TRUSTEE AND FUND ADMINISTRATION SERVICES

Presently, Project Navigator performs trustee and fund administrative services at many of our Superfund site projects. A significant component of our work is assisting our clients with establishing and administering trusts for their environmental projects. Currently we administer several trust accounts for remediation projects. We currently manage approximately $5-10MM in Site Trustee funds annually with an expected long term cumulative value of more than $400MM.

Project Navigator has developed our skills, which allow us to provide cost effective fund services and quickly resolve any issues should they arise. We have worked with various banking institutions and investment advisors to identify and establish the proper and conservative investment vehicles for numerous trusts. Additionally, we manage the transactions and coordinates all necessary income tax-related documents and then work with environmentally experienced accountants to prepare appropriate tax returns. Each of our funds and trusts are administered according to relevant IRS regulations in conjunction with the trust agreement or other guidance documents.

Our examples include the following:

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  ASARCO, El Paso, Texas

  PNL is the Site Custodial Trustee. Under the settlement agreement approved by the bankruptcy court, ASARCO's El Paso smelter property will be placed in an environmental custodial trust. The bankruptcy court requires that $52 million be placed into an account to fund the remediation of the site. As part of the bankruptcy process, the TCEQ identified Project Navigator as the Site Trustee from 24 submittals received. News release

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  Tex Tin Superfund Site, Texas City, Texas

  PNL has managed funds in excess of $20 million dollars on the Tex Tin Superfund Site. PNL is responsible for review of invoices, coordinating vendor payments and transfers to and from central accounts. We maintain financial records of receipts and disbursements and interface with the project accounting firm for preparation of financial statements, tax returns and other official project financial information. We carefully scrutinized US EPA past cost invoices and in the case of Tex Tin, saved the PRPs nearly $1MM. Finally, we maintain ongoing project forecasts and administer all cash calls necessary to maintain the appropriate project fund balance. Recently, PNL recommended to the Tex Tin Group a shift in investment vehicles in light of the current economic situation. The Group unanimously approved the recommended shift in investments, and will continue to accrue approximately five times the previous monthly interest income. Interestingly, at this site, PNL prepares and invoices the US Government for its share of ongoing costs; similar to the arrangement the Hows Corner Site Group has with Settling Federal Agencies.

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  Patrick Bayou Superfund Site, Deer Park, Texas

  PNL performs financial and administrative services for the multi-party PRP group. PNL worked with the Group to establish all financial procedures, an Environmental Remediation Trust (ERT), setup investment and working accounts, and continues to maintain financial records, review and approve invoices, project future cash calls, arrange for disbursements and manage the project finances.

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  Ascon Landfill Site, Huntington Beach, California

  At the Ascon Landfill Site, PNL set up and manages the central project fund for a PRP group of 8 members. The current annual cash flow on this project is approximately $4 million and is expected to rise to $15-20 million/year for the following two to three years, as implementation of the site-wide remedy commences. We also developed a set of procedures and levels of authority for the committee to make payments to and from the fund to other consultants and contractors using electronic payments and authorizations. Fund trustees can review invoices, authorize payments and monitor funds all by using secure online websites.

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  BKK Landfill, West Covina, California

  PNL assists with project cost control and central fund administration for this multi-party remediation site in southern California. The BKK PRP Group consists of ~10 members. PNL is responsible for review of invoices, coordinating vendor payments and transfers to and from central accounts. We maintain financial records of receipts and disbursements and interface with the project accounting firm for preparation of financial statements, tax returns and other official project financial information.

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  Operating Industries, Inc., Monterey Park, California

  PNL assists with all budgeting and cost management efforts for this multi-party remediation site in southern California. Through a series of eight Consent Decrees over the past 20 years that have included multiple deminimis parties, the OII PRP Group currently consists of ~80 members.

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  Cox Road Landfill, Liberty County, Texas

  PNL is responsible for providing on a turnkey basis all project coordination and management duties for this 80 acre abandoned landfill where we also provide the PRP group with project cost control and central fund administration. The PNL team, under the Texas Voluntary Cleanup Program, has conducted a remedial investigation and PNL is currently completing a review of bids for closure of the landfill.

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  SESCO Site Working Group

  PNL currently provides banking and financial administrative services including overview of invoice receipts, payment authorization and tracking, setting up the bank accounts, generating authorizations and payments to vendors, and account administration for cash call demands.

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  Malone Superfund Site, Texas City, Texas

  At the Malone Superfund Site, PNL handle all project finances including cash calls, account maintenance, disbursements and periodic financial reporting. These services are over and above our role as project coordinator overseeing the remedial investigation and feasibility study.