AECOM

Site Closure Strategies: Reducing Remediation Liabilities & Costs

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Courtesy of AECOM

Industrial companies face the daunting task of managing investigations and clean-ups at thousands of contaminated properties. In staying abreast of new technology and ever-evolving regulatory programs, companies must address many challenges involving regulations, technologies, and expenses. To successfully manage the costs and risks for each project, it is important to:

1) Focus on the ultimate goal of regulatory closure, using an integrated site closure (ISC) approach;
2) Periodically revisit and re-assess the design basis for the remediation strategy, with a remediation system evaluation (RSE), and
3) Carefully manage and control operations and maintenance (O&M) costs and performance.

Integrated Site Closure (ISC)
Integrated site closure (ISC) refers to the seamless integration and delivery (either by self-performing or by subcontracting) of the chain of remediation activities needed to achieve 'regulatory closure' at contaminated properties. These activities include: agency negotiation, site investigation, risk assessment, feasibility evaluation, design engineering, remediation, operation and maintenance, and monitoring. In essence, ISC starts with the end in mind.

Recognizing the interrelation- ships of the steps of the remediation process, an ISC approach combines assessment and remediation in a comprehensive site closure strategy to develop a more responsive, accurate, and cost-effective solution than can be achieved by a traditional remediation approach. ISC projects often involve a multi-disciplinary team of scientists, engineers, and regulatory experts working on agency negotiations, site investigation, risk assessment, feasibility evaluation, design engineering, remediation, and the operation and maintenance of hazardous waste sites -- all in order to move the project steadily toward the goal of efficient site closure.

ISC Case Study: Saving $165K While Turning a Brownfields Green
ENSR's ISC approach saved The Fort James Company time and money during the closure of a former paper-manufacturing site that had operated as a mill for over 100 years in a historic area of wetlands and floodplain in New Jersey. Over many years of operation, the buildings, nearby soils, and riverbanks were contaminated with PCBs and, to a lesser degree, heavy metals. ENSR worked closely with the client, regulatory agencies, and the NJ Historic Society from the initial assessments through the final construction, successful closure, and disposition of the property to the NJ Green Acres Program.

According to a Fort James project manager, 'There were many key steps in this project that resulted in cost avoidances/reductions and the turn-key approach ENSR provided to us for the project….kept the cost down and the production up on the site.' In a key cost-saving step, the ENSR ISC team conducted baseline ecological and human health risk assessments for Alternative Cleanup Criteria documentation, and used these findings to successfully negotiate site-specific alternate clean-up standards with the NJ Department of Environ-mental Protection. ENSR also worked closely with the NJ Historical Society to preserve the building footprint and foundations; this kept the project schedule on-track and resulted in additional savings.

The bottom line: ENSR's ISC team saved The Fort James Company $165,000 in remediation costs, and kept the project schedule on track.

Remediation Systems Evaluation
A key component of ISC is a Remediation Systems Evaluation (RSE). An RSE is a proven strategy to help businesses save significant money and time at remediation sites. In addition, RSEs help companies improve the effectiveness of their clean-up plan, reduce their liabilities, and achieve site closure. These reviews are crucial, because even a five-year-old remediation program may no longer be the most cost-effective strategy, due to changes in operating and monitoring requirements, site conditions, regulatory controls, or technology advances that affect even well-designed systems.

 


There are several common problems that RSEs reveal, such as unclear remediation objectives. For example, it is important to establish whether the goal is hydraulic containment, receptor protection, or remediation. Conflicting criteria for cost decision making is another common stumbling block; frequently, the need to achieve containment (to minimize costs) conflicts with the need for remediation (that minimizes time). Performance criteria -- such as concentration, flow rate, mass removal and exposure -- can also clash. In some cases, performance and cost decision-making do not align, such as when costly upgrades are made to poorly performing systems. And often, it is revealed that expensive monitoring data is collected, but never used.

ENSR's RSE Approach
ENSR has developed an eight-step RSE process that helps reveal these types of problems and create a comprehensive approach for the future management of a site. Note that RSEs are not intended as detailed engineering specification projects, nor are they formal demonstration of technical feasibility.

Step 1: Identify Systems Objectives
An important first step for any RSE is to establish the objectives of the remediation program, such as containment, clean-up or receptor protection. In each case, the ultimate goal of the RSE is to assist the owner in meeting the objectives of the remediation program while seeking to lower costs, shorten project timelines, improve effectiveness, reduce liabilities, and achieve site closure.

Step 2: Evaluate Current Operating Criteria
Engineers review ongoing compliance strategies and long-term closure strategies. Financial information is also scrutinized to determine the percentage of annual costs allocated for O&M engineering, electricity, sampling reporting, project management, etc.

