Oklahoma § 17-160.15 - Required filing - Evidence of financial security

§ 17-160.15. Required filing - Evidence of financial security

A. The owner of a wind energy facility shall submit to the

Corporation Commission evidence of financial security to cover the

anticipated costs of decommissioning the wind energy facility. For

a wind energy facility or portion thereof which reaches the

commercial generation date prior to December 31, 2016, the evidence

of financial security shall be submitted after the fifteenth year of

operation of the facility. For a wind energy facility or portion

thereof which reaches the commercial generation date on or after

December 31, 2016, the evidence of financial security shall be

submitted by the fifth year of operation of the facility. Evidence

of financial security may be in the form of a surety bond,

collateral bond, parent guaranty, cash, cashier's check, certificate

of deposit, bank joint custody receipt or other approved negotiable

instrument as established in rules promulgated by the Commission.

B. 1. For a wind energy facility which reaches the commercial

generation date prior to December 31, 2016, the evidence of

financial security shall be accompanied by an estimate of the total

cost of decommissioning, minus the salvage value of the equipment,

prepared by a professional engineer licensed in this state. The

amount of the evidence of financial security shall be either:

a.

the estimate of the total cost of decommissioning

minus the salvage value of the equipment which shall

be submitted to the Commission in the fifteenth year

of the project and every tenth year thereafter for the

life of the wind energy facility, or

Oklahoma Statutes - Title 17. Corporation Commission

b.

one hundred twenty-five percent (125%) of the estimate

of the total cost of decommissioning which shall be

submitted to the Commission in the fifteenth year of

the project.

2. For a wind energy facility which reaches the commercial

generation date on or after December 31, 2016, the evidence of

financial security shall be accompanied by an estimate of the total

cost of decommissioning and an estimate of the salvage value of the

equipment prepared by a professional engineer licensed in this

state. The amount of the evidence of financial security shall be

one hundred twenty-five percent (125%) of the estimate of the total

cost of decommissioning, minus the salvage value of the equipment,

which shall be submitted to the Commission by the fifth year after

reaching the commercial generation date and thereafter upon request

by the Commission.

C. If the owner of a wind energy facility fails to submit the

information with the Commission as is required by this section, the

owner shall be subject to an administrative penalty not to exceed

One Thousand Five Hundred Dollars ($1,500.00) per day.

D. In the event of a transfer of ownership of a wind energy

facility, the evidence of financial security posted by the

transferor shall remain in place and shall not be released until

such time as evidence of financial security meeting the requirements

of this section is posted by the new owner of the wind energy

facility and deemed acceptable by the Commission.

E. The provisions of this section shall apply to any wind

energy facility or portion thereof entering into or renewing a power

purchase agreement (PPA) for the energy generated by the wind energy

facility on or after January 1, 2011. If a wind energy facility

does not sell its energy under a power purchase agreement, the

provisions of this section shall apply to the wind energy facility

or portion thereof which construction commences on or after January

1, 2011.

Added by Laws 2010, c. 319, § 5, eff. Jan. 1, 2011. Amended by Laws

2015, c. 92, § 1.