S.C. Code Regs. § 61 app F
Letter from Chief Financial Officer
Chief
Bureau of Land and Waste Management
2600 Bull Street
Columbia, SC 29201
Dear Sir or Madam: I am the chief financial officer of [firm's name and address]. This letter is in support of the use of the financial test to demonstrate financial responsibility for liability coverage under section 261.147 [insert "and costs assured section 261.143(e)" if applicable] as specified in subpart H of R.61-79.261.
[Fill out the following paragraphs regarding facilities and liability coverage. If there are no facilities that belong in a particular paragraph, write "None" in the space indicated. For each facility, include its EPA Identification Number (if any issued), name, and address].
The firm identified above is the owner or operator of the following facilities for which liability coverage for [insert "sudden" or "nonsudden" or "both sudden and nonsudden"] accidental occurrences is being demonstrated through the financial test specified in subpart H of R.61-79.261:____
The firm identified above guarantees, through the guarantee specified in subpart H of R.61-79.261, liability coverage for [insert "sudden" or "nonsudden" or "both sudden and nonsudden"] accidental occurrences at the following facilities owned or operated by the following: ____. The firm identified above is [insert one or more: (1) The direct or higher-tier parent corporation of the owner or operator; (2) owned by the same parent corporation as the parent corporation of the owner or operator, and receiving the following value in consideration of this guarantee -____; or (3) engaged in the following substantial business relationship with the owner or operator ____, and receiving the following value in consideration of this guarantee ____]. [Attach a written description of the business relationship or a copy of the contract establishing such relationship to this letter.]
The firm identified above is the owner or operator of the following facilities for which liability coverage for [insert "sudden" or "nonsudden" or "both sudden and nonsudden"] accidental occurrences is being demonstrated through the financial test specified in subpart H of R.61-79.264 and 265:____
The firm identified above guarantees, through the guarantee specified in subpart H of R.61-79.264 and 265, liability coverage for [insert "sudden" or "nonsudden" or "both sudden and nonsudden"] accidental occurrences at the following facilities owned or operated by the following: __. The firm identified above is [insert one or more: (1) The direct or higher-tier parent corporation of the owner or operator; (2) owned by the same parent corporation as the parent corporation of the owner or operator, and receiving the following value in consideration of this guarantee __; or (3) engaged in the following substantial business relationship with the owner or operator
__, and receiving the following value in consideration of this guarantee __]. [Attach a written description of the business relationship or a copy of the contract establishing such relationship to this letter.]
[If you are using the financial test to demonstrate coverage of both liability and costs assured under section 261.143(e) or closure or post-closure care costs under sections 264.143, 264.145, 265.143, or 265.145, fill in the following nine paragraphs regarding facilities and associated cost estimates. If there are no facilities that belong in a particular paragraph, write "None" in the space indicated. For each facility, include its EPA identification number (if any issued), name, address, and current cost estimates.]
1. This firm is the owner or operator of the following facilities for which financial assurance is demonstrated through the financial test specified in subpart H of R.61-79.261. The current cost estimates covered by the test are shown for each facility:____.
2. This firm guarantees, through the guarantee specified in subpart H of R.61-79.261, the following facilities owned or operated by the guaranteed party. The current cost estimates so guaranteed are shown for each facility:____. The firm identified above is [insert one or more: (1) The direct or higher-tier parent corporation of the owner or operator; (2) owned by the same parent corporation as the parent corporation of the owner or operator, and receiving the following value in consideration of this guarantee____; or (3) engaged in the following substantial business relationship with the owner or operator ____, and receiving the following value in consideration of this guarantee____]. [Attach a written description of the business relationship or a copy of the contract establishing such relationship to this letter.]
3. In states outside of South Carolina, where the Department is not administering the financial requirements of subpart H of R.61-79.261, this firm, as owner or operator or guarantor, is demonstrating financial assurance for the following facilities through the use of a test equivalent or substantially equivalent to the financial test specified in subpart H of R.61-79.261. The current cost estimates covered by such a test are shown for each facility:____.
