Okla. Admin. Code § 785:11-3-1

Current through Vol. 42, No. 4, November 1, 2024

Section 785:11-3-1 - Application requirements

(a)General. Prior to making an offer for, entering into an agreement for, seeking to acquire, merging with, or acquiring the assets and control of a rural water district or corporation, an acquiring party shall file with the Board an application and obtain the Board's approval of the proposed transaction. All applications for approval of acquisitions of assets and control must be made under oath or affirmation and completed by the acquiring party either on written forms as may be provided by the Board or in such other written form as the Board may require.

(b)Application by a domestic water public utility. If the acquiring party is a domestic water public utility, the application shall contain the following information and items unless deemed inapplicable and waived by the Board or its staff:

(1) The full, true and correct legal name, principal office location and mailing address for both the acquiring party and the acquiree;

(2) The authority of law under which the acquiring party was created and is existing, the independent legal authority under which the application is made, and identification of the acquiring party as a municipality, public trust, rural water district, or other public entity;

(3) A certified copy of the resolution or other specific authorizing instrument reflecting the acquiring party's authorization for making the subject application to the Board;

(4) Current and complete maps of the service areas of the acquiring party and acquiree, preferably in a geographic information systems format acceptable to the Board;

(5) A description of the water system and operation thereof, including but not limited to water sources, treatment facilities, storage capacity, system design, annual average unaccounted-for losses, personnel certifications, customer base, and rate structure for both the acquiring party and the acquiree;

(6) A statement of the manner and means by which the acquiring party intends to fund and complete the acquisition;

(7) A certified copy of the acquiring party's previous three (3) years' annual audits, if available, and a statement of the acquiring party's financial condition including a current statement of all outstanding indebtedness of the acquiring party and its related entities, including but not limited to all outstanding general obligation or revenue debt, which might affect the acquiring party's overall financial condition;

(8) A description of the nature and division of ownership or other legal or equitable interest in the assets to be acquired, if other than complete ownership by the acquiring party;

(9) A description of all rights to water supply, including water supply contracts, water rights, licenses or permits, whether existing under federal, state or local law or regulation, for both the acquiring party and the acquiree;

(10) A description of any plans the acquiring party may have to make any material change in the acquiree's assets, system or operations which would affect the service provided to the acquiree's customers, including but not limited to the acquiring party's future capital improvement plans, if any, for both the acquiring party and the assets to be acquired;

(11) A copy of the offer or draft agreement for the proposed acquisition, together with any information whether the acquiree has indicated it will object to or consent to the proposed acquisition;

(12) If the acquiree has creditors, the application shall include the written approval of the proposed acquisition by all creditors of the acquiree, or otherwise shall describe how the creditors will be protected and paid; and

(13) Such additional information as may be deemed necessary by the Board or its staff for proper application review under the particular facts and circumstances of the acquisition proposal.

(c)Application by a person other than a domestic water public utility.If the acquiring party is not a domestic water public utility, the acquiring party shall file with the Board an application containing all of the information and items set forth in (b) of this Section, plus the information and items stated in 82 O.S. § 1324.43. Additional information shall be provided on a case-by-case basis if deemed by the Board or its staff to be necessary or appropriate for the protection of ratepayers[82:1324.43(A)(7)] or customers of the acquiree.

Okla. Admin. Code § 785:11-3-1

Amended at 18 Ok Reg 2243, eff 7-1-01