2005 CPEO Brownfields List Archive

From: Bruce-Sean Reshen <reshen@mindspring.com>
Date: 11 Feb 2005 22:49:09 -0000
Reply: cpeo-brownfields
Subject: [CPEO-BIF] VI and Environmental Insurance
 
A comment on Sue Neuman's remarks.  Sue is correct that many of the issues surrounding reopeners and failed engineering controls and institutional controls could be solved by thorough underwriting and use of EC and IC insurance.  The risk that such controls are improperly implemented can be mitigated by a rigorous review of the IC Implementation Plan by both the regulatory authorities and the insurer.  Better to catch any error or inadequacies before the plan is implemented.  Likewise the risks associated with inadequate monitoring, maintenance and reporting can be mitigated by such measures as 1)a mandatory review of the EC and IC O&M Plans by both the regulatory authorities and the insurer; and 2)an in place program of frequent inspection, monitoring and reporting by neutral third parties.  I note that the only major program of IC insurance mandates such third party monitoring and reporting as a prerequisite to obtaining the IC insurance.

However, none of the above measures would protect a developer against risks not associated with the in place IC Implementation Plan and IC O&M Plan.  Thus, the unfairness of saddling the developer with the costs associated with VI issues when such issues were never raised in the original remediation requirements.  Again, developers should be willing and able to deal with VI risks in new projects going forward.  They have no such ability to deal with VI risks on closed sites where such risks were not addressed in the original remedial design.  It would be counter productive the burden them with these costs retroactively.

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