Innovative Liability Management Services
Difficult situations require creative solutions and, if managed properly, can result in cost savings. BBJ Group’s Innovative Environmental Liability Management (ILM) solutions help clients identify, evaluate, and implement creative strategies to mitigate pollution-related environmental liabilities. The approach emphasizes four elements: (1) the design and negotiated acceptance of cleanup and closure strategies that include site-specific cleanup objectives that limit liability, (2) early case resolution and other settlement strategies, (3) prospective purchaser agreements that avoid liability, and (4) land reuse that minimizes liability impact on asset value.
ILM services provide clients with alternative paths to regulatory compliance that reduce the value of expected liability and improve cash flow, considering short-term and long-term risk. The purpose of the work is to improve the quality of client investment decisions (in liability reduction) and risk management. This information enables value-based decision making, resulting in improved performance of financial resources and impaired assets at acceptable risk.
BBJ Group’s services create shareholder value by improving balance sheets, reducing financial reserves, improving cash flow and profitability, reducing transactional cost, reducing dispute resolution cost, reducing environmental risk, improving Discounted Cash Flow Rate of Return on capital invested in liability reduction, and reducing third party exposures. The work products meet SEC disclosure rule requirements regarding environmental liability.
BBJ Group’s experience includes (1) the development of prospective purchaser agreements, (2) the valuation of financial covenants-not-to-sue, (3) the development of mitigation funds as regulatory mechanisms for settling pollution cleanup liabilities, and (4) the use of economic arguments to establish site-specific cleanup objectives.
BBJ Group’s work supports the narrative disclosure requirements and guidelines as prescribed by Sarbanes-Oxley (SEC Regulations S-K Items 101, 103, and 303) and GAAP requirements specified by the Financial Accounting Standards Board (FASB).
- Pollution Remediation
- Cleanup and Response Costs
- Control Costs
- Current and Future Pollution
- Compliance Obligations
- Current and Future Obligations
- Exit Costs
- Civil / Criminal Fines and Penalties
- Compensation Obligations
- Property Damage
- Economic Loss
- Legal Defense Costs
- Natural Resource Damages
- Public Property
- Degradation and Destruction
- Loss of Use
- Punitive Damages