ASTM_E_2137_-_06_2011.pdf

Designation:E213706(Reapproved 2011)Standard Guide forEstimating Monetary Costs and Liabilities for EnvironmentalMatters1This standard is issued under the fixed designation E2137;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.A number in parentheses indicates the year of last reapproval.Asuperscript epsilon()indicates an editorial change since the last revision or reapproval.1.Scope1.1 PurposeThe purpose of this document is to provide astandard guide for estimating costs and liabilities for environ-mental matters.2Many possible uses for estimates of costs andliabilities for environmental matters exist,including but notlimited to business decision making,communications andnegotiations involving change of property ownership,regula-tory requirements,third-party lawsuits,insurance premiumcalculation and claim settlement,change of property use,revitalization,compliance planning,construction,analysis ofremedial alternatives,budgeting,strategic planning,financing,and investment analysis by shareholders.The use of estimatedcosts and liabilities developed in accordance with this standardmay be subject to other standards applicable to the matterinvolved.For example,it is not intended to supersede account-ing and actuarial standards including those by the FinancialAccounting Standards Board and the U.S.Security and Ex-change Commission.This standard does not address theestablishment of reserves or disclosure requirements.1.2 ObjectivesThe objective of this standard is to provideguidance on approaches for estimating costs and liabilities forenvironmental matters.2.Referenced Documents3,42.1 ASTM Standards:E1527 Practice for Environmental SiteAssessments:Phase IEnvironmental Site Assessment ProcessE1739 Guide for Risk-Based Corrective Action Applied atPetroleum Release SitesE2081 Guide for Risk-Based Corrective ActionE2091 Guide for Use of Activity and Use Limitations,Including Institutional and Engineering ControlsE2205 Guide for Risk-Based Corrective Action for Protec-tion of Ecological ResourcesE2345 Practice for Investigating Electrical Incidents(With-drawn 2013)52.2 Other Document:EPA OSWER Directive 9610.17 Concerning Use of Risk-Based Decision Making,199563.Terminology3.1 Definitions:3.1.1 activity and use limitations(AULs)legal or physicalrestrictions or limitations on the use of,or access to,a site orfacility to eliminate or minimize potential exposures to chemi-cals of concern,or to prevent activities that could interfere withthe effectiveness of a response action,to ensure maintenance ofa condition of“acceptable risk”or“no significant risk”tohuman health and the environment.These legal or physicalrestrictions are intended to prevent adverse impacts to indi-viduals or populations that may be exposed to chemicals ofconcern.3.1.2 allocation or allocated sharethe portion of cost orliability for which a party is responsible for payment orreimbursement.3.1.3 asset retirement obligationlegal obligations associ-ated with the retirement of a tangible long-lived asset thatresult from the acquisition,construction,development,ornormal operation of a tangible long-lived asset.3.1.4 costs and liabilitieseconomic expenses,accruedliabilities,asset retirement obligations,and loss contingencies.3.1.5 environmental complianceoperations,permits,equipment,facilities,products,records,documentation,reports,training,procedures,inspections,certifications,monitoring,controls,or other conditions or activities that mustconform to environmental statutes including,but not limited to,1This guide is under the jurisdiction ofASTM Committee E50 on EnvironmentalAssessment,Risk Management and Corrective Action and is the direct responsibil-ity of Subcommittee E50.05 on Environmental Risk Management.Current edition approved July 1,2011.Published July 2011.Originally approvedin 2001.Last previous edition approved in 2006 as E2137 06.DOI:10.1520/E2137-11.2For the purposes of this standard,costs and values are defined as monetaryestimates.3Appendix X1 includes citations for additional relevant documents and require-ments from other organizations including FASB,SEC,and AICPA.4For referenced ASTM standards,visit the ASTM website,www.astm.org,orcontact ASTM Customer Service at serviceastm.org.For Annual Book of ASTMStandards volume information,refer to the standards Document Summary page onthe ASTM website.5The last approved version of this historical standard is referenced onwww.astm.org.6Available from U.S.Environmental Protection Agency,1200 PennsylvaniaAvenue,NW Washington,DC 20460.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United States1 CAA,CWA,OPA,RCRA,CERCLA,TSCA,FIFRA,SDWA,and state and local laws,as well as any international jurisdic-tional requirements.3.1.6 estimatoran individual or entity that prepares andanalyzes costs and liabilities.3.1.7 eventa condition or incident which occurred,or mayoccu