What Will Be driving Growth of Waste Management & Remediation Services Market Near Future

Garner Insights, a market intelligence and consulting firm, recently published a research report on the global waste management and remediation services market. The report 99-page report covers a market Overview, future economic impact, competition by manufacturers, along with supply (production), & consumption analysis.

The report states that waste management companies are using technologies such as Internet of Things (IoT) for better management of waste and recycling. IoT provides solutions such as route optimization and operational analytics to reducing costs.

The leading waste management companies covered in the report include Waste Management, Republic Services, Clean Harbors, Stericycle, and Progessive Waste Solutions.

The product segment analysis is broken down in the report as Waste Collection, Waste Treatment And Disposal, Remediation, Material Recovery.

The report covers the United States, EU, Japan, China, India, Southeast Asia markets and provides information on each geographic market including sales, revenue, and market share and growth rate.

Canadian Consulting Firm acquired by UK Giant

Novus Environmental, a 25-person specialized consulting firm with offices in Guelph ON and Calgary AB, was recently acquired by SLR, an UK-headquartered global environmental and advisory firm.

Novus will bring additional capability to SLR’s North American business in air quality, noise and vibration, and wind and climate. The Novus team will join SLR’s Canada business, which will now be 280 strong with 18 offices.

SLR began as SECOR Ltd. in 1994. Starting as a UK business, the company now operates as a global company with more than 1,100 people delivering client solutions across five regions. SLR offers a wide range of advisory and environmental consulting services.

This is SLR’s third acquisition in four months, reflecting the confidence of the company and its new investor Charterhouse Capital Partners in the market, according to Neil Penhall, SLR’s chief executive.

Global Crisis, Emergency and Incident Management Platforms Market 2019

Persistence Market Research recent market report on Global Crisis, Emergency and Incident Management Platforms estimates that it will be worth $102 billion (USD) by the end of 2024.

A 2017 market analysis by Persistence Market Research on the market in North America predicted the year-over-year growth the Global Crisis, Emergency and Incident Management Platforms to increase at a CAGR of 7.2%. through to 2023. The 2017 report estimated that the North America market accounted for a relatively high market share and be valued at more than US$ 20 Billion in 2017. The report estimated that the North American regional market would continue to remain dominant in terms of value during the forecast period (2017 – 2024).

The latest market report from Persistence Market Research predicts that the global market or crisis, emergency & incident management platforms will be fragmented across various systems and platforms. Among which, the demand for web-based emergency management software, geospatial technology, emergency notification system, hazmat technology, seismic warning systems, and remote weather monitoring systems is expected to gain traction throughout the forecast period. These systems are also predicted to be demanding greater incorporation of communication technologies. Through 2024, satellite phone, vehicle-ready gateways, and emergency response radars will be the most dominant type of communication technologies used in working of any crisis, emergency & incident management platform.

Likewise, the report also expects that during the stipulated forecast period, professional services such as consulting and emergency operation center (EOC) design & integration will be in great demand. By the end of 2024, crisis, emergency & incident management platforms will be actively adopted across industry verticals such as BFSI, energy & utility, government & defense, and telecommunication and IT.

A regional analysis of the global crisis, emergency & incident management platform market indicates that North America will dominate by accounting for over US$ 36 Billion revenues by 2024-end. Adoption for such platforms will also be high in Asia-Pacific, and the region is expected to showcase a 6% value CAGR.

Leading providers of crisis, emergency & incident management platforms in the world include Honeywell International, Inc., Lockheed Martin Corporation, Motorola Solution, Inc., Rockwell Collins, Inc., Siemens AG, Iridium Communication Inc., Guardly, Environmental System Research Institute, Inc., and Intergraph Corporation.

Hazardous industry leaders give insight on the keys to operational excellence

A global survey of hazardous industries and Operational Index was recently published by Sphera. The annual Operational Excellence Index (OEI) survey report which highlights trends in digital transformation and OE strategies across the hazardous industries.

