Mark Yuono 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

MAY 0 5 2015 

Senior Vice President & Chief Underwriting Officer 

Great American Insurance Group- Environmental Division 

40 I Plymouth Street# I 00 

Plymouth Meeting, Pennsylvania 19462 

Dear Mr. Yuono: 

OFFICE OF 

SOLID WASTE AND 

EMERGENCY RESPONSE 

The United States Environmental Protection Agency (EPA) is in the process of developing proposed 

financial responsibility regulations for hard rock mining fac ilities under section I 08(b) of the Comprehensive 

Environmental Response, Compensation and Liability Act (CERCLA) (commonly known as the 

"Superfund" law), 42 U.S.C. §§ 960 I, et seq. I am writing to request the assistance of Great American 

Insurance Group in this effort. as the EPA understands that your company is, or recently has been, active in 

the environmental insurance market, including underwriting risks in the hardrock mining industry. 

As background, the EPA published a Priority Notice in the Federal Register (FR) on July 28, 2009, 

identifying classes of facilities in the hard rock mining' industry as those for which the EPA would first 

develop CERCLA section l 08(b) requirements. (See 74 FR 37213.) In addition, CERCLA section I 08(b)(2) 

refers to commercial insurers spec ifically, where it states that: 

[t]he level of financial responsibility shall be initially established, and, when necessary, 

adjusted to protect against the level of risk which the President in his discretion believes is 

appropriate based on the payment experience of the [Hazardous Substance Superfund, 26 

U.S.C § 9507], commercial insurers, courts settlements and judgments, and voluntary claims 

satisfaction. 

42 U.S.C. § 9608(b)(2). (Emphasis added.) 

Thus, as pat1 of its ru le development activities, the EPA is reaching out to commercial insurers directly for 

information regarding their experience in the hard rock mining sector. In particular. the EPA is interested in 

learning about: 

• the types of environmental risks at hardrock mining facilities that your company currently covers or 

has covered in the past and any environmental risks you expl icitly do not cover at hardrock mining 

faci I ities; 

• the dollar value of claims and payments at various classes of hardrock mining fac ilities including 

information on payments of reinsurers or co-insurers; 

1 The EPA included a definition of"hard rock mining" for purposes of that notice as classes of facilities which "extract, 

beneficiate or process metals .. . and non-metallic. non-fuel minerals ... : · 74 FR 372 14. The EPA is working to refine this 

definition to clearly identify those entities that are subject to the rule. 

lntemet Address (URL) • hllp://www.epa.gov 

Recycled/Recyclable • Printed with Vegetable Oil Based Inks on 100% Postconsumer. Process Chlonne Free Recycled Paper 
• the frequency of claims and payments at various classes of hardrock mining facilities; 

• information on how claims and payment experience has vari ed by site characteristics and 

features; and 

• information on the facilities (including site locations, facil ity type. and usage) at which claims were 

received and payments were made including a description of the types of li abi lities for which 

payments were made and events that led to claims or payments in the past. 

To support us in deve loping the proposed financ ial responsibility regulations. the EPA requests that Great 

American Insurance Group provide as much information as possible on these topics, including information 

on, and copies of, specific policies written by your company, claims forms, and relevant facility information. 

It would be most helpful if you could provide the requested information (either electronically or in hardcopy) 

by July 6, 20 I 5 to: 

Michael Pease 

U.S. Environmental Protection Agency 

1200 Pennsylvania A vc. NW 

MC 5303P 

Washington, DC 20460 

pease.michael@epa.gov 

Finally, and consistent with this request, the EPA also notes that CERCLA 108(b)(2) instructs the EPA '·[r]o 

the maximum extent practicable, ... [to] cooperate with and seek the advice ofthe commercial insurance 

industry in developing financial responsibility requirements.'' 42 U.S.C. § 9608(b)(2f Accordingly, the EPA 

wishes to maintain a dialogue with your company as the ru lcmaking process moves forward. 

l appreciate your assistance with this effort and look forward to your response. l am happy to discuss this 

request with you further. Your response would be considered a voluntary submission. You may assert a 

claim of confidential business information (CBI) covering the submitted information. See 40 C.F.R. § 2.203. 

Any submitted information claimed as CBI will be protected in a manner consistent with 40 C.F.R. Part 2. 

Subpart B. For more information, including information regarding submitting potentially CBI data, please 

contact Michael Pease of my staff at (703) 308-0008 or pease.m ichael(ci),epa.gov. 

