256.616. Performance bond or letter of credit may be required--conditions.

MISSOURI STATUTES AND CODES

256.616. Performance bond or letter of credit may be required--conditions.

Performance bond or letter of credit may be required--conditions.

256.616. A well installation contractor or pump installationcontractor who has had a permit revoked or a person found guilty of a classA misdemeanor in accordance with section 256.637 shall provide to thedivision a performance bond or letter of credit in order to obtain apermit.

(1) The bond or letter of credit required by this section shall be:

(a) Conditioned upon faithful compliance with the conditions andterms of sections 256.600 to 256.640; and

(b) In such amount as determined by the division to ensure compliancewith the procedures, rules and regulations, and standards establishedpursuant to sections 256.600 to 256.640, but shall not exceed ten thousanddollars or be less than one thousand dollars. When setting the amount, thedivision shall consider the total number of wells drilled or pumpsinstalled and the average cost of each well drilled or serviced by theapplicant;

(2) Such performance bond, placed on file with the director, shall bein one of the following forms:

(a) A performance bond, payable to the director and issued by aninstitution authorized to issue such bonds in this state; or

(b) An irrevocable letter of credit issued in favor of and payable tothe director from a commercial bank or savings and loan having offices inthe state of Missouri;

(3) The requirement for a performance bond or a letter of credit by awell installation contractor or pump installation contractor who has had apermit revoked, or a person who has been found guilty of a class Amisdemeanor in accordance with section 256.637 shall cease after twoconsecutive years of well drilling or pump installation in accordance withthe provisions of sections 256.600 to 256.640, and any rules or regulationspromulgated pursuant to sections 256.600 to 256.640;

(4) Upon a determination by the division that a well contractor orpump installation contractor has failed to meet standards as set out insections 256.600 to 256.640 and the rules and regulations promulgatedthereunder, the division shall notify the well installation contractor orpump installation contractor that the bond or letter of credit will beforfeited and the moneys placed in the groundwater protection fund forremedial action, if that person does not bring the well or borehole up tothe standards established pursuant to sections 256.600 to 256.640 withinsixty days after notification of such determination has been given;

(5) If a well is not brought up to the standards established pursuantto sections 256.600 to 256.640 within the sixty-day notification period thedivision may, upon expiration of the notification period, expend whateverportion of the bond or letter of credit is necessary to hire anothercontractor to bring the well or borehole up to standards or to construct anew well.