(a) All owners and operators of UST systems, within 180 days of the effective date of this chapter, shall establish and maintain evidence of financial responsibility, as provided for in this section, for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of underground storage tanks in at least the following per-occurrence amounts:
(1) For all owners or operators of petroleum underground storage tanks that are located at petroleum marketing facilities or that own or operate five or more tanks or that handle an average of more than 10,000 gallons of petroleum per month based on annual throughput for the previous calendar year, $2,000,000.
(2) For all other owners or operators of petroleum underground storage tanks: $500,000.
(b) Owners or operators of petroleum underground storage tanks shall demonstrate financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum underground storage tanks in at least the following annual aggregate amounts:
(1) For owners or operators of four or fewer tanks, an annual aggregate amount of $1,000,000.
(2) For owners or operators of five or more tanks, an annual aggregate amount of $2,000,000.
(3) Owners or operators of 10 or more tanks shall establish and maintain a level of financial responsibility as determined by the Commissioner.
(c) Subject to the approval of the Commissioner, an owner or operator of an UST may establish evidence of financial responsibility by any one, or a combination of the following methods:
(1) commercial or private insurance, including risk retention groups;
(2) qualification as a self-insurer;
(3) a guarantee, surety bond, or letter of credit; or
(4) any other reasonable and economically practicable means.
(d) Surety bonds shall be payable to the Government of the Virgin Islands, to include costs and expenses of the cleanup of any release, as well as damages incurred by the Government, consistent with the provisions of this chapter. Any bond filed with the Department must be issued by a bonding company authorized to do business within the territory.
(e) To qualify as a self-insurer the UST system owner or operator shall
(1) demonstrate a tangible net worth of at least ten times:
(A) The total of the aggregate amount required in subsection (c) of this section;
(B) The sum of the corrective action cost estimates, the current closure and post-closure care cost estimates, and the amount of liability coverage required under this chapter; and
(C) The sum of the plugging and abandonment costs estimates in effect for which a financial test is used to demonstrate financial responsibility under this chapter.
(2) The owner or operator shall have a tangible net worth of at least $10,000,000.
(3) The owner or operator shall meet the requirements set forth in 40 CFR 280.95 (7–1-98 edition).
(f) The total liability of any guarantor is limited to the aggregate amount that the guarantor has provided as evidence of financial responsibility to the UST system owner or operator under this section. Nothing in this subsection may be construed to limit any other territorial or federal statutory, contractual or common law liability of a guarantor to its owner or operator including, but not limited to, the liability of such guarantors for bad faith either in negotiating or in failing to negotiate the settlement of any claim. For the purpose of this subsection, the term “guarantor” means any person, other than the owner or operator, who provides evidence of financial responsibility for an owner or operator pursuant to this section.
(g) Any claim for costs incurred by the Government for taking emergency, preventive, corrective or enforcement action may be filed directly against the bonding company, the insurer, the guarantor, or any other person providing evidence of financial responsibility. Any amount collected or awarded under this subsection shall be paid into the Virgin Islands Underground Storage Tank Trust Fund.
(h) An owner or operator of an UST system shall designate a person within the United States Virgin Islands as his resident agent for service of process, and such designation shall be filed in accordance with rules and regulations promulgated by the Department.
(i) The financial responsibility amounts required by this section, or any portion of such an amount, may be satisfied by utilization of the Virgin Islands Underground Storage Tank Trust Fund established pursuant to Title 33, chapter 111 of this code, at the discretion of and in a manner determined by the Commissioner.