Louisiana Administrative Code › Title 33 - ENVIRONMENTAL QUALITY › Part XI - Underground Storage Tanks › Chapter 11 - Financial Responsibility › Section XI-1105 - Definition of Terms

Current through Register Vol. 50, No. 6, June 20, 2024
A. When used in this Chapter, the following terms shall have
				  the meanings given below.
Accidental Release-
any sudden or nonsudden
				  release of petroleum arising from operating an underground storage tank that
				  results in a need for corrective action and/or compensation for bodily injury
				  or property damage neither expected nor intended by the tank owner or
				  operator.
Bodily Injury
- shall have the meaning given
				  to this term by applicable state law; however, this term shall not include
				  those liabilities which, consistent with standard insurance industry practices,
				  are excluded from coverage in liability insurance policies for bodily
				  injury.
Controlling Interest
- direct ownership of
				  at least 50 percent of the voting stock of another entity.
Financial Reporting Year-
the latest
				  consecutive 12-month period for which any of the following reports used to
				  support a financial test is prepared:
a. a 10-K report submitted to the SEC;
b. an annual report of tangible net worth submitted to Dun
				  and Bradstreet; or
c. annual reports submitted to the Energy Information
				  Administration or the Rural Utilities Service. Financial reporting year may
				  thus comprise a fiscal or a calendar year period.
Legal Defense Cost
- any expense that an
				  owner or operator or provider of financial assurance incurs in defending
				  against claims or actions brought:
a. by EPA or a state to require corrective action or to
				  recover the costs of corrective action;
b. by or on behalf of a third party for bodily injury or
				  property damage caused by an accidental release; or
c. by any person to enforce the terms of a financial
				  assurance mechanism.
Occurrence
- an accident, including
				  continuous or repeated exposure to conditions, which results in a release from
				  an underground storage tank.
Note: This definition is intended to assist in the
				  understanding of these regulations and is not intended either to limit the
				  meaning of
occurrence
in a way that conflicts with standard
				  insurance usage or to prevent the use of other standard insurance terms in
				  place of
occurrence
.
Owner
or
Operator
- when
				  the owner and operator are separate parties, refers to the party that is
				  obtaining or has obtained financial assurances.
Petroleum Marketing Facilities
- all
				  facilities at which petroleum is produced or refined, and all facilities from
				  which petroleum is sold or transferred to other petroleum marketers or to the
				  public.
Petroleum Marketing Firms
- all firms owning
				  petroleum marketing facilities. Firms owning other types of facilities with
				  USTs as well as petroleum marketing facilities are considered to be petroleum
				  marketing firms.
Property Damages
- shall have the meaning
				  given this term by applicable state law. This term shall not include those
				  liabilities which, consistent with standard insurance industry practices, are
				  excluded from coverage in liability insurance policies for property damage.
				  However, such exclusions for property damage shall not include corrective
				  action associated with releases from tanks that are covered by the
				  policy.
Provider of Financial Assurance
- an entity
				  that provides financial assurance to an owner or operator of an underground
				  storage tank through one of the mechanisms listed in LAC 33:XI.1111-1125,
				  including a guarantor, insurer, risk retention group, surety, issuer of a
				  letter of credit, or the state Underground Motor Fuel Storage Tank Trust
				  Fund.
Substantial Business Relationship
- the
				  extent of a business relationship necessary under applicable state law to make
				  a guarantee contract issued incident to that relationship valid and
				  enforceable. A guarantee contract is issued "incident to that relationship" if
				  it arises from and depends on existing economic transactions between the
				  guarantor and the owner or operator.
Tangible Net Worth
- the tangible assets
				  that remain after deducting liabilities; such assets do not include intangibles
				  such as goodwill and rights to patents or royalties. For purposes of this
				  definition,
assets
means all existing and all probable future
				  economic benefits obtained or controlled by a particular entity as a result of
				  past transactions.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  30:2001 et
				  seq.