ASTM E2137-06

Standard Guide for Estimating Monetary Costs and Liabilities for Environmental Matters

SCOPE
1.1 Purpose The purpose of this document is to provide a standard guide for estimating costs and liabilities for environmental matters. Many possible uses for estimates of costs and liabilities for environmental matters exist, including but not limited to business decision making, communications and negotiations involving change of property ownership, regulatory requirements, third-party lawsuits, insurance premium calculation and claim settlement, change of property use, revitalization, compliance planning, construction, analysis of remedial alternatives, budgeting, strategic planning, financing, and investment analysis by shareholders. The use of estimated  costs and liabilities developed in accordance with this standard may be subject to other standards applicable to the matter involved. For example, it is not intended to supersede accounting and actuarial standards including those by the Financial Accounting Standards Board and the U.S. Security and Exchange Commission. This standard does not address the establishment of reserves or disclosure requirements.
1.2 Objectives The objective of this standard is to provide guidance on approaches for estimating  costs and liabilities for environmental matters.

General Information

• Status: Historical
• Publication Date: 31-Oct-2006
• ICS: 13.020.99 - Other standards related to environmental protection
• Technical Committee: E50 - Environmental Assessment, Risk Management and Corrective Action
• Drafting Committee: E50.05 - Environmental Risk Management

Relations

• Replaces: ASTM E2137-01 - Standard Guide for Estimating Monetary Costs and Liabilities for Environmental Matters
• Effective Date: 01-Nov-2006
• Replaced By: ASTM E2137-06(2011) - Standard Guide for Estimating Monetary Costs and Liabilities for Environmental Matters
• Effective Date: 01-Jul-2011
• Referred By: ASTM E2876-13(2020) - Standard Guide for Integrating Sustainable Objectives into Cleanup
• Effective Date: 01-Nov-2006
• Referred By: ASTM E1903-19 - Standard Practice for Environmental Site Assessments: Phase II Environmental Site Assessment Process
• Effective Date: 01-Nov-2006
• Referred By: ASTM E3123-18 - Standard Guide for Recognition and Derecognition of Environmental Liabilities
• Effective Date: 01-Nov-2006
• Referred By: ASTM E3228-19 - Standard Guide for Environmental Knowledge Management
• Effective Date: 01-Nov-2006
• Referred By: ASTM E2718-21 - Standard Guide for Financial Disclosures Attributed to Climate Change
• Effective Date: 01-Nov-2006
• Referred By: ASTM E2173-22 - Standard Guide for Disclosure of Environmental Liabilities
• Effective Date: 01-Nov-2006

Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
Designation:E2137–06
Standard Guide for
Estimating Monetary Costs and Liabilities for Environmental
1
Matters
This standard is issued under the fixed designation E2137; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope E2091 Guide for Use of Activity and Use Limitations,
Including Institutional and Engineering Controls
1.1 Purpose—The purpose of this document is to provide a
E2205 Guide for Risk-Based Corrective Action for Protec-
standard guide for estimating costs and liabilities for environ-
2 tion of Ecological Resources
mental matters. Many possible uses for estimates of costs and
E2345 Practice for Investigating Electrical Incidents
liabilities for environmental matters exist, including but not
2.2 Other Document:
limited to business decision making, communications and
EPA OSWER Directive 9610.17 Concerning Use of Risk-
negotiations involving change of property ownership, regula-
5
Based Decision Making, 1995
tory requirements, third-party lawsuits, insurance premium
calculation and claim settlement, change of property use,
3. Terminology
revitalization, compliance planning, construction, analysis of
3.1 Definitions:
remedial alternatives, budgeting, strategic planning, financing,
3.1.1 activity and use limitations (AULs)—legal or physical
and investment analysis by shareholders. The use of estimated
restrictions or limitations on the use of, or access to, a site or
costs and liabilities developed in accordance with this standard
facility to eliminate or minimize potential exposures to chemi-
may be subject to other standards applicable to the matter
calsofconcern,ortopreventactivitiesthatcouldinterferewith
involved. For example, it is not intended to supersede account-
theeffectivenessofaresponseaction,toensuremaintenanceof
ing and actuarial standards including those by the Financial
a condition of “acceptable risk” or “no significant risk” to
Accounting Standards Board and the U.S. Security and Ex-
human health and the environment. These legal or physical
change Commission. This standard does not address the
restrictions are intended to prevent adverse impacts to indi-
establishment of reserves or disclosure requirements.
viduals or populations that may be exposed to chemicals of
1.2 Objectives—The objective of this standard is to provide
concern.
guidance on approaches for estimating costs and liabilities for
3.1.2 allocation or allocated share—the portion of cost or
environmental matters.
liability for which a party is responsible for payment or
,
3 4
2. Referenced Documents reimbursement.
3.1.3 asset retirement obligation—legal obligations associ-
2.1 ASTM Standards:
ated with the retirement of a tangible long-lived asset that
E1527 Practice for Environmental Site Assessments: Phase
result from the acquisition, construction, development, or
I Environmental Site Assessment Process
normal operation of a tangible long-lived asset.
E1739 Guide for Risk-Based Corrective Action Applied at
3.1.4 costs and liabilities—economic expenses, accrued
Petroleum Release Sites
liabilities, asset retirement obligations, and loss contingencies.
E2081 Guide for Risk-Based Corrective Action
3.1.5 environmental compliance—operations, permits,
equipment, facilities, products, records, documentation, re-
ports, training, procedures, inspections, certifications, monitor-
1
ThisguideisunderthejurisdictionofASTMCommitteeE50onEnvironmental
ing, controls, or other conditions or activities that must
Assessment, Risk Management and CorrectiveAction and is the direct responsibil-
ity of Subcommittee E50.05 on Environmental Risk Management. conformtoenvironmentalstatutesincluding,butnotlimitedto,
Current edition approved Nov. 1, 2006. Published December 2006. Originally
CAA, CWA, OPA, RCRA, CERCLA, TSCA, FIFRA, SDWA,
approved in 2001. Last previous edition approved in 2001 as E2137 – 01. DOI:
and state and local laws, as well as any international jurisdic-
10.1520/E2137-06.
2
tional requirements.
For the purposes of this standard, costs and values are defined as monetary
estimates.
3.1.6 estimator—an individual or entity that prepares and
3
Appendix X1 includes citations for additional relevant documents and require-
analyzes costs and liabilities.
ments from other organizations including FASB, SEC, and AICPA.
4
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM
5
Standards volume information, refer to the standard’s Document Summary page on Available from U.S. Environmental Protection Agency, 1200 Pennsylvania
the ASTM web
...