This was presented at the 5th Annual Powerplant Decommissioning Conference in 2019. Its full title is Unpacking the Business and Stakeholder Relationship Management Toolbox for Environmental Issues During Decommissioning.

1. The logo and ANTEA are registration trademarks of Antea USA, Inc.
5th Annual Powerplant Decommissioning Conference
UNPACKING THE BUSINESS AND STAKEHOLDER RELATIONSHIP MANAGEMENT
TOOLBOX FOR ENVIRONMENTAL ISSUES DURING DECOMMISSIONING
Scott Recker PG & Jon Pesicka PE
Antea Group | March 2019

2. • Who We Are and Why We Are Here
• Key Tenants of the Risk and Relationship
Management Toolbox
• Materiality Filter and How to Use a Dynamic
Work Strategy
• Predicting and Managing Liabilities and
Cash Flow
• Long Term Liability Management
• Communication to Leadership
Agenda
1

3. USA Office Locations Global Office Locations
Where You Need Us, When You Need Us
2

4. Environmental Remediation
Health and Safety
Consulting
Environmental Mergers and
Acquisitions Consulting
EHS Auditing and
Compliance
Sustainability Consulting
Services
Offering Solution to Meet Your Business Needs
3

5. Our Environmental Remediation Services:
• Site Investigation and Remediation
• Environmental Liability Transfer
• AIM – Antea Group Incident Management
• Expert Witness and Litigation Support
• State Reimbursement Program Management
• Decommissioning and Environmental Asset Management
• …and more
Environmental Remediation
Helping Clients Manage Legacy Environmental Liabilities, Risks and Incidents, and Compliance
4
Tioga

6. Avoiding Surprises by Incorporating Environmental Planning
Complexity around short and long term environmental liability,
numerous stakeholders and decision makers
Management of Change
Anticipate potential outcomes and create dynamic work strategy
Monetize the Complex Issues
Estimate liabilities and future potential cash flow to extinguish them
Long-Term Liability Management and Communication
Set the business strategy and use communication tools to match
business needs
Key Tenants of the Toolbox
5

7. • There are Many Stakeholders
• Involves Big Numbers
• It’s Complex
• Create a Fit for Purpose Business Plan to
Extinguish Liabilities
Why Relationship and Business Planning?
Picture from Pesicka
6

8. Decision Hierarchy
Pre-define who makes the decisions and when
Dynamic Work Strategy - Setting the Ground Rules
Incorporated into overall non-environmental project
elements and creates dynamic decision making
designed to prevent delays and surprises
Avoiding Surprises
Picture from Pesicka
7
Defining Workflow
Pre-defined decision making with anticipated outcomes
creates a process to promote speed and efficiency while
promoting strong communication and business planning
Here’s How…

9. Removal &
Idle
Nothing
Remove &
Replace
Planning for the Future
Remove &
Remediation
Partial Demo &
Remodel
8

10. M
A
T
E
R
I
A
L
I
T
Y
RESERVE
WASTE
FUTURE
RISK
TOLERANCE
CASH FLOW
ENVIRONMENTAL
END
USE
LAND
MANAGEMENT
Reserve
Waste
Future
Risk
Cash
Env
Land
Materiality Filter
9

11. • Dynamic Decision Authority
• Field Authority
• Contractor Authority – Decision
Making
• Regulatory
• Stakeholder
Decision Making Authority Predetermined
10

12. Decision Hierarchy, Data Management, and Communication
SCREENING AND ANALYTICAL DATA
FIELD TEAM
PROJECT TEAM
CATEGORY 1
DECISION?
NO
CATEGORY 2
DECISION?
YES
YES
UPDATE CSM
- TEAM UPDATES
- PROJECT DECISIONS
- SITE DECISIONS
QA/QC
PROGRAM TEAM
DATA INPUT (GIS OR OTHER
VISUALIZATION SYSTEM)
NO
INFORMATION
DATA VISUALIZATION
DATA
CATEGORY 3
DECISION?
EXECUTIVE
YES
11

