DSHW-1990-001195 - 0901a0688013e331

'//VC0A^^£ CORPORATION
EXECUTIVE OFFICES DSHW TN
1990.20594
James R. Wilson
Vice President and Chief Financial Officer
22 February 1990
13 July 1990 (Revised) A^ r ^ ' J
Mr. Dennis R. Downs
Executive Secretary
Solid and Hazardous Waste Committee
Utah Department of Health
P.O. Box 16690
Salt Lake City, Utah 84116-0690
Dear Mr. Downs:
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 26-14 Utah Code
Annotated.
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 26-14 Utah Code Annotated:
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
26-14 Utah Code Annotated liability coverage for both sudden and nonsudden
accidental occurrences at the following facilities owned or operated by
the following subsidiaries of the firm: None.
P.O. Box 9260, Ogden, UT 84409 (8011 629-2052
Mr. Dennis R. Downs
22 February 1990
Page 2
3.
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 26-14 Utah Code Annotated. 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 26-14 Utah Code Annotated, the closure and post-closure
care or liability coverage of the following facilities owned or
operated by its subsidiaries. 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
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
Closure Post-Closure Care
$ 151,600 $ 10,000
$2,122,706 $3,604,741
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. Dennis R. Downs
22 February 1990
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 I
1. Sum of current closure and post-closure cost estimates (total of all
cost estimates 1 isted 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. Total liabilities (if any portion of your closure or postclosure
cost estimates is included in your total liabilities, you may deduct
that portion from this line and add that amount to lines 5 & 6)
$491.300.000
*5. Tangible net worth $174.300.000
*6. Net worth $237.800.000
*7. Current assets $377.700.000
*8. Current liabilities $119.500.000
9. Net working capital (line 7 minus line 8) $258.200.000
*10. The sum of net income plus depreciation, depletion, and amortization
$ 61.300.000
*11. Total assets in U. S. (required only if less than 90% of assets are
located in the U.S.) N/A
Mr. Dennis R. Downs
22 February 1990
Page 4
YES NO
12. Is line 5 at least $10 Million? JL
13. Is line 5 at least 6 times line 3? _X_
14. Is line 9 at least 6 times line 3? _X_
*15. Are at least 90% of assets located in the
U.S.? If not, complete line 16? JL
16. Is line 11 at least 6 times line 3? N/A
17. Is line 4 divided by line 6 less than 2.0?
18. Is line 10 divided by line 4 greater than 0.1?... JL
19. Is line 7 divided by line 8 greater than 1.5? JL
I hereby certify that the wording of this letter is identical to the
wording specified in 26-14 Utah Code Annotated as such regulations were
constituted on the date shown immediately below.
Vice President &
Chief Financial Officer
Date: February 22, 1990
Revised: 13 July 1990