n\nwhich was to be installed whenever possible, or who in any other\n\nmanner materially breaches a pay-for-performance contract shall be\n\nprohibited from entering into another pay-for-performance contract\n\nor purchase order with the Indemnity Fund for a period of three (3)\n\nyears and shall forfeit any rights to or interest in the equipment\n\nto the Indemnity Fund if the equipment was:\n\na. paid in advance by the Indemnity Fund, and\n\nb. allocated for a pay-for-performance site.\n\nP. The Oklahoma Petroleum Storage Tank Indemnity Fund is\n\nauthorized to enter into purchase orders for the performance of\n\ncorrective action or various tasks or scopes of work to be performed\n\nupon a site as is prudent. Each purchase order shall establish an\n\namount to be paid for the completion of a particular corrective\n\naction, task or scope of work. Such purchase orders shall be\n\nentered into between the Petroleum Storage Tank Indemnity Fund and\n\nthe eligible person or his or her environmental consultant. The\n\nIndemnity Fund and the eligible person or his or her consultant\n\nshall conduct negotiations in good faith. Rules promulgated to\nstablish an\n\namount to be paid for the completion of a particular corrective\n\naction, task or scope of work. Such purchase orders shall be\n\nentered into between the Petroleum Storage Tank Indemnity Fund and\n\nthe eligible person or his or her environmental consultant. The\n\nIndemnity Fund and the eligible person or his or her consultant\n\nshall conduct negotiations in good faith. Rules promulgated to\n\nimplement this subsection shall not place any restrictions upon the\n\nnegotiation process by limiting the number of revisions which may be\n\nsubmitted or restricting the time period during which they may be\n\nsubmitted.\n\nQ. In evaluating and determining the amount of reimbursement to\n\nbe paid upon a claim, the Indemnity Fund shall consider the\n\nreasonable cost of the task or scope of work that was reasonable and\n\ncompleted and shall be based upon standard billing rates and\n\npractices for environmental services as normally billed by such\n\nprofessionals, contractors or other service providers. If the\n\noverall total cost of performing a particular task or scope of work\n\nis reasonable, the Indemnity Fund shall fully reimburse the total\n\ncost of the particular task or scope of work performed.\n\nR. 1. When a claim submitted for first reimbursement\n\nconsideration is disallowed in whole or in part by the Administrator\n\nof the Petroleum Storage Tank Indemnity Fund, an applicant shall\n\nhave ninety (90) days to resubmit the disallowed claim for\n\nreconsideration. Unless otherwise authorized by the Administrator\n\nof the Petroleum Storage Tank Indemnity Fund, resubmittal of a claim\n\nthat has been disallowed in whole or in part shall only be allowed\n\none time.\n\n2. Except as otherwise provided by this paragraph, if the\n\ndisallowed claim is not resubmitted within ninety (90) days from the\n\ndate of the disallowance, the claim shall no longer be eligible for\n\nreimbursement from the Petroleum Storage Tank Indemnity Fund. An\n\naction by the applicant disputing a disallowed claim shall be\n\ncommenced within one (1) year of the date of the last disallowance\n\nand shall be brought for an administrative hearing before the\n\nCommission.\n\n3. Any applicant that, prior to November 1, 2004, has incurred\n\na disallowance of a claim in whole or in part and has not\n\nresubmitted the disallowed claim for further consideration has until\n\nFebruary 28, 2005, to resubmit the disallowed claim for such\n\nconsideration. After February 28, 2005, the claim shall be deemed\n\ndenied and shall no longer be eligible for reconsideration or\n\nreimbursement from the Petroleum Storage Tank Indemnity Fund.\n\n4. The Director of the Petroleum Storage Tank Division may\n\nconsider hardship exceptions such as, but not limited to, active\n\nmilitary duty, to the time limits contained in this subsection.","path":["OK Code","Title 17"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os17.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"a74aa21fc2f320d36395f1e5e6f4e498d89953ac978db038a52f3a8fe8f2cd35","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-17-17-327.2","next":"us-ok/okla.-stat.-tit.-17-17-327.4"},"notice":"GroundRules: Original legal text. Not legal advice."}