DSHW-1986-001301 - 0901a068801583d2

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RECEIVED
MORTON THIOKOL INC. OCT 031935
DSHW TN Utah State Div. Of
1986.10063 Enviranmental Health
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
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September 23, 1986 -* '
7 2, Cf.
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 financial test documentation including financial
information for the Fiscal Year ended June 30, 1986 is
enclosed.
Very truly yours.
/^
ohn P. Coffin
Manager of Safety & Environmental Protection
JPC/vt
cc: R. Taylor
Enclosure: Letter from Chief Financial Officer
Morton Thiokol, Inc. 1986 Annual Report
Form IOK
Report from Ernst & Whinney
110 Norih Wacker Dnve, Chicago, Illinois 60606 1560 [phone]
MORTON THIOKOL, INC.
John R. Bowen
Vice President
Rnance
September 23, 1986
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 the use of the financial test to demonstrate
financial responsibility for liability coverage and closure
and/or post-closure care, as specified in Subpart H of 40 CFR
Parts 264 and 265.
The owner or operator identified above is the owner or operator
of the following facilities for which liability coverage is
being demonstrated through the financial test specified in
Subpart H of 40 CFR Parts 264 and 265 (or equivalent State
programs):
Morton Chemical Division
335 McLean Blvd.
Paterson, NJ 07504
NJD051274348
and facilities listed in Paragraph 3.
1. The owner or operator identified above owns or operates
the following facilities 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.
110 North Wacker Drive, Chicago, Illinois 60606-1560 [phone]
- 2 -
The owner or operator identified above guarantees, through
the corporate guarantee specified in Subpart H of 40 CFR
Parts 264 and 265, the closure or post-closure care 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
quirements of Subpar
owner or operator, i
the closure or post-
ties through the use
equivalent to the fi
40 CFR Parts 264 and
post-closure cost es
shown for each facil
is not administering the financial re-
t H of 40 CFR Parts 264 and 265, this
s demonstrating financial assurance for
closure care of the following facili-
of a test equivalent or substantially
nancial test specified in Subpart H of
265. The current closure and/or
timates covered by such a test are
ity:
COST-ESTIMATES
Closure Post-Closure Care
Morton Chemical Division
5005 Barnard Mill Rd
Ringwood, IL 60072
ILD062410550
$ 57,801 N/A
Ventron Division
Chicago Plant
1645 S. Kilbourne Avenue
Chicago, IL 60623
ILD096787049
$ 58,290 N/A
Elkton Division
P.O. Box 241, Route 4 0
Elkton, MD 21921
MDD003067121
$ 39,218 N/A
Morton Chemical Division
Moss Point Plant
P. 0. Box 666
5724 Elder Ferry Road
Moss Point, MS 39563
MSD008186587
$3,000,000 $900,000
Dynachem Division
P.O. Box 12047
2631 Michelle Drive
Tustin, CA 92680
CAD008334260
$ 77,000 N/A
3 -
Closure Post-Closure Care
Wasatch Division $1,520,965 $1,534,554
P.O. Box 524, Route U-83 _,f^
Brigham City, UT 84302 5c 5 ^/'^
UTD009081357
Ventron Division $ 12,119 N/A
Elma Plant
P. 0. Box 1224, Route 12
Elma, WA 9 8541
WADO20231536
4. The owner or operator identified above owns or operates the
follwing 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 of 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.
This owner or operator is required to file a Form IOK with the
Securities and Exchange Commission (SEC) for the latest fiscal
year.
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, 1986.
- 4 -
ALTERNATIVE II
1. Sum of current closure and post-closure cost estimates
(total of all cost estimates shown in the four para-
graphs above) $ 7,199,947
2. Amount of annual aggregate liability coverage to be
demonstrated $ 8,000,000
3. Sum of lines 1 and 2... $15,199,947
4. Current bond rating of most recent issuance of this firm
and name of rating service (Standard & Poor's) A+
5. Date of issuance of bond October 1, 1975
6. Date of maturity of bond October 1, 2000
* 7. 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).. $ 619,920,000
* 8. Total assets in U.S. (required only if less than 90% of
firms assets are located in the U.S.) .. $ 1,193 ,700,000
YES NO
9. Is line 7 at least $10 Million? X
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, complete line 12 ... X
12. Is line 8 at least 6 times line 3 X
I hereby certify that the wording of this letter is identical
to the wording specified in 40 CFR 264.151(g) as such regula-
tions were constituted on the date shown immediately below.
I John R. Bowen
Vice"President Finance
Date: September 23, 19 86
Ernst &Whinney 150 South Wacker Drive
Chicago. Illinois 60606
i 12/368-1800
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, 1986,
and have expressed our unqualified opinion thereon in our report
dated July 31, 1986. " "
At your request, we have compared the tangible net worth ($619,920,000)
and total assets in the United States ($1,193,700,000), as set forth
in your letters dated September 23, 1986 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.
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Chicago, Illinois
September 26, 1986