DSHW-1984-001161 - 0901a06880156441

MORTON THIOKOL, INC.
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
September 26, 1984
DSHW TN
1984.10015
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state of Utah
Solid and Hazardous Waste Committee
Utah Department of Health
P.O. Box 2500
Salt Lake City, Utah 84110-2500
Dear Sir or Madam:
Updated closure and post-closure cost estimates for hazard-
ous waste treatment, storage, and disposal facilities to-
gether with financial information for the fiscal year ended
June 30, 1984 are enclosed. This submission is specified in
40 CRF Parts 264 and 265 or comparable state regulations.
Thiokol Corporation, formerly a totally owned subsidiary of
Morton Thiokol, Inc. was merged into Morton Thiokol, Inc.
effective July 1, 1984. Therefore, "Thiokol Corporation" is
deleted from the facility designation.
Very truly yours.
John P. Cdffin
Manager of Safety &
Environmental Protection
JPC/vt
cc: R. Taylor
Enclosure; Letter from Chief Financial Officer
Morton Thiokol, Inc. 1984 Annual Report
Form lOK
Report from Ernst & Whinney
110 North Wacker Drive. Chicago. Illinois 60606-1560 (312) 621--5200
MORTON THIOKOL, INC.
John R. Bowen
Vice President
Finance DSHW TN
1984.10016
September 26, 1984
State of Utah
Solid and Hazardous Waste Committee
Utah Department of Health
P.O. Box 2500
Salt Lake City, Utah 84110-2500
Dear Sir or Madam:
I am the chief financial officer of Morton Thiokol, Inc., 110
North Wacker Drive, Chicago, Illinois 60606. This letter is
in support of this firm's use of the financial test to demon-
strate financial assurance, as specified in Subpart H of 40 CFR
Parts 264 and 265.
1. This firm is the owner or operator of the following fa-
cility for which financial assurance for closure or post-
closure care 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 estimates covered
by the test are shown for each facility: None.
2. This firm guarantees, through the corporate guarantee spec-
ified in Subpart H of 40 CFR Parts 264 and 265, the closure
or post-closure care of the following facilities owned or
operated by subsidiaries of this firm. 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 re-
quirements of Subpart H of 40 CFR Parts 264 and 265, this
firm as owner or operator or guarantor, is demonstrating
110 North Wacker Drive, Chicago, Illinois 60606-1560 [phone]
- 2 -
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 and/or post-closure cost estimates
covered by such a test are shown for each facility:
COST-ESTIMATES
Closure Post-Closure Care
Morton Chemical Division $ 29,930 N/A
5005 Barnerd Mill Rd
Ringwood, IL 6 0072
ILD062410550
Morton Chemical Division $ 14,216 N/A
2401 East Pratt Blvd
Elk Grove Village, IL 60007
ILD025110834
Ventron Division $ 10,075 N/A
Chicago Plant
1645 S. Kilbourne Avenue
Chicago, IL 60623
ILD096787049
Morton Chemical Division $ 1,113 N/A
1177 East Slausen Ave
Santa Fe Springs, CA 90670
CAD059798819
Elkton Division $ 10,990 N/A
P.O. Box 241, Route 40
Elkton, MD 21921
MDD003067121
$234,845 $61,083 Morton Chemical
Moss
P. 0
5724
Moss
MSDO
Point
Box
Elder
Point
Plant
566
Ferry
, MS
08186587
Division
Road
39563
- 3
Dynachem Corporation
P.O. Box 12047
2631 Michelle Drive
Tustin, CA 92680
CAD008334260
Closure
$ 12,630
Post-Closure Care
N/A
Wasatch Division
P.O. Box 524, Route U-83
Brigham City, UT 84302
UTD009081357
$ 41,507 $50,076
Ventron Division
Elma Plant
P. 0. Box 1224, Route 12
Elma, WA 98541
WADO20231536
$ 12,797 N/A
Morton Chemical Division
Weeks Island Plant
New Iberia, LA 70590
LAD059122077
$ 51,745 N/A
4. This firm is the owner or operator of the follwing hazard-
ous waste management facilities for which financial assur-
ance 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 of 40 CFR Parts 264 and 265 or equiva-
lent or substantially equivalent State mechanisms. The cur-
rent closure and/or post-closure cost estimates not covered by
such financial assurance are shown for each facility: None.
