Emsource Bridgeton, LLC - An Emsource Risk Transfer Project
Client: Confidential Client
Location: Bridgeton, NJ
Cost Range: $6-10MM
- Implement a settlement strategy for an adverse multi-party cost recovery lawsuit wherein the client (and opposing parties) could "lock in" the liability allocation and total cost of the project, thus eliminating the risk of reopening the litigation or "look back" cost recovery action in the future.
- Transfer liability and management responsibility to an entity that would execute an administrative consent order. Cap financial risk of cost overruns and regulatory uncertainty inherent in multi-year, multi-party lawsuit. "Fast track" the assessment and clean-up process.
- In light of the fact that the client was a publicly traded company making a highly visible strategic shift from manufacturing to high tech service industry, defease a legacy liability of a predecessor subsidiary and pre-empt negative publicity.
RISK TRANSFER PROGRAM
Category: Iron & Brass foundry
Risk transfer mechanism: Administrative Consent Order with Emsource Bridgeton LLC, New Jersey DEP and the landowner transfers remediation obligations to Emsource Bridgeton and requires landowner to maintain institutional controls and longterm care of the site.
Project Insurance Limits:
- Remediation Stop-Loss Limits: $5 million; 10-year term
- Pollution Legal Liability Limits: $5 million; 10-year term
Emsource Partners & Contractors:
- Trustee: BankNorth Investment Management
- Third Party Administrator: Civil & Environmental Consultants, Inc.
- Land Use Permitting: Wetlands & Environmental Technology, Inc.
- Remediation Engineers: Outcome Engineering, Inc.
- Insurance Broker: Marsh MMC
- Environmental Insurance: Kemper Environmental
- Regulatory Agency: New Jersey DEP