DSHW-1990-002422 - 0901a06880155c82

77iyO^^^^£ CORPORATION
EXECUTIVE OFFICES
C. Luckey Heath
Director, Safety and Environmenlal Affairs
DSHW TH
1990.20602
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CERTIFIED MAIL - RETURN RECEIPT REQUESTED
CLH-FY90-096
2 2 February 1990
Dennis R. Downs
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. Downs:
Revised financial test documentation including financial
information for the Fiscal Year ended June 30, 1989 is
enclosed. This documentation is revised in accordance with
your 24 January 1990 reguest. These statements comply with
the September 1, 1988 Federal Register (50 FR 33938 et. seg.)
which is effective on September 30, 1988.
Sincerely,
C. ' Luckey^^SHjpath
Director, Safety & Environmental Affairs
cc: C. S. Christiansen
A. K. Lemon
Enclosures: Letter from Chief Financial Officer
f^.-e^ifi'y jTrhiokol Corporation, 1989 Annual Report
.Sf.-i-^ ' "Jjorm 10-K
Report from Ernst & Young
2475 Washington Blvd, Ogden. UJ 84401 18011 629-2481
77i^C^>X^€>£ CORPORATION
EXECUTIVE OFFICES
James R. Wilson
Vice President and Cfiief Financial Officer
22 February 1990
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:
1 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 264 and 265:
Thiokol Corporation
Tactical Operations - Elkton Division
55 Thiokol Road
P.O. Box 241
Elkton, MD 21921-0241 ^^^ PDAJ
MDD003067121 ^<^A^ .
Thiokol Corporation K^^O^'^9-~7.^Q-^
Utah-Based Operations . ^ ,
P.O. Box 689 (U(o(yol
Brigham City, UT 84302-0589 UTD009081357 O^dc^
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: ^.^.1^^^^,',^^.^ s'^{L> f<.^v^
Thiokol Corporation _^ G9^
2475 Washington Blvd. Jv.^iJ^^*
Ogden, UT 84409
PO. Box 9260, Ogden, UT 84409 [phone]
Mr. Dennis R. Downs
22 February 1990
Page 2
The firm identified above is the direct or higher-tier parent corporation
of the owner or operator.
1. 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.
2. 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.
3. 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
Elkton Division $ 151,600 $ 10,000
Tactical Operations
P.O. Box 241
Elkton, MD 21921-0241
MDD003067121
Thiokol Corporation $2,122,706 $3,604,741
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. 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 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. 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? JL
14. Is line 9 at least 6 times line 3? JL
*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 40 CFR 264.151 (g) as such regulations were
constituted on the date shown immediately below.
J. RT-n Ison
Vice President &
Chief Financial Officer
Date: February 22, 1990
Ernst &Young
50 South Main. Suite 1.^00
Sail Lake Cny. Uiafi 84 1^4
Telepfione: [phone]
Fax: [phone]
Telex: 251840
Mr. James R. Wilson
Vice President and
Chief Financial Officer
Thiokol Corporation
We have audited 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.
As requested, we have compared the data, as set forth in your letter dated
February 22, 1990 to the Executive Secretary of the Utah Department of
Health's Solid and Hazardous Waste Committee, to corresonding 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 such data to be adjusted.
This letter has been prepared solely to assist you in complying with the
applicable requirements of Subpart H of 40 CFR Part 264 and is not to be
used for any other purpose.
E^VYNA^ 4f ^erLA/vW\
Salt Lake City, Utah
February 22, 1990