Gradient

Environmental Cost Analysis

Environmental Cost Estimation

Overview
Example Projects
Experts

Overview

Gradient's expertise in environmental cost estimation covers estimating and evaluating costs for individual sites and on a site-portfolio basis in a wide variety of litigation and non-litigation contexts, including regulatory disclosure, settlement valuation, damages estimation, remedy negotiation, bankruptcy claims, insurance claims, and mergers & acquisition (M&A). Our work has included developing future cost estimates as well as evaluating past expenditures. Our technical and quantitative expertise, in conjunction with our relevant experience in environmental accounting and economics, allows us to provide decision-makers with a clear understanding of contingent environmental liabilities and their proper valuation.

Example Publications:

Herman, KD. 2012. "Environmental Liability Cost Estimation (ELCE) at MGP Sites." Presented to the MGP Consortium, Savannah, GA, January 25.

Langseth, DE. 2009. "Remedial cost allocation cash out valuation under uncertainty." Environ. Claims J. 21(1):62-72.

Langseth, DE. 2008. "Valuing environmental remediation liability transfers." Environ. Claims J. 20(1):2-22.

Environmental Cost Estimation Worksheet

Example Projects

Reasonable and Necessary Cost Determination

Full Description

Gradient evaluated the cost related to decontaminating tanks containing PCB-contaminated oil to determine whether it exceeded the range of what was considered reasonable and necessary. We developed an independent cost estimate for the work scope, evaluated cost estimates prepared by others at the time the work was performed, and evaluated the cost documentation intended to support the claim.

Port Authority Cost Recovery

Full Description

Gradient evaluated the activities and expenditures related to remedial investigations conducted for four sediment remediation projects. We reviewed technical documents, consent orders, contract agreements, and invoices to determine whether consultant fees could be identified as defense-related costs.

Environmental Liability Cost Estimation for Financial Reporting

Full Description

Gradient prepared environmental liability cost estimates for a portfolio of utility sites. We used probabilistic cost modeling tools to develop a total cost distribution, cash flow forecast, and expected value for each site. Our approach provided a framework to address the uncertainty in estimating contingent liabilities and allowed the disclosure of defensible, representative estimates of the liabilities.

Remedy Negotiation Support and Liability Cost Estimation

Full Description

Gradient evaluated the need for and environmental liability costs associated with a US EPA-led, time-critical removal action for a former MGP site. We identified critical gaps in the site data and suggested a revised investigation and remedial approach. We used probabilistic cost modeling tools to develop a range of cost estimates for the proposed remedial actions.

Natural Resource Damage Settlement Evaluation

Full Description

Gradient evaluated the basis for a proposed natural resource damage (NRD) settlement offer at a Great Lakes Superfund site. Using benchmarking analysis techniques, we quantitatively compared NRD settlements at other sediment sites to our client's offer, and we considered the nature and extent of the ecological harm and our client's role in releases that caused it.

Experts

Andrew B. Bittner Read Bio

Kurt Herman Read Bio

David E. Langseth Read Bio

Manu Sharma Read Bio