Dec2016 - Calculating Environmental Liabilities
-
Upload
john-rosengard -
Category
Documents
-
view
34 -
download
0
Transcript of Dec2016 - Calculating Environmental Liabilities
© 2017 Environmental Risk Communications, Inc.
Contact:John Rosengard(510) 548-5570
www.erci.com
Calculating Environmental Liabilities
December 2016
© 2017 Environmental Risk Communications, Inc.
Outline
Definitions of the Types of Liabilities
Watch Lists and Event Trees
Guidance for Calculations
Best Practices in Financial Modeling
Q&A
© 2017 Environmental Risk Communications, Inc.
Speaker Background: John RosengardWrote Defender™ liability forecasting software package Environmental remediation liabilities (ASC 410-30) Asset retirement obligations (ASC 410-20) Due diligence on acquisitions and divestitures Watch list for future reserve increases (sites & portfolios) Decision analysis on individual sites Pollution remediation obligations (GASB49) Counterparty (PRP) default tracking
ERCI supports Corporate remediation teams PRP groups Port authorities The engineering/consulting and legal partners Their internal and external auditors
Member of ASTM E2137 workgroup, tech contact E2173
MBA, Northwestern; BS, Georgetown
John RosengardFounder/CEO, [email protected], CA
© 2017 Environmental Risk Communications, Inc.
Five Types of Environmental Liabilities
Asset Retirement Obligations
Commitments Contingencies Guarantees
Liabilities
Your company and four others sign a consent order to complete the RI/FS for a CERCLA site
An asset sale agreement includes a buyback promise if a buyer finds contamination
Leasing property indefinitely on premise that study and possible remediation are deferred
Financial assurance to regulator
Asbestos removal
Lead-based paint removal
Mine closure
Stormwater line decommissioning
Oil well plugging and abandonment
Environmental Remediation Obligations
CERCLA past cost reimbursement to USEPA
Deminimis cash out
Outcome from Litigation
FASB: ASC 410-20GASB: GASB 83IASB: IAS 37
FASB: ASC 410-30GASB: GASB 49IASB: IAS 37
FASB: ASC 440GASB: Note disclIASB: IAS 16
FASB: ASC 450GASB: GASB 10IASB: IAS 37
FASB: ASC 460GASB: GASB 70IASB: IAS 39
© 2017 Environmental Risk Communications, Inc.
Asset Retirement Obligation Examples
Creosote pilings removal
© 2017 Environmental Risk Communications, Inc.
Asset Retirement Obligation Examples
Warehousedemolition
Power plant demolition
Airportdecommissioning
© 2017 Environmental Risk Communications, Inc.
Asset Retirement ObligationsExample Booked
NowAnnual Duty
AROTask(s)
Buyer acquires building with asbestos and lead-based paint; purchase contract clearly transfers ARO from seller to buyer for $1 M price discount.
$1 M Reconfirm timing and amounts.
Demolition
Company leases land for 60 years, adds treatment ponds and RCRA drum storage building. The RCRA permit and the lease end in 20 years.
Demo: $0.1 MPond closure: $5 M
Reconfirm timing and amounts.
Demolition, RCRA facility investigation, corrective action
Natural gas is discovered and company is 60% owner of well royalties
60% of ARO for production assets and wells.
Determinedecommissioning date and unit costs.
Remove production equipment and plug wells.
Company builds and owns four new warehouses for new product line; 40 year life on building, 15 year life on solar panels
Per warehouse: $0.5 M for demo; $0.2 M for solar panels
Confirm ARO dates are 15 and 40 years out.
Remove old solar panels; demolish warehouse.
© 2017 Environmental Risk Communications, Inc.
“Obligation” is not a “contingency”. If an ARO is an “enforceable obligation”, estimate it and book it. Enforceable, not enforced. Big difference.