4. This firm is the owner or operator of the following hazardous secondary materials management facilities for which financial assurance is not demonstrated to the Department through the financial test or any other financial assurance mechanism specified in subpart H of R.61-79.261 or equivalent or substantially equivalent state mechanisms. The current cost estimates not covered by such financial assurance are shown for each facility:____.
5. This firm is the owner or operator of the following UIC facilities for which financial assurance for plugging and abandonment is required under 40 CFR part 144. The current closure cost estimates as required by 40 CFR 144.62 are shown for each facility:____.
6. This firm is the owner or operator of the following facilities for which financial assurance for closure or post-closure care is demonstrated through the financial test specified in subpart H of R.61-79.264 and 265. The current closure and/or post-closure cost estimates covered by the test are shown for each facility: ____.
7. This firm guarantees, through the guarantee specified in subpart H of R.61-79.264 and 265, the closure or post-closure care of the following facilities owned or operated by the guaranteed party. The current cost estimates for the closure or post-closure care so guaranteed are shown for each facility: ____. The firm identified above is [insert one or more: (1) The direct or higher-tier parent corporation of the owner or operator; (2) owned by the same parent corporation as the parent corporation of the owner or operator, and receiving the following value in consideration of this guarantee ____; or (3) engaged in the following substantial business relationship with the owner or operator ____, and receiving the following value in consideration of this guarantee ____].
[Attach a written description of the business relationship or a copy of the contract establishing such relationship to this letter.]
8. In states outside of South Carolina, where the Department is not administering the financial requirements of subpart H of R.61-79.264 or 265, this firm, as owner or operator or guarantor, is demonstrating financial assurance for the closure or post-closure care of the following facilities through the use of a test equivalent or substantially equivalent to the financial test specified in subpart H of R.61-79.264 and 265. The current closure and/or post-closure cost estimates covered by such a test are shown for each facility: ____.
9. This firm is the owner or operator of the following hazardous waste management facilities for which financial assurance for closure or, if a disposal facility, post-closure care, is not demonstrated to the Department through the financial test or any other financial assurance mechanism specified in subpart H of R.61-79.264 and 265 or equivalent or substantially equivalent state mechanisms. The current closure and/or post-closure cost estimates not covered by such financial assurance are shown for each facility: ____.
This firm [insert "is required" or "is not required"] to file a Form 10K with the U.S. Securities and Exchange Commission (SEC) for the latest fiscal year.
The fiscal year of this firm ends on [month, day]. The figures for the following items marked with an asterisk are derived from this firm's independently audited, year-end financial statements for the latest completed fiscal year, ended [date].
Part A. Liability Coverage for Accidental Occurrences
[Fill in Alternative I if the criteria of paragraph (f)(1)(i) of section 261.147 are used. Fill in Alternative II if the criteria of paragraph (f)(1)(ii) of section 261.147 are used.]
ALTERNATIVE I
1. | Amount of annual aggregate liability coverage to be demonstrated | $ | |
* | 2. | Current assets | $ |
* | 3. | Current liabilities | $ |
4. | Net working capital (line 2 minus line 3) | $ | |
* | 5. | Tangible net worth | $ |
* | 6. | If less than ninety (90) percent of assets are located in the U.S., give total U.S. assets | $ |
7. | Is line 5 at least ten (10) million dollars? | Yes/No | |
8. | Is line 4 at least six (6) times line Is | Yes/No | |
9. | Is line 5 at least six (6) times line Is | Yes/No | |
* | 10. | Are at least ninety (90) percent of assets located in the U.S.? If not, complete line 11 | Yes/No |
11. | Is line 6 at least six (6) times line Is | Yes/No |
ALTERNATIVE II
1. | Amount of annual aggregate liability coverage to be demonstrated | $ | |
2. | Current bond rating of most recent issuance and name of rating service | ||
3. | Date of issuance of bond | ||
4. | Date of maturity of bond | ||
5. | Tangible net worth | $ | |
6. | Total assets in U.S. (required only if less than ninety (90) percent of assets are located in the U.S.) | $____ | |
7. | Is line 5 at least ten (10) million dollars? | Yes/No | |
8. | Is line 5 at least six (6) times line Is | Yes/No | |
9. | Are at least ninety (90) percent of assets located in the U.S.? If not, complete line 10. | Yes/No | |
10. | Is line 6 at least six (6) times line Is | Yes/No |
[Fill in part B if you are using the financial test to demonstrate assurance of both liability coverage and costs assured under section 261.143(e) or closure or post-closure care costs under sections 264.143, 264.145, 265.143, or 265.145.]
