Bonds insurances for environmental restoration

Individuals or legal entities and companies engaged in industrial, mining, and agricultural activities that may affect the environmental environment, or those that are obligated to present this type of guarantees for waste management or recycling.

It is required as an essential requirement to obtain the necessary license for the start of activity or the commissioning of industrial, mining, and agricultural facilities. The guarantee may be constituted in the following ways:

1. By deposit in cash or in public or private securities, at the General Deposit Box of the Provincial Delegations of the Ministry of Economy and Finance under the conditions established by regulation.

2. By guarantee provided, in the form and regulatory conditions, by banks, savings banks, credit cooperatives, financial credit institutions, and authorized mutual guarantee companies to operate in Spain, presented to the competent authority.

3. By a surety insurance contract entered into in the form and regulatory conditions established, with an insurance company authorized to operate in the surety branch, which will be delivered to the competent authority.

The amount of guarantees must be updated at the beginning of each fiscal year, by applying the Industrial Price Index published by the National Statistics Institute.

The surety insurance is an excellent alternative compared to other options, such as bank guarantees, as it offers the following advantages:

• Increase in credit capacity without counting in CIRBE.

• Decrease in balance liabilities.

• Lower costs due to the exact timing of days.

• Absence of study and opening commissions.

• Advances and amounts are not pledged.

The corresponding authorization will establish a guarantee that must be constituted before the start of the construction or operation phases, with a sufficient amount to respond for the restoration of the affected lands and the compliance with the obligations of the holder in the abandonment and closure phases of the deposit. For the calculation of the guarantee, at least the following factors will be considered:

• Classification of the deposit.

• Characteristics of the effluents or sludge.

• Potential risk of rupture or incorrect operation.

In order to obtain the bond insurances for environmental restitution, it is essential to submit the following documentation:

• Completely filled questionnaire.

• Articles of incorporation of the company.

• Official annual accounts of the last financial year.

• Experience of the company.

• Copy of the civil liability insurance policy, in case it exists.

The necessary documentation to apply for environmental remediation sureties includes:

• Filled questionnaire.

• Financial statements for the last fiscal year and financial progress for the current year. •

• Deed of incorporation or amendment of bylaws.

• Information about experience.

• Civil liability policy.

• Decreto 167/2005, of July 12

• Decreto 281/2002, of November 12

• Decreto 281/2002, of November 12

• Law 22/1973, of July 21

• Real Decreto 863/1985, of April 2

• Real Decreto 2685/1980, of October 17

• Real Decreto 324/2000, of March 3