Current through Vol. 42, No. 1, September 16, 2024
(a)
General. Prior to making an offer for, entering into an agreement
for, seeking to acquire, merging with, or acquiring the assets and control of a
rural water district or corporation, an acquiring party shall file with the
Board an application and obtain the Board's approval of the proposed
transaction. All applications for approval of acquisitions of assets and
control must be made under oath or affirmation and completed by the acquiring
party either on written forms as may be provided by the Board or in such other
written form as the Board may require.
(b)
Application by a domestic water
public utility. If the acquiring party is a domestic water public
utility, the application shall contain the following information and items
unless deemed inapplicable and waived by the Board or its staff:
(1) The full, true and correct legal name,
principal office location and mailing address for both the acquiring party and
the acquiree;
(2) The authority of
law under which the acquiring party was created and is existing, the
independent legal authority under which the application is made, and
identification of the acquiring party as a municipality, public trust, rural
water district, or other public entity;
(3) A certified copy of the resolution or
other specific authorizing instrument reflecting the acquiring party's
authorization for making the subject application to the Board;
(4) Current and complete maps of the service
areas of the acquiring party and acquiree, preferably in a geographic
information systems format acceptable to the Board;
(5) A description of the water system and
operation thereof, including but not limited to water sources, treatment
facilities, storage capacity, system design, annual average unaccounted-for
losses, personnel certifications, customer base, and rate structure for both
the acquiring party and the acquiree;
(6) A statement of the manner and means by
which the acquiring party intends to fund and complete the
acquisition;
(7) A certified copy
of the acquiring party's previous three (3) years' annual audits, if available,
and a statement of the acquiring party's financial condition including a
current statement of all outstanding indebtedness of the acquiring party and
its related entities, including but not limited to all outstanding general
obligation or revenue debt, which might affect the acquiring party's overall
financial condition;
(8) A
description of the nature and division of ownership or other legal or equitable
interest in the assets to be acquired, if other than complete ownership by the
acquiring party;
(9) A description
of all rights to water supply, including water supply contracts, water rights,
licenses or permits, whether existing under federal, state or local law or
regulation, for both the acquiring party and the acquiree;
(10) A description of any plans the acquiring
party may have to make any material change in the acquiree's assets, system or
operations which would affect the service provided to the acquiree's customers,
including but not limited to the acquiring party's future capital improvement
plans, if any, for both the acquiring party and the assets to be
acquired;
(11) A copy of the offer
or draft agreement for the proposed acquisition, together with any information
whether the acquiree has indicated it will object to or consent to the proposed
acquisition;
(12) If the acquiree
has creditors, the application shall include the written approval of the
proposed acquisition by all creditors of the acquiree, or otherwise shall
describe how the creditors will be protected and paid; and
(13) Such additional information as may be
deemed necessary by the Board or its staff for proper application review under
the particular facts and circumstances of the acquisition proposal.
(c)
Application by a person
other than a domestic water public utility.If the acquiring party is not
a domestic water public utility, the acquiring party shall file with the Board
an application containing all of the information and items set forth in (b) of
this Section, plus the information and items stated in 82 O.S. §
1324.43.
Additional information shall be provided on a case-by-case basis if deemed by
the Board or its staff to be necessary or appropriate for the
protection of ratepayers[82:1324.43(A)(7)] or customers of the
acquiree.
