Thanks Kevin! This answers a lot of questions.
I am still wondering how "thunder" or "thunderstorm" is determined....I'm guessing it's either an on-site observer or a certain proximity of lightning....
No problem!

Here's the protocol for lightning detection and thunderstorm reporting...technically its derived from the automated lightning detection...not thunder itself...but if an observer is on-site and hears thunder...a thunderstorm can then be augmented into an ob without the automated sensor reading if its not being detected (probably pretty rare to see that).
If the Lightning Detection picks up lightning greater than 10nm from the observation point...No thunder/thunderstorm is reported...and only "LTG DSNT" is seen in the Remarks section.
If the Lightning Detection picks up lightning between 5 and 10nm from the observation point...that is reported as "VCTS"...or Thunderstorm in the Vicinity. If precipitation is also occurring within this range at the observation site...I believe this can be augmented in the ob as a Thunderstorm ("TS") occurring.
If the Lightning Detection picks up lightning less than 5nm from the observation point...that is then reported as a thunderstorm ("TS"). Precipitation type (if falling) is added immediate following the Thunderstorm Report (TSRA...TSSN...etc).
If there is no automated lightning detection at the site...but an observer is present...the observer is responsible for reporting thunderstorms when lightning is observed or thunder is heard. If neither an observer is present or there is no lightning detection system at the site...that site can not report a thunderstorm at all.