Claim Settlement Support

Eighteen Former Manufacturing Gas Plant Sites
Massachusetts, Maine, and New Hampshire

Project Description: The Source Group provided settlement support services to a large national insurance company related to alleged environmental damages at 18 former manufacture gas plant (MGP) sites in Massachusetts, Maine, and New Hampshire.

Documentation provided by the insured was evaluated by reviewing site specific information (characterization reports and regulatory correspondence) and assessing the efficacy, feasibility and costs of the proposed remediation methodologies.

Our evaluation concluded that the majority of the proposed remedial actions were overly conservative and were inappropriate for typical MGP sites. Alternative remedial approaches and costs were developed based on accurate interpretation of regulatory requirements and site conditions, revised unit costs and remedial quantities, and net present value analysis.

Results: During mediation, The Source Group's analysis of the claim resulted in a 92 percent reduction of the alleged cleanup costs from over $300,000,000 to under $20,000,000.