Note X – Environmental and Certain Asset Retirement Liabilities
Instructions to preparer:
Disclose any additional information that are essential to a user’s understanding of the financial statements, for example:
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Pollution Remediation(Environmental)/Retirement of Certain Assets
List polluted site(s), type of contamination, clean-up action(s), assets subject to special retirement rules, potential liability and any payments incurred during reporting year. Add any other significant information (e.g., money set aside for this purpose, sources of future funding, method used to determine the liabilities, etc.). Note: For certain asset retirement obligations, obligations with reasonably certain retirement timeframes need be disclosed. Additionally, asset retirement obligations that could be significant but have no planned retirement should be disclosed.
The (city/county/district) has contaminated ground under oil storage tanks. Under the (federal/state) law, the (federal/state agency) named the (city/county/district) as potentially responsible for remediation. The (city/county/district) is working with the (federal/state agency/contractor, etc.) to clean up the site. The (city/county/district) recorded $____ as pollution remediation liability on the Schedule of Liabilities. During (reported year) the (city/county/district) paid $____ for the clean-up.
The (city/county/district’s) airport was found to have pesticide residue from previous agricultural activities. No clean-up action is required at this time.
The (city/county/district) has ground contaminated with fuel from fuel storage tanks. Under the (federal/state) law, the (federal/state agency) named the (city/county/district) as potentially responsible for remediation. At this time, the (city/county/district) doesn’t have sufficient information to reasonably estimate the liability related to potential cleanup of the site.
The (city/county/district) has (number and size) underground fuel storage tanks. Under state law, the (city/county/district) is required to decommission the tank and the (city/county/district) plans to (retire/replace) the tanks and tank sites by (date). The (city/county/district) will incur estimated costs of $_____related to the project. These liabilities are reported on the Schedule of Liabilities. During (reported year) the (city/county/district) paid $____ for the related work.
The (city/county/district) has (___number of____) wells requiring capping in the foreseeable future. Due to the (federal/state) law and/or the legal agreement with (________) the (city/county/district) will incur estimated costs of $_____related to the capping. These liabilities are reported on the Schedule of Liabilities. During (reported year) the (city/county/district) paid $____ for the related work.
The (city/county/district) has property (describe in adequate detail) required to be decommissioned by (date). Due to contractual obligations with (________) the (city/county/district) will incur estimated costs of $_____related to the project. These liabilities are reported on Schedule of Liabilities. During (reported year) the (city/county/district) paid $____ for the related work.
The (city/county/district) owns contaminated property due to the former tenant dry cleaning business. The (city/county/district) is working with the (federal/state agency/contractor, etc.) to clean up the site. The (city/county/district) recorded $____ as pollution remediation liability on the Schedule 09. However, the recent work at the cleanup site revealed additional contaminated areas requiring to reevaluate the future cost of the project. As a result the (city/county/district) increased the amount of liabilities reported on Schedule of Liabilities by $_____. During (reported year) the (city/county/district) paid $____ for the clean-up.
Based on the engineering firm’s estimate, the (city/county) has the following liabilities associated with the closure of its landfill(s). These amounts were updated in (year) to values determined by the engineering firm. The amounts were last updated for inflation as of (date). The amount of post-closure costs reported on the Schedule of Liabilities is $_____.