This firm is required to file a Form lOK with the Securities and
Exchange Coimnission (SEC) for the latest fiscal year.
- 4 -
The fiscal year of this owner or operator ends on June 30. The
figures for the following items marked with an asterisk are de-
rived from this owner's or operators's independently audited,
year-end financial statements for the latest completed fiscal
year, ended June 30, 1984.
ALTERNATIVE II
1. Sum of current closure and post-closure cost estimates
(total of all cost estimates shown in the four para-
graphs above) $ 531,007
2. Current bond rating of most recent issuance of this firm
and name of rating service (Standard & Poor's) A+
3. Date of issuance of bond.
4. Date of maturity of bond.
October
October
lr
1,
1975
2000
*5. Tangible net worth (if any portion of the closure and
post-closure cost estimates is included in "total liabili-
ties" on your firms financial statements, you may add the
amount of that portion to this line).. $ 472,291,000
*6. Total assets in U.S. (required only if less than 90% of
firms assets are located in the U.S.).. $991,900,000
YES NO
7. Is line 5 at least $10 Million?
8. Is line 5 at least 6 times line 1....
*9. Are at least 90% of firms assets
located in the U.S.? If not, complete
line 10
10. Is line 6 at least 6 times line 1.... X
I hereby certify that the wording of this letter is identical
to the wording specified in 40 CFR 264.151(f) as such regula-
tions were constituted on the date shown immediately below.
. y ViAjwv^-i/--
R. Bowen
Vice President Finance
Date: September 26, 198 4
Ernst & Whinney 150 south wacker Drive
Chicago, Illinois 60606
312/368-1800
Mr. John R. Bowen
Vice President - Finance
Morton Thiokol, Inc.
We have examined the consolidated financial statements of Morton Thiokol,
Inc. and subsidiaries for the year ended June 30, 1984, and have
expressed our unqualified opinion thereon in our report dated August 1,
1984.
At your request, we have compared the tangible net worth ($472,291,000)
and total assets in the United States ($991,900,000), as set forth in
your letters dated September 6, 1984 to representatives of environmental
agencies, to the corresponding amounts derived from the aforementioned
consolidated financial statements. In connection with performing this
procedure, no matters came to our attention which caused us to believe
that the specified data should 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.
'^A'i-yt^i-^^'-^
Chicago, Illinois
September 26, 1984
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'W-^3Jli'fe'il^r''-MTOlSf^
Report of
Ernst & Whinney,
Independent
.\uditors
To the Stockholders and Board of Directors
Morton Thiokol, Inc.
Chicago, Illinois
We have examined the consolidated balance sheets offol^5>hTij[tfi'igl<Qll^I?^and subsidiaries as of June 30,
and 1983, and the related consolidated statements of income and retained earnings and changes in financi
position for each of the three years in the period ended June 30,1984. Our examinations were made in acci
ance with generaily accepted auditing standards and, accordingly, included such tests of the accounting re
and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the financial statements referred to above present fairly the consolidated financial posit
Morton Thiokol, Inc. and subsidiaries at June 30,1984 and 1983, and the consolidated results rjf their open
and changes in their financial position for each ofthe three years in the period ended June 30, 1984 in
conformity wilh generally accepted accounting principles applied on a consistent basis.
