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The Importance Of Decommissioning Security A landowner who is approached by a developer interested in leasing land in connection with a renewable energy project should consider negotiating for decommissioning security in its ground lease or other contractual arrangements with the developer. Every project has a lifetime after which it is no
surety or having contributions/surety returned. Who is not affected by the changes? A holder of an authority for a prescribed environmentally relevant activity (e.g. non-resource sites such as landfills) will continue to provide financial assurance as per the current financial assurance arrangements under the EP Act. 1.0 Transitioning to the Scheme
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If there is a liquidation of a Close Corporation or Company, the creditors of the business will call up the sureties after date of liquidation. Don’t forget therefore to deal with the sureties as soon as possible after date of liquidation. If the amounts that you signed surety for are manageable, make payment arrangements as soon as is possible.
the UID goes after the surety agency first. Generally, if you have a surety insurer, the agency contacts them to get the money to pay it. Curt notes that an agency could have trouble getting money from a surety if the surety is having financial difficulty, which would make it not the agency’s fault. That’s probably rare, but he could see it.
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Annual Escalation Rates. Note – Call Peter Brinton at (801) 538-5258 or Wayne Western at (801)538-5263 and ask for escalation information for the Minerals Program. Minimize surety review delays by understanding the escalation factor and using the correct escalation factor consistent with the year the bond was calculated.
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