La. Admin. Code tit. 33 § V-3703

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-3703 - Definitions of Terms as Used in This Chapter

A. General Terms

1.Closure Plan- the plan for closure prepared in accordance with the requirements of LAC 33:V.Chapter 35.

2. Current Closure Cost Estimate- the most recent of the estimates prepared in accordance with LAC 33:V.3705.A-C.

3.Current Post-Closure Cost Estimate- the most recent of the estimates prepared in accordance with LAC 33:V.3709.A-C.

4.Parent Corporation- 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.

5.Post-Closure Plan- the plan for the post-closure care prepared in accordance with the requirements of LAC 33:V.Chapter 35.

6. 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.

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

b.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.

c.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.

d.Independently Audited- refers to an audit performed by an independent certified public accountant in accordance with generally accepted auditing standards.

e.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.

f.Net Working Capital- current assets minus current liabilities.

g.Net Worth- total assets minus total liabilities and is equivalent to owner's equity.

h.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.

7.Current Plugging and Abandonment Cost Estimates- most recent cost estimates prepared in accordance with 40 CFR 144.62a, b, and c, required by the Office of Conservation, or any other substantially equivalent state program.

8.Substantial Business Relationship- the extent of a business relationship necessary under applicable state 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 applicable administrative authority.

B. Insurance-Related Terms. In the liability insurance requirements the terms bodily injury and property damage shall have the meanings given these terms by applicable 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 meanings of other terms used in the liability insurance requirements are to be consistent with their common meanings within the insurance industry. The definitions of several of the terms given below are intended to assist in the understanding of these regulations and are not intended to limit their meaning in a way that conflicts with general insurance industry usage.

1.Accidental Occurrence- 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.

2.Legal Defense Costs- any expenses that an insurer incurs in defending against claims of third parties brought under the terms and conditions of an insurance policy.

3.Nonsudden Accidental Occurrence- an occurrence which takes place over time and involves continuous or repeated exposure.

4.Sudden Accidental Occurrence- an occurrence which is not continuous or repeated in nature.

La. Admin. Code tit. 33, § V-3703

Promulgated by the Department of Environmental Quality, Office of Solid and Hazardous Waste, Hazardous Waste Division, LR 10:200 (March 1984), amended LR 13:651 (November 1987), LR 16:614 (July 1990), LR 18:723 (July 1992).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:2180 et seq.