Previously conducted by Petrotechnics, now a Sphera company, the index is in its third year of surveying oil and gas, chemical, energy and industry manufacturing professionals to gauge attitudes around OE and the measures taken towards its adoption. Year after year respondents agree, OE programs help reduce risk, cut costs, and improve productivity. The 2018/2019 survey reveals senior leaders are relying on technologies to support their OE initiatives and identifies where they are coming up short and what they could do to improve.

Ninety percent of respondents agree digital transformation will accelerate their ability to achieve OE – not just as a one-off target but as an ongoing business objective. This is a significant increase from last year’s report where 73% of leaders agreed that going digital was key to achieving OE. Implementing digital technologies is now aligned with overall business goals with 55% leveraging technology to reduce operational risk and 55% to improve asset availability and uptime.

Paul Marushka, President and CEO at Sphera, commented, “As the third-annual Operational Excellence Index shows, digital transformation is upon us. As companies look for new ways to keep their people safe, their operations productive and their products sustainable, being able to tap into and monitor data from Industry 4.0 solutions will be a major differentiator for organizations looking to separate themselves from the competition. It’s not surprising that 90% of respondents agree that digital technology will accelerate operational excellence. We couldn’t agree more. Sphera believes digital is the wave of the future for operational risk mitigation.”

But while industry leaders agree digital is essential to OE, more than half are still trying to figure out what ‘digital transformation’ means for them, and 69% are just beginning their digital journey. The approach to digital matters, according to 83% of survey respondents, who admit they have relied on legacy systems to improve their business agility but had not embedded operational best practices cross-functionally.

The good news is the industry is on the brink of a major step forward when it comes to achieving OE through digitalization. Seventy-five percent of leaders recognize the need to create new, insight-driven business processes across enterprise functions. Advanced analytics and digital twins were highlighted as key solutions to help operators understand how to make better, safer planning and operational decisions. 

Scott Lehmann, VP, Product Management, ORM for Operations at Sphera, said, “This year’s survey clearly illustrates the challenges digital leaders face within their own organizations to understand what digital transformation means or could mean practically and tangibly to their company. While the pace of digital transformation and ROI is still in its early days, the survey points strongly to a rapid acceleration on the horizon. Digital leaders understand digital integration and the adoption of new technologies must focus on creating actionable insights to help underpin new cross-functional business processes that enhance decision-making and the way people work together.”

One survey respondent suggested: “The best approach to digital is not to use technologies to close gaps that you know already exist. Rather, start with a blank sheet of paper and define what you need – and then assess the available technologies.”

Petrotechnics, now a Sphera company, conducted the survey between October and November 2018, collecting 116 responses from a broad representation of functions, demographics and industries across the hazardous industries, including: oil, gas, chemicals, manufacturing, utilities, mining, engineering and other sectors. The survey included respondents from each major region – specifically Middle East (29%), Europe (28%), North America (28%), Asia Pacific (11%), Africa (3%) and South America (1%).

View the full report and results from the 2018/2019 Operational Excellence Index.

Ontario: Trucking Company Fined $250,000 over hazmat incident

Titanium Trucking Services Inc., headquartered in Ontario, was recently convicted of one violation under the Ontario Environmental Protection Act and was fined $250,000 plus a victim fine surcharge of $62,500 and was given 24 months to pay the fine. Luckily, no one was h The fine was the result of a hazmat incident in which a fluorosilicic acid spilled from a tanker truck into the natural environment, which caused adverse effects. No one can predict anything like this to happen, which is why it is important to always stay focused on the road no matter what vehicle you drive. Luckily no one was hurt in this collision. Saying this though, if you have been involved in a trucking accident and were not sure what to do next, getting some assistance from a personal injury lawyer springfield il could be the answer you need that can help you get your life back on track after this incident. There’s nothing wrong in asking for help.

