Selected recent environmental assignments. (Actual names withheld at request of clients. References available upon request.)

Oil and Chemical Company

Oil and Chemical Company is a United States petrochemical company located in Houston, Texas. The company operates two major refineries, and has historically operated another four refineries. It is the former owner of a major Texas state superfund site. The company maintains chemical plants, pipelines, terminals, depots and retail operations throughout the southeastern United States. The environmental liabilities, both actual and potential, are enormous.

Oil and Chemical had considered undertaking an environmental insurance recovery project, but had been advised by two major law firms that the case to be made by Oil and Chemical Company, coupled with adverse Texas law, rendered such an effort uneconomical and probably unsuccessful. The outside lawyers advised Oil and Chemical to drop the recovery effort. DRM analyzed the company's situation and concluded that a negotiated settlement approach, coupled with the DRM risk exposure modeling regimen, could successfully achieve significant recovery.

DRM conducted archaeology and cost documentation activities for Oil and Chemical. The risk exposure modeling disclosed significant weaknesses in the insurers position and established a basis for recovery of large amounts of money.

Oil and Chemical did not file a lawsuit, but instead commenced a negotiated settlement program pursuant to the DRM model notwithstanding the contrary advice of outside litigating counsel. All of the company's carriers participated in the process and settlements were eventually reached. Total amounts recovered by Oil and Chemical Company amounted to tens and tens of millions of dollars. Oil and Chemical later engaged DRM to assist in the recovery of Y2K remediation costs; that effort is on going.

Northeast Utility Company

Northeast Utility Company is a New England-based diversified and regulated utility company serving major metropolitan areas in three states. The operations of Northeast Utility Company commenced with manufactured gas plants (MGPs) in the late part of the Nineteenth Century. The company recognized that it faced significant environmental cost risk by virtue of the MGPs (and other operations) but was convinced that an insurance recovery effort based upon historical coverage would be fruitless. After conferring with DRM, the company decided to undertake an evaluation with the thought in mind that regulators would ultimately require a thoughtful decision with regard to the subject. At the time the project commenced, Northeast Utility Company believed that the only results of the DRM analysis would be a due diligence record supporting a decision not to go forward with any recovery project.

After a five-month work-up, DRM was able to establish historical coverage for two separate lines of coverage going back to 1955. With the help of outside engineers, DRM developed cost risk amounts for the various historical MGP operations located throughout New England. Significant issues emerged relating to the allocation of damage amounts to various years of coverage: the MGPs operated in the late 1800's and ceased operation in the early 1900's, while coverage did not begin until 1955. DRM developed innovative allocation theories, based upon significant historical evidence, to allow significant amounts to be allocated to the late-year coverage.

After the interim work-up, DRM advised Northeast Utility Company that significant recoveries were achievable. The company determined that it would proceed. Public Utilities regulations in some pertinent states allowed a portion of the recovery costs to be charged to the rate base (with an appropriate portion of any recovery to also inure to the benefit of the ratepayers).

The Company did not want to undertake any litigation and was able to proceed through the DRM process to pursue claims without litigation. Northeast Utility Company eventually reached settlement with each of its carriers, and was successful in recovering tens of millions of dollars. DRM assisted Northeast Utility Company in the allocation of settlement proceeds to the respective states for the purposes of regulatory treatment.

European Oil Company

European Oil Company is a publicly held continental petrochemical company with operations throughout Europe. The company maintains refineries, lubricant plants, paint manufacturing facilities, chemical manufacturing facilities, terminals, depots, pipelines and retail operations throughout the United Kingdom, France, Italy, Belgium, Germany, Holland, Scandinavia, and other countries. Although European Oil Company does own a United States subsidiary, that subsidiary was not involved in the case.

DRM was engaged by European Oil Company to conduct a pioneering environmental insurance recovery project based entirely upon European claims. DRM conducted a six-month, continent-wide search for historical coverage. Environmental laws and requirements in all major European countries were involved. DRM was successful in recovering evidence of insurance from locations in England, France, Belgium, Germany, Holland and Italy. Evidence of coverage reached back to the early post-war years. Polices uncovered were written in English, Dutch, French, Italian and German. Limits of liability were expressed in Dollars, Pounds Sterling, French Francs, Belgium Francs, Deutschmarks, and Lire. DRM conducted a risk exposure model in multiple currency denominations, established settlement targets, briefed the company's senior management, and commenced negotiations with major carriers.

Today, DRM UK (DRM's European joint venture with the Lloyd's brokerage firm, Besso Limited) has multi-lingual capability to enable engagements throughout the United Kingdom and Europe. Our risk exposure modeling is capable of handling diverse currency denominations. The DRM UK team is the industry leader in internationally based environmental insurance claims. Additionally, the DRM UK presence in London optimizes the ability of DRM to find mutually acceptable solutions to claims problems for its U.S. domestic clients.

Forest Products Company

Forest Products Company operates throughout the United States and has as its primary product wood-based building materials. The company commenced operation in the late 1900's, and pursued an aggressive acquisition program to grow to national prominence. It's innovative manufactured building materials gained industry-wide acceptance. In the mid-1900's, allegations of defect and failure began to appear and massive class-action lawsuits were filed against the company. Although the company denied any defect or fault, settlements of the class action barrage created liabilities amounting to hundreds of millions of dollars. Insurers denied coverage based upon various policy defenses and adverse facts specific to the Forest Products Company situation and history. Litigation was commenced with enormous resultant expense. Ultimately, the company was advised by its outside counsel that significant recovery was unlikely.

DRM was engaged to engineer a settlement strategy with the various carriers. DRM applied a state-of-the-art risk exposure modeling regimen. DRM created a claim matrix that demonstrated the risk of ultimate exposure, and provided allocation methodologies to assign value to the claim against each individual insurer. Various insurers providing coverage during the time period of manufacture of the product were targeted, and settlement discussions commenced. DRM made presentations to the carriers using state-of-the-art computer presentation techniques. The company was eventually able to achieve settlements with all primary and excess carriers in amounts well in excess of the expectations of the company created pursuant to advice of litigation counsel.