Roux Associates assessed environmental legacy liabilities at hundreds of former wood treating, thorium, mining, petroleum, perchlorate, agricultural-chemical and other industrial operations of a publically traded company. The company had been previously spun off from a parent company, filed for bankruptcy and then filed suit against the parent company alleging that the spinoff was a fraudulent conveyance.
Roux Associates estimated the future costs at the time of the spin to assess and remediate about 70 properties that were disclosed in connection with the spin based on, among other things, professional experience, engineering methods. site-specific information and guidance provided in ASTM E2137-06 (Standard Guide for Estimating Monetary Costs and Liabilities for Environmental Matters) and ASTM E-2173-07 (Standard Guide for Disclosure of Environmental Liabilities).
Roux Associates also identified hundreds of additional properties that were not disclosed at the time of the spin to estimate the total environmental liabilities for both disclosed and undisclosed properties.
In addition, Roux Associates evaluated the Asset Retirement Obligations (AROs) at several facilities.
Roux Associates also assessed the adequacy of current environmental reserves at about a dozen properties under Generally Accepted Accounting Guidance (GAAP) considering the Statement of Position 96-1 (1997 AICPA, Inc., Journal of Accountancy), Statement of Financial Accounting Standards No. 5, Accounting for Contingencies (March 1975, Financial Accounting Standards Board) and professional guidance and experience.