Frequently Asked Questions
Who is subject to the AST Financial Responsibility requirements?
The tank owner and operator of regulated aboveground storage tanks (ASTs) are responsible for compliance with the financial responsibility requirements.
When should I be able to demonstrate that I have met the Financial Responsibility requirements?
The financial responsibility requirements under Section 12 of the AST Rule (§47-63) became effective on August 1, 2016. Owners or operators are required to demonstrate financial responsibility for all regulated ASTs beyond the effective date of the rule.
How much Financial Responsibility do I need to have on my regulated ASTs?
The owner or operator shall demonstrate financial responsibility in an amount calculated as follows:
- For Level 1 ASTs, an amount equal to twenty cents per gallon of the aggregate storage capacity for the tank or tank facility, at a minimum of five thousand dollars ($5,000).
- For Level 2 ASTs, an amount equal to ten cents per gallon of the aggregate storage capacity for the tank or tank facility, at a minimum of five thousand dollars ($5,000).
Bonds or other surety alternatives issued in accordance with Articles 3, 6, and 6A of Chapter 22 of the West Virginia Code satisfies the financial responsibility requirements of the AST Act and the Rule, provided that the owner or operator provides proof that the bond will cover tank-related costs of cleanup activities/corrective action up to the amount of the bond.
How do I demonstrate Financial Responsibility?
The forms or mechanisms of demonstrating adequate financial responsibility may include, but are not limited to, surety bond, letter of credit, self-insurance, evidence of current insurance, or guarantee. Owners or operators may use any one or combination of mechanisms to demonstrate adequate financial responsibility for one or more tanks or tank facilities. The following provides a brief description and summary of the requirements of the most commonly utilized mechanisms along with examples and/or approved templates for certain mechanisms.
If an owner or operator wishes to use an alternative method to demonstrate financial responsibility other than those listed here, please contact the DEP AST program.
West Virginia Department of Environmental Protection
Division of Water and Waste: Environmental Enforcement: Tanks Unit
601 57th Street SE
Charleston, WV 25304
Phone: (304) 926-0495
Fax: (304) 926-0463
AST FR-1 (Surety Performance Bond)
A surety bond is a guarantee, issued by a licensed surety, that it will meet the financial responsibility obligations required by the AST Act if the owner or operator is unable to perform necessary cleanup activities/corrective action.
AST FR-2 (Letter of Credit)
A letter of credit is a guarantee from a bank that can be drawn on by the agency to cover the cost of corrective action/cleanup activities required by the AST Act if the owner or operator is unable to do so.
AST FR-3 (Financial Test of Self Insurance)
A financial test of self-insurance is a set of criteria that an Owners, Operators or Guarantors Net Worth or Net Working Capital must meet or exceed to become self-insured for the cost of corrective action/cleanup activities required in the AST Act.
AST FR-4 (Guarantee)
A guarantor is a third party that agrees to meet the financial responsibility obligations required by the AST Act if the owner or operator fails to perform necessary cleanup activities/corrective action. A Guarantor must meet or exceed the self-insurance financial test criteria to satisfy the requirements of W.Va. Code §22-3-7 and section 12 of the AST Rule.
AST FR-5 (Certificate of Insurance)
A certificate of insurance is a document that describes the details of an insurance policy held by the AST owner or operator. An Owner or Operator may purchase an insurance plan to satisfy the requirements of W.Va. Code §22-3-7 and section 12 of the AST Rule.
AST FR-6 (Endorsement)
An insurance endorsement is an amendment or addition to an existing insurance contract which changes the terms or scope of the original policy. An Owner or Operator may amend or add to an existing insurance contract to include corrective action/cleanup activities required by the AST Act.