New York Codes, Rules and Regulations › Title 6 - DEPARTMENT OF ENVIRONMENTAL CONSERVATION › Chapter V - RESOURCE MANAGEMENT SERVICES › Subchapter E - WATER REGULATION › Part 613 - Petroleum Bulk Storage › Subpart 613-8 - Financial Responsibility › Section 613-8.4 - Allowable mechanisms and combinations of mechanisms

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A tank system
					 owner or operator, including a local government tank system owner or operator,
					 may use any one or combination of the mechanisms listed under paragraphs (d)(1)
					 through (7) of this section to demonstrate financial responsibility under this
					 Subpart for one or more underground storage tanks.
(b) A local government tank system owner or
					 operator may use any one or combination of the mechanisms listed under
					 paragraphs (d)(8) through (11) of this section to demonstrate financial
					 responsibility under this Subpart for one or more underground storage
					 tanks.
(c) A tank system owner or
					 operator may use self-insurance in combination with a guarantee only if, for
					 the purpose of meeting the requirements of the financial test under this rule,
					 the financial statements of the tank system owner or operator are not
					 consolidated with the financial statements of the guarantor.
(d)
Mechanisms of financial
					 responsibility
.
(1)
Financial
					 test of self-insurance
.
(i) A tank
					 system owner or operator, and/or guarantor, may satisfy the requirements of
					 section 8.3 of this Subpart by passing a
					 financial test as specified in this paragraph. To pass the financial test of
					 self-insurance, the tank system owner or operator, and/or guarantor must meet
					 the criteria of subparagraph (ii) of this paragraph based on year-end financial
					 statements for the latest completed fiscal year.
(ii) The tank system owner or operator,
					 and/or guarantor, must have a tangible net worth of at least ten times the
					 total of the applicable aggregate amount required by section
					 8.3 of this Subpart, based on the
					 number of underground storage tanks for which a financial test is used to
					 demonstrate financial responsibility to the Department.
(iii) To demonstrate that it meets the
					 financial test under subparagraph (ii) of this paragraph, the chief financial
					 officer of the tank system owner or operator, or guarantor, must sign, within
					 120 days after the close of each financial reporting year, as defined by the
					 twelve-month period for which financial statements used to support the
					 financial test are prepared, a letter worded exactly as follows, except that
					 the instructions in brackets must be replaced with the relevant information and
					 the brackets deleted:
Letter from Chief Financial
						Officer
I am the chief financial officer of [insert: name
						and address of the tank system owner or operator, or guarantor]. This letter is
						in support of the use of [insert: "the financial test of self-insurance,"
						and/or "guarantee"] to demonstrate financial responsibility for [insert:
						"taking corrective action" and/or "compensating third parties for bodily injury
						and property damage"] caused by [insert: "sudden accidental releases" or
						"non-sudden accidental releases" or "accidental releases"] in the amount of at
						least [insert: dollar amount] per occurrence and [insert: dollar amount] annual
						aggregate arising from operating (an) underground storage
						tank(s).
Underground storage tanks at the following
						facilities are assured by this financial test or a financial test under an
						authorized State program by this [insert: "owner or operator," and/or
						"guarantor"]: [List for each facility: the name and address of the facility
						where tanks assured by this financial test are located. If separate mechanisms
						or combinations of mechanisms are being used to assure any of the tanks at this
						facility, list each tank assured by this financial test by the tank
						identification number provided in the notification submitted pursuant to
						subdivision
						1.9(c) of this
						Part.]
Amount
Closure
$
Post-Closure Care
$
Liability Coverage
$
Corrective Action
$
Total
$
This [insert: "owner or operator," or
						"guarantor"] has not received an adverse opinion, a disclaimer of opinion, or a
						"going concern" qualification from an independent auditor on his financial
						statements for the latest completed fiscal year.
1. Amount of annual UST aggregate
									 coverage being assured by a financial test, and/or guarantee
$
2. Amount of corrective action, closure
									 and post-closure care costs, liability coverage, and plugging and abandonment
									 costs covered by a financial test, and/or guarantee
$
3. Sum of lines 1 and 2
$
4. Total tangible
									 assets
$
5. Total liabilities [if any of the
									 amount reported on line 3 is included in total liabilities, you may deduct that
									 amount from this line and add that amount to line 6]
$
6. Tangible net worth [subtract line 5
									 from line 4]
$
7. Is line 6 at least $10
									 million?
Yes / No
8. Is line 6 at least 10 times line
									 3?
Yes / No
9. Have financial statements for the
									 latest fiscal year been filed with the Securities and Exchange
									 Commission?
Yes / No
10. Have financial statements for the
									 latest fiscal year been filed with the Energy Information
									 Administration?
Yes / No
11. Have financial statements for the
									 latest fiscal year been filed with the Rural Utilities Service?
Yes / No
12. Has financial information been
									 provided to Dun and Bradstreet, and has Dun and Bradstreet provided a financial
									 strength rating of 4A or 5A? [Answer "Yes" only if both criteria have been
									 met.]
Yes / No
I hereby certify that the wording of this letter
						is identical to the wording specified in 6 NYCRR 613-8.4(d)(1)(iv) as such
						regulations were constituted on the date shown immediately
						below.
[Signature]
[Name]
[Title]
[Date]
(iv) If a tank system owner or operator using
					 the test to provide financial assurance finds that they no longer meet the
					 requirements of the financial test based on the year-end financial statements,
					 the tank system owner or operator must obtain alternative coverage within 150
					 days after the end of the year for which financial statements have been
					 prepared.
(v) The Commissioner of
					 the Department may require reports of financial condition at any time from the
					 tank system owner or operator, and/or guarantor. If the Commissioner finds, on
					 the basis of such reports or other information, that the tank system owner or
					 operator, and/or guarantor, no longer meets the financial test requirements of
					 subparagraphs (ii) and (iii) of this paragraph, the tank system owner or
					 operator must obtain alternate coverage within 30 days after notification of
					 such a finding.
(vi) If the tank
					 system owner or operator fails to obtain alternate assurance within 150 days
					 after finding that they no longer meet the requirements of the financial test
					 based on the year-end financial statements, or within 30 days after
					 notification by the Commissioner of the Department that they no longer meet the
					 requirements of the financial test, the tank system owner or operator must
					 notify the Commissioner of such failure within ten days.