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Case Study: Environmental Liabilities at Manufactured Gas Plants Services

Risk-Based Cleanup—Comprehensive environmental services to a major Oregon utility for a former MGP site located on the Willamette River.  Working with outside counsel, conducted extensive historical evaluations to identify and engage PRPs and allocate MGP properties.  Negotiated implementation of an RI/FS under PRP participation agreement to avoid litigation.  Regulatory strategies and phased site investigation approaches are being used to focus work efforts and remedial costs.  Site-specific human health and ecological risk approaches and other factors were developed to support a remedial action relying on engineering and institutional controls (allowing partial public use).

Source Identification and Cost Allocation—Litigation and expert witness support to resolve source and cost allocation disputes for a former MGP site now located beneath a densely developed area in Seattle, Washington.  Performed hydrogeologic evaluations, chemical fingerprinting analyses, and site reconstruction to distinguish impacts from the former MGP from other hydrocarbon sources (former coal-fired power plant, iron foundry, wood treatment facility, and nearby railroad terminal) that resulted in remedial actions unrelated to our client’s former MGP operations.  Exponent’s expert report resulted in a favorable outcome for our client.

Cost Allocation—Analysis of third-party cost allocation to resolve liability disputes at a former MGP in St. Augustine, Florida.  A primary issue centered on the approach for an allocation metric and whether an analysis based on the presence of specific equipment used during different periods of operation, or annual tar generation, were better methods.  Another issue was how to resolve allocation when operations changed from light oil to heavy oil feedstock (with potential onsite disposal of emulsions) in the water-gas process.  Exponent also provided an independent allocation method, which we believed to be more equitable.

Forensic Analysis in Insurance Coverage Dispute—Examination of historical operations and present-day contamination patterns at four MGP sites in New York City to determine the sources of contamination.  Analyzed historical operations taking into account technological changes and economic factors affecting the industry at different points in time.  Sites included one of the earliest MGPs (1834) and some of the largest in the country at different periods of operation.  The key issue addressed was whether the present-day contamination was due to normal operating practices or due to unforeseen (accidental) spills and leaks.

Insurance Coverage Arbitration—Technical support to counsel for insurer’s defense team during litigation related to 23 former MGP sites in Michigan, with a focus on sites in Zilwaukee, Kalamazoo, East Flint, Jackson, and Lansing.  The issue in each case was the determination of “sudden and accidental” events that might have occurred during the policy period that would trigger insurance coverage.  Exponent provided testimony during arbitration hearings focused largely on the behavior of the materials of construction of MGP waste storage vessels, both above and below ground, and the release of constituents of interest to underlying soil.

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