Fluorosilicic acid is corrosive and causes burns. It decomposes when heated, with possible emanation of toxic hydrofluoric acid vapours. It is used in fluoridating water and in aluminum production. In the aquatic environment, an accidental spillage of fluorosilic acid would suddenly reduce pH level due to the product’s acidic properties.

At the time of the offence, Titanium Trucking Services Inc., which is located in Bolton (just northwest of Toronto) had a contract with a Burlington, Ontario area chemical company to provide drivers and vehicles on a dedicated basis for chemical product transportation.

In January 2017, the Burlington area chemical company placed an order for 81,000 kg of 37-42% fluorosilicic acid, which was required for pickup in Montreal for transport to Burlington. Fluorosilicic acid is a corrosive liquid, classified as a dangerous good.

On the date of the planned chemical pick-up, Environment Canada had issued weather advisories relating to a major winter storm and the public was instructed to consider postponing non-essential travel.

The chemical pick-up occurred as planned on March 14, 2017, and within four hours after leaving Montreal, the truck and the driver were involved in a multi-vehicle collision while traveling westbound on Highway 401. As a result of the collision 15 totes of fluorosilicic acid ejected through the front wall of the trailer and also came to rest in the roadside ditch.

Eight of the totes of acid that ejected from the trailer were punctured and spilled approximately 8,000 litres of acid into the ditch and onto the truck cab, dousing the driver, which eventually resulted in his death later in hospital.

March 14, 2017 incident on Highway 401 near Mallorytown. Several first responders were exposed and needed to be decontaminated. (XBR Traffic)

The acid discharge caused further adverse effects. a total of 13 First responders and another sixteen members of the public had to be decontaminated, the 401 highway was closed in both directions, and the OPP officer who initially attempted to extract the truck driver from the cab on scene experienced significant health effects. In addition, adverse impacts to the roadside soil ecosystem occurred.

Bioremediation: Global Markets and Technologies to 2023

A report issued by BCC Research provides an overview of the global markets and technologies of the bioremediation industry. The report predicts that the global bioremediation market should grow from $91.0 billion in 2018 to $186.3 billion by 2023, increasing at a compound annual growth rate (CAGR) of 15.4% from 2018 through 2023.

One of the finding of the report is that the application of bioremediation technology in the water bodies sector held the largest market share in 2017, and it is expected to remain the market leader throughout the forecast period.

The report predicts an ever-increasing use of bioremediation techniques for treating sewage, lakes, rivers and streams, ponds and aqua culture is anticipated to create huge growth opportunities for the market in the coming years. In recent years, however, the rise in the agriculture industries has augmented the growth of hazardous pollutants in the environment, and thus the application of bioremediation methods in the agricultural sector is expected to be the fastest-growing segment.

Redox zones of a typical contaminant plume (Source: Parsons 2004)

The report breaks down and analyzes the bioremediation market into three categories:

  • By type: In situ and ex situ bioremediation.
  • By application: Water bodies, mining, oil and gas, agriculture, automotive and other industries.
  • By region: North America is segmented into the U.S., Canada and Mexico; Europe is segmented into the U.K., Germany, France, Russia and Rest of Europe; the Asia-Pacific region is segmented into Japan, India, China and Rest of Asia-Pacific; and the Rest of the World (ROW) covers Latin America, Middle East and Africa.

The report provides estimated values used are based on manufacturers’ total revenues. Projected and forecast revenue values are in constant U.S. dollars unadjusted for inflation.

This report also includes a patent analysis and a listing of company profiles for key players in the bioremediation market.

Similar Reports

In 2014, a team of United Kingdom researchers at University of Nottingham and Heriot-Watt University issued the results of a global survey on the use of bioremediation technologies for addressing environmental pollution problems. The findings of the survey were quite interesting.

