Case Study One

The integrated approach reduces risk, manages uncertainty, and fully compensates the public for past, present and potential future damages to natural resources in the most efficient and defensible manner possible.

ELM is recognized for its leadership in the development of integrating remedial risk-based (RI/FS-type) and Natural Resource Damage Assessment (NRDA) processes into efficient and comprehensive site management plans. Most recent and notable is the development of a comprehensive site management approach for a former refinery. ELM assisted with the negotiation of a State-led Agreed Order by Consent that included requirements for both an RI/FS and NRDA. As a result, ELM prepared RI/FS work plans (RI, Human Health Risk, Ecological Risk, NRDA, etc.) that integrated these processes, where appropriate. Within the work plans, ELM illustrated the significant similarities of each process which, in turn, streamlined the site characterization, risk/Injury assessment and end-point driven site management approach.

The primary advantage for the integrated approach is that site liabilities are managed comprehensively, thus reducing overall assessment and transaction costs and the time required for site closure. Specifically, sampling and analysis, quality assurance/quality control, data management, project management, and remedial costs are significantly reduced with the approach.

Furthermore, the integrated approach enhances the stakeholder process and improves asset management. Net environmental benefits are greatly enhanced by an integrated approach because uncertainty about risks is balanced with ecological productivity. Instead of using excessive remedial action as the method for managing uncertainty (from the risk assessment process), the integrated approach uses a combination of remediation and habitat restoration (from the NRD process). The integrated approach reduces risk, manages uncertainty, and fully compensates the public for past, present and potential future damages to natural resources in the most efficient and defensible manner possible.

Case Study Two

Protection and Expansion of a Core Asset

Elm's ability to recognize and structure effective liability and asset management opportunities saved millions of dollars in core assets, created opportunities for the company to expand its operation and reduced the potential environmental liability by $25 million.

ELM coordinated and managed the identification and delineation of an extensive environmental liability associated with historical industrial activities at a bulk terminal plant in Illinois. The liability was identified as part of a property transaction due diligence effort and the result of chlorinated solvent releases to soils and shallow ground water, including the presence of DNAPL.

The ELM management team determined that the cost of site-wide environmental liability associated with the proposed asset divestiture could be turned into an opportunity to expand the facility, thus increasing market share and offsetting the cost of required long-term environmental liability management.

The original site characterization project evolved into the development and implementation of a two-part remediation plan and human health risk assessment to address liability associated with the historic use of two wastewater treatment lagoons requiring immediate management. Contaminated media and associated human health risks were remediated and managed according to appropriate acceptable risks determined for the plan.

The remediation and risk assessment project was entered into the Illinois Environmental Protection Agency's Site Remediation Program. ELM utilized a variety of state-of-the-art innovative treatments and risk management techniques that significantly reduced the expected remediation cost of $5,000,000. The total cost of the final remediation was approximately $1,000,000, in lieu of a potential $25+ million remediation liability had ELM not recommended alternative property and liability management strategies. A notice of “No Further Remediation” was obtained from the IEPA.

Case Study Three

Mercury Investigation and Liability Management

To date, Elm's studies have illustrated why a proposed dredging alternative would not reduce mercury concentrations in fish and is, therefore, inappropriate.

A state agency has been suggesting a multi-million dollar lake dredging project of mercury-contaminated sediment because mercury concentrations in some fish exceed consumption guidance levels. ELM has designed and conducted studies which have proven that the lake routinely receives significant amounts of mercury from long-range atmospheric deposition. Moreover, studies have shown that the mercury-contaminated sediments are not toxic to benthic organisms and that the Natural Attenuation remedy that was selected in the 1987 Remedial Action Plan is appropriate because mercury-contaminated sediments are being covered by cleaner materials

and will eventually be buried. Through our efforts over the past several years, ELM has determined there is no scientific basis for the dredging remedy, and no relevant examples in scientific literature that suggest dredging the lake will reduce mercury concentrations in the fish. Furthermore, recent work has revealed that a catch and release regulation for this lake is contributing to the elevated fish mercury concentrations.

