If you own, operate, sell or buy properties with Underground Storage Tanks (UST’s), Above Ground Storage Tanks (AST’s), or other environmental impairments, at some point you will be confronted with addressing issues relating to the allocation and funding of these liabilities. Aegis attempts to understand our clients financial needs, whether the end goal is to minimize long term liability or minimize project costs. To do this, we research potential funding sources for our clients in an effort recover costs for environmental liabilities and clean-ups.

Aegis Environmental, Inc. provides full service turnkey remediation services which include environmental claims management.

Funding of Environmental Liabilities

• Excess Liability Trust Fund (UST’s)
• Insurance
• Brownfield

Excess Liability Trust Fund Management

In 1987 the U.S.EPA mandated that every owner/operator of an underground storage tank (UST) posses $1,000,000 of financial assurance to cover UST remediation costs. Due to the high cost of private insurance and lack of internal capital to self-insure, many UST owners and operators were unable to comply. Many states, including Indiana, created UST funds to address this federal mandate. In 1988 Indiana created what is known as the Underground Petroleum Storage Tank Excess Liability Trust Fund (ELTF). If a UST owner takes the steps necessary to establish and maintain eligibility it may rely on the ELTF to pay for remediation of environmental liabilities arising from leaking underground storage tanks, any third-party claims, and certain legal fees incurred in defending the claim.

Aegis is knowledgeable in the submittal of ELTF claims and has assisted our clients in obtaining maximum reimbursement amounts for corrective action expenditures. Aegis assists our clients in applying for ELTF reimbursement in whatever capacity desired. Our fees are within ELTF reasonable cost guidelines. For further information on ELFT go to Indiana Excess Liability Trust Fund or contact Aegis.

Insurance

Due to a number of significant court decisions in the last decade, Indiana is one of the best states to recover clean-up cost for an environmental loss through insurance coverage under comprehensive general liability (“CGL”) policies. This means that one of the first questions an environmental consultant who really wants to help a client facing clean-up cost should ask if there are insurance policies. The most common and tragic mistake made is for a policyholder to fail to recognize potentially useful insurance coverage. Don’t let this happen to you!

Environmental liability is retroactive. A business or property owner can be held liable for contamination years after the business or property has been sold. The liability of environmental contamination stays attached to the property as it is sold, reducing its market value. Fortunately for the property and business owner, the historical insurance coverage also remains with the property.

In order to have the potential to benefit from current or previous insurance policies, you need to gather any evidence of coverage. Where can you find old policies? Here are some sources:

1. The Insurer
2. Accountants
3. Agent
4. Lawyer on Prior Claim
5. Lender
6. Customer or Co-venture
7. Board Member
8. Former Employee

If an old policy can not be found, Insurance “archeologists” are available to help. It is important to find all the “layers” (primary, umbrella, excess) of coverage that may apply.

These old insurance policies, used appropriately, can pay for the cost of site investigations, responsible party searches, defense related cost, and cleanup costs or other suitable settlements. For more information, please contact us.

Brownfield

A brownfield site is defined as a parcel of real estate that is abandoned or inactive; or may not be operated at its appropriate use; and on which expansion, redevelopment, or reuse is complicated; because of the presence or potential presence of a hazardous substance, a contaminant, petroleum, or a petroleum product that poses a risk to human health and the environment. The IDEM, in conjunction with the Indiana Development Finance Authority, and the Indiana Department of Commerce offers financial assistance in the form of grants and low-interest loans for site assessment, remediation, and demolition. Aegis is knowledgeable of the various aspects of the Brownfield program and has assisted our clients. To determine if your site is a good candidate for cleanup or possible funding under the Brownfield Program, contact Aegis.