§ 35-11-306 — Oil field waste disposal facilities; restriction

(a) In addition to any other requirement or restriction
imposed under the Wyoming Environmental Quality Act, no person
shall locate, construct or operate any commercial oil field
waste disposal facility within one (1) mile of any:
(i) Occupied dwelling house without the written
consent of the owner of the dwelling; or
(ii) Public or private school without the consent of
the school's board of trustees or board of directors.
(b) Any person who knowingly locates, constructs or
operates a commercial oil field waste disposal facility in
violation of subsection (a) of this section is subject to the
penalties provided by W.S. 35-11-901. The provisions of
subsection (a) of this section relating to commercial oil field
waste disposal facilities shall be enforced by the water quality
division of the Wyoming department of environmental quality.
(c) As a condition of receiving a permit pursuant to W.S.
35-11-301, any person locating, constructing or operating any
commercial oil field waste disposal facility shall post a bond
as required by this section.
(d) The council, by rules and regulations, shall establish
bonding or financial assurance requirements for commercial oil
field waste disposal facilities to assure there are adequate
sources of funds to provide for:
(i) Cost effective closure, post-closure inspection
and maintenance, and environmental monitoring and control,
including but not limited to:
(A) Removal and disposal of buildings, fences,
roads and other facility developments, and reclamation of
affected lands;
(B) Construction of any waste cover or
containment system required as a condition of any facility
permit;
(C) Removal and off-site treatment or disposal
of any wastes that are being stored or treated;
(D) Decontamination, dismantling and removal of
any waste storage, treatment or disposal equipment or vessels;
(E) Operating any environmental monitoring
systems or pollution control systems that are required as a
condition of any facility permit or by order of the director;
and
(F) Conducting periodic post-closure inspections
of cover systems, surface water diversion structures, monitor
wells or systems, pollutant detection and control systems, and
performing maintenance activities to correct deficiencies that
are discovered.
(ii) The estimated costs of remedying or abating, in
a cost effective manner, the violation or damages caused by the
violation in the event of any discharge of pollution to the air,
land or to waters of the state which is in violation of a
permit, standard, rule or requirement established under the
provisions of this act.
(e) The bond established under subsection (d)(i) of this
section shall be available during the operating life of the
commercial oil field waste disposal facility to abate or remedy
any violation of a permit, standard, rule or requirement
established under the provisions of this act.
(f) The amount of any bond or financial assurance
requirement shall be established by the director in accordance
with procedures contained in rules and regulations of the
council, but shall not be less than an amount sufficient to
satisfy the purposes specified in subsection (d) of this
section.
(g) The council shall provide rules for the establishment
of a self-bonding program to be used if such a program will
provide protection consistent with the objectives and purposes
of article 3 of the act. In any such program, rules of the
council shall provide for a timely reappraisal of pledged
assets, require evidence of a suitable agent to receive service
of process, assure that pledged assets are not already pledged
for other projects, provide that pledged assets reside
continuously in the state of Wyoming and provide for
determination of the suitability of pledged assets.
(h) In lieu of a bond, the facility operator may deposit
federally insured certificates of deposit payable to the Wyoming
department of environmental quality, cash or government
securities, or all three (3).
(j) Any bond may be cancelled by the surety only after
ninety (90) days written notice to the director, and upon
receipt of the director's written consent, which may be granted
only when the requirements of the bond have been fulfilled.
(k) If the license to do business in Wyoming of any surety
upon a bond filed pursuant to this act is suspended or revoked
by any state authority then the facility operator, within thirty
(30) days after receiving notice thereof, shall substitute a
good and sufficient corporate surety licensed to do business in
the state. Upon failure of the facility operator to make
substitution of surety within a reasonable period of time, not
to exceed sixty (60) days, the director shall suspend the
facility permit to accept oil field wastes until proper
substitution has been made.
(m) Bond forfeiture proceedings shall occur only after the
department provides notice to the operator and surety pursuant
to W.S. 35-11-701 that a violation exists and the council has
approved the request of the director to begin forfeiture
proceedings.
(n) With the approval of the council the director may:
(i) Expend forfeited funds to remedy and abate the
circumstances with respect to which the bond was provided; and
(ii) Expend funds from the account under W.S.
35-11-424 to remedy and abate any immediate danger to human
health, safety and welfare.
(o) If the forfeited bond or other financial assurance
instrument is inadequate to cover the costs to carry out the
activities specified in subsection (d) of this section, or in
any case where the department has expended account monies under
subsection (n) of this section, the attorney general shall bring
suit to recover the cost of performing the activities where
recovery is deemed possible.
(p) When the director determines that the violation has
been remedied or the damage abated, the director shall release
that portion of the bond or financial assurance instrument being
held under paragraph (d)(ii) of this section. When the director
determines that closure activities have been successfully
completed at any commercial oil field waste disposal facility,
the director shall release that portion of the bond or financial
assurance instrument being held to guarantee performance of
activities specified in subparagraphs (d)(i)(A) through (E) of
this section. The remaining portion of the bond or financial
assurance instrument shall be held for a period of not less than
five (5) years after the date of facility closure, or so long
thereafter as necessary to assure proper performance of any
post-closure activities specified in subparagraph (d)(i)(F) of
this section. The retained portion of the bond or other
financial assurance instrument may be returned to the facility
operator at an earlier date if the director determines that the
facility has been adequately stabilized and that environmental
monitoring or control systems have demonstrated that the
facility closure is protective of public health and the
environment consistent with the purposes of this act.