Laserfiche WebLink
Mr. Howard Strand <br />Page 2 <br />April 20, 2018 <br />Self -bonds shall be subject to the following conditions: <br />(i) the Division may accept a self -bond from an applicant for a permit if all of the <br />following conditions are met by the applicant or is corporation guarantor: <br />(C) The applicant submits financial information in sufficient detail to show that the applicant <br />meets one of the following criteria: <br />(I) The applicant has a current rating for its most recent bond issuance of "A" or <br />higher as issued by either Moody's Investor Service or Standard and Poor's <br />Corporation; <br />(II) The applicant has a tangible net worth of at least $10 million, a ratio of total <br />liabilities to net worth of 2.5 times or less, and a ratio of current assets to current <br />liabilities of 1.2 times or greater; or <br />(III) The applicant's fixed assets in the United States total at least $20 million, and the <br />applicant has a ratio of total liabilities to net worth of 2.5 times or less, and a <br />ratio of current assets to current liabilities of 1.2 times or greater. <br />The Complaint also alleges Tri-State is in violation of Rule 3.02.4(2)(e)(iv). This Rule sets a <br />limit for the total amount of self -bond an operation or corporation may guarantee. The Rule <br />states: <br />(iv) For the Division to accept an applicant's se f bond, the total amount of the <br />outstanding and proposed self -bonds of the applicant for surface coal mining and <br />reclamation operations shall not exceed 25 percent of the applicant's tangible net <br />worth in the United States. For the Division to accept a corporate guarantee, the <br />total amount of the parent corporation guarantor's present and proposed self - <br />bonds and guaranteed self -bonds for surface coal mining and reclamation <br />operations shall not exceed 25 percent of the guarantor's tangible net worth in <br />the United States. <br />Lastly, the Complaint alleges that Tri-State "does not appear to currently guarantee the full <br />amount of these self -bonds". There is no Rule that contemplates a company guaranteeing the <br />"full amount" of self -bonds. <br />Pursuant to Rule 3.02.4(2)(e)(ii), "the Division may accept a written guarantee for an applicant's <br />self -bond from a parent corporation guarantor, if the guarantor meets the conditions of <br />paragraphs (i)(A) through (i)(D)..." The three Tri-State mines included in the Complaint have <br />designated a parent corporation guarantor for the performance bonds, Tri-State Generation and <br />