Environmental Liability Transfer | Case Studies | Environmental Liability Transfer
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Page-Title-Case-Studies

 

 

Environmental Liability Transfer has been trusted to assume and abate over $1 billion USD in corporate environmental liability throughout North America.

 

Below are some ongoing and completed ELT projects.

 

Shell Global

ELT helped Shell Global divest 135 environmentally-impacted oil transfer and refining facilities located throughout Canada. By transferring remedial obligations to ELT, Shell was able to receive corporate indemnification, guarantee that these distressed sites were restored, and reallocate capital and manpower to core operations.

 

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» Download the Case Study (pdf)

 

 

 

Sparrows Point

ELT purchased this former steel mill consisting of over 13,000,000 square feet of manufacturing buildings on 3,100 acres of land in Baltimore, Maryland. The mill was purchased from RG Steel during its bankruptcy proceedings. With a bid of $72,500,000 at the bankruptcy auction, ELT was declared the winner. The transaction was completed in less than 75 days. Sparrows Point was once the nations largest steel mill, employing nearly 30,000 people at its peak. With a 125+ year history of steel making, the site has various environmental issues. Sparrows Point is destined to become one of the largest ports on the eastern seaboard of the United States.

 

 

DTE Energy – Marysville, MI

In 2014, Environmental Liability Transfer, Inc. assumed liabilities and environmental obligations for DTE Energy’s 20-acre coal-firec power plant in Marysville, MI. Demolition and environmental remediation are currently underway, creating a pathway for new development. City officials credit DTE Energy with making sure they found a buyer (ELT) with a 21st century vision of what the riverfront property could be.

 

In the News: Marysville Looks to a Riverfront Renaissance

 

 

Evraz Steel – Claymont, DE

In 2015, Environmental Liability Trasnfer, Inc. assumed environmental liabilities of a 425-acre shuttered steel mill outside Philadelphia, PA. ELT affiliate Commercial Development Company, Inc. (CDC) then initiated redevelopment plans, which are now underway. Estimated to bring in 5,000 jobs, the “First State Crossing” redevelopment initiative is slated to break ground following environmental remediation in 2017.

 

Watch the redevelopment video

 

 

General Motors – West Mifflin, PA

This 1,000,000 square foot former stamping plant located on 72 acres in West Mifflin, Pennsylvania, was purchased from Motors Liquidation Company, the bankruptcy estate of General Motors. After 60 years of heavy manufacturing, this facility has a host of environmental issues that will be remediated prior to the redevelopment of the site. This transaction required approvals from the United States Treasury, Pennsylvania Department of Environmental Protection (PADEP) and Federal Bankruptcy Court.

 

 

Chrysler Corporation – Huntsville, AL

ELT purchased this 250,000 square foot high-tech manufacturing facility located on 36 acres within the prestigious Cummings Research Park in Huntsville, Alabama. The site was used in the construction of instrument panels for Chrysler vehicles. The transaction included a complete environmental liability transfer and assumption and required approvals from the United States Treasury and Federal Bankruptcy Courts.

 

 

ASARCO Corporation – Perth Amboy, NJ

ELT acquired this 70+/- acre former metals related manufacturing plant, located in Perth Amboy, NJ through the US Bankruptcy Court. ELT entered into and signed a Consent Order with the New Jersey Department of Environmental Protection, which was an integral part of ASARCO’s Settlement Agreement with the NJDEP. ELT posted financial assurance to backstop the cleanup. The site contains groundwater and soil contamination caused by heavy metals. ELT was able to close this transaction in just over 60 days. This waterfront site is located just 17 miles from downtown Manhattan. Demolition is currently underway which will lead to site redeveloped maximizing its waterfront and logistical attributes.

 

 

El Paso Gas – Wichita, KS

ELT acquired this former 107 acre refinery located on Interstate 135 in Wichita, Kansas from Coastal Derby Refining Company (Kinder Morgan/El Paso Energy Petroleum Company). The refinery, which opened in 1920, closed in 2003 leaving the site inactive for nearly 10 years. The site was used to process and refine crude oil. ELT has plans to address the environmental issues and return the site to productive reuse.

 

 

Chemtura Corporation – Harmony, NJ

ELT acquired Chemtura’s environmental liabilities and purchased the real estate from Harmony Township thus ending years of litigation between the parties. Approvals were required from New Jersey’s Department of Environmental Protection (NJDEP), Federal Bankruptcy Court, and the Creditors Committee of Chemtura Corporation. ELT funded a remedial trust to serve as financial assurance.

 

 

ASARCO Federated Metals – Houston, TX

Acquired out of Bankruptcy this 22+/- acre former metals related manufacturing plant, located in Houston, Texas, was on the Texas State Superfund list. The site contained groundwater and soil contamination possessing heavy metals and radiological materials. ELT entered into a consent order with TCEQ (Texas Commission on Environmental Quality) and posted financial assurance.

