Closure and Repurposing of a Superfund Site

Globeville Smelter Facility

Project Specs

  • Complex Industrial Site Closure
  • Environmental Liability Transfer
  • Negotiated Administrative Order on Consent (AOC)
  • Escrowed Environmental Assurance Mechanism
  • Prefunding of Remediation and Long-term OM&M
  • Probabilistic Risk Modelling
  • Pollution Liability Insurance for Unknown Conditions

Project Approach

Members of the DECARB team created and implemented the framework for the closure and post closure OM&M of ASARCO’s Globeville Smelter Facility in Boulder, Colorado. The closure was subject to a “work substitution” Administrative Order on Consent (AOC) that was negotiated with the purchaser to relieve the responsible party of primary work obligations. 

While the responsible party was not fully released of its clean-up obligations, the AOC provided for the regulatory authorities to look solely to the purchaser for performance of required remediation and for the seller to be liable only after a documented and properly noticed event of default is achieved under the AOC.

A fixed price remediation contract was negotiated to support the closure effort and funds were escrowed at closing.  Remediation funds were drawn from escrow on a monthly basis with full transparency to the prior responsible party, who had rights to object to individual draws or line-item costs.  The contract provided incentives to the contractor to close out the work for amounts equal to, or lower than the target price. 

Post-closure O&M costs were funded into the escrow under a separate category and were drawn by the contractor with similar incentives to minimize the amount and duration of post-closure O&M work.  Excess funds from the escrow were shared between the seller, purchaser and contractor at remedial closure and at cessation/termination of all required post-closure O&M.

The purchaser provided robust pollution liability insurance to the seller that provided coverage for remediation costs associated with unknown pollution conditions.