Many businesses that affect the environment hold what one might call “environmental debt.” Someone else owes a portion of certain costs that they may incur in the future. Earlier this month, the Commonwealth Court issued an opinion that reminds “environmental creditors” how tricky collecting those debts can be. It may suggest to some that they audit their own systems for identifying environmental problems, notifying their “debtors” and pursuing collection.
MKP Enterprises Inc. v. Underground Storage Tank Indemnification Board , decided on Feb. 9, involved a leak from tanks owned by MKP. MKP discovered a problem late in 2007 and duly reported it to the Department of Environmental Protection. MKP did not have a laboratory analysis of a soil sample until April 2008, so MKP provided notice of a claim to the board at that time. The board denied the claim as untimely; MKP did not submit notice until more than 60 days after it “confirmed” a release. MKP sought an administrative hearing and was again denied. The Commonwealth Court affirmed.
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