South Carolina Code of Regulations › Chapter 61 - DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL › Subchapter 61-79 - Hazardous Waste Management Regulations › Part 61-79.261 - IDENTIFICATION AND LISTING OF HAZARDOUS WASTE › Subpart H - FINANCIAL REQUIREMENTS FOR MANAGEMENT OF EXCLUDED HAZARDOUS SECONDARY MATERIALS › Section 61-79.261.H.151 - Wording of the instruments › Appendix F

Current through Register Vol. 48, No. 6, June 28, 2024
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]