Financial Assurance Tracking
Key Benefits
- Compliance with US GAAP / FASB and/or GASB Standards
- Validation of environmental reserve
- Accurate assessment & calculation of environmental spending forecasts and pollution
remediation obligations (PROs)
- Capturing of all site specific information utilizing customized templates
- Formulation of a “watch list” of potential future liabilities with associated amounts
and probabilities
Applicable Industries
- Energy
- Chemical
- Manufacturing
- Government
- Automotive
- Academic Institutions
- Transportation
- Waste / Landfill Management
In today's world, with a seemingly endless series of mergers, acquisitions, and
divestitures, not only do companies change hands, but all of the properties owned
by these companies also change hands. Over the course of a property’s history, a
complex web of Potentially Responsible Parties (PRPs) can develop, including numerous
owners, operators, lessees, arrangers of disposal or treatment of hazardous substances,
and transporters of those substances. It is not unusual for there to be hundreds
of PRPs for a single contaminated property. In addition, current legislation imposes
joint and several liability and treble damages to a property’s respective group
of PRPs. Therefore, a PRP supposedly responsible for only a fraction of the waste
at a site could conceivably be liable for significantly more than their fair share
of clean-up costs, should other PRPs fail to remain financially solvent. The bankruptcy
processes allow for PRPs to discharge environmental liabilities (known or unknown)
to other PRPs without notice or compensation. These situations arise most frequently
with Superfund or similar multi-PRP sites.
ERCI’s Financial Assurance Tracking service enables clients to proactively understand
the financial health of related entities and properties so as to create the lowest
possible financial risk.
Financial
Assurance - ERCI (Download PDF)
