OAR 141-140-0095: Financial Assurance

(1) A holder must maintain cost estimates of the amount of financial assurance that is necessary, and demonstrate to the Department evidence that the holder has in effect the amount and form of required financial assurance for: (a) The costs of closure and post-closure maintenance of the facility or device, excluding the removal of anchors, cables or any other equipment that lies at least one meter beneath submerged lands in the territorial sea; and (b) Any corrective action, required by the Department or any other local, state or federal government agency with jurisdiction over the site, to be taken at the site of the ocean renewable energy monitoring equipment or ocean renewable energy facility. (2) Such cost estimates must be prepared by a person qualified by experience and knowledge to prepare such cost estimates. (3) Such cost estimates and evidence of the required financial assurance must be provided in writing to the Department prior to the granting of the temporary use authorization or ocean renewable energy facility lease. (4) The required financial assurance may be satisfied by any one, or a combination of the following: (a) Insurance specific to the development, operation, and decommissioning of ocean renewable energy projects; or (b) Establishment of a trust fund with cash to the required dollar amount; or (c) Surety bond; or, (d) Letter of credit. (5) The State of Oregon, Department of State Lands shall be named as the beneficiary of any approved financial assurance instrument. (6)The holder shall update the information required under OAR 141-140-0095, and provide to the Department an updated form of financial assurance, by January 31st of each calendar year or on a more frequent basis as required by the Department. (7) The Department: (a) Shall determine the amount of and terms of financial assurance required based on the cost estimates of the holder, and consider the nature and location of the use in relation to other uses and resources, any requirements of law, and any other unique factors of the proposed use or holder determined to be relevant by the Department; and (b) May consult with the Oregon Department of Justice, Risk Management Division of the Oregon Department of Administrative Services, the JART, or other qualified persons in determining the amount of and terms of financial assurance required.