Texas Administrative Code › Title 30 - ENVIRONMENTAL QUALITY › Part 1 - TEXAS COMMISSION ON ENVIRONMENTAL QUALITY › Chapter 37 - FINANCIAL ASSURANCE › Subchapter W - FINANCIAL ASSURANCE FOR QUARRIES › Section 37.9235 - Corporate Guarantee Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) An
				  owner or operator may satisfy the requirements of financial assurance for
				  reclamation or restoration by obtaining a written guarantee, hereafter referred
				  to as "corporate guarantee," which conforms to the requirements of this
				  subchapter.
(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 §
										37.9225
				  of this title (relating to Financial Test Requirements). 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 §
										37.9240
				  of this title (relating to Corporate Guarantee Wording). The corporate
				  guarantee shall accompany the items sent to the executive director as specified
				  in §
										37.9225(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 that
				  shows the relationship between the two entities; and the partnership agreement
				  or other agreements, articles, or bylaws that 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 reclamation at the quarry or restoration related to
				  the quarry covered by the corporate guarantee in accordance with the permits
				  and other applicable requirements or written directive by the executive
				  director or commission whenever required to perform such reclamation or
				  restoration, the guarantor shall do so or establish a trust fund as specified
				  in §
											37.9185
				  of this title (relating to Trust Fund Requirements) in the name of the owner or
				  operator in the amount of the current cost estimate;
(2) the corporate guarantee will 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 will provide such alternate
				  financial assurance in the name of the owner or operator.