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AA - Ohio <br />OAC 1501:13-7-04 Self -bonding. <br />(A) Definitions for the purposes of this rule only: <br />(1) "Current assets" means cash or other assets or resources which are reasonably expected to be converted to cash <br />or sold or consumed within one year or within the normal operating cycle of the business. (2) "Current liabilities" <br />means obligations which are reasonably expected to be paid or liquidated within one year or within the normal <br />operating cycle of the business. <br />(3) "Fixed assets" means plants and equipment, but does not include land or coal in place. <br />(4) "Liabilities" means obligations to transfer assets or provide services to other entities in the future as a result of <br />past transactions. <br />(5) "Net worth" means total assets minus total liabilities and is equivalent to owners' equity. <br />(6) "Parent corporation" means a corporation which owns or controls the applicant. <br />(7) "Tangible net worth" means net worth minus intangibles such as goodwill and rights to patents or royalties. <br />(B) If the performance security is a bond, the chief may accept a self -bond from an applicant for a permit if all of the <br />following conditions are met by the applicant or its parent corporation guarantor: <br />(1) The applicant designates a suitable agent to receive service of process in the state where the proposed coal <br />mining operation is to be conducted. <br />(2) The applicant has been in continuous operation as a business entity for a period of not less than five years. <br />"Continuous operation" shall mean that business was conducted over a period of five years immediately preceding <br />the time of application. <br />(a) The chief may allow a joint venture or syndicate with less than five years of continuous operation to qualify <br />under this requirement, if each member of the joint venture or syndicate has been in continuous operation for at least <br />five years immediately preceding the time of application. <br />(b) When calculating the period of continuous operation, the chief may exclude past periods of interruption to the <br />operation of the business entity that were beyond the applicant's control and that do not affect the applicant's <br />likelihood of remaining in business during the proposed coal mining and reclamation operations. <br />(3) The applicant submits financial information in sufficient detail to show that the applicant meets one of the <br />following criteria: <br />(a) The applicant has a current rating for its most recent bond issuance of "A" or higher as issued by either "Moody's <br />Investor Service" or "Standard and Poor's Corporation"; <br />(b) The applicant has a tangible net worth of at least ten million dollars, a ratio of total liabilities to net worth of two <br />and one-half times or less, and a ratio of current assets to current liabilities of one and one-fifth times or greater; or <br />