Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart C - Protection of Natural Resources › Article I - Land Resources › Chapter 86 - SURFACE AND UNDERGROUND COAL MINING: GENERAL › Subchapter F - BONDING AND INSURANCE REQUIREMENTS › GENERAL PROVISIONS › Section 86.142 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this
							 chapter, have the following meanings, unless the context clearly indicates
							 otherwise:
Adverse opinion
-A statement by an
							 independent certified public accountant that the financial statements of the
							 applicant do not present fairly the financial condition of the applicant in
							 conformity with generally accepted accounting principles.
Annuity
-A financial instrument
							 which provides a sum payable periodically over a length of time.
Applicant
-A permittee or an
							 applicant for a permit who is applying to self-bond under this
							 subchapter.
Collateral bond
-An indemnity
							 agreement in a sum certain payable to the Department executed by the permittee
							 and which is supported by the deposit with the Department of cash, negotiable
							 bonds of the United States of America, the Commonwealth of Pennsylvania, the
							 Pennsylvania Turnpike Commission, the General State Authority, the State Public
							 School Building Authority, or any Commonwealth municipality, negotiable
							 certifications of deposit, or an irrevocable letter of credit of any bank
							 organized or authorized to transact business in the United States.
Continuous business operations
-Operations in which the applicant has been in business and operating for at
							 least 10 years prior to the filing of its self-bonding application unless the
							 applicant's existence results from a reorganization, consolidation or merger
							 involving a company with this longevity. If the applicant is a majority owned
							 subsidiary of a corporation, it may rely upon its parent corporation's business
							 history, which has a 10-year business history.
Current asset
-Cash or other assets
							 which are reasonably expected to be converted to cash or sold or consumed
							 within 1 year or within the normal operating cycle of the business.
Current liability
-An obligation
							 which is reasonably expected to be paid or liquidated within 1 year or within
							 the normal operating cycle of the business.
Disclaimer of opinion
-A statement by
							 an independent certifed public accountant that he does not express an opinion
							 on the financial statements of the applicant.
Financial statement
-A formal report
							 of the applicant's status of accounts at a particular time, prepared to show
							 the operating results and financial condition of the applicant's business. The
							 term includes, but is not limited to, the balance sheet, income statement and
							 statement of change in financial position prepared in accordance with generally
							 accepted accounting principles.
Fixed asset
-The term includes plants
							 and equipment, but does not include land or coal in place.
Independent certified public
							 accountant
-A certified public accountant not dependent on or subject
							 to the direct control of the applicant.
Liability
-An obligation to transfer
							 assets or provide services to other entities in the future as a result of past
							 transactions.
Liquidity ratio
-The relation of
							 cash to current liabilities.
Long-term facilities
-A processing
							 plant, mine drainage facility, refuse area or other structure and facility
							 associated with surface or underground mining which will be continuously
							 operated or used for at least 10 years.
Long-term mines
-An underground mine
							 which will be continuously mined for at least 10 years, or any surface mines in
							 which the mineral to be removed exceeds the amount of overburden by a ratio of
							 at least four to one and which will be continuously mined for at least 10
							 years.
Net worth
-Total assets minus total
							 liabilities and is equivalent to owner's equity.
Parent corporation
-The corporation
							 which directly owns or controls the corporation which is the applicant.
Quick assets
-Cash and current assets
							 that can be quickly turned into cash.
Retained earnings
-Stockholder's
							 equity that has arisen from retained assets from earnings in the business. The
							 term includes only earnings from normal operations and not gains from the
							 transaction, such as the sale of plant assets or investments.
Self-bond
-An indemnity agreement in
							 a sum certain payable to the Department, executed by the permittee and by each
							 individual and business organization capable of influencing or controlling the
							 investment or financial practices of the permittee by virtue of his authority
							 as an officer or ownership of all or a significant part of the permittee, and
							 supported by agreements granting the Department a security interest in real or
							 personal property pledged to secure performance by the permittee.
Surety bond
-An indemnity agreement
							 in a sum certain payable to the Department executed by a permittee which is
							 supported by the guarantee of payment on the bond by a corporation licensed to
							 do business as a surety in this Commonwealth.
Tangible net worth
-Net worth minus
							 intangibles such as goodwill and rights to patents or royalties.
Trustee
-One in whom some estate,
							 interest or power in or affecting property of any description is vested for the
							 benefit of another.
Trust fund
-A fund held by a trustee
							 which provides moneys to address specific reclamation or pollution abatement
							 requirements, or both, associated with a mining activity.
This section cited in 25 Pa. Code §
															86.159 (relating to
								self-bonding).