Date Enacted: April 17, 2015
Date Effective: August 1, 2015
You may have noticed that oilfields have been in the spotlight lately. Improper disposal of oilfield waste in particular has many communities in North Dakota concerned. New legislation addresses special waste originating from commercial oilfields. North Dakota has sought to alleviate improper disposal by introducing a special waste recycling program.
The changes come in conjunction with ND Department of Health projects aimed at creating standards for this type of business. In terms of how this might affect you, this new legislation introduces the likelihood of a new commercial oilfield special waste recyclers bond requirement.
Since this is a new law, you may not know how to find the bond you need or if you even need one. No worries though, we’ll cover all the basics of the bonding process. Since the program that accompanies this legislation is new and still developing, it’s best to contact the North Dakota Department of Health regarding any licensing related questions.
What Do I Need to Know About the Changes?
In terms of bonds, you need to know that if you are a commercial oilfield special waste recycler, you need to post a bond in connection with your licensure. The bond amount is dependent by the amount of money it would cost to remediate any release or disposal of materials or water which violate state regulations. This applies to both the recycler’s property and premises as well as the place where the treated or untreated materials are taken to for use or disposal.
Ok I Need a Surety Bond, but…
What Is a Surety Bond?
You’ve found out you’re required to have a surety bond, but your first question is: what is a surety bond? Surety bonds are a kind of insurance policy for the government and the public. It protects them if you fail to fulfill your contract or violate state law. If this happens, the claimant can file a claim against the bond, which, in this case, will result in the cleanup of any oil spills or other hazardous waste.
How Does a Surety Bond Work?
You purchase a bond by paying a premium, a percentage of the total bond amount. During the time that you have the bond, you’re required to follow all of its terms. Claims happen when you don’t follow the terms. If a claim is filed, you’re expected to pay the cost of the claim, plus legal fees. Your bond is backed by a bonding company who will require all owners of your company to sign an agreement pledging your assets to reimburse the bonding company for any claims filed.
How Can I Get the Best Bond Rate?
Since bond rates rely on your credit score, the best way to do this is by improving your credit. Bond approval is based mostly on your credit score, so keeping your accounts in good standing is important. It’s also a good idea to make sure you don’t utilize more than 20% of your credit limit on any credit card. By doing these things, you’ll have optimized your credit and paved the way for a better bond premium.
How Do I Get Bonded?
- Find the license application paperwork you need.
- Apply for a bond.
- Submit the bond to the licensing agency.
Read the full law regarding commercial oilfield special waste recycler bonds.
Do you think this new law will change oilfield waste recycling? Tell us what you think.