Environmental Liability Valuation of Predecessor Liability Related to Tronox Incorporated Bankruptcy
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Geosyntec supported the valuation of past and potential future environmental liabilities for a portfolio of historic sites including mines, ore processing operations, and related secondary manufacturing facilities.

Geosyntec was retained as an environmental consulting expert through outside counsel for a party engaged in adversary proceeding litigation associated with the Tronox Incorporated bankruptcy. Our client needed to understand the value of the historic environmental liabilities related to legacy operations. This environmental liability valuation (ELV) was performed in support of our client’s litigation strategy.

Geosyntec's Scope of Services

Geosyntec supported remedial cost estimates and other evaluation of a portfolio of more than 2,000 sites. The portfolio included a highly diversified suite of facilities, including mines and ore processing facilities, and radioactive material processing and disposal sites; wood treatment plants; refineries, storage terminals, and gas stations; and chemical manufacturing facilities. The portfolio of sites included active and inactive facilities, owned and non-owned properties associated with legacy operations, as well as third-party sites with potential environmental liabilities.

Site-specific references were provided in a proprietary document management archive containing several million documents, which Geosyntec reviewed for relevant environmental and costing information. Using industry standards for ELV and information located in the document archive, Geosyntec supported the evaluation of the cost of future site remedial scenarios. We supported the preparation of experts who would testify on the environmental cost analysis pertinent to each site. Geosyntec’s supported the development of cost models using a probabilistic decision-tree approach based on published and site-specific environmental remediation unit cost data.

Notable Accomplishments

Geosyntec’s knowledge of diverse remedial scenarios and cost estimating strategies, coupled with its ability to rapidly assess, understand, and manipulate the reference material in the document management database provided our client and counsel with a comprehensive understanding of environmental conditions at the sites. Geosyntec mobilized a team of internal experts in remediation, cost estimating, and document management, to support the overall litigation strategy and testimony development for this high profile matter. This case resulted in the largest every recovery relating to governmental environmental claims and liabilities.