D.C. Mun. Regs. tit. 20, r. 20-6704

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 20-6704 - FINANCIAL TEST OF SELF-INSURANCE: TEST A

6704.1

To meet financial Test A, the owner, guarantor, or both shall have a tangible net worth of at least ten (10) times the sum of the following:

(a) The total of the applicable aggregate amount required by § 6700, based on the number of USTs for which a financial test is used to demonstrate financial responsibility to the Department;

(b) The sum of the corrective action cost estimates, the current closure and post-closure care cost estimates, and the amount of liability coverage for which a financial test is used to demonstrate financial responsibility to the Department; and

(c) The sum of current plugging and abandonment cost estimates for which a financial test is used to demonstrate financial responsibility to the Department.

6704.2

The owner or guarantor seeking to meet financial Test A shall have a tangible net worth of at least ten million dollars ($10,000,000).

6704.3

The owner or guarantor seeking to meet financial Test A shall have a letter of assurance signed by the chief financial officer in the form specified by Appendix 67-2 (Financial Test of Self-Insurance Letter from Chief Financial Officer).

6704.4

The owner or guarantor seeking to meet financial Test A must either:

(a) File financial statements annually with the U.S. Securities and Exchange Commission, the Energy Information Administration, or the Rural Utilities Service; or

(b) Report the firm's tangible net worth annually to Dun and Bradstreet, and Dun and Bradstreet must have assigned the firm a financial strength rating of 4A or 5A.

6704.5

The owner or guarantor seeking to meet financial Test A cannot have year-end financial statements, if independently audited, that include an adverse auditor's opinion, a disclaimer of opinion, or a "going concern" qualification.

D.C. Mun. Regs. tit. 20, r. 20-6704

Final Rulemaking published at 43 DCR 2799 (May 24, 1996), incorporating text of Proposed Rulemaking published at 42 DCR 5765, 5773 (October 20, 1995); as amended by Final Rulemaking published at 46 DCR 7699 (October 1, 1999); amended by Final Rulemaking published at 67 DCR 1778 (2/21/2020)