Texas Administrative Code › Title 30 - ENVIRONMENTAL QUALITY › Part 1 - TEXAS COMMISSION ON ENVIRONMENTAL QUALITY › Chapter 37 - FINANCIAL ASSURANCE › Subchapter A - GENERAL FINANCIAL ASSURANCE REQUIREMENTS › Section 37.11 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this chapter,
					 shall have the following meanings, unless the context clearly indicates
					 otherwise.
(1) Assets--All existing
				  and all probable future economic benefits obtained or controlled by a
				  particular entity.
(2) Closure
				  plan--The plan for closure prepared in accordance with commission
				  requirements.
(3) Corporate
				  guarantor--Must be the direct or higher-tier parent corporation or a firm with
				  a substantial business relationship with the owner or operator.
(4) Current assets--Cash or other assets or
				  resources commonly identified as those which are reasonably expected to be
				  realized in cash or sold or consumed during the normal operating cycle of the
				  business.
(5) Current closure cost
				  estimate--The most recent of the estimates prepared for closure.
(6) Current cost estimate--The most recent
				  estimates prepared in accordance with commission requirements for the purpose
				  of demonstrating financial assurance for closure, post closure, or corrective
				  action.
(7) Current
				  liabilities--Obligations whose liquidation is reasonably expected to require
				  the use of existing resources properly classifiable as current assets or the
				  creation of other current liabilities.
(8) Current post closure cost estimate--The
				  most recent of the estimates prepared in accordance with commission
				  requirements.
(9) Current plugging
				  and abandonment cost estimate--The most recent of the estimates prepared in
				  accordance with Chapter 331 of this title (relating to Underground Injection
				  Control).
(10) Entity--For the
				  purposes of this chapter, means a legal organization engaged in lawful business
				  or purpose, such as a corporation, partnership, sole proprietorship, limited
				  liability company, limited liability partnership, or limited partnership or
				  similar business organization.
(11)
				  Face amount--The total amount the insurer is obligated to pay under an
				  insurance policy, excluding legal defense costs.
(12) Financial responsibility--This term
				  shall be used interchangeably with financial assurance.
(13) Independent audit--An audit performed by
				  an independent certified public accountant in accordance with generally
				  accepted auditing standards.
(14)
				  Liabilities--Probable future sacrifices of economic benefits arising from
				  present obligations to transfer assets or provide services to other entities in
				  the future as a result of past transactions or events.
(15) Net working capital--Current assets
				  minus current liabilities.
(16) Net
				  worth--Total assets minus total liabilities and equivalent to owner's
				  equity.
(17) Parent corporation--A
				  corporation which directly owns at least 50% of the voting stock of the
				  corporation which is the facility owner or operator; the latter corporation is
				  deemed a subsidiary of the parent corporation.
(18) Permit--Written permission from the
				  commission, including a permit, license, registration, or other authorization,
				  to engage in a business or occupation, to perform an act (such as to build,
				  install, modify, or operate a facility), or to engage in a transaction, which
				  would be unlawful absent such permission.
(19) Post closure--This term shall be used
				  interchangeably with the term "Post closure care."
(20) Post-closure order--An order issued by
				  the commission for post-closure care of interim status units, a corrective
				  action management unit unless authorized by permit, or alternative corrective
				  action requirements for contamination commingled from RCRA and solid waste
				  management units.
(21) Post-closure
				  plan--The plan for post-closure care prepared in accordance with commission
				  requirements.
(22) Program
				  area--Commission areas under which the facility is permitted, licensed, or
				  registered to operate, including, but not limited to, Industrial and Hazardous
				  Waste, Underground Injection Control, Municipal Solid Waste, or Petroleum
				  Storage Tanks.
(23) Standby
				  trust--An unfunded trust established to meet the requirements of this
				  chapter.
(24) Substantial business
				  relationship--A relationship where the guarantor is a corporation and owns at
				  least 50% of the entity guaranteed.
(25) Tangible net worth--The tangible assets
				  that remain after deducting liabilities; such assets would not include
				  intangibles such as goodwill and rights to patents or royalties.