DSHW-1991-003114 - 0901a06880157ca9

^A>^>^A^^£ CORPORAT/ON
EXECUT/VE OFFICES
CERTIFIED MAIL - RETURN RECEIPT REOUESTED
September 20, 1991
1010-FY92-057
Mr. Dennis R. Downs
Executive Secretary
Solid and Hazardous Waste Control Board
Utah Departinent of Environmental Quality
State of Utah
Salt Lake City, UT 84114-4880
Attention: Brad Maulding
Dear Mr. Downs:
Subject; RCRA Financial Responsibility Submittal
Thiokol, EPA #UTD009081357
Enclosed is our RCRA financial responsibility documentation
consisting of a letter from our Chief Financial Officer, James
R. Wilson, plus associated supporting documents which we are
filing for our fiscal year ending 30 June 1991.
Please note that our Form 10-K report has yet to be completed.
If you should desire a copy of this document, please contact
me.
IF there should be any questions on this information, please
contact me at [phone].
Sincerely,
Kenneth G, Ford, P.E.
Corporate Manager
Environmental Affairs
Enclosure: Letter from Chief Financial Officer
Thiokol Corporation, 1990 Annual Report
Ernst & Young Report
KGF/jm
2475 Washington Blvd. Ogden, UT 84401-2398 [phone]
CORPORATION
EXECUTIVE OFFICES
James R. Wilson
Vice President and Chiel Financial Officer
19 September 1991
Mr. Dennis R. Downs
Executive Secretary
Solid and Hazardous Waste Committee
Utah Department of Health
P.O. Box 16690
Salt Lake City, Utah 84114-4880
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.
2475 Washington Blvd, Ogden, UT 84401-2398 (8011 629-2052
Mr. Dennis R. Downs
19 September 1991
Page 2
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 26-14 Utah Code Annotated. 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 26-14 Utah Code Annotated, the closure and post-closure
care of 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.
3. In States where EPA is not administering the financial requirenients
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 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 $1,901,375 $ 0
Tactical Operations
P.O. Box 241
Elkton, MD 21921-0241
MDD003067121
Thiokol Corporation $2,857,989 $4,629,593
Utah-Based Operations
P.O. Box 689
Brigham City, UT 84302-0689
UTD009081357
4. 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
19 September 1991
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, 1991.
ALTERNATIVE I
1. Sum of current closure and post-closure cost estimates (total of all
cost estimates listed above) $ 9,388,957
2. Amount of annual aggregate liability coverage to be demonstrated
$ 8,000,000
3. Sum of lines 1 and $ 17,388,957
*4. Total liabilities (if any portion of your closure or post closure
cost estimates is included in your total liabilities, you may deduct
that portion from this line and add that amount to lines 5 & 6)
$523,400,000
*5. Tangible net worth $257,200,000
*6. Net worth $325,700,000
*7. Current assets $490,200,000
*8. Current liabilities $134,000,000
9. Net working capital (line 7 minus line 8) $356,200,000
*10. The sum of net income plus depreciation, depletion, and amortization
$ 93,200,000
*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
19 September 1991
Page 4
YES NO
12. Is line 5 at least $10 Million? _X_
13. Is line 5 at least 6 times line 3? _X_
14. Is line 9 at least 6 times line 3? J(_
*15. Are at least 90% of assets located in the
U.S.? If not, complete line 16 _X_
16. Is line 11 at least 6 times line 3? N/A
17. Is line 4 divided by line 6 less than 2? _X_
18. Is line 10 divided by line 4 greater than 0.1?.. _X_
19. Is line 7 divided by line 8 greater than 1.5?... J(_
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.
J. K.^ynison
Vice President &
Chief Financial Officer
Date: September 19, 1991
=!l ERNST &YOUNG Siiilc 1400 • Plione; 801 518 2S00
50 South M.iin Fa\; 801355 581.1
S.ill Lake City, Utah 84144 Telex: 251840
Mr. James R. Wilson
Vice President and
Chief Financial Officer
Thiokol Corporation
We have audited, in accordance with generally accepted auditing standards, the consolidated
financial statements of Thiokol Corporation for the year ended June 30, 1991, and have issued our
report thereon dated August 2, 1991.
As requested, we have compared the data, as set forth in your letter dated September 19, 1991 to
the Solid and Hazardous Waste Control Board ofthe Utah Department of Environmental Quality,
to corresponding data included in or derived from such audited consolidated financial statements,
and have found such data to be in agreement.
We have perfonned no audit of, or any auditing procedures with respect to, any consolidated
financial statements of Thiokol Corporation since the date of our report refened to above.
This letter has been prepared solely to assist you in complying with the applicable requirements of
26-14 Utah Code Annotated and is not to be used for any other purpose.
^Vy>A)r ^ ^^-^—\^
September 19, 1991