Preferred vs. Actual Treatment Method

One of the findings of the UK survey was the difference between the preferred vs. actual treatment method. More than half of respondents (51%) stated that they would prefer to use environmentally friendly approaches including microbial remediation (35%) and phytoremediation (16%). However, historical information suggests the opposite has actually been the case. Considering the relative low cost and low energy requirements of bioremediation technologies, the gulf between aspiration and practice might be due to various factors involving the risk-averse nature of the contaminated-land industry, or difficulties in project design. The latter include identifying appropriate organisms for removing specified contaminants, optimizing environmental conditions for their action, ascertaining extents of eventual clean-up, and the incomplete understanding of all the mechanisms and processes involved. These lead to difficulties in modeling, simulating and/or controlling these processes for improved outcomes.

Application of Bioremediation Techniques

The Figure below compares the broad bioremediation methods being employed within industry according to the 2014 survey, namely monitored natural attenuation (MNA), bio-augmentation and bio-stimulation. The use of low-cost in situ technologies (like MNA) featured quite prominently, particularly in North America and Europe, where it accounts for over 60% of the bioremediation methods being used. This finding points to a strong concern within the developed countries for better maintenance of ecological balance and preventing a disruption of naturally occurring populations.

MNA has been shown to require 1) elaborate modeling, 2) evaluation of contaminant degradation rates and pathways, and 3) a prediction of contaminant concentrations at migration distances and time points downstream of exposure points. This is to determine which natural processes will reduce contaminant concentrations below risk levels before potential courses of exposure are completed, and to confirm that degradation is proceeding at rates consistent with clean-up objectives. These results appear to suggest that regions which employ computational and modeling resources are better able to use low-cost bioremediation technologies like MNA, whereas the others tend to use the more traditional and less cost-effective technologies. In all the continents, researchers were found to favor the use of bio-stimulation methods. Less disruption of ecological balance is apparently a global concern.

Background on Bioremediation

Bioremediation is a method that uses naturally occurring microorganisms such as bacteria, fungi and yeast to degrade or break down hazardous substances into non-toxic or less-toxic substances.Microorganisms eat and digest organic substances for energy and nutrients.

There are certain microorganisms that can dissolve organic substances such as solvents or fuels that are hazardous to the environment.These microorganisms degrade the organic contaminants into less-toxic products, mainly water and carbon dioxide.

The microorganisms must be healthy and active for this to occur.

Bioremediation technology helps microorganisms grow and boosts microbial population by generating optimum environmental conditions. The particular bioremediation technology utilized is determined by various factors, including the site conditions, the presence of type of microorganisms, and the toxicity and quantity of contaminant chemicals.

Bioremediation takes place under anaerobic and aerobic conditions.In the case of aerobic conditions, microorganisms utilize the amount of oxygen present in atmosphere to function.

With a sufficient amount of oxygen, microorganisms transform organic contaminants into water and carbon dioxide. Anaerobic conditions help biological activity in which oxygen is not present so that the microorganisms degrade chemical compounds present in the soil to release the required amount of energy.

Factors of influence in bioremediation processes

Bioremediation technology is used to clean up contaminated water and soil.There are two main types of bioremediation: in situ and ex situ.

The in situ bioremediation process treats the contaminated groundwater or soil in the location where it is found. The ex situ process requires the pumping of groundwater or the excavation of contaminated soil before it can be treated.

In situ bioremediation type is typically segmented as phytoremediation, bioventing, bioleaching, bioslurping, biostimulation and bioaugmentation. The ex situ bioremediation type is typically segmented as composting, controlled solid-phase treatment and slurry-phase biological treatment.

Biodegradation is a cost-effective natural process that is useful for the treatment of organic wastes.The extent of biodegradation is greatly dependent upon the initial concentrations and toxicity of the contaminants, the properties of the contaminated soil, their biodegradability and the specific treatmentsystem selected.

In biodegradation treatment, the targeted contaminants are semi-volatile and nonhalogenated volatile organics and fuels. The benefits of bioremediation, however, are limited at sites with highly chlorinated organics and high concentrations of metals, as they may be harmful to the microorganisms.

https://www.researchandmarkets.com/publication/mkvz6uj/4752244

Industrial Absorbents Market to Exceed $4.7 Billion by 2023

According to the new market research report, the industrial absorbents market is expected to grow from USD 3.7 billion in 2018 to USD 4.7 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 5.1% during the forecast period.