Must be “fair value measurement” (three methods: income, market, or replacement cost)
Must be “expected value” (based on multiple scenarios of dates, technologies or other factors)
Must be “present value” (adjusting future spending with credit-adjusted risk free rate)
Asset Retirement Obligations – How-to
2017 2018 2019 2020 2021 2022 2023 2024 202580% primary strategy -$ -$ -$ -$ -$ -$ 50$ 50$ 2,000$ 20% backup plan -$ -$ -$ -$ -$ -$ 100$ 4,000$ 100$
current $ -$ -$ -$ -$ -$ -$ 60$ 840$ 1,620$
inflation factor (0%) 100% 100.0% 100% 100.0% 100% 100.0% 100% 100.0% 100%discount factor (4%) 100% 96.0% 92.2% 88.5% 84.9% 81.5% 78.3% 75.1% 72.1%Cash flows (PV, 4%) -$ -$ -$ -$ -$ -$ 47$ 631$ 1,169$
Present value (2017) 1,847$ ARO balance, each year 1,847$ 1,924$ 2,004$ 2,087$ 2,174$ 2,265$ 2,299$ 1,555$ -$
© 2017 Environmental Risk Communications, Inc.
Environmental Remediation Obligation Examples
Contaminated soil removal
Pipeline removal
Sediment remediation
Groundwater remediation
© 2017 Environmental Risk Communications, Inc.
Environmental Remediation ObligationsExample Booked
NowAnnual Duty
Future Work
USEPA sends your company a 104e information request about a CERCLA site
$0 Reconfirm allocation and amounts.
Join PRP group
Company determines a stormwater line carried contamination from a plant to anadjacent CERCLA sediment site, and decides to join an existing PRP group
TBD Determine allocation, timing of cash calls, viability of PRP group
RI/FS, RD, RA, OM&M; PRP group administration
USEPA issues a record of decision on a site where the company has a 10% allocation
10% of expectedvalue
Reconfirm dateand amount of cash calls; Determine counterparty viability.
RD, RA, OM&M; PRP group administration
RCRA facility investigation is completed just as decision to close company plant is made.
RCRA corrective action cost and ARO
Confirm end state for property, date and amount of spending.
RCRA CA, ARO work
© 2017 Environmental Risk Communications, Inc.
“Obligation” vs. “contingency”. Decide if an issue has an enforceable obligation or looks like a claim (strictly financial settlement). Same property may have all types of liabilities simultaneously
“Obligation path” – use “fair value” + “expected value” + “present value” if your company policy allows
“Contingency path” – use “probable and reasonably estimable” criteria; track recognition benchmarks and obligating events via a watch list (next page!)
Environmental Remediation Obligations – How-to
© 2017 Environmental Risk Communications, Inc.
Site Specific Watch List Example
Source of Risks How Risks become CostsInputs to Generate Expected
Value
Liability Type
Site-Specific Definition of
Environmental Liability
Current Obligating Event(s) or Recognition
Benchmark(s)
Future Obligating Event or
Recognition Benchmark(s)
Probability of Future Obligating
Event or Recognition
Benchmark(s)
Range of dates (current
expectations)
Range of Costs (low
to high)
Asset Retirement Obligation
UST removals (4), demolition of 800,000 SF warehouse
Purchased 1962Building in service in 1983
Decision to remove building from service
100% 11–40 years $4–$50 M
RCRA Closure Obligation
Closure of process water cooling system, 8 acres
Purchased 1962RCRA Permit 1993
Decision to terminate RCRA permit by owner or regulator
Decision to modify or sell operation 10%Decision to close 100%
1–40 years $20–$80 M
Remediation Obligation
Abandonment of groundwater well network
Purchased 19622010 Spill Response2014 Groundwater remediation system installation
Regulatory approval of the well abandonment step
Regulatory approval 100%Decision to close facility and convert use 95%
2024–2034
2020–2056
$1 M
Remediation Obligation
Soil excavation, 2 acres x depth of 6-10 feet
Purchased 19621995 Fire
Regulator issues notice of violation
25% 2017–2020 $2–$3 M
© 2017 Environmental Risk Communications, Inc.
Commitments - ExamplesExample Booked
NowAnnual Duty Future
WorkYour company sells an operating plant and agrees to reimburse 50% of third-party cleanup costs for ten years
50% of expected spending
Reconfirm date and amount of cash calls; Determine counterparty viability.
Counterparty tracking
Your company donates surplus land to a nonprofit wetland bank. While no contamination is known, your company promises to buy land back if any contamination is found in the future.
None Confirm no change in land use or change in ownershipstructure.
None
Your company leases surplus land to an industrial user. Tenant plans improvements and to operate RCRA-permitted assets and promises to return land in “original condition” in 30 years.
