SEGMENT 1:

David T. Buente, Partner,
Sidley Austin LLP

- Overview of FAS 5/types of environmental claims/contingencies that generally trigger FAS 5
  disclosure/accrual consideration - 8-10 minutes
- Governmental enforcement
- Private/governmental remedial liability
- Private party environmental litigation (e.g. toxic tort/property damage claims)
- Current enforcement trends - areas where we might expect to see new/more numerous
  disclosures based upon federal/state enforcement priorities

- Timing Issues - 5-7 minutes
- Common timeline for environmental enforcement matters
- Common timeline for remedial matters
- Assessing "probable and estimable" in the context of such timelines - when does
  disclosure/accrual become appropriate and/or required

- Legal Developments - 5 minutes
- Asset retirement based liabilities - RCRA corrective action, asbestos, etc. and the evolving
  requirement for fair value estimation
- Effect of Burlington Northern (apportionment of liability rather than strict joint and several liability
  under CERCLA) on existing accounting guidance on estimating remedial and toxic tort liabilities
- Touch on climate change - litigation disclosure issues - would allow a reference to fact that calls for
  increased climate change disclosure not prompted by FAS 5 considerations, but other SEC
  disclosure requirements

SEGMENT 2:

Laura L. Leonard, Partner,
Sidley Austin LLP

<** Speaker Talking Points to be added soon.. **

SEGMENT 3:

Gayle S. Koch, Principal,
The Brattle Group

- Best Practice/Standards
- AICPA SOP 96-1
- ASTM standards
- Environmental cost estimation
- Environmental disclosure
- Climate change financial disclosure (forthcoming)

- Consistency Issues with Other Estimates/Disclosures
- Voluntary reports
- Insurance estimates
- Internal management estimates
- Transactions, valuations, and tax matters
- Estimates disclosed by other PRPs

SEGMENT 4:

George Hansen, Managing Director,
The Claro Group LLC

Valuation of Environmental Liabilities

    - Definition of Fair Value

    - Methodologies exist to estimate fair value where no liquid market price exists
        - Point estimates
        - Decision trees
        - Probabilistic approaches (monte-carlo analysis)

    - Illustration
        - Sample decision tree/probabilistic model and result
        - Discussion of basic statistics

    - Application to portfolios
        - Portfolio must be analyzed as a portfolio, not simply as sum of individual sites
        - Independence/correlations among sites can be important

    - Discounting and risk premiums
        - Discount rates
            1. Financial theory (CAPM)
            2. Standards (FAS – e.g., ARO)
            3. Regulatory (OMB)
        - “Market” risk premium (e.g., liability-transfer transactions) – should there be one

SEGMENT 5:

Greg Rogers, J.D., CPA, President and Founder,
Advanced Environmental Dimensions, LLC

- Theme: “Bridging the gap between GAAP and fair value”

- The difference between GAAP and fair value and the difference it makes
- Materiality of difference between GAAP and fair value estimates
- Materiality of off-balance sheet liabilities to overall financial condition
- SOX certifications under Section 302 and 906
- Fiduciary duties in the “zone of insolvency”
- Bankruptcy claims (e.g., Asarco, Tronox)
- Efficiency and effectiveness of operations

- Analytical techniques to test the accuracy of GAAP estimates and reach an indication of
  fair value
- Methodology
- Data inputs
- Applications
      - Discerning how the legitimate exercise of management discretion in the application of
        accounting standards influences accounting estimates over time
      - Gaining insights into environmental management policies
      - Developing an indication of fair value
      - Assessing the materiality of off-balance sheet environmental liabilities

- Informed decision-making and the duty of care
- Business judgment rule
- Reliance on experts
- Reasonable availability of information