The report, prepared by Research and Markets and entitled “Industrial Absorbents Market By Material Type (Natural Organic & Inorganic, Synthetic), Product (Pads, Rolls, Booms & Socks), Type (Universal, Oil-only, HAZMAT), End-use Industry (Oil & Gas, Chemical, Food Processing), and Region – Global Forecast to 2023“, states that the major factors driving the industrial absorbents market include growing environmental concerns and regulations regarding oil and chemical spills.

The synthetic segment is expected to be the fastest-growing material type segment in the industrial absorbents market. The industrial absorbents market by material type has been categorized into natural organic, natural inorganic, and synthetic. Synthetic industrial absorbents are capable of absorbing liquid up to 70 times of their weight, which makes them a highly adopted material for industrial applications. Synthetic absorbents have properties such as non-flammability and excellent water repellency, which makes them suitable for applications in oil-only and HAZMAT spill control products.

Booms and socks are ideal industrial absorbents products for spill control. Booms and socks are widely used for oil-based spill control in water environment. Booms have excellent water repelling properties and are best suited for water environments such as sea, lakes, and ponds, among others. Socks are flexible tubes which are used to control and contain spills on land environment and are ideal for quickly absorbing oil- or water-based liquid spills on land. In regions such as the Middle East & Africa and Europe, there are high occurrences of large spills in marine areas, which drives the growth of booms & socks segment in the industrial absorbents market.

Oil Absorbent Booms

Market Drivers

HAZMAT/chemical absorbent products are used to cleanup spills involving acids, bases, and other hazardous or unknown liquids as these spills can have harmful impacts on the environment and can be dangerous to the living beings present in the vicinity. HAZMAT/chemical absorbent products are designed to absorb the most aggressive acidic or caustic fluids and are majorly composed of synthetic absorbents. In addition, stringent regulations in regions such as North America and Europe on chemical discharge in to the environment have led to an increase in the demand for spill control products designed for chemicals. Therefore, this factor has fueled the adoption and application of HAZMAT/chemical absorbent products, which is driving the growth of the industrial absorbents market.

Chemicals are hazardous materials, and can cause severe harm to humans or environment if accidentally released or spilled in the environment. Chemical accidents usually occur during transportation of stored chemicals. Chemical manufacturers need to immediately respond to accidental spills that occur during manufacturing processes to minimize the impact of spills on the environment. Furthermore, regions such as North America and Europe have stringent norms with respect to chemicals and spill response. All these factors have fueled the growth of the industrial absorbents market in the chemical end-use industry.

Asian Pacific Market

Asia Pacific industrial absorbents market is expected to have the highest growth rate during the forecast period due to the rising awareness and pressure to reinforce strict environmental regulations for spill response & control and pollution caused by end-use industries. The industrial absorbents market in Asia Pacific is driven by the demand from countries such as China, Japan, India, and South Korea, owing to rapid industrialization and rising occurrences of small liquid spills across the end-use industries.

Key Market Players

The major manufacturers in the global industrial absorbents market are 3M Company (US), Brady Corporation (US), Decorus Europe Ltd. (UK), Johnson Matthey Plc (UK), Kimberly-Clark Professional (US), Meltblown Technologies Inc. (US), Monarch Green, Inc. (US), New Pig Corporation (US), and Oil-Dri Corporation of America (US).

Canada’s draft 2019–2022 Federal Sustainable Development Strategy: Impacts on Clean Technology and Brownfield Development

The Government of Canada recently released the Draft 2019–2022 Federal Sustainable Development Strategy for public consultation and tabled the Government’s 2018 Progress Report of the 2016–2019 Federal Sustainable Development Strategy.