Barnes Johnson, irector 

Office of Resource Conservation and Recovery 

2 Congress has also directed EPA to "collect and analyze information from the commercial insurance and financi al industries 

regarding the use and availability of necessary instruments (including surety bonds, letters of credit and insurance) for 

meeting any new financial responsibility requirements and to make that analysis available to the House and Senate 

Committees on Appropriations and to the general public on the Agency website 90 days prior to a proposed rulemaking." 

(See Representative Rodgers (K Y). "Explanatory Statement Submined by Mr. Rogers of Kentucky. Chairman of the House 

Committee on Appropriations Regarding the House Amendment to the Senate Amendment to H.R. 83." Congressional 

Record 160:151 (Dec II , 2014) p. H9767.) 
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

MAY 0 5 t0\5 

Bob Newmarker 

Head of Environmental Site, Specialty Products 

Zurich NA 

I 00 High Street, Suite 1450 

Boston, Massachusetts 0211 0 

Dear Mr. Newmarker: 

OFFICE OF 

SOLID WASTE AND 

EMERGENCY RESPONSE 

The United States Environmental Protection Agency (EPA) is in the process of developing proposed 

financial responsibility regulations for hard rock mining facilities under section l08(b) ofthe Comprehensive 

Environmental Response, Compensation and Liability Act (CERCLA) (commonly known as the 

'·Superfund'' law), 42 U.S.C. §§ 960 I, et seq. I am writing to request the assistance of Zurich NA in this 

effort, as the EPA understands that your company is, or recently has been, active in the environmental 

insurance market, including underwriting risks in the hardrock mining industry. 

As background, the EPA published a Priority Notice in the Federal Register (FR) on July 28. 2009, 

identifying classes of facilities in the hard rock mining' industry as those for which the EPA would first 

develop CERCLA section I 08(b) requirements. (See 74 FR 37213.) In addition, CERCLA section I 08(b)(2) 

refers to commercial insurers specifically, where it states that: 

[t]he level of financial responsibility shall be initially established, and, when necessary, 

adjusted to protect against the level of risk which the President in his discretion believes is 

appropriate based on the payment experience of the [Hazardous Substance Superfund. 26 

U.S.C § 9507). commercial insurers, courts settlements and judgments, and voluntary claims 

satisfaction. 

42 U.S.C. § 9608(b)(2). (Emphasis added.) 

Thus. as part of its rul e development activities. the EPA is reaching out to commercial insurers directly for 

information regarding their experience in the hard rock mining sector. In particular. the EPA is interested in 

learning about: 

• the types of environmental risks at hardrock mining fac ilities that your company currently covers or 

has covered in the past and any environmental risks you explicitly do not cover at hardrock mining 

faci lities; 

• the dollar value of claims and payments at various classes of hard rock mining facilities including 

information on payments of reinsurers or co-insurers; 

1 The EPA included a definition of "hard rock mining" for purposes of that notice as classes of facilities which "extract, 

beneficiate or process metals ... and non-metallic. non-fue l minerals .... " 74 FR 37214. The EPA is working to refine this 

definition to clearly identify those entities that are subject to the rule. 

1n1eme1 Address (URL) • hllp://www.epa.gov 

Recycled/Recyclable • Pnmed wilh Vegetable 011 Based Inks on 100% Pos!consumer. Process Chlonne Free Recycled Paper 
• the frequency of claims and payments at various classes of hard rock mining facilities; 

• information on how claims and payment experience has varied by site characteristics and 

features; and 

• information on the faci lities (including site locations, facility type, and usage) at which claims were 

received and payments were made including a description of the types of li abilities for which 

payments were made and events that led to claims or payments in the past. 

To support us in developing the proposed financial responsibility regulations. the EPA requests that Zurich 

A provide as much information as possible on these topics, including information on, and copies of, 

specific policies written by your company, claims forms, and relevant facility information. 

It would be most helpful if you could provide the requested information (either electronically or in hardcopy) 

by July 6. 20 IS to: 

Michael Pease 

U.S. Environmental Protection Agency 

1200 Pennsylvania Ave. W 

MC 5303P 

Washington, DC 20460 

pease.m ichael@epa.gov 

Finally, and consistent with this request, the EPA also notes that CERCLA I 08(b)(2) instructs the EPA "[t]o 

the maximum extent practicable, ... [to] cooperate with and seek the advice of the commercial insurance 

industry in developing financia l responsibility requirements." 42 U.S.C. § 9608(b)(2f Accordingly, the EPA 

wishes to maintain a dialogue with your company as the rulemaking process moves forward. 