 

 

Gibson Group – Bakersfield, CA

ELT purchased this 6 acre former oil waste disposal facility and its associated liabilities from the Gibson Group. The Gibson Group was a coalition of 58 PRPs that took ownership of the site after the operator abandoned it, leaving the Gibson Group with the cleanup obligations. A Certificate of Completion has been received from California’s DTSC, indicating all environmental remedial work associated with the site has been completed. The site is now ready to be brought back to productive reuse. Terms and conditions of this transaction are confidential.

 

 

ABB / Westinghouse – Muncie, IN

Purchased from ABB, this 750,000 square foot facility manufactured large capacity transformers for both Westinghouse and ABB. The environmental liability transfer included an onsite landfill, PCB’s in the soil and groundwater as well as, free-floating petroleum impaction. After remediation completion the site was sold to a warehouse and distribution company.

 

 

Millenium Chemicals – 13 Site North American Portfolio

A combination of 13 sites throughout North America totaling over 1,000,000 square feet under roof and approximately 130 acres of land. Environmental issues range from below grade heavy metal impaction of soil and groundwater to asbestos and underground tank removal. Working in concert with regulators from multiple states, 11 of the 13 sites have reached closure. 

 

 

PMX Corporation – Euclid, OH

This surplus, corporate asset was purchased in 2003. The site consisted of a 619,000 square foot facility located on 78 acres and was formerly utilized for the production of copper. The liability transfer and assumption covered all impaction including an onsite landfill, heavy metals in the groundwater/soil, fugitive dust and asbestos-impregnated building materials. The property was abated and the facility was demolished prior to being sold to a developer for the development of a new industrial park.

 

 

General Motors – Sioux City, IA

Located upon 27 acres, this 207,000 square foot facility was purchased from General Motors Corporation in concert with an environmental liability transference program. Various environmental issues were abated and currently the facility is being leased to a national distribution company.

 

 

General Motors – Danville, IL

This 700,000 square foot General Motors foundry located upon 101 acres and complete with all production equipment was purchased in concert with an environmental liability transference program. After abatement, the facility was sold to a local manufacturing concern which, in turn, received complete indemnification against environmental liability.

 

 

Kraft Foods – Evansville, IN

This site was purchased in 1997. As part of the site’s risk management program and remedial action plan approximately 142,000 square feet of structure was razed. Substantial asbestos and PCB remediation was implemented as well as the removal of nine underground storage tanks and the associated contaminated soil.

 

 

Uniroyal Corporation – Port Clinton, OH

Working with Uniroyal Corporation, the “Debtor In Possession”, this facility was purchased through the Bankruptcy Courts in 2002. Included in the acquisition was a complete environmental liability transference program covering issues both on and offsite. The property possessed landfills, unexploded ordnance, chlorinated impacted soil/groundwater and considerable above ground storage tanks.

 

 

Textron Corporation – Cheshire, CT

This 550,000 square foot surplus asset of Textron was purchased in 1995 and included a complete environmental liability transference program benefiting the seller. By extending the program to a secondary purchaser the site was immediately re-sold to a “risk averse” major retailer. The site possessed PCB contamination, asbestos contamination, required PCB transformer removal, PCB wood block removal, and significant below grade contamination abatement.

 

 

Cardinal Brands – Topeka, KS 

In 2007, RR Donnelley’s pending acquisition of Cardinal Brands stalled due to legacy environmental liabilities associated with a 120,000 square foot surplus facility located in Topeka, Kansas. ELT was brought in to purchase the site, assume the environmental liabilities and extend corporate indemnifications to both RR Donnelley and Cardinal Brands. In doing so, ELT paved the way for RR Donnelley and Cardinal Brands to complete their transaction. ELT is currently working with the Kansas Department of Health and Environment (KDHE) to bring the site to closure.

 

 

BAE Systems – Minneapolis, MN 

ELT purchased this 2,000,000 square foot office and industrial complex located on a 113 acre campus in Minneapolis, Minnesota from BAE Systems for $19,900,000. The transaction included transference and assumption of specified environmental liabilities as well as, the lease back of 850,000 square feet to BAE Systems. In this transaction BAE Systems was able to monetize surplus square footage, reduce overhead and carry costs and transfer environmental liabilities from their books.

 

 

 

FRU-CON Construction Corporation – St. Louis, MO 

ELT acquired this 42 acre riverfront site and its associated environmental liabilities from FRU-CON Construction Corporation – the 10th oldest contractor in the United States. The site had originally been used for the storage of cement kiln dust and more recently the storage of large construction equipment. The transaction enabled FRU-CON to divest of an estimated $3,800,000 in environmental liabilities.

