Code of Colorado Regulations
1000 - Department of Public Health and Environment
1002 - Water Quality Control Commission (1002 Series)
5 CCR 1002-66 - REGULATION NO. 66 - HCSFO FINANCIAL ASSURANCE CRITERIA REGULATIONS FOR COLORADO HOUSED COMMERCIAL SWINE FEEDING OPERATIONS
Appendix J

Wording for Written Guarantee Letter

A written guarantee letter must be worded as follows, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted.

Director

Colorado Department of Public Health and Environment

Environmental Agriculture Program

OE-B2

4300 Cherry Creek Drive South

Denver, CO 80246-1530

Re: [Applicant or Permittee Name]

[Permit No.]

Dear Sir or Madam:

I am [Select one of the following: 1) the [Officer's Title] of [Company Name] who has financial responsibility for [Company Name] and is authorized to bind [Company Name]; or, 2) an individual with a substantial business relationship with the [Applicant or Permittee] (i.e., an individual guarantor)]. The legal contact address for [Company Name, or Individual Name] is: [Address]. This letter is in support of [Applicant or Permittee]'s use of the written guarantee to demonstrate financial assurance for closure costs, in accordance with subsection 61.13 of the Colorado Water Quality Control Commission's (Commission's) Colorado Discharge Permit System Regulations (5 CCR 1002-61) and section 66.11 of the Commission's Financial Assurance Criteria Regulations (5 CCR 1002-66).

This guarantee made this [date] by [Name of Guaranteeing Entity], [an individual guarantor; or, a company organized under the laws of the State of [Name of State]], herein referred to as guarantor, to the Colorado Department of Public Health and Environment's Environmental Agriculture Program (Program), oblige, on behalf of [Applicant or Permittee], which is [Select one of the following: "our subsidiary company" ; or, "an entity with which the guarantor has a substantial business relationship"], to meet the requirements of section 66.11 . [If applicable, describe the substantial business relationship].

Recitals

Guarantor guarantees to the Program that, in the event that [Applicant or Permittee] fails to perform closure, post-closure activities, and any necessary corrective actions for any of [Applicant or Permittee]'s housed commercial swine feeding operation facility(ies) listed below in accordance with [Applicant or Permittee]'s approved financial assurance plan, permit, and/or as required by the Program, the guarantor shall do so or establish a trust fund in the name of [Applicant or Permittee] in the amount of all or an applicable portion of the closure costs. [Applicant or Permittee] owns or operates the following housed commercial swine feeding operation facilities in Colorado under [Permit Number(s)] for which all or a portion of financial assurance for closure costs is guaranteed: [List Facilities]

1. The total closure cost for the facilities (per the approved Financial Assurance Plan) is:

$ _______________

2. The closure costs covered by this written guarantee are: $ _____________

In support hereof, enclosed are [Guarantor Name]'s [Select one of the following: 1) the financial statements for the latest completed fiscal year and a copy of the independent certified public accountant's report on examination of the [Parent Company Name]'s financial statements for the latest completed fiscal year; or, 2) the financial statements for the latest completed fiscal year, as sent to the guarantor's bank, with an original signature; 3) the personal financial statement for the latest completed fiscal year, as sent to the guarantor's bank, with an original signature], as required by 66.11(4). [If applicable, state the following, "As allowed by subsection 66.10 , [Guarantor Name] appropriately incorporated the value of breeding swine into the value of the current assets."] Based on the financial statements, the following statement's are true and [Guarantor Name] meets the requirements of subsection 66.10(1)(b)-(c):

3. The current assets (which can include the value of breeding swine)/current liabilities ratio is at least 1.2.

4. Tangible net worth is greater than or equal to 2.0 times the amount of line 2, above.

5. Assets located in the U.S. are greater than or equal to the amount of line 2, above.

The fiscal year of [Guarantor Name] ends on [month, day].

I declare that the statements, financial values, and other facts stated herein are true and correct. I acknowledge that making a false, fictitious, or fraudulent statement in the letter is punishable under the criminal laws of Colorado as perjury under section 18-8-503, C.R.S.

[Signature]

[Name]

[Title]

[Date]