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DEQ and Financial Obligations

JA
John Andrew
Tue, Jul 30, 2024 3:19 PM

All,

The City of Lawton, as a landfill operator, is required each year to show ODEQ it has the financial means to close its landfill and meet post-closing obligations for its landfill, if necessary.  The city has in the past used the “government test” to satisfy this obligation.  The government test involves the city submitting its audit and other financial information to ODEQ by December 31st of each year.  However, due to our FYE 22 and FYE 23 audits being late, we missed the December 31st reporting deadline.

ODEQ regulations allow for other methods of showing a landfill operator has the financial ability to deal with the closure of its landfill.  Some other methods including:  (1) posting a bond, (2) obtaining insurance, (3) obtaining a letter of credit, or (4) escrowing funds.  These are called alternative assurance methods.

Our question we are asking is whether there are any Oklahoma municipalities that utilize any of the above-mentioned alternative assurance methods?  Lawton is having to utilize an alternative assurance method and we have some implantation questions.  It would be helpful if we could visit with another municipality that is using one of these methods.

Thanks all,

John R. Andrew, J.D., M.P.A.
City Attorney

City of Lawton, Oklahoma
212 SW 9th Street
Lawton, Oklahoma 73501
Telephone: 580.581.3320
Facsimile:  580.581.3539
john.andrew@lawtonok.gov

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All, The City of Lawton, as a landfill operator, is required each year to show ODEQ it has the financial means to close its landfill and meet post-closing obligations for its landfill, if necessary. The city has in the past used the “government test” to satisfy this obligation. The government test involves the city submitting its audit and other financial information to ODEQ by December 31st of each year. However, due to our FYE 22 and FYE 23 audits being late, we missed the December 31st reporting deadline. ODEQ regulations allow for other methods of showing a landfill operator has the financial ability to deal with the closure of its landfill. Some other methods including: (1) posting a bond, (2) obtaining insurance, (3) obtaining a letter of credit, or (4) escrowing funds. These are called alternative assurance methods. Our question we are asking is whether there are any Oklahoma municipalities that utilize any of the above-mentioned alternative assurance methods? Lawton is having to utilize an alternative assurance method and we have some implantation questions. It would be helpful if we could visit with another municipality that is using one of these methods. Thanks all, John R. Andrew, J.D., M.P.A. City Attorney City of Lawton, Oklahoma 212 SW 9th Street Lawton, Oklahoma 73501 Telephone: 580.581.3320 Facsimile: 580.581.3539 john.andrew@lawtonok.gov Attorney-Client Communications / Attorney Work Product Confidential and Privileged This email message is protected by the attorney-client privilege, is confidential, and intended solely for the use of the above-named person. If you are not the person to whom this message is directed, or the person responsible for delivering it to the above-named person, you are advised that any dissemination, distribution or copying of this communication is prohibited. If you have received this message in error, please NOTIFY THE SENDER IMMEDIATELY by telephone, DELETE THIS MESSAGE FROM YOUR SYSTEM'S MEMORY AND RETURN ANY HARD COPIES OF THE ORIGINAL MESSAGE TO THE SENDER BY U.S. MAIL. Although this email and any attachments are believed to be free of any virus or other defect that might negatively affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by the sender for any loss or damage arising in any way in the event that such a virus or defect exists.