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Home My WebLink AboutDSHW-1989-000724 - 0901a0688013d594//t/CO^^^H^ CORPORATION -1989. ^^^^ EXECUTIVE OFFICES C. Luckey Heath Diiecioi. Salely nnd Enviionnienial Allans CERTIFIED MAIL - RETURN RECEIPT REOUESTED 9880-FY90-049 28 September 1989 Brent Bradford Executive Secretary Solid and Hazardous Waste Committee Utah Department of Health P.O. Box 16690 Salt Lake City, Utah 84116-0690 ATTN: Brad Maulding Dear Mr. Bradford: Updated financial test documentation including financial information for the Fiscal Year ended June 30, 1989 is enclosed. These statements comply with the September 1, 1988 Federal Recrister (50 FR 33938 et. seq.) which is effective on September 30, 1988. sincerely. C. Luckey Heath Director, Safety & Environmental Affairs cc: C. S. Christiansen A. K. Lemon Enclosure: Letter from Chief Financial Officer Thiokol Corporation, 1989 Annual Report Form 10-K Report from Ernst & Young PO-Bo\ 707. BiKjh.1,11 Cilv. UT S4302-0707 ISO 11 S63-221:: //UC0^^^£ CORPORATION EXECUTIVE OFFICES James R. Wilson Vice President and Chief Financial Officer 21 September 1989 Mr. Brent Bradford Executive Secretary Solid and Hazardous Waste Committee Utah Department of Health P.O. Box 16690 Salt Lake City, Utah 84116-0690 Attn: Brad Maulding Dear Mr. Bradford: I am the chief financial officer of Thiokol Corporation, 2475 Washington Boulevard, Ogden, Utah 84401. This letter is in support of the use of the financial test to demonstrate financial responsibility for liability coverage and closure and post-closure care as specified in Subpart H of 40 CFR Parts 264 and 265. The firm identified above is the owner or operator of the following facilities for which liability coverage for both sudden and nonsudden accidental occurrences is being demonstrated through the financial test specified in Subpart H of 40 CFR Parts 254 and 265: Thiokol Corporation Tactical Operations - Elkton Division 55 Thiokol Road P.O. Box 241 Elkton, MD 21921-0241 MDD003067121 Thiokol Corporation Utah-Based Operations P.O. Box 689 Brigham City, UT 84302-0689 UTD009081357 The firm identified above guarantees through the guarantee specified in Subpart H of 40 CFR Parts 264 and 265 liability coverage for both sudden and nonsudden accidental occurrences at the following facilities owned or operated by the following: Thiokol Corporation 2475 Washington Blvd. Ogden, UT 84409 P.O. Box 9260, Ogden, UT 84409 (801) 629-2052 Mr. Brent Bradford 21 September 1989 Page 2 The firm identified above is the direct or higher-tier parent corporation of the owner or operator. 1, 2. 4. The firm identified above owns or operates the following facilities for which financial assurance for closure or post-closure care or liability coverage is demonstrated through the financial test specified in Subpart H of 40 CFR Parts 264 and 265. The current closure and/or post-closure cost estimate covered by the test and shown for each facility: None. The firm identified above guarantees, through the guarantee specified in Subpart H of 40 CFR Parts 264 and 265, the closure and post-closure care or liability coverage of the following facilities owned or operated by the guaranteed party. The current cost estimates for the closure or post-closure care so guaranteed are shown for each facility: None. In States where EPA is not administering the financial requirements of Subpart H of 40 CFR Parts 264 and 265, this firm is demonstrating financial assurance for the closure or post-closure care of the following facilities through the use of a test equivalent or substantially equivalent to the financial test specified in Subpart H of 40 CFR Parts 264 and 265. The current closure or post-closure cost estimates covered by such a test are shown for each facility: COST-ESTIMATES Closure Post-Closure Care $ 151,600 $ 10,000 $2,122,706 $3,604,741 Elkton Division Tactical Operations P.O. Box 241 Elkton, MD 21921-0241 MDD003067121 Thiokol Corporation Utah-Based Operations P.O. Box 689 Brigham City, UT 84302-0689 UTD009081357 The firm identified above owns or operates the following hazardous waste management facilities for which financial assurance for closure or, if a disposal facility, post-closure care, is not demonstrated either to EPA or a State through the financial test or any other financial assurance mechanism specified in Subpart H or 40 CFR Parts 264 and 265 or equivalent or substantially equivalent State mechanisms. The current closure and/or post-closure cost estimates not covered by such financial assurance are shown for each facility: None. Mr. Brent Bradford 21 September 1989 Page 3 5. This firm is the owner or operator of the following UIC facilities for which financial assurance for plugging and abandonment is required under 40 CFR Part 144. The current closure cost estimates as required by 40 CFR 144.62 are shown for each facility: None. This firm is required to file a Form lOK with the Securities and Exchange Commission (SEC) for the latest fiscal year. The fiscal year of this firm ends on June 30. The figures for the following items marked with an asterisk are derived from this firm's independently audited, year-end financial statements for the latest completed fiscal year, ended June 30, 1989. ALTERNATIVE II 1. Sum of current closure and post-closure cost estimates (total of all cost estimates listed above $ 5,889,047 2. Amount of annual aggregate liability coverage to be demonstrated $ 8,000,000 3. Sum of lines 1 and 2 $13,889,047 4. Current bond rating of most recent issuance and name of rating service (Standard & Poor's) N/A 5. Date of issuance of bond N/A 6. Date of maturity of bond N/A *7. Tangible net worth (if any portion of the closure or post-closure cost estimates is included in "total liabilities" on your financial statements, you may add that portion to this line) $174,300,000 *8. Total assets in U. S. (required only if less than 90% of firms assets are located in the U.S.) N/A YES NO 9. Is line 7 at least $10 Million? XX| 10. Is line 7 at least 6 times line 3 (X) *11. Are at least 90% of firms assets located in the U.S.? If not, compete line 12 1X1 12. Is line 8 at least 6 times line 3 N/A Mr. Brent Bradford 21 September 1989 Page 4 I hereby certify that the wording of this letter is identical to the wording specified in 40 CFR 264.151 (g) as such regulations were constituted on the date shown immediately below. J. i^>4mson Vice President & Chief Financial Officer Date: September 21, 1989 Ernst &Young 1500 Beneficial Lile Tower Salt LakeCity. Utafi 84111 Telepfione- (801) 363-3955 Mr. James R. Wilson Vice President anti Chief Financial Officer Thiokol Corporation We have autiited the consolidated financial statements of Thiokol Corporation and subsidiaries for the year ended June 30, 1989, and have expressed our unqualified opinion thereon in our report dated July 31, 1989. At your request, we have compared the tangible net worth ($174,300,000) as set forth in your letter dated September 21, 1989 to representatives of environmental agencies, to corresponding data included in or derived from such audited consolidated financial statements, and have found such data to be in agreement. Furthermore, no matters came to our attention which would require the following data to be adjusted. This letter has been prepared solely to assist you in complying with the applicable requirements of environmental agencies and is not to be used for any other purpose. ^VwyvV -V- ^ CT^-A'-V-V^ Salt Lake City, Utah September 21, 1989