Texas Administrative Code › Title 30 - ENVIRONMENTAL QUALITY › Part 1 - TEXAS COMMISSION ON ENVIRONMENTAL QUALITY › Chapter 37 - FINANCIAL ASSURANCE › Subchapter C - FINANCIAL ASSURANCE MECHANISMS FOR CLOSURE, POST CLOSURE, AND CORRECTIVE ACTION › Section 37.261 - Corporate Guarantee

Current through Reg. 49, No. 28; July 12, 2024
(a) An owner or
				  operator may satisfy the requirements of financial assurance for closure, post
				  closure, or corrective action by obtaining a written guarantee, hereafter
				  referred to as "corporate guarantee," which conforms to the requirements of
				  this section, in addition to the requirements as specified in Subchapters A and
				  B of this chapter (relating to General Financial Assurance Requirements and
				  Financial Assurance Requirements for Closure, Post Closure, and Corrective
				  Action).
(b) The guarantor shall be
				  the direct or higher-tier parent corporation of the owner or operator or a
				  corporation with a substantial business relationship with the owner or
				  operator. The guarantor must meet the requirements for owners or operators as
				  specified in §
										37.251
				  of this title (relating to Financial Test). The guarantor must comply with the
				  terms of the corporate guarantee.
(c) The wording of the corporate guarantee
				  must be identical to the wording specified in §
										37.361 of
				  this title (relating to Corporate Guarantee). The corporate guarantee shall
				  accompany the items sent to the executive director as specified in §
										37.251(c)
				  of this title.
(d) If the guarantor
				  has a substantial business relationship with the owner or operator, in addition
				  to the requirements specified in this chapter for the financial test and
				  corporate guarantee, the guarantor will submit a description of the substantial
				  business relationship and the value received in consideration of the guarantee;
				  an original or certified original copy of the Resolution by the Board of
				  Directors or a certified letter from the chief financial officer, authorizing
				  the corporate guarantee on behalf of the entity; an original or certified
				  original copy of the Resolution by the Board of Directors authorizing the
				  formation or acquisition of the guaranteed entity; an organizational chart
				  which shows the relationship between the two entities; the partnership
				  agreement or other agreements, articles, or bylaws which set out the formation,
				  structure, and operation of the guaranteed entity. After the initial submission
				  of these items to demonstrate a substantial business relationship, if there has
				  been no change in the substantial business relationship, the chief financial
				  officer may submit a letter attesting that there has been no change.
(e) The terms of the corporate guarantee
				  shall provide that:
(1) if the owner or
				  operator fails to perform closure, post closure, or corrective action at the
				  facility(ies) covered by the corporate guarantee in accordance with the permits
				  and other applicable requirements whenever required to do so, the guarantor
				  shall do so or establish a trust fund as specified in §
											37.201 of
				  this title (relating to Trust Fund) in the name of the owner or operator in the
				  amount of the current cost estimate;
(2) the corporate guarantee shall remain in
				  force unless the guarantor sends notice of termination by certified mail to the
				  owner or operator and the executive director and the owner or operator has
				  obtained, and the executive director has approved, alternative financial
				  assurance; and
(3) if the owner or
				  operator fails to provide alternate financial assurance as specified in this
				  subchapter and obtain the written approval of such alternate assurance from the
				  executive director within 90 days after receipt by both the owner or operator
				  and the executive director of a notice of termination of the corporate
				  guarantee from the guarantor, the guarantor shall provide such alternate
				  financial assurance in the name of the owner or operator.