(a) Closure
plan means the plan for closure prepared in accordance with the requirements of
Section R315-265-112.
(b) Current
closure cost estimate means the most recent of the estimates prepared in
accordance with Subsections R315-265-142(a), (b), and (c).
(c) Current post-closure cost estimate means
the most recent of the estimates prepared in accordance with Subsections
R315-265-144(a), (b), and (c).
(d)
Parent corporation means a corporation which directly owns at least 50 percent
of the voting stock of the corporation which is the facility owner or operator;
the latter corporation is deemed a 'subsidiary" of the parent
corporation.
(e) Post-closure plan
means the plan for post-closure care prepared in accordance with the
requirements of Sections R315-265-117 through 265-120.
(f) The following terms are used in the
specifications for the financial tests for closure, post-closure care, and
liability coverage. The definitions are intended to assist in the understanding
of these regulations and are not intended to limit the meanings of terms in a
way that conflicts with generally accepted accounting practices.
Assets means all existing and all probable future economic
benefits obtained or controlled by a particular entity.
Current assets means cash or other assets or resources
commonly identified as those which are reasonably expected to be realized in
cash or sold or consumed during the normal operating cycle of the
business.
Current liabilities means obligations whose liquidation is
reasonably expected to require the use of existing resources properly
classifiable as current assets or the creation of other current
liabilities.
Current plugging and abandonment cost estimate means the most
recent of the estimates prepared in accordance with
40 CFR
144.62(a), (b), and
(c).
Independently audited refers to an audit performed by an
independent certified public accountant in accordance with generally accepted
auditing standards.
Liabilities means probable future sacrifices of economic
benefits arising from present obligations to transfer assets or provide
services to other entities in the future as a result of past transactions or
events.
Net working capital means current assets minus current
liabilities.
Net worth means total assets minus total liabilities and is
equivalent to owner's equity.
Tangible net worth means the tangible assets that remain
after deducting liabilities; such assets would not include intangibles such as
goodwill and rights to patents or royalties.
(g) In the liability insurance requirements
the terms bodily injury and property damage shall have the meanings given these
terms by applicable Utah law. However, these terms do not include those
liabilities which, consistent with standard industry practice, are excluded
from coverage in liability policies for bodily injury and property damage. The
Director intends the meanings of other terms used in the liability insurance
requirements to be consistent with their common meanings within the insurance
industry. The definitions given below of several of the terms are intended to
assist in the understanding of these regulations and are not intended to limit
their meanings in a way that conflicts with general insurance industry usage.
Accidental occurrence means an accident, including continuous
or repeated exposure to conditions, which results in bodily injury or property
damage neither expected nor intended from the standpoint of the insured.
Legal defense costs means any expenses that an insurer incurs
in defending against claims of third parties brought under the terms and
conditions of an insurance policy.
Nonsudden accidental occurrence means an occurrence which
takes place over time and involves continuous or repeated exposure.
Sudden accidental occurrence means an occurrence which is not
continuous or repeated in nature.
(h) Substantial business relationship means
the extent of a business relationship necessary under applicable Utah law to
make a guarantee contract issued incident to that relationship valid and
enforceable. A 'substantial business relationship" must arise from a pattern of
recent or ongoing business transactions, in addition to the guarantee itself,
such that a currently existing business relationship between the guarantor and
the owner or operator is demonstrated to the satisfaction of the
Director.
