For the purposes of this subchapter, the following terms have the meanings given in this rule:

(1) "Accidental release" means any sudden or nonsudden release of petroleum from an underground storage tank that results in a need for corrective action and/or compensation for bodily injury or property damage neither expected or intended by the tank owner or operator.

(2) "Bodily injury" has the meaning given to this term by applicable state law; however, this term does not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for bodily injury.

(3) "Controlling interest" means direct ownership of at least 50% of the voting stock of another entity.

(4) "Director" means the director of the department.

(5) "Financial reporting year" means the latest consecutive 12-month period for which any of the following reports used to support a financial test is prepared:

(a) a 10-K report submitted to the SEC;

(b) an annual report of tangible net worth submitted to Dun and Bradstreet; or

(c) annual reports submitted to the Energy Information Administration or the Rural Electrification Administration. "Financial reporting year" may thus comprise a fiscal or a calendar year period.

(6) "Legal defense cost" means any expense that an owner or operator or provider of financial assurance incurs in defending against claims or actions brought,

(a) by EPA or the state to require corrective action or to recover the costs or corrective action;

(b) by or on behalf of a third party for bodily injury or property damage caused by an accidental release; or

(c) by any person to enforce the terms of a financial assurance mechanism.

(7) "Occurrence" includes an accident, including continuous or repeated exposure to conditions, which results in a release from an underground storage tank.

(8) "Owner or operator", when the owner or operator are separate parties, means the party that is obtaining or has obtained financial assurances.

(9) "Petroleum marketing facilities" includes all facilities at which petroleum is produced or refined and all facilities from which petroleum is sold or transferred to other petroleum marketers or to the public.

(10) "Petroleum marketing firms" means all firms owning petroleum marketing facilities. Firms owning other types of facilities with USTs as well as petroleum marketing facilities are considered to be petroleum marketing firms.

(11) "Property damage" shall have the meaning given this term by the applicable law of this state. This term shall not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for property damage. However, such exclusions for property damage shall not include corrective action associated with releases from tanks which are covered by the policy.

(12) "Provider of financial assurance" means an entity that provides financial assurance to an owner or operator of an underground storage tank through one of the mechanisms listed in ARM 17.56.807 through 17.56.811, 17.56.815 through 17.56.817, and 17.56.820, including a guarantor, insurer, risk retention group, surety, issuer of a letter of credit, issuer of a state-required mechanism, or a state.

(13) "Substantial business relationship" means the extent of a business relationship necessary under applicable state law to make a guarantee contract issued incident to that relationship valid and enforceable. A guarantee contract is issued "incident to that relationship" if it arises from and depends on existing economic transactions between the guarantor and the owner or operator.

(14) "Tangible net worth" means the tangible assets that remain after deducting liabilities; such assets do not include intangibles such as goodwill and rights to patents or royalties. For purposes of this definition, "assets" means all existing and all probable future economic benefits obtained or controlled by a particular entity as a result of past transactions.

(15) "Underground storage tank" or "UST" means any one or combination of tanks (including underground pipes connected thereto) that is used to contain an accumulation of regulated substances, and the volume of which (including the volume of underground pipes connected thereto) is 10% or more beneath the surface of the ground. This term does not include any:

(a) farm or residential tank of 1,100 gallons or less capacity used for storing motor fuel for noncommercial purposes;

(b) tank used for storing heating oil for consumptive use on the premises where stored;

(c) septic tank;

(d) pipeline facility (including gathering lines) regulated under:

(i) the Natural Gas Pipeline Safety Act of 1968 (49 USC App. 1671, et seq.) ; or

(ii) the Hazardous Liquid Pipeline Safety Act of 1979 (49 USC App. 2001, et seq.) ; or

(iii) which is an intrastate pipeline facility regulated under state laws comparable to the provisions of the law referred to in (i) or (ii) above.

(e) surface impoundment, pit, pond, or lagoon;

(f) storm-water or wastewater collection system;

(g) flow-through process tank;

(h) liquid trap or associated gathering lines directly related to oil or gas production and gathering operations; or

(i) storage tank situated in an underground area (such as a basement, cellar, mineworking, draft, shaft, or tunnel) if the storage tank is situated upon or above the surface of the floor. The term "underground storage tank" or "UST" does not include any pipes connected to any tank which is described in (a) through (i) above.

(16) "UST system" or "tank system" means an underground storage tank as defined in this subchapter, connected underground piping, underground ancillary equipment, and containment system, if any.