2001-12-31_REPORT - M2002004 - Laserfiche WebLink

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bulk. Except for the fifth Administrative Review, sufficient information is not currently available to RGPC to reasonably estimate the outcome of the many appeals of the administrative reviews, or the administrative decisions in the pending Tenth and Eleventh Administrative Reviews. As of December 31, 2001 and 2000, RGPC has funded an irrevocable trust for estimated anti- dumping costs for $ 31,500,00o and $ 21,000,000, in excess of amounts paid, respectively. The purpose of the trust is to pay estimated antidumping duty liabilities resulting from prior year reviews. As of December 31, 2001 and 2000, RGPC has accrued additional amounts of $ 1,404.059 and $ 1,494.609, respectively, for estimated anti-dumping costs in excess of amounts paid to the DOC and to the irrevocable trust. Subsequent to year-end RGPC funded an additional $ 10,500,00o to the irrevocable trust for amounts that were accrued as of December 31, 2001. These amounts are included in other long-term liabilities in the accompanying consolidated balance sheets. .. ........... ........ '6 c rtni6Wais -Wsd1 Cb?iiirr?roes __ _ RGPC mines aggregate materials from its quarry in New Mexico for use in the production of Portland Cement. The New Mexico Mining Act (Mining Act) requires RGPC to file a closeout plan with the State of New Mexico (State). RGPC filed a preliminary closeout plan with the State in June 1996 as required by the Mining Act. The plan addresses the proposed use for the plant site at the conclusion of cement operations and any required reclamation of the land. Closeout measures are planned for implementation incrementally and concurrently throughout a forty-year period, with more than half of the disturbed acreage being reclaimed during the operating life of the plant. The estimate of the cost to implement all closeout measures described in the plan is approximately $ 4,800,000. As of December 31, 2001 and 2ooo, RGPC had accrued $ 775,00o and $ 595.000, respectively, for closeout measures. The State requested that RGPC secure a form of bonding or surety related to the closeout measures. To comply with the State's request RGPC has restricted investments totaling $ 70,000 related to USDA Forest Service property. In addition, GCC has guaranteed $ 3,750,000 of assurance in the event that RGPC fails to successfully complete the reclamation obligations. 'B? The Company uses financial instruments (derivatives) such as swaps and forward contracts to manage risks associated with the economic effect of the exchange of interest rates and risks associated with increases in the price of natural gas that the Company uses. Derivatives are not used for the purpose of speculation or for sale. The related agreements are entered into with sound financial institutions: consequently, the Company believes the risk of non-performance of agreed obligation by the other parties to be minimal. Cross Currency Swaps: Interest Exchanged Estimated Expiration rate interest market date covered rate value Dollars for pesos USD $ 98.8 million dollars December 2006 11.5% Six-month LIBOR t 125bp S 2,225 Dollars for Pesos USD $ 33.0 million dollars December 2006 u.5% Six-month LIBOR f 139bp S 705