I appreciate your assistance with this effort and look forward to your response. I am happy to discuss this 

request with you further. Your response would be considered a voluntary submission. You may assert a 

claim of confidential business information (CBI) covering the submitted information. See 40 C.F.R. § 2.203. 

Any submitted information claimed as CBI will be protected in a manner consistent with 40 C.F.R. Part 2, 

Subpart B. For more information, including information regarding submitting potentially CBI data, please 

contact Michael Pease of my staff at (703) 308-0008 or pease.michael@epa.gov. 

Sincerely, 

Barnes Johnson, Dire or 

Office of Resource Conservation and Recovery 

2 Congress has also directed EPA to "collect and analyze information from the commercial insurance and financial industries 

regarding the use and availability of necessary instruments (including surety bonds, letters of credit and insurance) for 

meeting any new financial responsibility requirements and to make that analysis available to the House and Senate 

Comminees on Appropriations and to the general public on the Agency website 90 days prior to a proposed rulemaking." 

(See Represemative Rodgers (K Y). "Explanatory Statement Submitted by Mr. Rogers of Kentucky, Chairman of the House 

Committee on Appropriations Regarding the House Amendment to the Senate Amendment to H.R. 83.'' Congressional 

Record 160:151 (Dec II , 20 14) p. H9767.) 
John Gibson 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

MAY 0 5 2015 

Senior Vice President, Environmental Product Line Manager 

Chubb Group 

202 Hall's Mill Road 

PO Box 1600 

Whitehouse. New Jersey 08889 

Dear Mr. Gibson: 

OFFICE OF 

SOLID WASTE AND 

EMERGENCY RESPONSE 

The United States Environmental Protection Agency (EPA) is in the process of developing proposed 

financial responsibility regulations for hard rock mining facilities under section 108(b) ofthe Comprehensive 

Environmental Response, Compensation and Liability Act (CERCLA) (commonly known as the 

·'Superfund" law), 42 U.S.C. §§ 960 I, et seq. I am writing to request the assistance of Chubb Group in this 

effort, as the EPA understands that your company is, or recently has been, active in the environmental 

insurance market, including underwriting risks in the hardrock mining industry. 

As background, the EPA published a Priority Notice in the Federal Register (FR) on July 28, 2009, 

identifying classes of facil ities in the hard rock mining' industry as those for which the EPA would first 

deve lop CERCLA section I 08(b) requirements. (See 74 FR 372 13.) In addition. CERCLA section I 08(b)(2) 

refers to commercial insurers specifically. where it states that: 

[t]he level of financial responsibility shall be initially established, and, when necessary, 

adjusted to protect against the level of risk which the President in his discretion believes is 

appropriate based on the payment experience of the [Hazardous Substance Superfund, 26 

U.S.C § 9507]. commercial insurers, courts settlements and judgments. and voluntary claims 

satisfaction. 

42 U.S.C. § 9608(b)(2). (Emphasis added.) 

Thus, as part of its rule development activities. the EPA is reaching out to commercial insurers directly for 

information regarding their experience in the hard rock mining sector. In particular, the EPA is interested in 

learning about: 

• the types of environmental risks at hardrock mining facilities that your company currently covers or 

has covered in the past and any environmental risks you explicitly do not cover at hardrock mining 

facilities; 

1 The EPA included a definition of " hard rock mining" for purposes of that notice as classes of facilities which ·'extract, 

beneficiate or process metals ... and non-metallic, non-fuel minerals .... " 74 FR 37214. The EPA is working to refine this 

definition to clearly identify those entities that are subject to the rule. 

lnlemet Address (URL) • http ://www.epa.gov 

Rec ycled/Recyc lable • Pnnted woth Vegetable Ool Based Inks on 1 OO"'o Postconsumer. Process Chlonne Free Recycled Paper 
• the dollar va lue of claims and payments at various classes of hardrock mining facilities including 

information on payments of reinsurers or co-insurers; 

• the frequency of claims and payments at various classes of hardrock mining facilities; 

• information on how claims and payment experience has varied by site characteristics and 

features; and 

• information on the facilities (including site locations, facility type, and usage) at which claims were 

received and payments were made including a description of the types of liabilities for which 

payments were made and events that led to claims or payments in the past. 

