- The charge instrument may provide that a breach of the required ‘property value: financial provision’ ratio will entitle the regulator to exercise their power of sale under the charge. The operator should accordingly be required to periodically (as well as on request) provide an independent valuation of the property to the regulator to demonstrate that the ‘property value: financial provision’ ratio continues to be satisfied. If the ratio is breached at any time, consider exercising the power of sale under the charge.
- Monitor any requirement that the operator maintain appropriate insurance in respect of the property subject to the charge.
A Practical Guidance on Financial Provision for Environmental Liabilities