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Reasonable Cost Guidelines - Third Party Liability Coordination of Claims:

Article 5, Part 4

5-4-1. WHEN TO FILE THIRD-PARTY LIABILITY CLAIM

(1) Third-party liability claims may be filed at any time following the discovery of a release above Colorado action levels.

5-4-2. WHEN REIMBURSEMENT FOR THIRD-PARTY CLAIMS WILL BE MADE

(1) No reimbursement will be made for any third-party liability claims until all of the following have occurred:

(a) The Committee has determined that the applicant and the site are eligible for Fund benefits.

(b) The applicant has submitted a Corrective Action Plan and pertinent Technological and Economic Feasibility Summaries for the site.

5-4-3. LIMITATION ON REIMBURSEMENT

(1) Policy #13 of the Petroleum Storage Tank Committee, which limits reimbursement to $50,000 until there is an approved Corrective Action Plan for the site, applies to reimbursement of third-party liability expenses as well as remediation expenses. Costs submitted for reimbursement will be processed as submitted, regardless of whether they are for remediation or for third-party liability expenses. However, if net (after factoring in any percentage reductions imposed for regulatory non-compliance) total allowable remediation expenses (incurred and projected) plus third-party liability costs submitted for reimbursement exceed $2 million, the Petroleum Storage Tank Committee may, at its sole discretion, withhold from reimbursement that portion of third-party liability costs that cause projected total net allowable costs to exceed $2 million if the Committee believes this would encourage continued remediation of the site. Any third-party liability costs so withheld from reimbursement would be potentially eligible for reimbursement, subject to the $1 million statutory limitation, once the Division of Oil and Public Safety issues a no-further-action (site closure) letter.

5-4-4. APPLICATION FORMS

(1) The standard original and supplemental reimbursement claim forms shall be used for both cleanup and third-party reimbursement claims until such time as the OPS creates forms tailored for third-party liability claims.

5-4-5. SEPARATE APPLICATION REQUIRED

(1) Reimbursement applications pertaining to third-party liability should be submitted separately from claims pertaining to assessment or remediation costs.