Nebraska Administrative Code
Topic - ENVIRONMENT AND ENERGY
Title 122 - NEBRASKA DEPARTMENT OF ENVIRONMENTAL QUALITY
Chapter 13 - FINANCIAL RESPONSIBILITY
Section 122-13-009 - Owner or operator's bond without separate surety shall be subject to the following conditions

Universal Citation: 122 NE Admin Rules and Regs ch 13 ยง 009

Current through March 20, 2024

009.01 The owner or operator may satisfy the requirements of this section by demonstrating that it passes the financial test as specified in this paragraph. To pass this test the permittee shall meet the criteria of either 009.01A or 009.01B of this Section:

009.01A The owner or operator shall have:
009.01A1 Two of the following three ratios: a ratio of total liabilities to net worth less than 2.0; a ratio of the sum of net income plus depreciation, depletion, and amortization to total liabilities greater than 0.1; and a ratio of current assets to current liabilities greater than 1.5;

009.01A2 Net working capital and tangible net worth each at least six times the sum of the current EPMC estimate;

009.01A3 Tangible net worth of at least $10 million; and

009.01A4 Assets in the United States amounting to at least 90 percent of its total assets or at least six times the sum of the current EPMC estimate.

009.01B The owner or operator shall have:
009.01B1 A current rating for its most recent bond issuance of at least AAA, AA, A or BBB as issued by Standard and Poor's or Aaa, Aa, A or Baa as issued by Moody's;

009.01B2 Tangible net worth at least six times the sum of the current EPMC estimate;

009.01B3 Tangible net worth of at least $10 million; and

009.01B4 Assets located in the United States amounting to at least 90 percent of its total assets or at least six times the sum of the current EPMC estimates.

009.02 The phrase "EPMC estimate" as used in this section refers to the cost estimate required to be shown in Appendix IV (the letter to the Director from the owner or operator's chief financial officer).

009.03 To demonstrate that it meets this test, the owner or operator shall submit the following items to the Director:

009.03A A letter signed by the owner or operator's chief financial officer and worded as specified in Appendix IV;

009.03B A copy of an independent certified public accountant's report on examination of the owner or operator's financial statements for the latest completed fiscal year;

009.03C A special report from the owner or operator's independent certified public accountant to the owner or operator that:
009.03C1 He or she has compared the data which the letter from the chief financial officer specifies as having been derived from the independently audited, year-end financial statements for the latest fiscal year with the amounts in such financial statements; and

009.03C2 In connection with that procedure, no matters came to his or her attention, which caused him or her to believe that the specified data should be adjusted.

009.04 An applicant for a permit for a new injection well shall submit the items specified in 009.03 of this Section to the Director within 90 days after the close of each succeeding fiscal year.

009.05 After the initial submission of items specified in 009.03 of this Section, the owner or operator shall send updated information to the Director within 90 days after the close of each succeeding fiscal year. The information shall consist of all three items specified in 009.03 of this Section.

009.06 If the owner or operator no longer meets the requirements of 009.01 of this Section, he or she shall send notice to the Director of intent to establish alternate financial assurance as specified in Section 004 through 008 of this Chapter. The notice shall be sent by certified mail within 90 days after the end of the fiscal year for which the year-end data show that the owner or operator no longer meets the requirements. The owner or operator shall provide alternate financial assurance within 45 days after the end of such fiscal year.

009.07 The Director may, based upon a reasonable belief that the owner or operator may no longer meet the requirements of 009.01 of this Section, require reports of financial condition at any time from the owner or operator in addition to those specified in 009.03 of this Section. If the Director finds on the basis of such reports or other information, that the owner or operator no longer meets the requirements of 009.01 of this Section, the owner or operator shall provide alternate financial assurance within 45 days after notification of such a finding.

009.08 The Director may disallow use of this test on the basis of qualifications in the opinion expressed by the independent certified public accountant in his report on the owner or operator's financial statement (See 009.03B of this Section). An adverse or disclaimer of opinion will be cause for disallowance. The Director will evaluate other qualifications on an individual basis. The owner or operator must provide alternate financial assurance as specified in this Chapter within 45 days after notification of the disallowance.

009.09 The owner or operator is no longer required to submit the items specified in 009.03of this Section when:

009.09A The owner or operator substitutes alternate financial assurance as specified in this Chapter; or

009.09B The Director releases the owner or operator from the requirements of this Section in accordance with Section 010 of this Chapter.

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