ELM is currently conducting additional studies that will further support their position against a dredging proposa. These studies include: efforts to illustrate that sediments are a sink for mercury and not a significant source to the fishery efforts to illustrate that mercury from atmospheric deposition represents the vast majority of the mercury present in fish sampling to reduce allocation of mercury-contaminated sediment liability studies to determine which alternative fishery management strategy would preserve the trophy resource but efficiently reduce mercury concentrations in fish.

To date, Elm's studies have illustrated why the MDEQ’s dredging alternative would not reduce mercury concentrations in fish and is, therefore, inappropriate. ELMís program will provide additional quantitative data which will demonstrate the futility of dredging and is anticipated to be the basis for supporting successful management alternatives.

Case Study Four

Wetlands Enhancement Permitting

ELM was successful in assisting a client to obtain one of the first permits from the Illinois Department of Natural Resources office of Water Resources to develop a moist soil project in an Illinois River backwater lake considered by the IDNR as “public waters”.

The project encompasses 130 acres of Illinois river backwater that is nearly 100% silted in, and most recreational and ecological uses of the resource have been significantly damaged, thereby reducing the value of the property to the owner.

Through use of ELM’s resources, a permit was obtained for the client to perform construction levees and water control structures to promote moist soil plant and wetlands habitat. The development of this project will reduce further wetland degradation and provide much needed wetlands habitat for shorebirds, waterfowl and other animals. It will also restore the use and value of the property to the property owner.

Creative solutions and integrated resources offered by ELM - unlike any firm, allow ELM to be successful where others fail.

Case Study Five

Integrated Closure for a Petroleum Release

The comprehensive plan was very efficient; only 23 samples were needed to comply with Guide B and settle the NRDA processes.

Approximately 1500 gallons of No. 2 fuel oil (commonly referred to as diesel fuel or home heating fuel) was released from a pumping station. Approximately 750 gallons were transported to an adjacent wetland. The spill was quickly contained with booms and recovered with vacuum trucks. However, some residual oil remained in the wetland which could not be recovered without causing significant environmental damage.

The site was enrolled in a “Site Remediation Program” (SRP), and State Trustees contacted the operator for its intent to pursue a Natural Resource Damage (NRD) claim. ELM was employed to develop an integrated SRP/NRDA closure plan. ELM quickly developed and implemented a comprehensive sampling plan that addressed the state’s Criteria for Focused Site Investigation and Remedial Action Plan at Emergency Incident Sites (Guide B), as well as NRDA closure. This comprehensive plan was very efficient; only 23 samples were needed to comply with Guide B and settle the NRDA processes. The final Focused Site Investigation Report, which proposed no further action based achievement of appropriate remedial objectives from the Illinois Tiered Approach to Corrective Action (TACO), and a modest compensatory restoration program was delivered.

Case Study Six

Environmental Liability Transfer of Prior Dry Cleaning Facility to ELM Investments

ELM acquired the environmental liability associated with the site from the City of Peoria for a lump sum providing the City indemnification for any costs over the lump sum amount.

Solvent contamination was detected during environmental assessments for property transfer at a dry-cleaning facility that had operated on a metropolitan Peoria site for over 90 years. Cost estimates for corrective actions from various consultants ranged from $100,000 to $350,000. This level of cost could have caused the project to be terminated. ELM acquired the environmental liability associated with the site from the City of Peoria for a lump sum providing the City indemnification for any costs over the lump sum amount. The City requested the project be expedited to clear the way for a construction of a new baseball stadium on the property.

