Emsource St. Marys LLC - An Emsource Risk Transfer Project

 

PROJECT PROFILE
Client: Confidential Client
Locations: New York, Ohio and Pennsylvania
Cost Range: $10-14 million
 

Client Objectives:

  • Cap all management, remediation and long-term maintenance costs associated with a portfolio of manufacturing, waste disposal, and PRP liability sites located in the U.S.

     

  • Transfer environmental liability and management responsibility as well as certain real estate assets to Emsource, the entity responsible for regulatory compliance.

     

  • Cap financial risk of cost overruns and insure against regulatory uncertainty inherent in multi-year, multi-party lawsuit. Conduct planning-cycle analysis and "fast track" appropriate elements of the assessment and clean-up process.

     

  • Liquidate and dissolve the corporation while ensuring that all future environmental obligations would continue to be honored and effectively managed. The client's top priority was to wind up corporate liabilities without exposing former directors, officers, or shareholders to environmental liabilities, now or in the future.

     

RISK TRANSFER PROGRAM

Category: Powdered Metal Manufacturing
Risk Transfer mechanism: Environmental Management and Assumption of Environmental Liability Agreement with client and Emsource St. Mary's LLC
Project Insurance Program:

 

  • Blended finite insurance program offering remediation stop loss and pollution legal liability cover for former manufacturing sites, state-regulated landfills, Federal Superfund PRP liabilities. Tail cover for divested properties.

 Project Profile:

  • Pennsylvania Land Recycling Act (Act 2) sites: 4
  • National Priorities List (Superfund) sites: 2
  • Solid Waste Management Units: 4

Unique Project Features:

  • Covered locations include former manufacturing facilities in several states and foreign countries
  • Project covers risks over a 30-year term

Emsource Project Team:

  • Environmental Engineers & Consultants: Hydrosystems Management, Inc.; GeoSyntec Consultants, Inc.; Burkett Environmental Services, Inc.
  • Insurance Broker: Marsh USA (Boston & New York)
  • Environmental Insurance & Funds Administration: Chartis Environmental
  • Legal Advisors: Verrill Dana, LLP
  • Regulatory: Pennsylvania DEP; U.S. EPA Regions 3 and 5