None Determine counterparty viability.
None
Pipeline operator leases an easement from your company, with agreement to keep all assets above the groundwater table.
None Monitor groundwater table, spill reports; determine counterparty viability.
Invoke commitment
© 2017 Environmental Risk Communications, Inc.
Contingencies - ExamplesExample Booked
NowAnnual Duty Future
WorkAn adjacent property owner asks your company to prevent stormwater from inundating their property
None Determine if stormwater permit is violated
TBD
USEPA invoices your PRP group for $75,000 in oversight costs five years after remedial work concluded. Your company has 50% of the PRP group allocation.
Cash call for future five year reviews
Reconfirm allocation with other PRPs (ifappropriate)
TBD
USEPA and a site’s PRP group jointly announce cash outs to deminimis parties. Your company was noticed ofa volume and range of cash out values.
Cash out value, unless due immediately
Determine date(s) of cash calls, probability of reopeners, viability of high-allocation PRPs
TBD
© 2017 Environmental Risk Communications, Inc.
Guarantees - ExamplesExample Booked
NowAnnual Duty Future
WorkUSEPA requires RCRA financial assurance for a 30-year monitoring period
30-year OM&M scope
Reduce amount and duration of financial assurance instrument annually
OM&M
State requires a performance bond for asset retirement work when your company’s mining operation closes
Incremental cost of bond
Reconfirm timing and cost of ARO work is reported to financial instrument provider and State regulator
ARO work
US Interior Department requires letter of credit or bond for oil well platform decommissioning
Incremental cost of LC or bond
Reconfirm timing and cost of ARO work is reported to financial instrument provider and State regulator
ARO work
Your company breaks into two pieces; your surviving company guarantees all environmental liabilities of peer will be satisfied
Peer liability x probability of default over time
Understand if spending at peer is reducing liabilities
Take back work if needed
© 2017 Environmental Risk Communications, Inc.
Comparison of Estimate PurposePurpose Time
HorizonInflation and Discounting
Fair Value
Expected Value
Present Value
Asset retirement
Life of asset
Per GAAP Mandatory Mandatory Mandatory
Remediation Reserve forecast
Company policy
Per policy Per policy Per policy Per policy
Budgeting 1-5 years No No No NoCash out Infinite Best practice Yes Yes YesInsurance claim Per policy
limitsPer policy limits
Per policy limits
Per policy limits
Per policy limits
Due diligence Infinite Best practice Yes Yes YesFinancial assurance
As required
As specified No No No
Commitment Infinite Per GAAP Yes Yes YesContingency Company
policyPer policy Per policy Per policy Per policy
Guarantee Infinite Per GAAP Yes Yes YesRemedialalternatives
30 years Per EPA guidance
No No Yes
© 2017 Environmental Risk Communications, Inc.
Recognition Timeline v. Spending
$0
$5
$10
$15
$20
$25
2005 2010 2015 2020 2025 2030
Asset Retirement Obligation (FASB)Asset out of service
$0
$5
$10
$15
$20
$25
2005 2010 2015 2020 2025 2030
Asset Retirement Obligation (GASB)
GASB 83 effective
Asset out of service
Asset in service
Asset in service
$
$
$0
$5
$10
$15
$20
$25
2005 2010 2015 2020 2025 2030
Commitments & Guarantees
$0
$5
$10
$15
$20
$25
2005 2010 2015 2020 2025 2030
Probable + Reasonably Estimable
$ $ $
$
$
$
Initial Obligation New Obligating
Events or Recognition Benchmarks
Contract or Obligation
$
$ $
Cashout
© 2017 Environmental Risk Communications, Inc.
