Estimating Remediation Costs at Contaminated Sites With Varying Amounts of Available Information

Environmental professionals are often tasked with projecting the cost to bring a contaminated site or portfolio of sites to regulatory closure. Fortunately, there are a number of useful guidance documents and industry publications available to assist in such cost projections. However, the usefulness...

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Bibliographic Details
Published in:Remediation (New York, N.Y.) N.Y.), 2013-09, Vol.23 (4), p.43-58
Main Authors: Ram, Neil M., McTiernan, Larry, Kinney, Lauren
Format: Article
Language:English
Subjects:
Bankruptcies
Cleaning
Contamination
Cost estimates
Costs
Estimates
Remediation
Reproduction
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Summary:Environmental professionals are often tasked with projecting the cost to bring a contaminated site or portfolio of sites to regulatory closure. Fortunately, there are a number of useful guidance documents and industry publications available to assist in such cost projections. However, the usefulness of such tools is limited when adequate costing information is lacking, such as (a) the nature and extent of contamination; (b) regulatory requirements; (c) the remedial approach to be implemented; and/or (d) the duration of operation, maintenance, and monitoring activities. Despite the lack of such information, cost‐to‐closure estimates are nevertheless routinely needed and generated for internal assessments or audits, regulatory disclosures, property acquisitions, insurance claims, litigation, and other business transactions. Cost estimates are also often needed in bankruptcy proceedings where the trier of fact must estimate the total future costs associated with an environmental legacy portfolio to determine the overall value (or solvency in the case of evaluating the potential bankruptcy) of a company. This article presents a solution for developing cleanup costs for single sites or a portfolio of sites using a comprehensive, three‐tiered method that is effective over a wide range of site information. Real‐world examples of the successful application of this method are then provided, based on detailed environmental analyses that were completed for a recent bankruptcy proceeding and a case in which an estimated cleanup cost was needed in a legal proceeding. © 2013 Wiley Periodicals, Inc.
ISSN:1051-5658
1520-6831
DOI:10.1002/rem.21365