Many states across the country have begun to assess natural resource damages (NRD) against parties responsible for environmental contamination or ecosystem degradation, even as the parties are meeting their obligation to remediate the impacted resource. Differences in approach to NRD from state to state are adding complexity and cost to the already difficult process of assessing damages and restoring the resource. In some instances, the natural resource trustee operates separately from the regulatory agency responsible for oversight of the remediation effort. In addition, states are increasingly relying on outside law firms to pursue natural resource damage claims.

In New Jersey, the State has retained outside counsel to pursue natural resource damage claims against responsible parties at thousands of contaminated sites. In cases involving ground water contamination, New Jersey’s Department of Environmental Protection (NJDEP), through their Office of Natural Resource Restoration, has developed an equation for estimating NRD costs based on the area of impacted ground water at a site for the purpose of negotiating settlements.

Example calculation for Natural Resource Damages in New Jersey

Natural Resource Damages Calculator

The area that would be used in this calculation was determined at many sites at a time before NRD considerations; e.g., as part of a conservatively large plume delineation during a remedial investigation, or as part of a remedy that included a large ground water classification exception area (CEA). Smaller areas may have been delineated, and different ground water remedies chosen, had it been known that NRD costs would be based on those decisions.

Ground water remediation systems, designed at a time before NRD concerns, can often operate in a manner that requires decades to return contaminated ground water to its intended beneficial use. During the remediation period, there may be impacts to ground water which could be claimed to constitute injury to the ground water resource. In addition, the operation of a pump and treat remedy could in itself be identified as causing a damage to the ground water resource.

McLane Environmental can assist you by efficiently and cost-effectively evaluating existing data to determine the potential for reducing your ongoing environmental liabilities. An examination of the existing CEA and an optimization analysis of the ongoing remedy could prove beneficial both in terms of potential NRD liability and the long-term cost of the selected remedial action. Our experience in performing CEA and natural resource assessment analyses, in addition to our expertise with ground water in New Jersey, allows us to efficiently assist you in successfully responding to natural resource damage claims.