ELM Consulting conducted a site investigation and risk assessment under the Illinois Site Remediation (Voluntary) Program. A “No Further Remediation” (NFR) letter was obtained within two months within the lump sum amount and on schedule to enable the project to move forward successfully. The NFR was based on ELM’s documentation that potential exposure pathways to residual contaminants could be eliminated through use of Environmental Land Use Controls (ELUCs). The ELUCs included incorporation of the intended commercial land use as a deed restriction, and reliance upon an existing City Ordinance prohibiting the use of groundwater for potable consumption. This conclusion allowed the City to transfer the property and allow the project to move forward.

Case Study Seven

Comprehensive Environmental Liability Management for Client

ELM is providing technical and strategic support for these ongoing settlement discussions with numerous agencies including the USEPA, the State, FERC, Natural Resource Trustees, Indian Tribes and US Department of Justice, as well as coordinating numerous stakeholder and public relations issues.

ELM was retained by a utility company to provide strategic and technical management services for a dam located on the Clark Fork River. The dam, a Federal Energy Regulatory Commission (FERC) licensed hydropower dam, is located at the most downstream location of the Clark Fork River Superfund Site, one of the largest Superfund sites in the United States. The scope of the provided services was based upon the USEPAs desire to develop a Proposed Plan and ROD for the dam reservoir OU. Though the dam is not included in the OU, the long-term disposition of the dam (in-place vs. removed scenarios) significantly affects the ultimate reservoir OU Proposed Plan and ROD.

In addition to the CERCLA-related issues, ELM is also providing oversight and technical management of FERC related issues, including Biological Assessments (BA) and dam safety as required by the FERC license. Since a significant portion of the OU is located on the property, ELM also provides technical and management services for developing the ultimate mitigation, restoration and land use scenarios, including both habitat and human use consideration, which would be required as part of the reservoir OU remedy and potential dam removal scenarios. ELM also led two insurance teams in underwriting a $100 Million policy for catastrophic dam coverage.

Integration of the technical and management requirements for a FERC-licensed dam, located adjacent to a CERCLA site, required significant coordination and discussion with over 10 different local, state and Federal agencies or entities. ELM is providing technical and strategic support for these ongoing settlement discussions with numerous agencies including the USEPA, the State, FERC, Natural Resource Trustees, Indian Tribes and the US Department of Justice, as well as coordinating numerous stakeholder and public relations issues.

Case Study Eight

Strategic Management of a Utility’s Former Manufactured Gas Plant Portfolio

ELM was retained by a Midwest-based regional utility company to provide ongoing management of its portfolio of 11 former manufactured gas plant (MGP) sites in three states. As many of the MGP’s were obtained through acquisition, an identification phase was initialized by ELM to ascertain ownership and allocation percentage of each site in the portfolio. Once all sites were catalogued, ELM applied its liability quantification model to determine ranges of risk-based remediation/management costs through site closure to address management or remediation of the liability portfolio as a function of confidence. By structuring the initial evaluation in this manner, ELM was able to present the final analysis to the insurance market in support of the utility’s pursuit to obtain protection from pollution liability, cost overruns, and related business risk.

In parallel with the business risk management activities, ELM has managed the liabilities on behalf of our client by providing end-point driven, risk-based strategic and technical direction including the implementation of innovative investigation and remediation technologies. These business and technical tools have proven to be a means to achieve (a) priority-based allocation of resources to address short-term liabilities, and (b) development of a phased-approach to addressing long-term liabilities. ELM’s strategic partnership with Graves Law Offices also provides for seamless legal, technical, and financial planning, which is a distinct advantage that sets ELM apart when dealing with sites where regulatory agencies are involved.

ELM’s approach of managing each site utilizing risk-based decision analysis, combined with the, integration of natural resource damage assessment (NRDA) liability management, results in providing the client with the necessary information for cash flow management, operating budgets, life cycle costs and reserve estimation.