To support us in developing the proposed financial responsibility regulations, the EPA requests that Chubb 

Group provide as much information as possible on these topics. including information on. and copies of, 

specific policies written by your company, claims forms, and relevant fac ility information. 

It would be most helpful if you could provide the requested information (either electronically or in hardcopy) 

by July 6, 20 15 to: 

Michael Pease 

U.S. Environmental Protection Agency 

1200 Pennsylvania Ave. NW 

MC 5303P 

Washington, DC 20460 

pease.m ichae l@epa.gov 

Finally, and consistent with this request, the EPA also notes that CERCLA I 08(b )(2) instructs the EPA ''[t]o 

the maximum extent practicable, ... [to] cooperate with and seek the advice of the commercial insurance 

industry in developing financial responsibility requirements.'' 42 U.S.C. § 9608(b)(2f Accordingly, the EPA 

wishes to maintain a dialogue with your company as the rulemaking process moves forward. 

I appreciate your assistance with this effort and look forward to your response. I am happy to discuss this 

request with you further. Your response would be considered a voluntary submission. You may assert a 

claim of confidential business information (CBI) covering the submitted information. See 40 C.F.R. § 2.203. 

Any submitted information claimed as CBI will be protected in a manner consistent with 40 C.F.R. Part 2, 

Subpart B. For more information, inc luding information regarding submitting potentially CBI data, please 

contact Michael Pease of my staff at (703) 308-0008 or peasc.michael@cpa.gov. 

Barnes Johnson, irector 

Office of Resource Conservation and Recovery 

2 Congress has also directed EPA to ··collect and analyze information from the commercial insurance and financial industries 

regarding the use and availability of necessary instruments (including surety bonds, letters of credit and insurance) for 

meeting any new financial responsibility requirements and to make that analysis available to the House and Senate 

Committees on Appropriations and to the general public on the Agency website 90 days prior to a proposed rulemaking." 

(See Representative Rodgers (K Y) ... Explanatory Statement Submitted by Mr. Rogers of Kentucky, Chairman of the House 

Committee on Appropriations Regarding the House Amendment to the Senate Amendment to H.R. 83."" Congressional 

Record l60:15l (Dec 11 ,20 14)p. H9767.) 
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

MAY 0 5 ?fll~ 

Matt O'Malley 

President Environmental Insurance 

XL Group Insurance Operations- Environmental Division 

One World Financial Center 

200 Liberty Street, 22"d Floor 

New York. New York I 0281 

Dear Mr. O'Malley: 

OFFICE OF 

SOLID WASTE AND 

EMERGENCY RESPONSE 

The United States Environmental Protection Agency (EPA) is in the process of developing proposed 

financial responsibi I ity regulations for hard rock mining faci I ities under section I 08(b) of the Comprehensive 

Environmental Response, Compensation and Liability Act (CERCLA) (commonly known as the 

"Superfund" law). 42 U.S.C. §§ 9601. et seq. I am writing to request the assistance of XL Insurance in this 

effort, as the EPA understands that your company is, or recently has been, active in the environmental 

insurance market, including underwriting risks in the hardrock mining industry. 

As background, the EPA published a Priority Notice in the Federal Register (FR) on July 28, 2009, 

identifying classes of facilities in the hard rock mining1 industry as those for which the EPA would first 

develop CERCLA section I 08(b) requirements. (See 74 FR 372 13.) In addition, CERCLA section I 08(b)(2) 

refers to commercial insurers specifically, where it states that: 

[t]he level of financial responsibility shall be initially established, and, when necessary, 

adjusted to protect aga inst the level of risk which the President in his discretion believes is 

appropriate based on the payment experience of the [Hazardous Substance Superfund, 26 

U.S.C § 9507], commercial insurers. courts settlements and judgments. and voluntary claims 

satisfaction. 

42 U.S.C. § 9608(b)(2). (Emphasis added.) 

Thus, as pa11 of its ru le development activities. the EPA is reaching out to commercial insurers directly for 

information regarding their experience in the hard rock mining sector. In particular. the EPA is interested in 

learning about: 

• the types of environmental risks at hard rock mining faci I ities that your company currently covers or 

has covered in the past and any environmental risks you explicitly do not cover at hardrock mining 

facil ities; 

1 The EPA included a definition of "hard rock mining" for purposes of that notice as classes of facilities which "extract, 

beneficiate or process metals ... and non-metallic, non-fue l minerals ... .'' 74 FR 372 14. The EPA is working to refine this 

definition to clearly identify those entities that are subject to the rule. 