Step 3: Compile Data
Among the copious documentation to amass are: internal annual project review reports; the last three year's worth of regulatory correspondence; controlling remediation documents; copies of permits (from RCRA, NPDES and Air); and system O&M manuals. During the review, we also gather monthly discharge reports; record drawings and P&ID for remediation systems; financial summaries; boring logs and well construction details; flow rate records; chronology of down times, significant upgrades and repairs; summaries of general obligations for sites; and regulatory contacts.

Steps 4-8: Evaluation
The last four steps assess alternative criteria; present performance and costs; cost reduction and options for the current system; low-cost enhancements; and high-cost enhancements.

RSE Case Study #1: Manufacturing Facility Saves More than $400,000
ENSR performed an RSE in 1998 for a former manufacturing facility in North Carolina with chlorinated volatile organic compounds (VOCs) in the soil and groundwater. The company had implemented a groundwater pump and treat system, with limited SVE.

We found that the company could obtain cost savings in several areas. O&M labor costs were reduced by utilizing one senior-level plant operator and pushing down more responsibility to the operator, while moving reporting and database roles to off-site administrative staff. We also recommended RCRA permit modifications. The existing RCRA permit required extensive groundwater sampling. Changing the program allowed a shift from semi-annual to annual sampling and reporting, and the removal of wells and specific compounds from the reporting program. We reduced NPDES sampling costs by modifying analytical requirements and removing specific compounds. We also reduced operating costs by saving electricity, modifying the GWTS, and negotiating a change in waste disposal classification.

The bottom line: ENSR improved the operation of the groundwater extraction-hydraulic containment system, resulting in savings of almost $300,000 in the first year. In subsequent years (1999 through 2002), the company has saved an average of $100,000 or more.

RSE Case Study #2: Facility Saves $100,000 Through Natural Attenuation
A manufacturing facility with chlorinated VOCs in the groundwater had been resisting the installation of an active remediation system at the site, however, the company had been denied requests for a variance from state groundwater (GW) standards. ENSR's RSE suggested that VOCs in groundwater did not leave the site or reach a nearby lake in detectable concentrations, and that GW standards could be attained in 4.5 to 5.5 years through natural attenuation. Our review of active remediation options indicated that the VOCs would only have a marginal effect on the clayey and silty soils at the site. At the same time, active remediation options would disrupt facility operations, potentially expose workers to contaminated groundwater, and transfer contaminants to the atmosphere that otherwise would have degraded in the subsurface. These options also would have been cost prohibitive.

The bottom line: For $20,000, ENSR demonstrated that natural attenuation was an effective alternative to active remediation. The client saved $100,000 compared to the active remediation of a hot spot at the site, which could have cost between $125,000 and $150,000.

Outsourcing Site Operations and Maintenance
An RSE can lead to a recommendation to out-source the operations and maintenance (O&M) of a site. Outsourcing O&M of a remediation program to a qualified environ-mental services firm (the O&M provider) enables a company to closely manage cost and performance, while focusing their energy on core business.

A long-term fixed-price and fixed- performance contract requires the O&M provider to have a monetary stake in effective maintenance and system performance. Extended contract terms (e.g., five to 10 years long) and/or a portfolio of multiple sites affords the O&M provider the opportunity to leverage better pricing from vendors and to provide the owner with superior rates and margins based on job security, lower proposal costs, and lower contract administration costs. This is leverage neither party can wield during the proposal phase of the traditional T&M contract.

The O&M provider thus becomes a partner. Given an incentive to maintain and operate equipment in the most cost effective manner possible, the O&M provider must carefully manage costs, not just pass them through to the owner. For example, the scope of work and base equipment repair and replacement costs are established and agreed upon during contract negotiations. Also, the O&M provider must balance risk and reward when establishing pricing. Extended contract terms allow the provider a mechanism to reduce risks, in part by averaging out the cost of periodic upsets and non-scheduled maintenance over time; this reduces cost over the long term for the owner. In addition, an O&M contract achieves project efficiencies by centralizing communications and standardizing project management measures and practices -- all of which translate into lower owner costs.

O&M Case Study: ENSR's Fixed-Price O&M Services on a Multi-Site 5-Year Contract
In January 2000, ENSR implemented a five-year O&M contract with a major manufacturing company to manage all aspects of the ongoing remediation at four legacy sites in the Carolinas. For a fixed monthly fee, ENSR provides regular O&M labor, sampling and reporting by state licensed treatment plant operators, as well as required performance monitoring and reporting. ENSR also provides utilities, supplies, sub-contracted maintenance and repair along with Benefits to the client include stable predictable cash flow, reduced administrative and contract management time, centralized project management and contacts for all aspects of the O&M program, with lower overall project costs.

Bottom Line Results
Outsourcing O&M, RSEs, and an overall ISC approach are three remediation strategies proven to eliminate much of the uncertainty and risks associated with contaminated properties, as well as facilitate regulatory closure. By employing these strategies, managers are able to free up cash flow and maintain regulatory compliance, while reducing both financial liabilities and remediation reserves.

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