Case Study Nine

Wetlands Delineation, Permitting and Mitigation at Landfill Superfund Site

As part of a CERCLA remedial action, federal agencies overseeing the Dorney Road Landfill remediation determined that seven (7) acres of jurisdictional wetlands on top of the landfill would be filled by construction of a landfill cap. ELM staff conducted a wetland assessment and prepared an expert report to the USEPA, on behalf of the PRP group, outlining the extent of the wetlands and determined that there were considerably less than seven acres of wetland present at the site.The expert report documented the actual extent of wetland and was used to reduce the amount of wetland the PRP Group was responsible for replacing to only three (3) acres, in lieu of the initial seven acres.

Upon receiving USEPA agreement of the expert report, ELM staff conducted a semi-quantitative assessment of the values and functions of the wetlands on top of the landfill using Wetlands Evaluation Technique (WET 2.0). The results of the WET assessment were used to develop a conceptual design for the replacement wetlands. Moreover, a comparative evaluation of the values and functions of the preliminary (30%) design, for the replacement wetland and the impacted wetland was conducted using Wetland Replacement Evaluation Procedure (WREP). WREP was used to refine the design. The preliminary (30%), intermediate (60%), pre-final (90%), and final design (100%) phases for the replacement wetland were all completed and approved by the Pennsylvania DEP, USACE, USFWS, and USEPA Region III approval, with minimal comment. The final design included a detailed design for the replacement wetlands, vegetation planting plans, an operation and maintenance plan, and a 5-year performance-monitoring plan.

To date, the replacement wetlands have effectively replaced all of the values and functions of the wetlands that were filled in order to cap the landfill, at less than half of the original expected cost to the PRP Group.

Replacement wetlands – Landfill located to left of wetland in photograph.

Case Study Ten

Environmental Liability Transfer Agreement for a proposed Walgreen’s development site.

A former dry-cleaning business had operated on the southern portion of a proposed Walgreen’s development site in Belleair Bluffs, Florida from the early 1960s until 1974. Environmental site investigations conducted at the proposed Walgreen’s site prior to development identified dry cleaning solvents within groundwater samples collected from the surficial aquifer occurring approximately 6 to 28 feet below the ground surface.

The Florida-based Walgreen’s developer was unwilling to accept sole ownership for environmental liabilities associated with the site. Furthermore, as a condition of project financing, the developer was required by its lender, Bank of America, to execute a liability transfer agreement that included a guaranteed fixed price remediation contract along with Clean-up Cost Cap (CCC) and Pollution Legal Liability (PLL) insurance to address environmental liabilities at the site via a Voluntary Clean-up Agreement (VCA) with the State of Florida.

Other environmental remediation companies were initially involved in the proposed liability transfer but none were successful in obtaining cost cap insurance with an attachment point agreeable to the developer. ELM was requested to provide a proposal including cost cap insurance. Following development of a work plan and cost estimate, which included the assumption of certain risks by ELM outside the scope of the insurance coverage provided, ELM obtained the necessary insurance with an agreeable attachment point for the developer.

An Environmental Liability Transfer Agreement was then executed in September of 2002 by the Florida-based Walgreen's developer and ELM. ELM is securing a Site Rehabilitation Completion Order (SRCO) from the Florida Department of Environmental Protection (FDEP) for a proposed Walgreen’s development site located in Belleair Bluffs, Pinellas County, Florida.

To address groundwater contamination associated with the Walgreen’s site, a Voluntary Cleanup Agreement was executed with the FDEP in December of 2002. Per FDEP’s request for delineation of the contaminant plume at down-gradient locations, ELM contacted off-site property owners to request access, installed off-site groundwater monitoring wells, and conducted groundwater monitoring at up-gradient and down-gradient locations. ELM implemented an FDEP-approved remedial action plan in April 2003 and November 2003 involving direct injection of potassium permanganate at the source of the plume located below the Walgreen’s building. ELM is currently in the process of conducting post-remedial groundwater monitoring to document the success of the clean up. Work continues at this site to complete post remediation groundwater monitoring and closure is anticipated to be achieved  in 2005.