1n1erne1 Address (URL) • hltp://www.epa.gov 

Rocycled/Recyclable • Pnnled wilh Vegelable 011 Based Inks on 100% Poslconsumer. Process Chlonne Free Recycled Paper 
• the dollar value of claims and payments at various classes of hard rock mining facilities including 

information on payments of reinsurers or co-insurers; 

• the frequency of claims and payments at various classes ofhardrock mining facilities; 

• information on how claims and payment experience has varied by site characteristics and 

features; and 

• information on the facilities (including site locations. facility type, and usage) at which claims were 

received and payments were made including a description of the types of liabilities for which 

payments were made and events that led to claims or payments in the past. 

To support us in developing the proposed financial responsibility regulations, the EPA requests that XL 

Insurance provide as much information as possible on these topics, including information on, and copies of, 

specific policies wri nen by your company. claims forms. and relevant facility information. 

It would be most helpful if you could provide the requested information (either electronically or in hardcopy) 

by July 6, 201 5 to: 

Michael Pease 

U.S. Environmental Protection Agency 

1200 Pennsylvania Ave. N W 

MC 5303P 

Washington. DC 20460 

pease.michael@epa.gov 

Finally, and consistent with this request, the EPA also notes that CERCLA 108(b)(2) instructs the EPA "[t]o 

the maximum extent practicable, ... [to] cooperate with and seek the advice of the commercial insurance 

industry in developing financial responsibility requirements: ' 42 U.S.C. § 9608(b)(2f Accordingly. the EPA 

wishes to maintain a dialogue with your company as the rulemaking process moves forward. 

I appreciate your assistance with this effort and look forward to your response. I am happy to discuss this 

request with you further. Your response would be considered a voluntary submission. You may assert a 

claim of confidential business information (CBI) covering the submitted information. See 40 C.F.R. § 2.203. 

Any submitted information claimed as CBI will be protected in a manner consistent with 40 C.F.R. Part 2, 

Subpart B. For more information, including information regarding submitting potentially CBI data, please 

contact Michael Pease of my staff at (703) 308-0008 or pease.michael@epa.gov. 

Barnes Johnson, rector 

Office of Resource Conservation and Recovery 

2 Congress has also directed EPA to "collect and analyze information from the commercial insurance and financial industries 

regarding the use and availability of necessary instruments (including surety bonds, letters of credit and insurance) for 

meeting any new financial responsibility requirements and to make that analysis available to the House and Senate 

Committees on Appropriations and to the general public on the Agency website 90 days prior to a proposed rulemaking." 

(See Representative Rodgers (K Y). "Explanatory Statement Submitted by Mr. Rogers of Kentucky, Chainnan of the House 

Committee on Appropriations Regarding the House Amendment to the Senate Amendment to H.R. 83." Congressional 

Record 160:151 (Dec II. 20 14) p. 1-19767.) 
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

Lana Keppel 

Director Environmental Division 

AIG Environmental 

I 00 Connell Drive, Suite 2 100 

Berkley Heights, New Jersey 07992 

Dear Ms. Keppel: 

MAY 0 5 2015 

OFFICE OF 

SOLID WASTE AND 

EMERGENCY RESPONSE 

The United States Environmental Protection Agency (EPA) is in the process of developing proposed 

financial responsibility regulations for hard rock mining facil ities under section I 08(b) of the Comprehensive 

Environmental Response, Compensation and Liability Act (CERCLA) (commonly known as the 

''Superfund" law). 42 U.S.C. §§ 960 I. et seq. I am writing to request the assistance of AIG Environmental in 

this effort, as the EPA understands that your company is. or recently has been, active in the environmental 

insurance market, including underwriting risks in the hardrock mining industry. 

As background, the EPA published a Priority Notice in the Federal Register (FR) on July 28, 2009, 

identifying classes of facil ities in the hard rock mining' industry as those for which the EPA would first 

develop CERCLA section I 08(b) requirements. (See 74 FR 37213.) In addition. CERCLA section I 08(b)(2) 

refers to commercial insurers specifically, where it states that: 

[t]he leve l of financial responsibility shal l be initially established, and, when necessary, 

adjusted to protect against the level of risk which the President in his discretion believes is 

appropriate based on the payment experience of the [Hazardous Substance Superfund, 26 

U.S.C § 9507], commercial insurers, courts settlements and judgments. and voluntary claims 

satisfaction. 

