Mark Yuono UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHING TON, D

. C

. 20460



### MAY 

## 0 5 2015

Se nior Vice President & Chief Underwriting Officer Great American In s urance Group- Environmental Division 40 I Pl ymou th Street# I 00 Plymouth Meeting , Penns y lvania 19462
Dear Mr. Yuono: OFFICE OF SOLI D WASTE AN D E M ERGE N CY RESPO N SE

The United States Environmental Protection Agency (EPA) is in the process of devel op ing proposed financial responsibility regul at i o n s for hard rock mining fac i lities under section I 08(b) of the Comprehensive Env ironmenta l Response , Compensation and Liabi lity Act (CE R CLA) (common l y known as the "S uperfund " law) , 42 U.S.C. §§ 960 I , et seq. I am writ in g to reque s t the assistance of Great American Insurance Group in thi s effort. as the EPA under s tand s that your company is , or recentl y has been , active in the env ironmental insurance market , including underwriting risk s in the hardrock mining industr y . As background , th e EPA publi s h ed a Priority Notice in the Federal Reg ister (FR) on July 28, 2009 , identifying c la sses of facilit i es in the hard rock min ing' industry a s th ose for which the E PA would fir s t develop CERCLA section l 08(b) requ irements. (See 74 FR 37213.) In addition , CERCLA sect ion I 08(b)(2) refers to commercial insurer s s pec ificall y, where it s tate s that: [t]he level of financial re sp o nsibility shall be initially established , and , when n ecessa ry , adju s ted to protect against the level of ri sk which the Pre s id ent in his discretion believes is appropriate based on th e payment experi ence of the [Hazardous Substance Superfund, 26 U.S.C 

### § 9507], commercial insurers , courts se ttlement s and judgment s, and voluntary claim s satisfaction. 42 U.S.C. 

### § 9608(b)(2). (Emphasis added.) Thus , as pat1 of it s ru l e development activ ities, the EPA is reaching out to commercial insurers directly f o r inf ormation regarding their experience in the hard rock mining sec t o r. In particular. the EPA is interested in learning about:
• the types of environmental risks at hardroc k mining facilitie s that yo ur c o mpan y currently covers o r has covered in the past and any environme ntal ri sks you expl i citly do not cover at hardrock mining faci I ities ; • th e dollar value of claims and payments at various classe s of hardrock minin g fac iliti es including informati o n on payment s of reinsurers or co-insurers ;

1 The EPA included a definition of"hard rock mining " f o r purposes of that no ti ce as classes of facilities which "extract , beneficiate or process metals
.. . and non-metallic. non-fu e l minerals
... : · 74 FR 372 14. Th e EPA is working to refin e thi s definition to clear l y identify tho se enti ti es that are subject to the rule. l n t eme t Address (URL) • h ll p://www

. epa . gov Recycled/Recyclabl e • Printed with Vegetable Oil Based Inks on 100% Postconsumer. Process Chlonne Free Recycled Paper• the frequ e ncy of claim s and payment s at variou s classes of hardroc k mining facilities; • inf o rmati on on how claims and pa yme nt experi e nce has va ri ed by s ite c haracter i stic s a nd feat ure s; and • inf ormati o n o n the facilities ( includin g s ite locati o n s, facil ity type. a nd u sage) at which c laims were rec e ived and payment s were mad e including a de sc ripti o n of th e types of li abi liti es for wh ic h p ay m e nt s were mad e and eve nt s that l ed t o c laim s o r pa ym e nt s in the pa st. T o support u s in deve l op in g th e proposed fin anc i a l r espons ibilit y reg ulati o ns. the EP A requests th at Great American In surance Gro up prov id e as much inf o rmati o n as possible o n th ese topics , in c luding in forma ti o n on, and cop ie s of , s pecific polici es writte n by your co mpan y, c laims form s, and re l evant facility in formatio n . I t would be mos t helpful if you co uld pr ovide the requested inf o rmati o n (e ith er e lec tro ni ca ll y o r in hardcopy) by Jul y 6, 20 I 5 to: M i chael P ease U.S
. Environmental Pro t ect ion Agency 1200 P e nn sy lvania Avc. NW MC 5303P Washin gto n, DC 20460 pease .mi c hae l @ e pa. gov Finall y , and consistent w ith thi s request, the EPA also note s that CE R CLA 108(b)(2) in structs the EPA ' · [r]o the max imum extent prac ticabl e , ... [to] cooperat e w ith and see k th e adv i ce o fth e commercial in s urance indu stry in devel opin g financial r es ponsibility requirement s.'' 42 U.S.C. § 9608(b)(2f Acco rdin g l y , the EPA wis h es to main tai n a dialogue w ith yo ur company as th e ru l c makin g process moves f o rward
. l app re ciate yo ur assis tanc e w ith thi s effo rt and l ook forward t o yo ur r esponse. l am hap py to discus s this reque st with you furth e r. Your res po nse would be considered a vo lunt ary s ubmi ss io n. You may assert a c l

