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July 2008

In This Issue
Green Buildings: Better for the Environment and Better for Business
Implications of Emerging Contaminants on Site Cleanup Costs
More NORM Claims on the Horizon?
The Latest Evolution of NRD
CEO's Message

JWI is expanding our services.  In June we sent a team to the Middle East to evaluate environmental conditions at military facilities.  Our team has completed the initial surveys and returned safely.  The consensus was "Hot, sandy, and windy." 

Also in June, JWI was selected to be in the ANSI nation-wide pilot program for Green House Gas verifiers.  JWI will be auditing and verifying the GHG emissions reported by industry.

We are also adding clients that need assistance in reporting their GHG emissions. 

I hope this newsletter finds you healthy and happy.  If there is any way I or the JWI team can assist you, please let me know. 

Regards,
Peter W. Johnson
President and CEO
 

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Johnson Wright, Inc.
3687 Mt. Diablo Blvd.
Suite 330
Lafayette, CA 94549
Office: (925) 403-6200
Fax: (925) 284-3065

Green Buildings:  Better for the Environment and Better for Business
By Paul Nuti  
 
The climate change issue is heating up and the level of regulation is rising.  Many cities, including San Francisco, New York and Washington D.C., are requiring that new construction projects go green.  As the country moves farther down the road of green development everyone wants to know, can green building save money and the environment?  The U.S. Green Building Council commissioned a report to evaluate performance of LEEDŽ for new construction building projects and to compare their performance to a standard building.   The report was published in March 2008 and the news for green building is good.
 
The report concludes that LEED buildings are out-performing standard buildings in a number of areas.  LEED buildings show overall energy savings and higher LEED certification levels are showing energy improvements over lower certification levels.[1]  The study also found some areas needing improvement.  There were some projects that performed poorly when compared to the modeled standard indicating the green design has further to go.  The report also suggested that the methodology to compare "standard" to "green" be further evaluated.  The bottom line is that energy efficiency is happening through green design.
Implications of Emerging Contaminants on Site Cleanup Costs
By Alborz Wozniak
 
Under the Safe Drinking Water Act (SDWA), the United States Environmental Protection Agency molecule(USEPA) is required to identify, review, and evaluate potential contaminants that may be present in drinking water for regulatory decision-making.  The list of potential contaminants of concern that may be present in drinking water sources (e.g. groundwater) are referred to as Contaminant Candidate List (CCL).  By law, the USEPA is required to publish a CCL every five years.  The latest draft list which was published in February 2008, contained 93 chemicals and 11 microbes.  Eventually, the USEPA will make a determination on whether to regulate these "emerging" contaminants or not.  Examples of recent emerging contaminants that are on the CCL include methyl tert-butyl ether (MTBE), perchlorate, 1,2,3-trichloropropane (1,2,3-TCP), and N-nitrosodimethylamine (NDMA).
 
State water quality regulators and the water entities responsible for extraction, treatment and supply of drinking water that are required to comply with federal and state drinking water regulations monitor the Nation's water supplies for the emerging contaminants as part of the information gathering process to support the USEPA's CCL policy making process.  In addition, the water purveyors are required by law to monitor and report to the public if these emerging contaminants are present in their water supplies.  These regulatory requirements coupled with the lack of adequate information regarding the potential health effects of the chemicals have created uncertainty and concern over the potential long-term liability posed by these contaminants to the water purveyors.
 
More NORM Claims on the Horizon?
By John Elliott
 
Background
NORM is the acronym for Naturally Occurring Radioactive Material.  One source of NORM is oil and gas production.  While the oil and gas that isNORM extracted from a formation is not radioactive, the water that is also present in these formations often contains low levels of the radionuclide radium-226 (Ra-226), which is of the Uranium 238 decay series.  During extraction of the oil and gas, formation water is also extracted.  As this water is brought to the surface, some of the dissolved radium precipitates out in solid form.  Most commonly, the radium co-precipitates with barium sulfate, a hard and relatively insoluble scale deposit.  While the levels of radioactivity are insignificant in the formation water, the scale build-up in the pipes concentrates the radioactivity.  This process, analogous to bio-accumulation, is referred to as Technologically-Enhanced Naturally Occurring Radioactive Material (TENORM). 
 
Grefer
Joseph Grefer and his family leased a 33-acre tract of Louisiana industrial property for decades to Intercoastal Tubular Services Inc. (ITCO), a company that cleaned and stored used oil drilling pipes for ExxonMobil.  In 1986, ExxonMobil learned that some of the pipes contained low levels of naturally occurring radioactive material (NORM), but allowed the pipes to remain at the site in Harvey, La., until operations ceased in 1992.  A lawsuit was subsequently filed. 
 
In 2001 a Louisiana state court jury awarded the Grefers $56 million in compensatory damages and $1 billion in punitive damages for radioactive contamination caused by the oil company (ExxonMobil Corp. v. Grefer).  The punitive award was later reduced to $112 million by the Louisiana Court of Appeals.  On April 21, 2008 the U.S. Supreme Court declined to hear an appeal from ExxonMobil Corp. over the $112 million in punitive damages.
 
The Latest Evolution of NRD 
By Michael Marsden
 
Natural resource damages (NRD) has been part of the environmental liability reality for nearly 30 yrs.  NRD has evolved slowly over the years, but those changes have been significant.  At the forefront of these changes has been the National Oceanic and Atmospheric Administration (NOAA) as a federal trustee under the Department of Commerce (DOC). Back in the mid-1990s NOAA introduced a fundamental change in NRD assessment process shifting away from the traditional economic-based valuation of NRD claims (developed by the Department of the Interior in the mid-80s) to a resource-based valuation process (using a Habitat Equivalency Analysis).  NOAA is now making a shift in the timing and the funding of the NRD process relative to site investigation and cleanup.  This shift could significantly impact where the money comes from to pay NRD assessments.
Johnson Wright, Inc. | 3687 Mt. Diablo Boulevard | Suite 330 | Lafayette | CA | 94549