Relevant Information1 Event type (for example, new air emission control requirements, leaking landfill, site PRP notice, worker exposure, site decommissioning, compliance audit findings, notice of violation, filing of a lawsuit, and recognition benchmarks and obligating events2 Number and location of affected operations/facilities, 3 Use of surrounding property, including but not limited to sewer systems, groundwater and surface waters,4 Past, current, and potential future site uses, and constraints imposed upon those future uses by AULs, including institutional controls and/or engineering controls,5 Findings from environmental and other relevant studies,6 Environmental risks posed by the event,7 Bodily injury or other claims related to the event,8 Relevant federal, state, tribal, local, or other regulatory requirements and alternatives,9 Federal, state, tribal, local, or other agency involvement, including the preferred alternatives and preferred remedies of governing agencies,10 Public involvement,11 Planned or completed remedial activities,12 Decision documents (for example, Records of Decision),13 Litigation activities related to the event (for example, claims, suits, actions, demands, requests for payment, notices),14 Resources, tasks, and deadlines,15 Available technologies and designs,16 Type and extent of contamination,17 Number of operable units (CERCLA) or solid waste management units (RCRA),18 Involvement of various parties at the event, 19 Information on prior experience with similar events,20 Experience with and expectations of enforcement actions by regulatory authorities, 21 Timeline to implementation of a given liability, through, for example, a remediation program, asset retirement plan, capital expenditure
project, claim adjudication, toxic tort investigation, arbitration proceeding, or litigation,22 Impacts to natural resources and ecological assets, and the interests of relevant natural resource trustees,23 Ecological assets and environmental projects used to offset assessment or remediation costs (Note: This may include supplementalenvironmental projects),24 Relevant tax consequences.
Guidance available from several sources:
• ASTM Standards
• Financial Accounting Standards Board
• Government Accounting Standards Board
• International Accounting Standards Board
• Public Company Accounting Oversight Board
• American Institute of CPAs
© 2017 Environmental Risk Communications, Inc.
Policy Decisions1 Changes to GAAP,2 Changes to requirements of external financial auditors,3 Changes to entity policies to comply with GAAP and auditor requirements, 4 New or modified environmental laws and regulations (Note: critical habitat regulations may change over time.),5 Policy decisions or interpretations to be made by regulatory agencies,6 Compliance assurance procedures or policies adopted by the dutyholder,7 Acceptable levels of risk (for example, business risk, human health risk, ecological risk),8 The degree to which societal or external costs and benefits are considered,9 The duration of the forecast for costs and liabilities, and whether or not life cycle costs are considered, 10 The degree to which sustainability/sustainable development are considered,11 Local environmental management system criteria, including trade-off of emissions across environmental media, alternative methods and permitting options, auditability, and performance oriented metrics,12 Level of non-governmental organization involvement and scrutiny,13 The degree of communication with and cooperation of the public.
In the absence or insufficiency of such information, an assessment should be made of the applicable regulatory and industry standard requirements, and a determination made as to whether based on these requirements, significant costs and liabilities for environmental matters may be incurred that would indicate the need for further data collection and analysis in the future.
Guidance available from several sources:
• ASTM Standards
• Financial Accounting Standards Board
• Government Accounting Standards Board
• International Accounting Standards Board
• Public Company Accounting Oversight Board
• American Institute of CPAs
© 2017 Environmental Risk Communications, Inc.
Fit-for-purpose: Right Tool at Right Time
Current cost-to-close ($ M)
Tools available Financial assurance <$0.1 $0.1 -
$0.5$0.5 -
$1 $1 - $5 $5 +
Detailed estimate √ √ √ √ √ √Cost bracketing √ √ √ √ √ √Event tree √ √ √ √Weighting of scenarios √ √ √ √Probabilistic modeling √ √ √ √Remedy scenarios √ √ √ √Non-remedy scenarios √ √ √Detailed decision analysis √ √ √Sensitivity analysis √ √Peer review of costs √ √Peer review of constructability √
Takeaway: higher expected cost = more cost engineering
© 2017 Environmental Risk Communications, Inc.
Recognition BenchmarksRecognition Benchmarks (from ASC 410-30-25-15)• Identification and verification of an entity as a potentially responsible party• Receipt of a unilateral administrative order.• Participation, as a potentially responsible party, in the remedial investigation-
feasibility study• Completion of feasibility study.• Issuance of record of decision • Remedial design through operation and maintenance, including
postremediation monitoring.
Recognition Benchmarks (from GASB49:12)• Receipt of an administrative order.• Participation, as a responsible party or a PRP, in the site assessment or
investigation.• Completion of a corrective measures feasibility study.• Issuance of an authorization to proceed.• Remediation design and implementation, through and including operation and
maintenance, and post-remediation monitoring
© 2017 Environmental Risk Communications, Inc.
