Negotiating Settlements and Penalties Stemming From Environmental Audits

Description

Environmental self-audits are an essential part of a compliance program to ensure regulatory compliance; they offer an opportunity to correct potential violations, and, where violations are found, to reduce enforcement risk through self-reporting and negotiated settlements. While environmental self-audits may also provide evidence of violations, the sentencing guidelines give substantial credit for having strong prevention programs and self-reporting. Companies and their counsel may elect to use the audits in negotiations to prove a lesser penalty is warranted.

When faced with an agency enforcement action, companies should consider settlement of the charges and negotiating penalties. For companies to get in front of an investigation and potential settlement, counsel must recognize that, even though the EPA has published model settlement documents, each settlement provision must be considered on a case-by-case basis as each negotiated document is different.

Penalties are often the focus of settlement consideration, but counsel should expect the EPA to impose compliance obligations on top of penalties. The cost and realistic schedule for compliance should be given serious consideration. Counsel must also explore the possibility of having a portion of a penalty waived in favor of some supplemental environmental project.

Listen as our panel of environmental attorneys examines the key issues associated with a typical negotiated settlement that stems from self-reported violation identified in a self-audit. The panel will discuss commonly negotiated terms, immunity opportunities, and will provide guidance on negotiating penalties. The panel will also explore ways to achieve an outcome that will be fair and workable.