13. Dynamic Work Strategy – Plan
• Dynamic Work Strategy: create a solid
plan encompassing change management
and discovery of unknowns
• Building a Decision Logic with the Entire
Team - Preplanning
• Input from Stakeholders:
• Executives
• Program Management
• Project Management
• Field Team
• Contractors
• Regulators
• Results In:
• Alternative Outcomes Anticipated
• Time and Cost Savings Influencers: Media, NGO’s, Activists, Governmental Leadership
12

14. Knowns:
• As-builts
• Inspections
• Haz Material
• Structural Material
• Destructive Testing
• Schedule
• Current Operators
• Former Operators
• Historical Documents
• Photographs
• Sanborn Maps
Dynamic Work Strategy - Knowns
13

15. Dynamic Work Strategy - Unknowns
Stakeholder Issues – Be Prepared to Manage!
Unknowns:
• Weather
• Protests
• Media
• Public
• NGO’s
• Underground Tanks
• Unexpected Conditions
• Remodeling Changes
14

16. Documentation
• Contractual Requirements
• Daily Logs
• Photographs/Videos
• Permits
• Incident Reporting
• Materials
• Waste
• Summary Report
• Audits
• Regulatory Agency
15

17. • Establishing Business Risk Tolerance
• Estimating Liabilities
• Setting Reserves
• Deciding on a Cash Flow Approach
• Developing a “Sunset” Strategy
• Communication Tools
Tools to Monetize Liability and Communicate Business Strategy
16

18. You might find yourself asking questions like:
• What are the risks involved?
• Is this approach cost-effective?
• What are the regulatory implications?
• What is the time frame?
• What is the cost for each option?
• What will happen if I don’t do anything?
• How could this impact our reputation?
You’re not sure if…
You are faced with the uncertainty around legacy liability or discovery of an
unknown condition, or perhaps you want to improve your balance sheet.
17

19. Reducing Uncertainty
Numerous potential liabilities involving multiple
business, technical, community and employee
stakeholders
Pre-defined Framework
ASTM and Financial Accounting Standard (FAS) to
evaluate financial implications of discovered
conditions
Communication Tools
Technical information transformed into business
output to predict liabilities and cash flow
Predicting and Managing Liabilities and Cash Flow
18

20. OUR APPROACHCommunication Outputs
19
Regulatory site closure
$1,050,000

21. A Total xx-Range Graphs
allow you to understand the
range of variables (cost, risk,
time, etc.) and the potential
impact upon your business
and quantify the
uncertainties gleaned from
the scenario planning and
validation portion of the
process.
Cost Range Graph Example
5.0% 90.0% 5.0%
$71,067 $175,945
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$220,000
0%
1%
2%
3%
4%
5%
6%
7%
Site Total (PV): PA 5002
Site Total (PV): PA 5002
Minimum $52,558.50
Maximum $216,719.89
Mean $117,156.79
Std Dev $35,723.91
Values 10000
Communication Outputs
20

22. $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+
Projected Gross Spending
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 +
Millions
Projected Environmental Spending
21
Years
Projected Spending

23. 1. Deciding on a Liability Reduction Strategy
• Business-based decisions
• Eliminate quickly
• Higher front-end costs
• Uncertainties diminished
2. Cash Flow Considerations
• Minimum compliance/spend
• Extended risk
Differing Organizational Approaches
22

24. 1. Life Cycle Cost Optimization
• Spend during favorable times
• Start-up and shut down costs
2. Building the Structure
Choosing your partners and identification
and management of risk layers that fit your
business and stakeholder management
strategy
3. Environmental Liability Transfer
How to create a walk-away solution
Differing Organizational Approaches
23

25. • Flexible Structure
• Transaction Support
• Balance Sheet Relief
• Tax Advantages
• Alternative Funding Sources
• Known and Unknown Site Conditions
• Quantification and Capping of Future Costs
• Pre-Funding
• Internal Management Costs
Environmental Liability Transfer Program Rationale
24

26. This hypothetical
structure has financial
solutions for buyer and
seller to complete a
fixed-cost transaction,
backed by insurance
products.
Co-Insurance:
10-15%
Remediation Cost-Cap Policy (Knowns)
Funds X% of spending above
Attachment point to limits of coverage
Estimated Cleanup
Costs: 10 million
Pre-funded at
net present value
Funds dispersed to
consultant as work is
performed
Alternate Funding
Source
Pollution Liability Policy (Unknowns)
Negotiable per-incident
Typically a 10-year term
Self-Insured Retention: 10-20%
NPV Discount: 1 million
Insurance Premiums Funded by Responsible Party: +/- 10%
Hypothetical Liability “Tower”
25