Chicago, Illinois (7
August 1,1984
Report of Management We have prepared the accompanying consolidated financial statements of Morton Thiokol, Inc. in conformi
with generally accepted.accounting principles appropriate in the circumstances. The integrity- and objecti\
data in these financial statements are the responsibility of management. Based on currently available infoi
tion, management makes informed judgments and estimates ofthe effects of certain events and transactio
when preparing the financial statements. Financial information included elsewhere in this .\nnual Report
consistent with that contained in the financial statements.
We maintain a highly developed accounting system and controls to provide reasonable assurance that as
are safeguarded against loss from unauthorized use or disposition and that financial records are reliable fo
preparing financial statements and maintaining accountability for assets. However, there are inherent
limilations that should be recognized in considering the potential efi'ectiveness of any system of internal
accounting control. The concept of reasonable assurance is based on the recognition that the cost of a systi
internal control should not exceed the benefit derived and that the evaluation of those factors requires esti
and judgments by management. The Company's systems pro\ide such reasonable assurance.'
The functioning ofthe accounting ,system and controls over it are reviewed by an exiensive program of
internal audits and by the Company's independent auditors, Ernst & Wliinney. The responsibility of the Boa
Directors for the Company's financial statements is exercised through its Audit Committee which is compo:
Directors who are not Company employees. The Audit Committee recommends to the Board of Directors th
selection of the independent auditors and reviews their fee arrangements. It meets periodically with manai
ment, the internal auditors and the independent auditors to assure that each is carrying out its responsibil
The independent auditors have full and free access to the Audit Committee to discuss auditing and financij
reporting matters.
The Company's legal counsel has reviewed the Company's position with respect to litigation, claims, asse
ments, and illegal or questionable acts, has communicated that position to our independent auditors, and i
satisfied that it is properly disclosed in the financial statements.
The Company has prepared and distributed to its employees a statement of its policies prohibiting certai
activities deemed illegal, unethical, or against the best interest of the Company. Certification of complianci
such policies is required and any apparent problems are reviewed by a committee of the Board of Directors
consultation with our independent auditors we have developed and instituted additional internal controls a
internal audit procedures designed to prevent or detect \iolations of those policies. We believe that the poll
and procedures provide reasonable assurance that our operations are conducted in conformity^ with the law
with a high standard of business conduct.
John R. Bowen
Vice President Finance
•>••'••
,•'. • "^.. ..
.-'f CORPORATE GUARANTEE FOR CLOSURE,.'
Guarantee malde this 15th day of February by Morton Thiokol, Inc.,a
business corporation organized under the laws of the State of Dela-
ware, herein referred to as guarantor, to the Utah Solid and Hazar-
dous Waste Committee (Committee) obligee, on behalf of our subsid-
iary, Thiokol Corporation of 110 N. Wacker Drive Chicago, IL. 60606.
Recitals ; -. "
\^^ ; ; ; 1. Guarantor meets or exceeds the financial test criteria
-'["•' and agrees to comply with the reporting requirements for
guarantors as specified in 40 CER 264.143(f), 264.145(f),
265.143(e), and 265.145(e). /
2. Thiokol Corporation owns or operates the following
. hazardouVwaste management facility covered.by this'guaran-
||ft]:^'"'\l<^|^#^!' •'.'^"-'•'"/^•- '•-•^ tee:. .';-^^^^ ..:.;^;---v::r.:r;.y.;.;- :" -.••.•.•
EPA I.D. // LOCATION
UTD009081357 Wasatch Division Closure and Post
P.O. Box 524, Closure Care
Route U-83
., . Brigham City, UT 80302 .
3. "Closure plans" and "post-closure: plans" as used below
i,„ . . - refer to the plans maintained as required by Subpart G of
40 CFR Parts 264 and 265 for the closure and post-closure
care of facilities as identified above.
