LSI 2010 NRD Santa Fe final conference binder 072110.pdf

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Angus Macbeth of Sidley Austin LLP Speaker 24a: 4 WHAT HAPPENED? Price of copper rose 500% since Jan 2003. 7 “PROTECTING THE GOVERNMENT FROM UNWARRANTED NRD CLAIMS” Ohio v. Department of Energy (S.D. Ohio 2008) DOE uranium processing facility in Fernald, Ohio. $13.75 million in restoration account to restore, replace or acauire the equivalent of injured natural resources; a covenant restricting most types of future development at the site. In 1996, GAO estimated DOE’s total NRD liability as likely to be in the range of $2.8 to $13 billion (CEQ’s estimate was $159-611 million) Colorado v. U.S.; U.S. v. Shell Oil Co. (D. Colo. 2009) Rocky Mountain Arsenal U.S. will pay Colorado $7.4 million, following Shell’s agreement to pay state $10 million for NRD, and undertake certain other monetary and property donations. 8 Law Seminars International | Natural Resource Damages | 07/16/10 in Santa Fe, NM
Angus Macbeth of Sidley Austin LLP Speaker 24a: 5 CLAIM VALUED BY HABITAT EQUIVALENCY ANALYSIS (HEA) – COMMENCEMENT BAY U. S., Washington, Puyallup Tribe of Indians & Muckleshoot Indian Tribe v. General Metals of Tacoma, Inc. (W.D.Wash. 2008); U.S. et al. v. Occidental Chemical (W.D.Wash. 2009); U.S. et al v. Petroleum Reclaiming Service (W.D.Wash 2009); Large array of metals and chemicals found in Commencement Bay Environment. Assessment began in 1991. “Trustees used the term discounted ecological service acre-years (DSAYs) to describe the scale of injuries, and the amount of habitat restoration they are seeking to compensate for the injuries.” Funds, property, or in-kind services sought to compensate for lost DSAYs. Defendants allocated liability for X number of DSAYs and proportionate damage assessment costs. Restoration project defendant agrees to undertake set out in Appendix 9 HABITAT EQUIVALENCY ANALYSIS HEA attempts to ensure that restoration projects create or restore the same quantity of services that were lost through release of hazardous substances. Including lost interim services. Commencement Bay: U.S. v. AOL Express, Inc. (W.D. Wash. 2006): Levee relocated, restored natural flow of river, provided 66 acres of salmonspawning habitat and other benefits. PRP group funded $2.3 million project, paid $150,000 oversight costs, and their own cost of oversight, settling monetary claim of abt. $13.5 million Bore risk that project would fail to produce benefits See Lacampagne & Miller, “Settling NRD Claims by Appropriately Valuing Injury and Damages,” 24 NR&E No. 1 (2009) Critique of HEA: Dunford, Ginn & Desvousges, “The use of habitat equivalency analysis in natural resource damage assessments,” 48 Ecological Economics 49 (2004) 10 Law Seminars International | Natural Resource Damages | 07/16/10 in Santa Fe, NM
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L A W S E M I N A R S I N T E R N A
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Thursday, July 15, 2010 Natural Res
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James A. Bruen, Richar
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Table of Contents Topic Speaker # C
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Faculty for Natural Resource Damage
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James A. Bruen of Farella Braun + M
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Richard O. Curley, Jr. of Curley &
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John Carlucci of U.S. Department of
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Nathaniel Barber of New York State
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Ken L. Frank of Chevron Environment
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Sheri L. Moreno of General Electric
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Linda R. Larson of Marten Law PLLC
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Allan Kanner of Kanner & Whiteley,
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