Petroleum Products Act, 1977 (Act No. 120 of 1997)RegulationsRegulations regarding Petroleum Products Site and Retail LicencesChapter 1 : Site Licences10. Financial security for rehabilitation |
| (1) | The financial provision required in terms of regulation 9(1)(e) to achieve the total quantum for the rehabilitation, management and remediation of negative environmental impacts must be provided for by one or more of the following methods: |
| (a) | An approved contribution to a trust which must be in the format approved by the Controller from time to time; |
| (b) | a financial guarantee from a South African registered bank or any other financial institution approved by the Controller guaranteeing the financial provision relating to the environmental management plan in the format approved by the Controller from time to time; |
| (c) | a deposit into the account specified by the Controller in the format approved by the Controller from time to time; or |
| (d) | any other method that the Controller may approve. |
| (2) | In the case of subregulation (1)(c), proof of payment must be submitted to the Controller prior to the acceptance of the environmental management plan. |
| (3) | The quantum of the financial provision must be determined in consultation with a competent authority or person and must include a detailed provision for costs that could be incurred in the event of— |
| (a) | premature closure regarding— |
| (i) | the rehabilitation of the land; |
| (ii) | the prevention and management of pollution of the atmosphere; |
| (iii) | the prevention and management of pollution of water and the soil; and |
| (iv) | the prevention of spillage and leakage into the ground of chemical substances introduced onto the site; |
| (b) | decommissioning and final closure of the operation; and |
| (c) | post closure management of residual and latent environmental impacts. |
| (4) | The holder of a site licence must annually update and review the quantum of the financial provision— |
| (a) | in consultation with a competent authority or person; |
| (b) | as required in terms of the approved environmental management plan; or |
| (c) | as requested by the Controller. |
| (5) | Any inadequacies with regard to the financial provision must be rectified by the licensee— |
| (a) | In an amendment of the environmental management plan; or |
| (b) | as determined by the Controller. |