NR 667.0140(2)(c)(c) Demonstrate financial assurance for liability as required in s. NR 667.0147.
NR 667.0140(3)(3)The owner or operator shall notify the department if the owner or operator is named as a debtor in a bankruptcy proceeding under Title 11 of the United States Code (See also s. NR 667.0148).
NR 667.0140(4)(4)States and the federal government are exempt from the requirements of this subchapter.
NR 667.0140 HistoryHistory: CR 16-007: cr. Register July 2017 No. 739, eff. 8-1-17; correction in (1) made under s. 35.17, Stats., Register July 2017 No. 739.
NR 667.0141NR 667.0141Definitions of terms used in this subchapter. When used in this subchapter, the following terms have the following meanings:
NR 667.0141(1)(1)“Closure plan” means the plan for closure prepared according to the requirements of s. NR 667.0112.
NR 667.0141(2)(2)“Current closure cost estimate” means the most recent of the estimates prepared according to s. NR 667.0142 (1), (2), and (3).
NR 667.0141(4)(4)“Parent corporation” means a corporation that 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.
NR 667.0141(6)(6)The following terms are used in the specifications for the financial tests for closure 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:
NR 667.0141(6)(a)(a) “Assets” means all existing and all probable future economic benefits obtained or controlled by a particular entity.
NR 667.0141(6)(b)(b) “Current plugging and abandonment cost estimate” means the most recent of the estimates prepared according to ch. NR 815.
NR 667.0141(6)(c)(c) “Independently audited” refers to an audit performed by an independent certified public accountant according to generally accepted auditing standards.
NR 667.0141(6)(d)(d) “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.
NR 667.0141(6)(e)(e) “Tangible net worth” means the tangible assets that remain after deducting liabilities. Tangible assets would not include intangibles such as goodwill and rights to patents or royalties.
NR 667.0141(7)(7)In the liability insurance requirements, the terms “bodily injury” and “property damage” shall have the meanings given these terms under state law. However, these terms do not include those liabilities which, consistent with standard industry practices, are excluded from coverage in liability policies for bodily injury and property damage. The department intends the meanings of other terms used in the liability insurance requirements to be consistent with their common meanings within the insurance industry. The following definitions of several of the terms are intended to assist in the understanding of these rules and are not intended to limit their meanings in a way that conflicts with general insurance industry usage:
NR 667.0141(7)(a)(a) “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.
NR 667.0141(7)(b)(b) “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.
NR 667.0141(7)(c)(c) “Sudden accidental occurrence” means an occurrence which is not continuous or repeated in nature.
NR 667.0141(8)(8)“Substantial business relationship” means the extent of a business relationship necessary under applicable state statute to make a guarantee contract issued incident to that relationship valid and enforceable. A substantial business relationship shall 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 department.
NR 667.0141 HistoryHistory: CR 16-007: cr. Register July 2017 No. 739, eff. 8-1-17; correction
NR 667.0142NR 667.0142Cost estimate for closure.
NR 667.0142(1)(1)The owner or operator shall have at the facility a detailed written estimate, in current dollars, of the cost of closing the facility according to the requirements in ss. NR 667.0111 to 667.0115 and applicable closure requirements in ss. NR 667.0176, 667.0201, and 667.1108.
NR 667.0142(1)(a)(a) The estimate shall equal the cost of final closure at the point in the facility’s active life when the extent and manner of its operation would make closure the most expensive, as indicated by the closure plan (see s. NR 667.0112 (2)).
NR 667.0142(1)(b)(b) The closure cost estimate shall be based on the costs to the owner or operator of hiring a third party to close the facility. A third party is a party who is neither a parent nor a subsidiary of the owner or operator. (See definition of parent corporation in s. NR 667.0141 (4).)
NR 667.0142(1)(c)(c) The closure cost estimate may not incorporate any salvage value that may be realized with the sale of hazardous wastes or non-hazardous wastes, facility structures or equipment, land, or other assets associated with the facility at the time of partial or final closure.
NR 667.0142(1)(d)(d) The owner or operator may not incorporate a zero cost for hazardous wastes or non-hazardous wastes that might have economic value.
NR 667.0142(2)(2)During the active life of the facility, the owner or operator shall adjust the closure cost estimate for inflation within 60 days prior to the anniversary date of the establishment of the financial instruments used to comply with s. NR 667.0143. For owners and operators using the financial test or corporate guarantee, the closure cost estimate shall be updated for inflation within 30 days after the close of the firm’s fiscal year and before submission of updated information to the department as specified in s. NR 667.0143 (6) (b) 3. The adjustment may be made by recalculating the maximum costs of closure in current dollars or by using an inflation factor derived from the most recent Implicit Price Deflator for Gross Domestic Product published by the U.S. department of commerce in its Survey of Current Business, as specified in pars. (a) and (b). The inflation factor is the result of dividing the latest published annual Deflator by the Deflator for the previous year.
NR 667.0142(2)(a)(a) The first adjustment is made by multiplying the closure cost estimate by the inflation factor. The result is the adjusted closure cost estimate.
NR 667.0142(2)(b)(b) Subsequent adjustments are made by multiplying the latest adjusted closure cost estimate by the latest inflation factor.