Fixed-Price Cleanups: How To Enter Them In The Post-Cost Cap Insurance Era Using Captives and Other Cost Cap Alternatives

Lessons from Accomplished FPCs, When and Why to Use CCAs, and the Mechanics of Using a CCA

Recording of a 90-minute CLE webinar with Q&A


Conducted on Wednesday, February 24, 2016

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will review the legal mechanics of entering Fixed-Price Cleanups (FPCs) in the wake of Commercial Insurers’ 2011 exit from the Cost Cap insurance market. It is designed for counsel for property owners and prospective owners (including brownfield developers), remediation contractors, PRP groups, governments and bankruptcy debtors and creditors, all of whom share an interest in quantifying cleanup costs in a manner that is accurate, efficient, and will hold true over time. Our speaker will examine the use of Cost Cap Alternatives (CCAs) that have been approved and used to support FPCs since the 2011 demise of the Commercial Cost Cap market.

Description

Environmental cleanups come with many risks, including the risks of cost overruns and other exposures. Until 2011, the majority of FPCs relied on Cost Cap insurance. When Cost Cap dried up in 2011, a Cost Cap Alternative was invented from necessity, it has been used successfully to meet even the most rigorous forms of review (e.g., for “FOSETs”), and it carries many advantages over traditional Cost Caps.

Counsel should understand the advantages and disadvantages of using CCAs as well as when to use CCAs to reduce cleanup cost uncertainties (and, typically, also cleanup costs) that may create a hurdle to reaching agreement regarding the property involved.

Listen as our authoritative speaker examines the use of CCAs to support FPCs, including when and why to use CCAs. The speaker will also discuss the mechanics of CCAs and lessons learned from FPCs, as well as offer guidance for using CCAs in FPCs.

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Outline

  1. Use of CCAs to support FPCs
    1. Why to use
    2. When to use
    3. How to use
    4. Advantages and disadvantages
  2. Mechanics of CCAs
  3. Lessons learned from completed FPCs
  4. Guidance for using CCAs in FPCs

Benefits

The panelist will review these and other key issues:

  • What are the lessons from FCPs that have been completed?
  • What are the challenges and pitfalls of using CCAs in FPCs?
  • What are best practices for leveraging CCAs in FPCs?

Faculty

Hill, Michael
Michael O. Hill, Esq.

Senior Counsel
Primmer Piper Eggleston & Cramer

Mr. Hill concentrates his practice in the areas of environmental risk transfer through third-party contracts (e.g.,...  |  Read More

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