Tag: Storm Water Runoff

  • Wal-Mart’s Environmental Risk Transfer Strategy

    A few years ago we told you about Wal-Mart paying a multimillion dollar fine to the EPA for storm water runoff from their construction sites.  The fines were generated through the construction vendors Wal-Mart hired to do work for them.

    We suggested one strategy Wal-Mart would probably institute would be requiring certain vendors they hire to evidence proof of environmental liability insurance.  That day has arrived.

    Over the course of the last few weeks we have had agents contact us on insureds looking to do work for Wal-Mart but in order to even offer a bid a vendor has to be able to include with their bid package an insurance certificate evidencing proof of Contractors Pollution Liability (CPL) insurance being in force.  So Wal-Mart has gone a step further and said if you do not have CPL in place we do not want you to even submit a bid to us.

    In other words, No CPL, no work with Wal-Mart.

    We all know that Wal-Mart carriers a big stick and the businesses they impact are vast.  So if it makes good business sense for Wal-Mart to require CPL insurance I am sure you will see vendors of Wal-Mart along with other businesses implementing this same risk transfer strategy.

    environmental Strategist, risk management strategy:  For years we have stated that environmental insurance allows insureds to use the environmental insurance they purchase as a marketing tool to drive growth and profits.  Wal-Mart has now reinforced this and do not be surprised when this becomes a requirement for more and more contractors bidding jobs.  We have been seeing this trend growing for years and with companies like Wal-Mart getting on board it just solidifies that CPL coverage will become part of doing business for contractors.

  • Mercury Sediment Carried Forth by California Floods

    environmental Strategist, between the lines:  I don’t care where you own property in the United States, historical contamination is a massive environmental exposure for real estate owners.

    This article gives an excellent overview on the impact storm water runoff has on third party properties from historical contamination.

    This also highlights how historical mining operations are causing environmental liabilities for unsuspecting property owners.  Out of sight, out of mind is the attitude of the masses but this has proven to be catastrophic for tens of thousands of real estate owners.

    I recently drove from Denver to Aspen, throughout the mountains you can see old mines scattered along the hill sidess.  Each one of these mines represents a contamination source to the local environment.  A number of years ago Copper Mountain Ski area in Colorado was cited for exacerbating contamination while performing their snow making operations.  Copper Mountain was pulling water from the river that flows along the base of Copper Mountain for snow making.  Unknown to Copper Mountain was that the river is full of old mine tailings causing contamination.  When Copper Mountain pulled the contaminated water from the river for snow making and spread it on their ski runs they exacerbated the extent of the contamination.

    Mercury Sediment Carried Forth by California Floods

    From: Robin Blackstone, ENN
    Published October 29, 2013 01:59 PM

    Mercury contamination in sediment has been a big concern in the Central Valley lowland areas of California. But associate researcher from the University of California, Michael Singer has unearthed new information and considerations utilizing modern topographic datasets and modeling to track mercury-laden sediment. Singer hypothesizes that the progradation process resulting from 10-year flooding events within the valleys below the Sierra Nevada Mountains are the key to understanding and tracking the presence of mercury. Singer has connected the mercury amalgamation process, which was used to extract gold from the mountains during the 19th century with the current high incidence of mercury in regional delta sediment.  

    Documented by Singer, the progradation process results from a combination of flood driven fan erosion and sediment redistribution over time into the valley. Of particular note are the floods of 1986 and 1997 of the Yuba River, which churned up deep river valley sediments containing toxic remnants of the gold mining amalgamation done more than 150 years prior.

    The ecological impact of mercury presence throughout the sediment is significant because mercury is taken up into the food webs. This coupled with regional shifts in climate, poses a huge risk to the lowland ecosystems and the human population because many people eat fish from this system.

    The initial discovery of the connection between the sediments and the gold mining was happenstance as the research team identified huge pockets of coarser sand in amongst sediment. This led them to ask why there was so much sand in the area.

    “We thought that was quite strange because the floodplains around us were so much finer — composed of silt and clay materials,” recalled Singer. “So we followed the signs and ended up in a huge sand mine. They were mining sand by the truckload for the construction industry and said they would be doing so for at least the next several decades.”

    Singer posits that because the upstream Yuba was the biggest gold-mining drainage of all the Sierra drainages used in the 19th century, it made sense to suspect the presence of possible mercury.

    The research team compared gold rush data with modern topographic datasets, which showed that the Yuba River was progressively cutting through the sediment and in the process leaving behind massive contaminated terraces along the riverbank. Flood data and modeling indicate that these terraces move only when a flood event is big enough to saturate them so that the terraces fail and the mercury-laden sediment is carried and driven downstream.

  • Cement Manufacturer Agrees to Reduce Harmful Air Emissions at Colorado Plant


    WASHINGTON— April 19th: The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ) announced today that CEMEX, Inc., the owner and operator of a Portland cement manufacturing facility in Lyons, Colo., has agreed to operate advanced pollution controls on its kiln and pay a $1 million civil penalty to resolve alleged violations of the Clean Air Act (CAA). 

    “Today’s settlement will reduce harmful emissions of nitrogen oxides, which can have serious impacts on respiratory health for communities along Colorado’s Front Range,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance.  “Cutting these emissions will also help improve environmental quality and visibility in places like Rocky Mountain National Park.”

    “The settlement is part of the Justice Department’s continuing efforts, along with the EPA, to bring significant sources of air pollution within the cement manufacturing sector into compliance with the Clean Air Act.” CEMEX

    The Department of Justice , on behalf of EPA, filed a complaint against CEMEX alleging that between 1997—2000, the company unlawfully made modifications at its Lyons plant that resulted in significant net increases of nitrogen oxide (NOx) and particulate matter (PM) emissions. The complaint further alleges that these increased emissions violated the CAA’s Prevention of Significant Deterioration and Non-Attainment New Source Review requirements, which state that companies must obtain the necessary permits prior to making modifications at a facility and install and operate required pollution control equipment if modifications will result in increases of certain pollutants.

    As part of the settlement, CEMEX will install “Selective Non-Catalytic Reduction” (SNCR) technology at their Lyons facility, which is an advanced pollution control technology designed to reduce NOx emissions. This will reduce their NOx emissions by approximately 870 to 1,200 tons of NOx per year. The initial capital cost for installing SNCR is approximately $600,000 and the cost of injecting ammonia into the stack emissions stream, a necessary part of the process, is anticipated to be about $1.5 million per year.

    The settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions, including Portland cement manufacturing facilities.

    NOx emissions may cause severe respiratory problems and contribute to childhood asthma. These emissions also contribute to acid rain, smog, and haze which impair visibility in national parks. CEMEX’s facility is located within 20 miles of Rocky Mountain National Park, and its emissions may contribute to visibility impairment and to the nitrogen pollution problem that is affecting the park’s vegetation, water quality, and trout populations. Air pollution from Portland cement manufacturing facilities can also travel significant distances downwind, crossing state lines and creating region-wide health problems.

    More information about the settlement: http://www.epa.gov/enforcement/air/cases/cemex-lyons.html

    More information about EPA’s national enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html