42 U.S.C. § 9608(b)(2). (Emphasis added.) 

Thus, as part of its rule development activities, the EPA is reaching out to commercial insurers directly for 

information regarding their experience in the hard rock mining sector. In particular. the EPA is interested in 

learning about: 

• the types of environmental risks at hardrock mining facilities that your company currently covers or 

has covered in the past and any environmental risks you explicitly do not cover at hardrock mining 

facilities; 

• the dollar value of claims and payments at various classes of hardrock mining facilities including 

information on payments of reinsurers or co-insurers; 

1 The EPA included a definition of'·hard rock mining" for purposes of that notice as classes of facilities which "extract, 

beneficiate or process metals ... and non-metallic, non-fuel minerals .... " 74 FR 37214. The EPA is working to refine this 

definition to clearly identify those entities that are subject to the rule. 

lntemet Address (URL) • http://www.epa.gov 

Recycled/Recyclable • Printed with Vegetable Ool Based Inks on 1 00"/o Postconsumer. Process Chlonne Free Recycled Paper 
• the frequency of claims and payments at various classes of hard rock mining fac il ities; 

• information on how claims and payment experience has varied by site characteristics and 

features; and 

• information on the facilities (including site locations. facility type. and usage) at which claims were 

received and payments were made including a description of the types of liabilities for which 

payments were made and events that led to claims or payments in the past. 

To support us in developing the proposed financial responsibility regulations, the EPA requests that AIG 

Environmental provide as much information as possible on these topics, including information on, and copies 

of. specific policies written by your company, claims forms, and relevant facility information. 

It would be most helpful if you could provide the requested information (either electronically or in hardcopy) 

by July 6, 20 15 to: 

Michael Pease 

U.S. Environmental Protection Agency 

1200 Pennsylvania Ave. W 

MC 5303P 

Washington, DC 20460 

pease.michael@epa.gov 

Finally, and consistent with this request, the EPA also notes that CERCLA I 08(b)(2) instructs the EPA ''[t)o 

the maximum extent practicable, ... [to] cooperate with and seek the advice of the commercial insurance 

industry in developing financial responsibility requirements.'" 42 U.S.C. § 9608(b)(2)2

• Accordingly. the EPA 

wishes to maintain a dialogue with your company as the rulemaking process moves forward . 

I appreciate your assistance with this effort and look forward to your response. I am happy to discuss this 

request with you fut1her. Your response would be considered a voluntary submission. You may assert a 

claim of confidential business information (CBI) covering the submitted information. See 40 C.F.R. § 2.203. 

Any submitted information claimed as CBI wil l be protected in a manner consistent with 40 C.F.R. Part 2. 

Subpart B. For more information, including information regarding submitting potentially CBI data, please 

contact Michael Pease of my staff at (703) 308-0008 or pease.michacl(@epa.gov. 

Sincerely. 

Barnes Johnson, Di ctor 

Office of Resource Conservation and Recovery 

2 Congress has also directed EPA to "collect and analyze information from the commercial insurance and financial industries 

regarding the use and availabil ity of necessary instruments (includ ing surety bonds, letters of credit and insurance) for 

meeting any new financial responsibility requirements and to make that analysis available to the House and Senate 

Committees on Appropriations and to the general public on the Agency website 90 days prior to a proposed rulemaking ... 

(See Representative Rodgers (K Y). ··Explanatory Statement Submitted by Mr. Rogers of Kentucky. Chairman of the House 

Committee on Appropriations Regarding the House Amendment to the Senate Amendment to H.R. 83." Congressional 

Record 160: lSI (Dec II, 20 14) p. H9767.) 
Robert Owens 

Senior Vice President 

ACE Westchester 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

MAY 0 5 2015 

455 Market Street, 17th Floor 

San Francisco, California 94105 

Dear Mr. Owens: 

OFFICE OF 

SOLID WASTE AND 

EMERGENCY RESPONSE 

The United States Environmental Protection Agency (EPA) is in the process of developing proposed 

financial responsibility regulations for hard rock mining facil ities under section I 08(b) of the Comprehensive 

Environmental Response, Compensation and Liability Act (CERCLA) (commonly known as the 

''Superfund'' law), 42 U.S.C. §§ 960 I, et seq. I am writing to request the assistance of ACE Group in this 

effort, as the EPA understands that your company is. or recently has been. active in the environmental 

insurance market. including underwriting risks in the hardrock mining industry. 

