# The Storage of Carbon Dioxide (Licensing etc.) Regulations 2010, Paragraph 7: Financial security

Extent: E+W+S+N.I.

(1) The operator must maintain financial security that—
(a) is of an amount (“the secured amount”) sufficient to ensure that the obligations specified in sub-paragraph (5) can be met,
(b) is in force before the commencement of injection, and
(c) remains in force until the licence is terminated.
(2) However, if the storage permit is revoked the security must remain in force—
(a) until a new storage permit is granted, or
(b) if the storage site is closed following such revocation, until the licence is terminated.
(3) Following each report made by the operator in accordance with paragraph 3(1) to (5) of this Schedule, the authority is to assess whether the secured amount is appropriate in the light of—
(a) the assessed risk of leakage, and
(b) the estimated costs of meeting the obligations specified in sub-paragraph (5).
(4) If, following that assessment, the authority decides that the secured amount is to be adjusted—
(a) the authority must notify the operator of the new amount that is required, and
(b) where the secured amount is less than that new amount, the operator must ensure that it is increased to the new amount within three months of receiving that notification.
(5) The obligations are—
(a) all obligations of the operator arising under the storage permit, including those arising in respect of the closure of the storage site and during the period between such closure and the termination of the licence;
(b) the obligation to pay the authority's costs under regulation 10(4)(b) or 12(6); ...
(c) any obligations of the operator arising in respect of the storage site under climate change legislation which relate to—
(i) monitoring, reporting or verification of greenhouse gas emissions; or
(ii) the offset of emissions which are leakage,
of which the authority has notified the operator under sub-paragraph (5A); and
(d) the obligation to provide the financial contribution to the authority in accordance with regulation 10(5) of the Storage of Carbon Dioxide (Termination of Licences) Regulations 2011.
(5A) The authority must notify the operator of any climate change legislation it considers gives rise to obligations which should be taken into account under sub-paragraph (5)(c).
(6) Where the storage permit is revoked—
(a) the obligations of the operator under this paragraph continue in effect until the licence is terminated, but
(b) the assessment by the authority under sub-paragraph (3) is to be made at such intervals as the authority may determine.

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Source: https://www.legislation.gov.uk/uksi/2010/2221/schedule/2/paragraph/7 (the official version)
Page: https://openlegislation.uk/storage-of-carbon-dioxide-licensing-etc-regulations-2010/schedule-2/paragraph-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.