a im of co nfi dent i a l business inf o rm at i on (C BI) coverin g the s ubmitte d in format io n. See 40 C.F. R
. § 2
. 203. Any s ubmitted in for mati on c laim ed as CBI wi ll be protected in a manner consistent wi th 40 C.F.R. P art 2
. Subpart B
. F o r more inf ormati o n , includin g information regard ing s ubmittin g potentially C BI data , please contact Michae l P ease of my st aff at (703) 308-00 08 or pease.m ichael (ci), epa.gov .

Barnes J o hn so n , irector Office of Resource Conservat ion a nd R ecovery

2 Congress has also directed EPA to "collect and analyze information from the commercial insurance and financi al industries r egardin g the use and availabili ty of necessary in stru m ents ( includin g surety bond s, l etters of credi t and in surance) for me etin g any new fin a nc ial res pon s ibilit y require m e nt s and to make th at anal ys is availab le to th e H o use and Senate Committees o n App rop ri at ions and to th e ge ne ral public on th e Agency website 90 days prior to a proposed rulemaking. " (See Repre se ntative Rodgers (K Y ). "Explanatory State m ent Submined by Mr. Rogers o f Kentu cky. C hairman of the H ouse Committee on Appropriations R egarding the Hou se Ame ndm ent to the Senate Amendment to H.R. 83. " Congressional R eco rd 160:151 (Dec II , 2014) p. H 9767.)UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460



## MAY 0 5 t0\5

Bob Newmarker Head of Environmental Site, Specialty Product s Zurich NA I 00 High Street, Suite 1450 Boston , Massachusett s 0211 0
Dear Mr. Newmarker: OFFICE OF SOLID WAST E AND E M ERGENCY RESPO N SE

The United States Envi r onmental Protect ion Agency (EPA) is in the proce ss of developing proposed financial responsibility regulation s f o r hard rock mining facilities under sect io n l08(b ) ofthe Comprehensive Environmental Re spo n se, Compensation and Liability Act (CE RCLA ) (com monl y known as the ' ·Superfund '' law) , 42 U.S. C. §§ 960 I , et seq. I am writing t o request the assistance of Zu rich NA in thi s effort, as the EPA understands that you r company is , o r r ecent ly has been , active in the env ironmenta l insurance market , including underwriting ri sks in the hardrock mining industry. As backgrou nd , the EPA published a Priorit y Not ic e in the F ederal R egister (F R ) on Jul y 28. 2009 , identif yi ng classes of facilities in the hard rock mining ' indu s try as those for which the EPA would fir s t deve l op CE RCLA section I 08(b) r equ irem ents. (See 74 FR 37213
. ) In add it ion , CERCLA sect i on I 08(b)(2) refers to commerc i al insurers specifica ll y, where it states that: [t]he level of financial re spo nsibility s hall be initiall y established , and, when nece ssary, adjusted to protect against the level of ri sk whic h the President in hi s discretion be li eves is app rop riate based on the payment experi ence of the [Hazardous Substance Superfund. 26 U.S.C § 9507). commercial insurers , courts settlements and judgme nts, and voluntary claim s sa ti sfact i on. 42 U.S.C. § 9608(b)( 2)
. (Emphasis added.) Thu s. a s part of it s rul e developm ent activities. the EPA is r eac hing o ut to commercial in s urers direc tl y for inf orm ati on regarding their experience in the h a rd r oc k minin g secto r. I n p articu lar. th e EPA is intere s ted in learnin g about:
• th e types of environmental risks at hardroc k mining fac il ities that yo ur compan y currently covers or ha s covered in the past and any environme ntal ri sks yo u exp licitl y do not c ove r at hardrock minin g faci litie s; • the dollar value of claim s and payment s at var i ous classes of hard roc k mining facilit ies including inf ormation o n payments o f reinsurer s o r co-insurers;

1 The EPA included a definition of " hard rock minin g " for purpose s of th a t notice as classes of faciliti es which "ex tract , beneficiate or proc ess metals
... and no n-m e tallic. non- fue l mineral s .... " 74 FR 37214. The EPA is working to refine this definition to clearly identif y those entities that are s ubject to the rul e. 1n 1

eme1 Address (URL) • h llp : //www

. epa.gov Recycled/Recyclab l e • Pnmed wilh Vegetable 011 Based In k s on 100% Pos!consumer