The draft Strategy sets out the Government of Canada’s environmental sustainability priorities, establishes goals and targets, and identifies actions that 42 departments and agencies across government will take to reduce greenhouse gas emissions from their operations and advance sustainable development across Canada.

Of interest to professionals in the environmental sector is some of the Government’s goals with respect to the greening of government. For example, the Government is aiming to reduce greenhouse gas emissions from federal government facilities and fleets by 40% by 2030 (with an aspiration to achieve this target by 2025) and 80% below 2005 levels by 2050. It also has the goal to divert at least 75% (by weight) of all non-hazardous operational waste (including plastic waste) by 2030, and divert at least 90% (by weight) of all construction and demolition waste (striving to achieve 100% by 2030), where supported by local infrastructure. The administrative fleet will be comprised of at least 80% zero-emission vehicles by 2030 according to the draft report.

With respect to real property, the proposed actions of the Canadian federal government include the following: (1) All new buildings and major building retrofits will prioritize low-carbon investments based on integrated design principles, and life-cycle and total cost-of-ownership assessments which incorporate shadow carbon pricing; (2) Minimize embodied carbon and the use of harmful materials in construction and renovation; and (3) Departments will adopt and deploy clean technologies and implement procedures to manage building operations and take advantage of programs to improve the environmental performance of their buildings.

For professionals involved in clean technology, the draft report calls for the implement of the Government’s pledge to double federal government investments in clean energy research, development and demonstration from 2015 levels of $387 million to $775 million by 2020.

The 2018 Progress Report shows how the Government of Canada is implementing the 2016–2019 Federal Sustainable Development Strategy, demonstrating that it is on track to meeting many of the commitments laid out in the Strategy. This includes highlighting the leadership role Canada has taken in working toward zero plastic waste and implementing measures to conserve marine areas, as well as actions on climate change.

With respect to clean technology, clean energy, and clean growth, the progress report touts the fact that through three consecutive federal budgets, the Government of Canada has made substantial investments in initiatives to support clean technology, clean energy and clean growth. These commitments include: (1) $2.3 billion in 2017 for clean technology and clean energy research, development, demonstration, adoption, commercialization and use; (2) $1.26 billion in Budget 2017 for the Strategic Innovation Fund; and (3) $4 billion in 2018 in Canada’s research and science infrastructure, much of which helps drive innovation towards a clean growth economy.

The draft Strategy updates the 2016–2019 Federal Sustainable Development Strategy, largely maintaining its aspirational goals while adding targets that reflect new initiatives, updating milestones with new priorities, and strengthening links to the 2030 Agenda for Sustainable Development. In all, 29 medium-term targets support the draft Strategy’s goals, along with 60 short-term milestones and clear action plans.

Among other results, the 2018 Progress Report shows that

  • from 2016 to 2017, greenhouse gas emissions from federal government operations were 28 per cent lower than in 2005 to 2006—more than halfway to the target to reduce emissions from federal buildings and fleets by 40 per cent of 2005 levels by 2030;
  • as of December 2017, close to 8 per cent of Canada’s coastal and marine areas were conserved; and
  • from 2017 to 2018, visits to national parks and marine conservation areas increased by 34 per cent above the 2010 to 2011 baseline levels.

Canadians have the opportunity to provide comments on the draft Strategy until early Spring 2019. For further information: Caroline Thériault, Press Secretary, Office of the Minister of Environment and Climate Change, 613-462-5473.

Technology Simultaneously Measures 71 Elements in Water

Researchers at New York University (NYU) recently developed a new method for simultaneous measurement of 71 inorganic elements in liquids — including groundwater. The method, utilizing sequential inductively coupled plasma-mass spectrometry, makes element testing much faster, more efficient, and more comprehensive than was possible in the past.

The NYU researchers studied samples of liquid from a variety of sources worldwide, including tap water from a New York City suburb, snow from Italy and Croatia, rain from Brazil and Pakistan, lake water from Switzerland and Croatia, and seawater from Japan and Brazil.  Testing each sample results in a distinct elemental pattern, creating a “fingerprint” that can help differentiate between substances or trace a liquid back to its environmental origin.