As background, the EPA published a Priority Notice in the Federal Register (FR) on July 28, 2009, 

identifying classes offacilities in the hard rock mining' industry as those for which the EPA would first 

develop CERCLA section I 08(b) requirements. (See 74 FR 37213.) In addition, CERCLA section I 08(b)(2) 

refers to commercial insurers specifically. where it states that: 

[t)he level of financial responsibility shall be initially established. and, when necessary, 

adjusted to protect against the level of risk which the President in his discretion believes is 

appropriate based on the payment experience of the [Hazardous Substance Superfund, 26 

U.S.C § 9507], commercial insurers, courts settlements and judgments, and voluntary claims 

satisfaction. 

42 U.S.C. § 9608(b)(2). (Emphasis added.) 

Thus, as part of its rule development activities, the EPA is reaching out to commercial insurers directly for 

information regarding their experience in the hard rock mining sector. In particular. the EPA is interested in 

learning about: 

• the types of environmental risks at hardrock mining facilities that your company currently covers or 

has covered in the past and any environmental risks you explicitly do not cover at hard rock mining 

facil ities; 

• the dollar value of claims and payments at various classes of hardrock mining facilities including 

information on payments of reinsurers or co-insurers; 

1 The EPA included a definition of "hard rock mining" for purposes ofthat notice as classes of facilities which "extract. 

beneficiate or process metals .. . and non-metallic. non-fuel minerals .. . . " 74 FR 372 14. The EPA is working to refine this 

definition to clearly identify those entities that are subject to the rule. 

lntemet Address (URL) • hltp:/fwww.epa.gov 

RccyclodfRecyclable • Printed with Vegetable Oil Based Inks on 100% Postconsumer. Process Chlonne Free Recycled Paper 
• the frequency of claims and payments at various classes of hardrock mining facilities; 

• information on how claims and payment experience has varied by site characteristics and 

features; and 

• information on the facilities (including site locations. facility type. and usage) at which claims were 

received and payments were made including a description of the types of liabilities for which 

payments were made and events that led to claims or payments in the past. 

To support us in developing the proposed financial responsibility regulations, the EPA requests that ACE 

Group provide as much information as possible on these topics, including information on, and copies of. 

specific policies written by your company, claims forms, and relevant facility information. 

It would be most helpful if you could provide the requested information (either electronically or in hardcopy) 

by July 6, 2015 to: 

M ichacl Pease 

U.S. Environmental Protection Agency 

1200 Pennsylvania Ave. W 

MC 5303P 

Washington. DC 20460 

pease.michael@epa.gov 

Finally, and consistent with this request, the EPA also notes that CERCLA I 08(b)(2) instructs the EPA "[t]o 

the maximum extent practicable .... (to] cooperate with and seek the advice of the commercial insurance 

industry in developing financial responsibility requirements." 42 U .. C.§ 9608(b)(2f Accordingly, the EPA 

wishes to maintain a dialogue with your company as the rulemaking process moves forward. 

I appreciate your assistance with this effort and look forward to your response. I am happy to discuss this 

request with you further. Your response would be considered a voluntary submission. You may assert a 

claim of confidential business information (CBI) covering the submitted information. See 40 C.F.R. § 2.203. 

Any submitted information claimed as CBI will be protected in a manner consistent with 40 C.F.R. Part 2. 

Subpart B. For more information, including information regarding submitting potentially CBI data, please 

contact Michael Pease of my staff at (703) 308-0008 or pease.michael@epa.gov. 

Sincerely. 

Barnes Johnson, Di ctor 

Office of Resource Conservation and Recovery 

2 Congress has also directed EPA to "collect and ana lyze infom1ation from the commercial insurance and financial industries 

regarding the usc and availability of necessary instruments (including surety bonds, letters of credit and insurance) for 

meeting any new financial responsibility requirements and to make that analysis available to the House and Senate 

Comminees on Appropriations and to the general public on the Agency website 90 days prior to a proposed rulemaking." 

(See Representative Rodgers (K Y). ·'Explanatory Statement Submined by Mr. Rogers of Kentucky. Chairman of the House 

Comminee on Appropriations Regarding the House Amendment to the Senate Amendment to H.R. 83." Congressional 

Recordl60:151 (Dec 11 , 2014)p. H9767.)