. Process Chlonne Free Recycled Paper• the frequency of cla im s and payments at various c lasses of hard r ock mining facilities; • information on how claim s and payme nt experience has var ied by site character istics and features; and • in fo rmati o n o n the faci li t i es (i ncluding si te location s, fac ili ty typ e, and usage ) at which claims were received and payments were made including a description of the types of li abil it ies for w hi ch payments we r e made and events that led to cla im s o r payments in the past. T o s upp ort us in developi ng the proposed financia l respon s ibility regulations. the EPA requests that Zurich

A prov ide as much information as possible on these topic s, includin g info rm ati on on , and copies of, specific policies writte n by your compa n y, c l aims form s, and relevant fac ility inform atio n. It would be most helpful if yo u cou ld provide the reque ste d inf o rmation (e ither electronically or in hardc opy) by July 6. 20 IS to: Michael P ease U .S. Enviro nmental Protec ti on Agency 1200 P ennsylvania Ave. W MC 5303P Wa s hin gto n , DC 20460 pease.m i chae l @ epa.gov Fina lly, and consistent with this r equest, the EPA also note s that CERCLA I 08(b)(2) instructs the EPA "[t]o the maximum extent practicable,
... [to] cooperate w ith and seek the advice of the commercia l in surance indu stry in developing financia l r espons ib ility requ ire me nts . " 42 U.S.C. § 960 8(b )(2f Acco rdin g l y, the EPA wishes t o maintain a dialogue with yo ur company as the rul emak ing process moves forward. I appreciate your assistance with thi s effort and look forward to your re spo n se . I am happ y to discu ss this request w ith yo u f urth er . Your response would be co n s idered a voluntary s ubmi ss ion. You may asse rt a c l

aim of confident i al bus iness in fo rm at i on (CB I ) cove rin g the s ubmitted 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 inf o rmation regarding submitting potentially CB I data , please contac t Michael P ease of my staff at (703) 308-0008 or pease.michael @e pa.gov . Sincerely,

Barne s Johnson , Dire or Offi ce of Resource Conservati on and R ecovery

2 Congre ss has also directed EPA to "collect and analyze information from the commercial insurance and financial industries regardin g the u se and availability of necessary instruments (including s urety bonds, l etters of credit and insuranc e) for m

ee tin g any new financial responsibility requirement s and to make that analysis availab le to th e H o use and Senate Comminees on Appropriations and to the general public on the Agency website 90 days prior to a proposed rulemakin g." (See Represemative Rodgers (K Y). " Ex planatory Statement Submitted by Mr. Rogers of Kentucky, Chairman of the H ouse Comm i ttee on Appropriations Re garding the Hou se Amendment to th e Sena te Amendment to H .R. 83 .' ' Congressional Record 160:151 (Dec II , 20 14) p. H97 67.)John G ib son UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WA S HIN G TON , D.C. 20460



## MAY 0 5 2015
Senior Vice President , Environmental Produ c t Line Manage r Chubb Group 202 H all's M ill Road PO B ox 1600 Whitehouse. New Jersey 08889
Dear Mr. Gibson: OFFICE OF SOLID W ASTE AND E M ERGENCY RESPO N SE

The United States Env ironmenta l Protection Agency (E PA) is in the proce ss of developing proposed financial responsibilit y regulation s for hard roc k mining facilitie s under s ection 108(b ) of th e Comprehensive Environmental Re sponse, Compen sa tion and Liability Act (C ERCLA) (commonly known as the ·'Superfund " law), 42 U.S.C. §§ 960 I , et seq. I am writing to request the ass ista nc e of Chubb Group in this effo rt , as th e EPA understands that your company i s, or re ce ntl y ha s been , active in the e n vironmen t a l insurance market , including underwriting risks in the hardrock mining industry. As background, the EPA published a Pri ority Notice in the Federal Register ( FR) on July 28, 2009, identif y in g classes of facil iti es in the hard r ock minin g' industry as those for which the EPA would fir st deve l op CE RCLA sect ion I 08(b) req uirements. (See 74 FR 372 13.) I n addition. CERCLA section I 08(b)(2) refers t o commercial insurers specifically. where it states that:

[t]he level of financial responsibility sha ll be ini t i a ll y estab lished , and, when necessary , ad

ju sted to protect against the l eve l of risk which the President in his discretion bel i eves is appro pri ate based on the payment experience of the [Hazardous Substance Superfund, 26 U.S.C § 9507]. c ommercial insurers , courts settlements and judgments. and vo luntary claims sa tisfaction. 42 U.S.C. § 9608(b)(2). (Emp h asis added.) Thus, as part of its rule developm e nt activities. the EP A i s reaching out t o commercial insurers directl y for inf ormation regarding their experience in the hard rock mining secto r. I n particular, the EPA is intere ste d in lea rnin g abo ut:
• the types of environmental risks at hardroc k mining facilities that yo ur company currently covers o r has covered in the past and any e nvironmental risk s you explicitly do not cover at hardrock mining facilities;