27. Information is quickly synthesized
through fit for purpose software tools:
• Statistical tools
• Transparent and shareable
functions and formulas
• Utilize various excel add-ins that
develop our communication
outputs
Built Upon Transparent Platform
26

28. Process
• Preplanning - consider all the possibilities
• Stakeholder engagement
• Discipline in the field
Outcomes
• Predictive
• Cost savings
• Cost avoidance
• Communication tool to business leaders
Wrap Up
27

29. Thank You!
Questions?
Jon Pesicka, PE
Senior Consultant
Jon.Pesicka@anteagroup.com
(651) 697 5146
Scott Recker, PG
Senior Consultant
Scott.Recker@anteagroup.com
(704) 904 9753
Control outcomes of KNOWNS, and manage
unknowns to acceptable outcomes with a
preplanned dynamic work strategy.

30. Supplemental Material

31. PROJECT
FIELD
MANAGEMENT
TRIAD
DECISION HIERARCHY
VOCs in Process Areas without
Suspected LNAPL
IDENTIFY SAMPLING LOCATIONS WITHIN INVESTIGATION AREAS
= EXPORT DATA
TO GIS/DATA
MANAGEMENT
SYSTEM
RFI – RCRA Facility Investigation
DPT – Direct Push Technology
GIS – Geographical Information System
Expand array
Drive macro-core to 8ft. for utility clearance
Select and Confirm Constituents
Post results and create visualization
Collect samples on 2ft. intervals to groundwater with DPT
and analyze via EPA Method 8260 using On-site Mobile
Laboratory
NOHorizontal and
Vertical Extent
Defined?
YES
RFI Reports
Utilities
Cleared?
YES
NO

32. PROJECT
FIELD
MANAGEMENT
TRIAD
DECISION HIERARCHY
VOCs in Process Areas with Suspected
LNAPL
IDENTIFY SCREENING/SAMPLING LOCATIONS WITHIN INVESTIGATION AREAS
Post results and create visualization
Screen macro-core at 2ft. intervals with OVA to select soil
sampling locations
Expand array
(Horizontal)
Drive macro-core to 8ft. for utility clearance and screening;
remove core; screen with OVA; insert core into reactive
membrane
Collect samples on 2ft. intervals to groundwater with DPT and
analyze via EPA Method 8260 using On-site Mobile Laboratory
Select and Confirm Constituents
Has interval
already been
submitted for
FBA?
Does
reactive
membrane
indicate
presence of
LNAPL?
Collect soil samples
from reactive
intervals; Select up to
3 samples for
petrophysical testing
NO
YES
Analyze via EPA
Method 8260
for FBA; Test selected
samples for
petrophysical parameters
YES
NO
NO (VOCs)
= EXPORT DATA TO
GIS/DATA
MANAGEMENT SYSTEM
OVA - Organic Vapor Analyzer
FBA - Fixed Base Analysis
LIF – Laser Induced Fluorescence
Identify LIF Screening Locations
Is extent
defined?
See Figure 5.5c (cont.)
YES
Expand array
(Horizontally)
NO (LNAPL)

33. • Environmental cost modeling, decision
analysis, and stakeholder
communication to help you:
• Evaluate risks
• Enhance efficiencies in the decision-
making process
• Put numbers to hard-to-quantify
business drivers
• Simulate the full range of possibilities
on your projects, ensuring optimal
decision-making for your business.
$
$
$
$
Identifying & Quantifying the “What Ifs”

34. • Acquisitions Analysis
• Capital Project Estimation
• Cash Flow Analysis
• Disaster Planning
• Environmental Liability Transfers
• Equipment Reliability
• Flood Forecasting
• Insurance and Reinsurance Strategy
• Loss Reserves Estimation
• Manufacturing Quality Control
• Market Feasibility
• Natural Resource Management
• Pollution Cleanup and Projections
• Portfolio Optimization
• Product Life Cycle Analysis
• Production Siting
• Regulation Compliance
• Supply Chain Management
Wide Ranging Applicability for Decisions on…