Effective 28 Aug 1997

256.616. Performance bond or letter of credit may be required — conditions. — A well installation contractor or pump installation contractor who has had a permit revoked or a person found guilty of a class A misdemeanor in accordance with section 256.637 shall provide to the division a performance bond or letter of credit in order to obtain a permit.

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

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

(b) In such amount as determined by the division to ensure compliance with the procedures, rules and regulations, and standards established pursuant to sections 256.600 to 256.640, but shall not exceed ten thousand dollars or be less than one thousand dollars. When setting the amount, the division shall consider the total number of wells drilled or pumps installed and the average cost of each well drilled or serviced by the applicant;

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

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

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

(3) The requirement for a performance bond or a letter of credit by a well installation contractor or pump installation contractor who has had a permit revoked, or a person who has been found guilty of a class A misdemeanor in accordance with section 256.637 shall cease after two consecutive years of well drilling or pump installation in accordance with the provisions of sections 256.600 to 256.640, and any rules or regulations promulgated pursuant to sections 256.600 to 256.640;

(4) Upon a determination by the division that a well contractor or pump installation contractor has failed to meet standards as set out in sections 256.600 to 256.640 and the rules and regulations promulgated thereunder, the division shall notify the well installation contractor or pump installation contractor that the bond or letter of credit will be forfeited and the moneys placed in the groundwater protection fund for remedial action, if that person does not bring the well or borehole up to the standards established pursuant to sections 256.600 to 256.640 within sixty days after notification of such determination has been given;

(5) If a well is not brought up to the standards established pursuant to sections 256.600 to 256.640 within the sixty-day notification period the division may, upon expiration of the notification period, expend whatever portion of the bond or letter of credit is necessary to hire another contractor to bring the well or borehole up to standards or to construct a new well.

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(L. 1991 S.B. 221, A.L. 1997 S.B. 342)