Illinois Administrative Code › Title 62 - MINING › Part 1800 - BONDING AND INSURANCE REQUIREMENTS FOR SURFACE COAL MINING AND RECLAMATION OPERATIONS › Section 1800.23 - Self-Bonding

Current through Register Vol. 48, No. 28, July 12, 2024
a) For purposes of
			 this Section only, the following terms have the following meanings:
Current assets means cash or other assets or resources which
				are reasonably expected to be converted to cash or sold or consumed within one
				year or within the normal operating cycle of the business.
Current liabilities means obligations which are reasonably
				expected to be paid or liquidated within one year or within the normal
				operating cycle of the business.
Fixed assets means plants and equipment, but does not include
				land or coal in place.
Liabilities means legally enforceable obligations to transfer
				assets or provide services to other entities in the future as a result of past
				transactions.
Net worth means total assets minus total liabilities and is
				equivalent to owners' equity.
Parent corporation means a corporation which owns or controls
				the applicant.
Tangible net worth means net worth minus intangibles such as
				goodwill and rights to patents or royalties.
b) The Department may accept a self-bond from
			 an applicant for a permit if all of the following conditions are met by the
			 applicant or its parent corporation guarantor:
1) The applicant designates a suitable agent
			 to receive service of process in the State of Illinois.
2) The applicant has been in continuous
			 operation as a business entity for a period of not less than five years.
			 Continuous operation shall mean that business was conducted over a period of
			 five years immediately preceding the time of application.
A) The Department may allow a joint venture
			 or syndicate with less than five years of continuous operation to qualify under
			 subsection (b)(2) above, if each member of the joint venture or syndicate has
			 been in continuous operation for at least five years immediately preceding the
			 time of application.
B) When
			 calculating the period of continuous operation, the Department may exclude past
			 periods of interruption to the operation of the business entity that were
			 beyond the applicant's control and that do not affect the applicant's
			 likelihood of remaining in business during the proposed surface coal mining and
			 reclamation operations.
3) The applicant submits financial
			 information in sufficient detail to show that the applicant meets one of the
			 following criteria:
A) The applicant has a
			 current rating for its most recent bond issuance of "A" or higher as issued by
			 either Moody's Investor Service or Standard and Poor's Corporation;
B) The applicant has a tangible net worth of
			 at least $10 million, a ratio of total liabilities to net worth of 2.5 times or
			 less, and a ratio of current assets to current liabilities of 1.2 times or
			 greater; or
C) The applicant's
			 fixed assets in the United States total at least $20 million, and the applicant
			 has a ratio of total liabilities to net worth of 2.5 times or less, and a ratio
			 of current assets to current liabilities of 1.2 times or greater.
4) The applicant submits:
A) Financial statements for the most recently
			 completed fiscal year accompanied by a report prepared by an independent
			 certified public accountant in conformity with generally accepted accounting
			 principles and containing the accountant's audit opinion or review opinion of
			 the financial statements with no adverse opinion;
B) Unaudited financial statements for
			 completed quarters in the current fiscal year; and
C) Additional unaudited information as
			 requested by the Department.