Obligating EventsObligating events (from ASC 410-20-15-2)a. …acquisition, construction, or development and (or) the normal operation of a long-lived asset, including any legal obligations that require disposal of a replaced part that is a component of a tangible long-lived asset. b. An environmental remediation liability that results from the normal operation of a long-lived asset and that is associated with the retirement of that asset. ….c. A conditional obligation to perform a retirement activity. ….d. Obligations of a lessor in connection with leased property that meet the provisions in (a). ….e. The costs associated with the retirement of a specified asset that qualifies as historical waste equipment as defined by EU Directive 2002/96/EC. ….
Obligating events (from GASB49:11): • The government is compelled to take pollution remediation action because of an imminent
endangerment.• The government violates a pollution prevention–related permit or license.• The government is named, or evidence indicates that it will be named, by a regulator as a
responsible party or potentially responsible party (PRP) for remediation, or as a government responsible for sharing costs.
• The government is named, or evidence indicates that it will be named, in a lawsuit to compel participation in pollution remediation.
• The government commences or legally obligates itself to commence pollution remediation.
© 2017 Environmental Risk Communications, Inc.
Variable Level 1/2/3 inputs: site-specific conditions, KPIs, unit costs
FVM Level
Income Impact
A. Lifecycle cost projection 12 years pump & treat, 10 gpm from 5 wells, three pore volumes of 19 acres
2 -$5.5 million
B. Contingencies for changes to scope, schedule and vendor
25% cost increase for fourth pore volume, doubling well count (to 10) in years 8-12
2 -$1.2 million
C. Premium for full/partial strategy failure
Additional ten years pump & treat for fifth and sixth pore volume
3 -$3.8 million
D. Premium for project management 12 years oversight, legal, contracting, cost recovery work 2 -$2.8 million
E. Premium/discount for counterparty risk
Successor owner has diesel generator onsite; credit rating 620
1 -$1.5 million
F. Premium/discount for your company’s own ability to pay
Fortune 200, credit rating 1085 1 +$0.5 million
G. Insurance for cost cap, etc Self-insuring all cost escalation, reopeners 3 +$0.0 million
H. Income for brownfield Ground lease $500K/yr to 2025 2 +$5.0 million
I. Recovery - current/future costsAsserted and unasserted claims
50% recoverable under Federal contract20% recoverable from legacy owner
2 +$7.4 million+$3.0 million
J. Recovery – sunk costsAsserted and unasserted claims
50% recoverable under Federal contract20% recoverable from legacy owner
1 +$0.5 million+$3.0 million
K. Value of deferred tax assets 30% of items A through F 1 +$4.3 million
Fair Value Components Total OutflowsInflows
Net
-$14.8 million+$23.7 million
+$8.9 million
Fair Value Term Sheet (Reserve = A to F)
© 2017 Environmental Risk Communications, Inc.
Event Tree Example
24
© 2017 Environmental Risk Communications, Inc.
Expanded Event Tree for Counterparty Risk
25
Takeaways • Professional judgement is essential to selecting which uncertainties,
negotiations and decisions to display• probabilities also require professional judgement; document your thinking• keep decisions separate from uncertainties and decisions you make with others
(negotiations)
© 2017 Environmental Risk Communications, Inc.
Probabilistic Modeling vs. Event TreesEvent Trees Key Tasks Separates cost uncertainties from negotiations and from decisions
Uncertainties: unit prices, economies of scope / scale, counterparty risk, remedy failure Decisions: pace to closure, soil / GW cleanup goals, remedy selection, property reuse
Test and develop a range of workable alternatives Mature vs. emerging technologies Local vs. national contractors
Make timing explicit; if regulator is not enforcing timetables, be transparent about their lack of urgency (very common)
Probabilistic Modeling Key Tasks Includes all data from Event Trees, plus…. Bracketing for ten high-cost components
Widest range during investigation (-50%/+100%)
Narrower range at feasibility study stage (-30% to +50%)
Common hazard: neglecting to correlate assumptions, otherwise variables cancel out Four steps (next slides)
© 2017 Environmental Risk Communications, Inc.
Financial Modeling Practice #1 – Assumption Table
27
Transparent bracketing
WBS line items, unit costs, or units
for bracketing
Calculated expected values
Cases for decisions
© 2017 Environmental Risk Communications, Inc.
