Environmental Liability Transfer Solution
Ensure agreement among stakeholders on a strategy that would allow them to walk away from environmental liability associated with a contaminated site.
Outline / Scope of Works:
Antea Group assisted multiple property stakeholders with the development of a liability transfer program to facilitate the remediation and closure of a PCB, chlorinated VOC and TPH contaminated former oil recycling depot site in New Jersey. Prior to Antea Group involvement, the property stakeholders had been in negotiation deadlock regarding the site for 18 years.
With the objectives of achieving stakeholder agreement, moving the site to closure and allowing the stakeholders to walk away from the environmental liability associated with the site, Antea Group presented a comprehensive liability transfer solution that included the use of environmental insurance.
Outcome / Client Benefits:
Antea Group services included site due diligence and in-depth data review related to known environmental conditions, comprehensive site investigation to adequately delineate soil and groundwater impacts, development of remediation strategies and alternatives, and the performance of probabilistic cost modeling to forecast costs to achieve regulatory closure.
A program design was then presented to the stakeholders that included diagnosis results and options for liability transfer structure and environmental insurance product applications. Antea Group supported the stakeholders during the discussions and negotiations with the various insurance underwriters.
Within a year, the stakeholders agreed to the liability transfer program which included a cost cap insurance policy and pollution legal liability policy to cover cost overruns associated with the site remediation, undiscovered incidents, regulatory re-openers, third party claims and legal defense costs.
In-situ ozone injection was implemented to remediate the site contamination, after considering excavation, landfill disposal, and long-term pump and treat as alternatives. Bench-scale testing was also implemented to verify the efficacy of in-situ ozone injection for all contaminants of concern.
The solution benefited the property stakeholders in that they were able to transfer the environmental liability to Antea Group and "walk away" from all liability associated with the site, breaking almost two decades of negotiation deadlock.
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