Part B. Facility Care and Liability Coverage
[Fill in Alternative I if the criteria of paragraphs (e)(1)(i) of section 261.143 and (f)(1)(i) of section 261.147 are used. Fill in Alternative II if the criteria of paragraphs (e)(1)(ii) of section 261.143 and (f)(1)(ii) of section 261.147 are used.]
ALTERNATIVE I
1. | Sum of current cost estimates (total of all cost estimates listed above) | $ | |
2. | Amount of annual aggregate liability coverage to be demonstrated | $ | |
3. | Sum of lines 1 and 2 | $ | |
* | 4. | Total liabilities (if any portion of your cost estimates is included in your total liabilities, you may deduct that portion from this line and add that amount to lines 5 and 6) | $____ |
* | 5. | Tangible net worth | $ |
* | 6. | Net worth | $ |
* | 7. | Current assets | $ |
* | 8. | Current liabilities | $ |
9. | Net working capital (line 7 minus line 8) | $ | |
* | 10. | The sum of net income plus depreciation, depletion, and amortization | $ |
* | 11. | Total assets in U.S. (required only if less than ninety (90) percent of assets are located in the U.S.) | $ |
12. | Is line 5 at least ten (10) million dollars? | Yes/No | |
13. | Is line 5 at least six (6) times line 3? | Yes/No | |
14. | Is line 9 at least six (6) times line 3? | Yes/No | |
* | 15. | Are at least ninety (90) percent of assets located in the U.S.? If not, complete line 16. | Yes/No |
16. | Is line 11 at least six (6) times line 3? | Yes/No | |
17. | Is line 4 divided by line 6 less than 2.0? | Yes/No | |
18. | Is line 10 divided by line 4 greater than 0.Is | Yes/No | |
19. | Is line 7 divided by line 8 greater than 1.5? | Yes/No |
ALTERNATIVE II
1. | Sum of current cost estimates (total of all cost estimates listed above) | $ | |
2. | Amount of annual aggregate liability coverage to be demonstrated | $ | |
3. | Sum of lines 1 and 2 | $ | |
4. | Current bond rating of most recent issuance and name of rating service | ||
5. | Date of issuance of bond | ||
6. | Date of maturity of bond | ||
* | 7. | Tangible net worth (if any portion of the cost estimates is included in "total liabilities" on your financial statements you may add that portion to this line) | $____ |
* | 8. | Total assets in the U.S. (required only if less than ninety (90) percent of assets are located in the U.S.) | $____ |
9. | Is line 7 at least ten (10) million dollars? | Yes/No | |
10. | Is line 7 at least six (6) times line 3? | Yes/No | |
* | 11. | Are at least ninety (90) percent of assets located in the U.S.? If not complete line 12. | Yes/No |
12. | Is line 8 at least six (6) times line 3? | Yes/No |
I hereby certify that the wording of this letter is identical to the wording specified in sections 261.151 Appendix F as such regulations were constituted on the date shown immediately below.
[Signature]
[Name]
[Title]
[Date]
S.C. Code Regs. 61 app F