Financial Modeling Practice #2 – Standard WBS
28
Point estimates
Expected values from modeling
sheet
User selects subtasks from
drop-down menus
Common WBS
Takeaway: WBS separates costs for study, remediation, O&M, overhead and legal costs; recovery rates (%) apply to one or more PRPs and insurers
© 2017 Environmental Risk Communications, Inc.
Distribution Type[Preferred]
When to Use Example
Normal Higher confidence estimates for minimum, likeliest and maximum costs.
Remedial study costs will be $100,000, +/-$50,000.
Triangular Higher confidence estimates for minimum, likeliest and maximum costs.
Remedial study costs will be $100,000, +/-$50,000.
Lognormal Higher confidence estimates for two points on a cost curve, such as the 10th, 50th or 90th
percentiles.
10% chance the cost will be $35,714 or less; 10% chance the cost will be $70,000 or more.p(10) = $35,714p(90) = $70,000
Uniform Only minimum and maximum are estimated.
Lab costs will be between $100,000 and $200,000.
Beta O&M duration (years only) System O&M for ten to 25 years.
Weibull Any two or more data points are known.
Match curve to any data.
Custom Either/or events 60% chance of $25,000 cost, 40% chance of $75,000 cost.
Financial Modeling Practice #3 –Proper Distribution
© 2017 Environmental Risk Communications, Inc.
Financial Modeling Practice #4 –Estimate Reliability
Work through reasonable range of alternativesSplit decisions from uncertainties (risks)
Systematically work through entire WBSMake a comprehensive estimate
Be realistic about timing
Incorporate a cost loaded schedule
Add ranges for achievable outcomesMake the ranges wide enough
Incorporating cost of failure or supplementary work
Connect project risks through statistical correlation
© 2017 Environmental Risk Communications, Inc.
Probabilistic Forecast
© 2017 Environmental Risk Communications, Inc.
Probabilistic Forecast Comparison
© 2017 Environmental Risk Communications, Inc.
Probabilistic Forecast Utilization
reserveWatch list
© 2017 Environmental Risk Communications, Inc.
Starting Point – Evolving Forecasts
2012
2011
2013
2016
2015
2014
2010
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027
($ M
)
Cumulative Spending
}+23%
}+14%Lifecycle Cost to Close Forecasts
Takeaway: this graph compares a trailing indicator (spending) and a current indicator (closure forecasts)
© 2017 Environmental Risk Communications, Inc.
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027
($ M
)
Cumulative Spending
Reserve Changes and Watch List
Original Reserve
2011 Update
2014 Update
Due Diligence Reserve Add
← Watch List →
Purchase Accounting Reserve Add
Reserve increases
Takeaway: this graph compares a current indicator (reserve increases) and a leading indicator (the watch list)
© 2017 Environmental Risk Communications, Inc.
Original Reserve
Purchase Accounting Reserve Add
2011 Update
2014 Update
Due Diligence Reserve Add
Reserve Estimates vs. Spending vs. Liability
2012
2011
2013
2016
2015
2014
2010
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027
($ M
)
Cumulative Spending
Takeaway: this graph compares trailing, current and leading indicators- Reserve increases lead spending by several years- Watch list leads reserve increases and generally trends down
← Watch List →
© 2017 Environmental Risk Communications, Inc.
cost
un
certa
inty
Probabilistic Reserves Increase Forecast
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027
($ M
)
timinguncertainty
Commitment to Full Soil Remedy Commitment to
Redevelop Site
Commitment to Sell Site
© 2017 Environmental Risk Communications, Inc.
Summing Up
What is at Risk Misallocating capital (people, money, reputation, attention) Not complying with GAAP
What Can Improve Does spending match liability reductions? Are we discharging booked liabilities at the best rate? Is there a large gap between book and fair value? Do cost recoveries capture full life-cycle costs? Are our asset retirement obligation forecasts appropriate given
the current size of our asset base?
© 2017 Environmental Risk Communications, Inc. 39
Next Steps
Website: www.erci.com
LinkedIn Group – webinar announcements
YouTube page – select webinar recordings
Email [email protected] or call (510) 548-5570 PDF of this presentation (original PPTX format on request)
December 2016 webinars on Calculating Environmental Liabilities Calculating and Managing Environmental Counterparty Risk Presenting and Disclosing Environmental Liabilities Fair Value Measurement for Environmental Liabilities