The method—developed by researchers at the isotope laboratory of NYU College of Dentistry and described in the journal RSC Advances, published by the Royal Society of Chemistry—may be used to explore and understand the distribution of inorganic elements beyond the few that are typically measured. It has implications for fields such as nutrition, ecology and climate science, and environmental health.

An analytical technique called inductively coupled plasma mass spectrometry (ICP-MS) is used to measure elements. Historically, ICP-MS instruments have measured elements sequentially, or one by one, but a new type of ICP‐MS instrument at NYU College of Dentistry and roughly two dozen other places around the world has the potential to measure the complete range of inorganic elements all at once.

NYU ICP-MS

“Because of this new method, our mass spectrometer can simultaneously measure all inorganic elements from lithium to uranium. We’re able to measure the elements in far less time, at far less expense, using far less material,” said Timothy Bromage, professor of biomaterials and of basic science and craniofacial biology at NYU College of Dentistry and the study’s senior author.

This technological advancement may help to fill gaps in our understanding of element distributions and concentrations in substances like water. For instance, the U.S. Environmental Protection Agency monitors and sets maximum concentration limits for 19 elements in drinking water considered to be health risks, yet many elements known to have health consequences—such as lithium or tin—are neither monitored nor regulated.

“The elemental mapping of concentration levels in bottled and tap water could help to increase our understanding of ‘normal’ concentration levels of most elements in water,” said Bromage.

Bromage and his colleagues designed a method for using simultaneous ICP-MS to detect 71 elements of the inorganic spectrum involving a specific set of calibration and internal standards. The method, for which they have a patent pending, routinely detects elements in seconds to several minutes and in samples as small as 1 to 4 milliliters.

In each sample,​ Bromage and ​his team found ​a distinct ​“​fingerprint”​ or elemental ​pattern, ​suggesting that ​samples can be ​recognized and ​differentiated ​by these ​patterns. The ​elemental ​content of ​water, for ​example, ​typically ​reflects its ​natural ​environment, so ​understanding ​the elemental ​composition can ​tell us if ​water had its ​origins from a ​source with ​volcanic rock ​versus ​limestone, an ​alkaline rock.

United States: Successor Liability for Environmental Liabilities

by Julie Vanneman, Director, Cohen & Grigsby

What happens when one company acquires the assets of another, then—many years later—receives a demand to participate in the clean-up of a contaminated site based on the acquired company’s long-ago shipment of materials to the site? 

As a general rule, the buyer of assets in an asset
acquisition does not automatically assume the liabilities of the seller. However,
under the doctrine of successor liability, a claimant may be able to seek
recovery from the purchaser of assets for liabilities that were not assumed as
part of an acquisition. This claim may be employed in cases involving
environmental liabilities, especially when the original party is defunct or
remediation costs are greater than the original entity’s ability to pay for the
cleanup.[1]

Courts have taken different positions on whether state law
or federal common law governs the determination of successor liability for
claims under the Comprehensive Environmental Response, Compensation, and
Liability Act (“CERCLA”), known also as Superfund. This distinction may have
little practical effect because federal common law follows the traditional
state law formulation. Notably, though, when evaluating successor liability
under federal law, and specifically environmental laws like CERCLA, the
doctrine may be more liberally applied because of policy concerns about
contamination.[2]

Under the successor liability doctrine, a buyer can be held
responsible for liabilities of the seller if one of four “limited” exceptions
applies:

(1) the successor expressly or impliedly agrees to assume
the liabilities; (2) a de facto merger or consolidation occurs; (3) the
successor is a mere continuation of the predecessor; or (4) the transfer to the
successor corporation is a fraudulent attempt to escape liability.

