Texas Register, Volume 11, Number 19, Pages 1163-1244, March 11, 1986 Page: 1,204
1163-1244 p. ; 28 cm.View a full description of this periodical.
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must meet the requirements for permittees
in subsections (d)-(j) of this section and
must comply with the terms of the corporate
guarantee. The wording of the corporate
guarantee must be identical to the wording
specified in subsection (n) of this section.
The corporate guarantee must accompany
the items sent to the executive director as
specified in subsection (f) of this section.
The terms of the corporate guarantee must
provide that:
(1) if the permittee fails to properly
close, plug, and abandon the permitted in-
jection well covered by the corporate guar-
antee, the guarantor will do so;
(2) the corporate guarantee will re-
main in force unless the guarantor sends
notice of cancellation by certified mail to
the permitted and to the executive director.
Cancellation may not occur, however, dur-
ing the 120 days beginning on the date of
receipt of the notice of cancellation by both
the permittee and the executive director, as
evidenced by the return receipts;
(3) if the permittee fails to provide
alternate financial assurance and obtain the
written approval of such alternate financial
assurance from the executive director within
90 days after receipt by both the permittee
and the executive director of a notice of
cancellation of the corporate guarantee
from the guarantor, the guarantor will pro-
vide such alternative financial assurance in
the name of the permittee.
(m) A letter from the chief financial
officer, as specified in subsection (f) of this
section, must be worded as follows, except
that instructions in parentheses are to be
replaced with the relevant information and
the parentheses deleted:
(Address to Executive Director, Texas
Water Commission, P.O. Box 13087,
Austin, Texas 78711).
I am the chief financial officer of (name
and address of permittee). This letter is in
support of this firm's use of the financial
test to demonstrate financial responsibility
required by 31 TAC $305.153.
(Fill out the following two paragraphs re-
garding facilities and associated closure
cost estimates. If your firm has no facili-
ties that belong in a particular paragraph,
write "None" in the space indicated. For
each facility, include the commission's
permit or control file number, name and
address of the facility, and current closure
cost estimate.)
1. This firm is authorized by the Texas
Water Commission to operate the follow-
ing injection well facilities for which finan-
cial assurance is demonstrated through the
TWC financial test The current closure
cost estimates covered by the test are
shown for each facility:
2. This firm guarantees, through the at-
tached corporate guarantee, the closure of
the following injection well facilities
owned or operated by subsidiaries of this
firm. The current closure cost estimates
so guaranteed are shown for each facility:This firm (insert "is required" or "is not
required") to file a form 10K with the
Securities and Exchange Commission 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).
(Fill in appropriate alternatives as most
applicable to your firm).
Alternative I
1. Sum of current closure cost estimates
(total of all cost estimates shown in the
two paragraphs above) $.
*2. Total liabilities (if any portion of the
closure cost estimates is included in "total
liabilities", you may deduct the amount
of that portion from this line and add that
amount to lines 3 and 4) $_
*3. Tangible net worth S_
*4. Net worth $.
*5. Current assets $.
*6. Current liabilities $
7. Net working capital (Line S minus line
6) 5
*8. The sum of net income plus deprecia-
tion, depletion, and amortization SL-_-
*9. Total assets in U.S. (required only
if less than 90% of firm's assets are lo-
cated in the U.S.) $
Yes No
10. Is line 3 at least SI10 million?-
11. Is line 3 at least 6 times line
17
12. Is line 7 at least 6 times line
1?
'13. Are at least 90%s of firm's assets
located in the U.S.? If not, complete line
14
14. Is line 9 at least 6 times line 1?
15. Is line 2 divided by line 4 less than
2.0?
16. Is line 8 divided by line 2 greater than
0.17
17. Is line S divided by line 6 greater than
1.5?
Alternative II
1. Susn of current closure cost estimates
(total of all cost estimates shown in the
two paragraphs above) $_
2. Current bond rating of most recent
issuance of this firm and name of rating
service
3. Date of issuance of bond
4. Date of maturity of bond-__
'5. Tangible net worth (if any portion
of the closure cost estimates is included
in "total liabilities" on your firm's finan-cial statements, you may add the amount
of tha: portion to this line) $
*6. Total assets in U.S. (required only
if less than 90% of firm's assets are lo-
cated in the U.S.) $
7. Is line 5 at least $10 million?._
8. Is line 5 at least 6 times line 17,
*9. Are at least 90% of firm's assets
located in the U.S.? (If not, complete line
10.)
10.. Is line 6 at least 6 times line 1I
(Signature)
(Name)
(Title)
(Date)
(n) A corporate guarantee, as spe-
cified in subsection (1) of this section, must
be worded as follows, except that instruc-
tions in parentheses are to be replaced with
the relevant information and the paren-
theses deleted:
Corporate Guarantee for Injection Well
Closure Guarantee made this (date) by
(name of guarantor entity), a business cor-
poration organized under the laws of the
State of (insert name of state), herein
referred to as guarantor, to the Texas
Water Commission (hereinafter referred
to as TWC), oblige, on behalf of our sub-
sidiary (permittee) of (business address).
Recitals
(1) Guarantor meets or exceeds the
TWC financial test criteria and agrees to
comply with the reporting requirements for
guarantors as required by TWC.
(2) (Permittee) owns or operates
the following injection well facility(ies)
covered by this guarantee: (List for each fa-
cility the TWC permit or control file num-
ber, name, and address).
(3) For value received from (per-
mittee), guarantor guarantees to TWC that
in the event that (permittee) fails to close,
plug and abandon the above facility(ies) in
accordance with applicable permit provi-
sions and/or TWC rules whenever so re-
quired, the guarantor shall do so upon re-
quest of TWC.
(4) Guarantor agrees that if, at the
end of any fiscal year before termination
of this guarantee, the guarantor fails to
meet the financial test criteria, guarantor
shall send within 90 days, by certified mail,
notice to the TWC executive director and
to (permittee) that guarantor intends to pro-
vide alternate financial assurance as re-
quired by 31 TAC 305.153 in the name of
(permittee). Within 120 days after the end
of such fiscal year, the guarantor shall es-
tablish such financial assurance unless (per-
mittee) has done so.
(5) The guarantor agrees to notify
the TWC executive director by certified mail
of any voluntary or involuntary proceeding
under Title 11 United States Code, naming
guarantor as debtor, within 10 days after
commencement of the proceeding.11 TexReg 1204 March 11, 1986
Texas Register 4
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Texas. Secretary of State. Texas Register, Volume 11, Number 19, Pages 1163-1244, March 11, 1986, periodical, March 11, 1986; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth243767/m1/42/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.