§ 86.142. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Adverse opinion—A statement by an independent certified public accountant that the financial statements of the applicant do not present fairly the financial condition of the applicant in conformity with generally accepted accounting principles.
Annuity—A financial instrument which provides a sum payable periodically over a length of time.
Applicant—A permittee or an applicant for a permit who is applying to self-bond under this subchapter.
Collateral bond—An indemnity agreement in a sum certain payable to the Department executed by the permittee and which is supported by the deposit with the Department of cash, negotiable bonds of the United States of America, the Commonwealth of Pennsylvania, the Pennsylvania Turnpike Commission, the General State Authority, the State Public School Building Authority, or any Commonwealth municipality, negotiable certifications of deposit, or an irrevocable letter of credit of any bank organized or authorized to transact business in the United States.
Continuous business operations—Operations in which the applicant has been in business and operating for at least 10 years prior to the filing of its self-bonding application unless the applicant’s existence results from a reorganization, consolidation or merger involving a company with this longevity. If the applicant is a majority owned subsidiary of a corporation, it may rely upon its parent corporation’s business history, which has a 10-year business history.
Current asset—Cash or other assets which are reasonably expected to be converted to cash or sold or consumed within 1 year or within the normal operating cycle of the business.
Current liability—An obligation which is reasonably expected to be paid or liquidated within 1 year or within the normal operating cycle of the business.
Disclaimer of opinion—A statement by an independent certifed public accountant that he does not express an opinion on the financial statements of the applicant.
Financial statement—A formal report of the applicant’s status of accounts at a particular time, prepared to show the operating results and financial condition of the applicant’s business. The term includes, but is not limited to, the balance sheet, income statement and statement of change in financial position prepared in accordance with generally accepted accounting principles.
Fixed asset—The term includes plants and equipment, but does not include land or coal in place.
Independent certified public accountant—A certified public accountant not dependent on or subject to the direct control of the applicant.
Liability—An obligation to transfer assets or provide services to other entities in the future as a result of past transactions.
Liquidity ratio—The relation of cash to current liabilities.
Long-term facilities—A processing plant, mine drainage facility, refuse area or other structure and facility associated with surface or underground mining which will be continuously operated or used for at least 10 years.
Long-term mines—An underground mine which will be continuously mined for at least 10 years, or any surface mines in which the mineral to be removed exceeds the amount of overburden by a ratio of at least four to one and which will be continuously mined for at least 10 years.
Net worth—Total assets minus total liabilities and is equivalent to owner’s equity.
Parent corporation—The corporation which directly owns or controls the corporation which is the applicant.
Quick assets—Cash and current assets that can be quickly turned into cash.
Retained earnings—Stockholder’s equity that has arisen from retained assets from earnings in the business. The term includes only earnings from normal operations and not gains from the transaction, such as the sale of plant assets or investments.
Self-bond—An indemnity agreement in a sum certain payable to the Department, executed by the permittee and by each individual and business organization capable of influencing or controlling the investment or financial practices of the permittee by virtue of his authority as an officer or ownership of all or a significant part of the permittee, and supported by agreements granting the Department a security interest in real or personal property pledged to secure performance by the permittee.
Surety bond—An indemnity agreement in a sum certain payable to the Department executed by a permittee which is supported by the guarantee of payment on the bond by a corporation licensed to do business as a surety in this Commonwealth.
Tangible net worth—Net worth minus intangibles such as goodwill and rights to patents or royalties.
Trustee—One in whom some estate, interest or power in or affecting property of any description is vested for the benefit of another.
Trust fund—A fund held by a trustee which provides moneys to address specific reclamation or pollution abatement requirements, or both, associated with a mining activity.
Source The provisions of this § 86.142 adopted December 19, 1980, 10 Pa.B. 4789, effective July 31, 1982, 12 Pa.B. 2382; amended July 30, 1982, 12 Pa.B. 2473, effective July 31, 1982, 12 Pa.B. 2382; amended May 11, 1990, effective upon publication of notice in the Pennsylvania Bulletin that the amendments have been approved by the OSM; amended June 15, 1990, 20 Pa.B. 2517, effective July 27, 1991, 21 Pa.B. 3316; amended August 19, 1994, effective August 20, 1994, 24 Pa.B. 4195; amended November 14, 1997, effective November 15, 1997, 27 Pa.B. 6041. Immediately preceding text appears at serial pages (206684) to (206686).
Cross References This section cited in 25 Pa. Code § 86.159 (relating to self-bonding).
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