K.C.1986 Ltd. P’ship v. Reade Mfg., 472 F.3d 1009,
1021 (8th Cir. 2007) (citing United States v. Mex. Feed & Seed,
Co., Inc.,
 980 F.2d 478, 487 (8th Cir. 1992)). A fifth exception, the
substantial continuity exception, is a broader standard,[3] but most circuit
courts do not apply it in CERCLA cases.[4]

Exception 1, express or implied assumption, must be analyzed
in terms of the specific asset agreement in question. Exception 4, fraud, is
generally employed in circumstances where the acquired company shifts its
assets to avoid exposure to another entity.[5]

Courts have addressed the main issue of successor liability
by asking whether the transaction is simply the handing off of a baton in a
relay race (successor liability) or whether the new company is running a
separate race (no liability).[6]  Examining factors relevant to the
remaining elements—numbers 2 (de facto merger) and 3 (continuation)—helps
answer the question. Under the doctrine of a de facto merger, successor
liability attaches if one corporation is absorbed into another without
compliance with statutory merger requirements. A court would look at whether
there is a continuity of managers, personnel, locations, and assets; the same
shareholders become part of the acquirer; the seller stops operating and
liquidates; and the acquirer assumes the seller’s obligations to continue
normal business operations.[7]  The “mere continuation” theory “emphasizes
an ‘identity of officers, directors, and stock between the selling and
purchasing corporations.’”[8]

Given the high stakes that can be involved with CERCLA
cleanups, assessing prospects for applying the successor liability doctrine
could be an important part of the liability analysis.


[1] See, e.g., James T. O’Reilly, Superfund and
Brownfields Cleanup § 8:16, at 360 (2017-2018 ed.) [hereinafter O’Reilly]
(“Mergers, sales of assets, and changing corporate names does not remove
potential CERCLA liability.”).

[2] See O’Reilly § 8:16; see
also,
 e.g.In re Acushnet River & New Bedford
Harbor Proceedings re Alleged PCB Pollution
, 712 F. Supp. 1010, 1013-19 (D.
Mass. 1989) (in the CERCLA context, concluding that successor liability applied
where there would be “manifest injustice” if one of the companies could
“contract away” liability for PCB contamination).

[3] See K.C.1986 Ltd. P’ship v. Reade
Mfg.
, 472 F.3d 1009, 1022 (8th Cir. 2007)

[4] See Action Mfg. Co. v. Simon Wrecking
Co.
, 387 F. Supp. 2d 439, 452 (E.D. Pa. 2005).

[5] See, e.g., Eagle Pac.
Ins. Co. v. Christensen Motor Yacht Corp.
, 934 P.2d 715, 721 (Wash. Ct.
App. 1997). This exception is rarely used. Restatement (Third) of Torts:Prod.
Liab. § 12 cmt. e (Am. Law Inst. 1998).

[6] See, e.g.Oman Int’l
Fin. Ltd. v. Hoiyong Gems Corp.
, 616 F. Supp. 351, 361-62 (D.R.I. 1985).

[7] Asarco, LLC v. Union Pac. R.R. Co., No.
2:12-CV-00283-EJL-REB, 2017 WL 639628, at *18 (D. Idaho Feb. 16, 2017).

[8] United States v. Mex. Feed & Seed Co.,
980 F.2d 478, 487 (8th Cir. 1992)  (quoting Tucker v. Paxson Mach.
Co.,
 645 F.2d 620, 626 (8th Cir. 1981)).

This article was first published on the Cohen & Grigsby website.

About the Author

Julie counsels and represents clients in a range of environmental and litigation matters. She assists clients with day-to-day environmental compliance concerns and provides enforcement defense counseling, particularly with solid waste and groundwater issues. Her extensive background in CERCLA matters includes serving as legal counsel for clients involved in remediation initiatives at complex Superfund sites as well as litigating cases through multiple phases, including discovery, allocation negotiations, and alternative dispute resolution. Julie’s litigation practice encompasses not only environmental matters, but also insurance coverage actions and other commercial and business disputes.