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RULE §37.11Definitions

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

  (1) Assets--All existing and all probable future economic benefits obtained or controlled by a particular entity.

  (2) Closure plan--The plan for closure prepared in accordance with commission requirements.

  (3) Corporate guarantor--Must be the direct or higher-tier parent corporation or a firm with a substantial business relationship with the owner or operator.

  (4) Current assets--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.

  (5) Current closure cost estimate--The most recent of the estimates prepared for closure.

  (6) Current cost estimate--The most recent estimates prepared in accordance with commission requirements for the purpose of demonstrating financial assurance for closure, post closure, or corrective action.

  (7) Current liabilities--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.

  (8) Current post closure cost estimate--The most recent of the estimates prepared in accordance with commission requirements.

  (9) Current plugging and abandonment cost estimate--The most recent of the estimates prepared in accordance with Chapter 331 of this title (relating to Underground Injection Control).

  (10) Entity--For the purposes of this chapter, means a legal organization engaged in lawful business or purpose, such as a corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or limited partnership or similar business organization.

  (11) Face amount--The total amount the insurer is obligated to pay under an insurance policy, excluding legal defense costs.

  (12) Financial responsibility--This term shall be used interchangeably with financial assurance.

  (13) Independent audit--An audit performed by an independent certified public accountant in accordance with generally accepted auditing standards.

  (14) Liabilities--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.

  (15) Net working capital--Current assets minus current liabilities.

  (16) Net worth--Total assets minus total liabilities and equivalent to owner's equity.

  (17) Parent corporation--A corporation which directly owns at least 50% 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.

  (18) Permit--Written permission from the commission, including a permit, license, registration, or other authorization, to engage in a business or occupation, to perform an act (such as to build, install, modify, or operate a facility), or to engage in a transaction, which would be unlawful absent such permission.

  (19) Post closure--This term shall be used interchangeably with the term "Post closure care."

  (20) Post-closure order--An order issued by the commission for post-closure care of interim status units, a corrective action management unit unless authorized by permit, or alternative corrective action requirements for contamination commingled from RCRA and solid waste management units.

  (21) Post-closure plan--The plan for post-closure care prepared in accordance with commission requirements.

  (22) Program area--Commission areas under which the facility is permitted, licensed, or registered to operate, including, but not limited to, Industrial and Hazardous Waste, Underground Injection Control, Municipal Solid Waste, or Petroleum Storage Tanks.

  (23) Standby trust--An unfunded trust established to meet the requirements of this chapter.

  (24) Substantial business relationship--A relationship where the guarantor is a corporation and owns at least 50% of the entity guaranteed.

  (25) Tangible net worth--The tangible assets that remain after deducting liabilities; such assets would not include intangibles such as goodwill and rights to patents or royalties.

Source Note: The provisions of this §37.11 adopted to be effective December 30, 1996, 21 TexReg 12297; amended to be effective November 2, 1998, 23 TexReg 11159; amended to be effective October 7, 1999, 24 TexReg 8555; amended to be effective March 21, 2000, 25 TexReg 2347; amended to be effective January 30, 2003, 28 TexReg 687

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