4. For value received from Thiokol Corporation, guarantor
guarantees to the Committee that in the event that Thiokol
Corporation fails to perform closure of the above facility
•-;•.-. in accordance with the closure or post-closure plans and
'.' other, permit or interim status requirements whenever
required to do so, the guarantor shall do so or establish a
:.^;;i -: ;v trust fund as specified in Subpart H of 40 CFR Parts 264 or
;v' 265, as applicable, in the name of Thiokol Corporation in
if :\ . ;;: ,ii_;j,:r, ; the amount of the current closure or post-closure cost
\:l.:y-y.:y^'"••''•' estimates as; specified in Subpart H of 40 CFR Parts 264 and
:;;:•;. ,'• j..'^:.'[ . 265. ....'.;.
5. Guarantor agrees that if, at the end of any fiscal year
before termination of this guarantee, the guarantor fails
to meet the financial test criteria, guarantior shall send
^S: ; within 90 days, by certified mall, notice to the Committee
,. and Thlokol_Corporation that he Intends to provide alter-
JixJiiKvv'-^-•'^•''^^^v^'^"^^^^^ ^ as:;.speclf led In Subpart H of 40
^^:-T' : CFBTPart 264^and 265, as applicable, in the name of Thiokol
i;;-, . . Corporation. Within 120 days after the end of such fiscal
':^^-'---: ^-'- •'-^'••-:.;. year, the guarantor shall establish such financial assur-
rJ^:-:;V .V ance unless Thiokol Corporation has done so.
6. The guarantor agrees to notify the Committee by certi-
fied mail, : of a voluntary or involuntary proceeding under
Title 11 (Bankruptcy), U.S. Code, naming guarantor -as
debtor, within 10 days after commencement of the proceed-
7. Guarantor agrees that within 30 days after being noti-
fied by the Committee of a determination that guarantor no
longer meets the financial test criteria or that 4he is
disallowed from continuing as a guarantor of closure or
post-closure care, he shall establish alternate financial
assurance as specified in Subpart H of 40 CFR Parts 264 and
265, as applicable, in the name of Thiokol Corporation
unless Thiokol Corporation has done so.
8. Guarantor agrees to remain bound under this guarantee
notwithstanding aiiy or all of the following amendment or
modification of the closure or post-closure plan, amendment
or modification of the permit, the extension or reduction
of the time of performance of closure or post-closure, or
any other modification or alteration of an obligation of
the owner or operator pursuant to 40 CFR Parts 264 or 265.
9. Guarantor agrees to remain bound under this guarantee
for so long as Thiokol Corporation must comply with the
applicable financial assurance requirements of Subpart H of
40 CFR Parts 264 and 265 for the above listed facilities,
except that guarantor may cancel his guarantee by sending
notice by certified mail to the Committee and to Thiokol
Corporation, such cancellation to become effective no
earlier than 120 days after receipt of such notice by both
the CoiranittGe and Thiokol Corporation, as evidenced by the
return receipts.
10. Guarantor agrees that if Thiokol Corporation falls to
•provide alternate financial assurance as specified In
Subpart H of 40 CFR Parts 264 and 265, as applicable, and
obtain written approval of such assurance from the Commit-
tee within 90 days after a notice of cancellation by the
guarantor is received by the Committee from guarantor,
guarantor shall provide such alternate financial assurance
in the name of Thiokol Corporation.
11. Guarantor expressly waives notice of acceptance of this
guarantee by the Committee or by Thiokol Corporation.
Guarantor also expressly waives notice of amendments or
modifications of the closure and/or post-closure plans and
of amendments or modifications of the facility permit(s).
•Vi^Vr^"-;
t<» I hereby certify that the wording of this guarantee is identical to
the wording specified in 40 CFR 254.151(h) a^ such regulations were
constituted on the date first above written except that Utah Solid
and Hazardous Waste Committee is used in place of United' States
Environmental Protection Agency.
Effective Date February 15, 1983
Morton Thiokol, Inc.
SUBSCRIBED AND SWORN to before me
this 15th day of February, 1983
Notary Public
My commission expires October 31, 1986
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