 

 

 

G. Heileman Brewery – Belleville, IL

This facility located on 27 acres was capable of producing 800,000 barrels of beer annually. The purchase included a robust liability transference and assumption program. As part of the remedial plan 68% of the buildings were demolished while performing remediation that targeted asbestos, PCB’s, below grade hydrocarbons and underground storage tank removals. Fifteen acres were sold to an adjacent nursing home and approximately 180,000 square feet of structure was retained for future warehouse and distribution use. Pictures reveal before and after shots. 

 

 

Fruit of the Loom – Lafayette, LA

This 1,000,000 square foot facility located upon 61 acres was purchased from Fruit Of The Loom through the Federal Bankruptcy Courts. Working in concert with the Trustees, an environmental liability transfer program was implemented covering all known and unknown, above and below grade issues. The final transaction brought positive value to the trustee and associated creditors.

 

 

Carondelet Foundry – St. Louis, MO

This foundry with structure covering 7 acres of land was acquired through an environmental liability transfer program which required 100% demolition in order to institute the agreed upon remedial program. The site was developed as a self storage facility. Pictures reveal before and after shots. 

 

 

 

EPS, LLC – Marietta, OH

This closed industrial landfill was acquired in a liability buyout with EPS, LLC. EPS effectively transferred the title to the real estate and all environmental liabilities at the site – both known and unknown to ELT. EPS was pleased to remove this liability from their balance sheet which gave them the freedom to close this business unit. The site has received closure from the State of Ohio Environmental Protection Agency.

 

 

Alpha Portland Cement – St. Louis, MO

This 680,000 square foot concrete and steel facility located on 145 acres was purchased in 1994 and included an environmental liability assumption and transference. In order to implement the remedial strategy all structures were demolished. Remedial issues included asbestos, PCB transformers and heavy metals. After completion of the remedial plan the site was redeveloped into an industrial complex and now is home to several nationally recognized companies.

 

 

Reeves Brothers, Inc. – NC & VA 

ELT completed a 4 property environmental liability transference project in the southeastern United States. Reeves Brothers, a U.S. based chemical manufacturer was being acquired by Trelleborg of Sweden. Reticent to assume Reeves Brothers’ legacy environmental liabilities, Trelleborg engaged ELT to purchase the sites and to assume the associated environmental liabilities prior to closing on the transaction with Reeves. With the four legacy sites removed, Trelleborg consummated its acquisition of Reeves Brothers.

 

 

G. Heileman Brewery – Phoenix, AZ 

This brewery, located on 24 acres, was purchased from G. Heileman Brewing Co. in 1993. The facility was capable of brewing over 500,000 barrels of beer annually. Remediation included the removal of asbestos and PCB transformers. The brewing equipment was liquidated and the buildings were demolished. The site was sold to the city of Phoenix and has become the Fire Department’s Headquarters Complex.

 

 

Vertellus Specialties – Harriman, NY 

ELT acquired this 130 acre former chemical manufacturing site in Harriman, New York. After 63 years of operation the site had significant soil and groundwater issues. The sale of this site to ELT was designed to remove challenging legacy issues from one of multiple potential responsible parties from the balance sheet of the specialty chemical manufacturer.

 

 

Hanson America Quarry – San Antonio, TX 

This idle, 170 acre quarry was acquired from Hanson America. Indiscriminate dumping of trash, machinery and industrial waste including storage tanks up to 10,000 gallons in size, drums, asbestos containing machinery, brick manufacturing byproducts, tar plumes and other hazards were present.

 

 

Viacom / Westinghouse – Atlanta, GA 

ELT acquired this 100,000 square foot facility on 16.5 acres located at 1600 Ellsworth Industrial Boulevard in Atlanta, Georgia from Viacom / Westinghouse. ELT will remove asbestos and demolish the building and remediate soil and groundwater contamination. The site has been rezoned for a mixed-use redevelopment project.

 

 

G. Heileman Brewery – Frankenmuth, MI 

This facility was acquired through the Federal Bankruptcy courts. Working closely with city planners, a remedial plan was implemented that included 75% demolition of the historical site. Asbestos impregnated building materials, PCB in the soil and water and other caustics conditions were abated. Today the site is home to Bavarian themed shops and supports festivals that draw over 3,000,000 visitors per year.

 

 

SMMH Holdings – Rockwood, TN 

ELT purchased all stock of SMM Holdings Limited a subsidiary of a South African Company – located in Rockwood, TN. ELT’s stock purchase allowed its South African client to effectuate a complete Exit from The United States.  As a new subsidiary of ELT, SMM Holdings was required to post $15.2 million in Financial Assurance with the State of Tennessee and has embarked upon the cleanup of the site a former metals smelter – located on 280 acres. The transaction required and received the approvals of the Tennessee Department of Environment and Conservation (TDEC). Remediation of this site was completed in 2013.

 

 

Contact ELT

If you have an environmental liability or questions/comments in general, please reach out to ELT for a confidential discussion.