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LSI 2010 NRD Santa Fe final conference binder 072110.pdf

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Linda R. Larson of Marten Law PLLC<br />

J. Scott Janoe of Baker Botts LLP<br />

Speaker 21: 1<br />

Speaker 22: 1<br />

Natural Resource<br />

Damages and<br />

Bankruptcy<br />

Lessons from In re ASARCO LLC<br />

Linda Larson, Marten Law<br />

Scott Janoe, Baker Botts L.L.P.<br />

HOU03:1242588<br />

Context and Overview<br />

<br />

Over 100 year old integrated mining, smelting & refining<br />

company<br />

Filed for reorganization under Chapter 11 in 2005<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

$6.5 billion in environmental claims filed against the estate<br />

involving 53 sites in 19 states<br />

Both owned and unowned properties<br />

Four year bankruptcy process:<br />

Majority of sites were settled for unchallenged amounts<br />

13 days of evidentiary hearings on remaining 3 sites<br />

“Global Settlement” with governments for $1.6 billion<br />

Resolved additional "owned property" liabilities in custodial trusts<br />

Additional 2 days of hearings on challenges to settlement<br />

Debtor received covenant not to sue & contribution protection<br />

1<br />

Law Seminars International | Natural Resource Damages | 07/16/10 in <strong>Santa</strong> <strong>Fe</strong>, NM

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