30 Tex. Admin. Code § 37.9235 - Corporate Guarantee Requirements
(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.
Notes
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