1 T he EPA included a definition of " hard rock minin g" for purposes of that notice as classes of facilities which · ' extract, beneficiate or process metal s ... and non-metallic , non-fuel mineral s ...." 74 FR 37214. The EPA i s working to refin e this definition to c learly identify tho se e ntiti es that are s ubject to the rule. l n l eme t A ddress (UR L) • h ttp :/ /www .e pa . go v R ec y cled/Rec y c l a b l e • Pnnted woth Veg etable Ool Based In ks on 1 OO "'o Pos t consume r . Process Chlonne Free Recycled Paper• the dollar va lu e of claim s and payment s at various c l asses of hardro ck minin g facilities including in fo rmati on o n payment s of reinsurers o r co-insurers; • the f r equency o f claims and payments at various classes of hardrock mining facilities; • information on how c la im s an d p ayme nt ex peri e nce has vari ed by s ite characteristics and features; and • information on the facilities ( including si t e locati o ns, facility t ype , and usa ge) at which claim s we re received and payments were made including a description of the t ypes of liabiliti es for w hi ch payments were mad e and eve nt s that l ed t o claims or payments in th e past. To supp o rt us in deve lop in g the proposed fin ancia l r es po n s ibility regul at i o ns, the EPA r eq u es ts that Chubb Group provide as much inf o rm ati o n as possible o n these topics. in c ludin g inf o rmati on o n . and co pi es o f , specific polic i es written by yo ur co mpa n y, claims form s, and r e l

evant fac il ity informati o n. I t would be mo st h elpf ul if yo u co uld provid e th e r eq ues ted inf ormation (e ither electronica ll y or in hardc op y) by Jul y 6, 20 15 t o: Michael Pea se U
. S. Environmental Protect io n Agency 1 20 0 Penn sy lva nia Ave. NW MC 5303 P Wash in gton, DC 20460 pease .m i c hae l @ epa.gov Finally , and consistent with thi s re q ue s t , the EPA also notes that CERCLA I 08(b)(2) in struct s the EPA ''[t] o the maximum extent practicab l e, ... [to ] coope r at

e wi th and seek th e advice of the commerc ial in su r anc e industr y in developing financial re spo nsibility requirement s.' ' 42 U.S .C. 

### § 9608(b )(2f Acco rdin gly , the EPA wishes to maintain a di a log ue with yo ur company as the rul emaki n g proce ss moves forward. I appreciate yo ur ass ista nce wit h this ef f ort and l oo k f orward to yo ur re spo n se . I am happy to discu ss thi s reque st with you f urth er. Your response would be co nsid e r ed a voluntary s ubmission. You may assert a claim of confident i a l busi ness inf o rmation (CB I ) covering the s ubmitted information. See 40 C.F.R. 

### § 2.203. Any s ubmitted in formation cla ime d as CB I wil l be protect ed in a mann er co n s istent w ith 40 C.F.R. P art 2, Subpart B. For mo r e inf o rmati o n , inc lu ding in formation re ga rding submitting pote nti a ll y C BI data , please contac t Michael P ease of my staff at (703) 308-0008 or pea sc .michael @c pa.gov .

Barnes J ohns o n , irector Offic e of Resourc e C onservati o n and Recov e ry

2 Congress has also directed EPA to ··collect and analyze information from the commercial insurance and financial indust ries regarding the use and ava il ability of necessary in struments (including surety bond s, letters of c redit and insurance ) for meeting any new fin a nc ial re spo n sibili ty requirem e nt s and to make th at analysi s ava il ab l e to the H o use and Se n ate Committees on Appropriations and to th e gene r a l public on the Agenc y webs ite 90 days prior to a proposed rulemaking. " (See Repr ese ntative R odge rs (K Y)
...Explanatory Statement Submitted by Mr. Rogers of Kentuck y, C hairman of th e House Committee on Appropriations Regarding the House Amendment to the Senate Amendment to H.R
. 83."" Congressional Record l60:15l (Dec 11 ,20 1 4)p. H9767.)UNITED STATES ENVIRONMENTA L PROTECTION AGEN CY WA S HIN G TON , D.C

. 2046 0



### MA Y 0 

### 5

**?fll~**
Matt O'Malle y Pr

esi dent Environmental In sura nce XL Group In suran ce Operation s- Environmental Division One World Financia l Center 200 Liberty Street , 22"d Floor New York. New York I 0281
Dear Mr. O ' Malley: OFFICE OF SOLI D W ASTE AND EMERGE N CY RESPO N SE

The Un i ted States Envi ronmenta l Prote ction Age ncy (EPA) i s in th e process of devel oping propo se d financ ial responsibi I ity regulat io n s for hard roc k minin g faci I it i

es und er sec tion I 08(b) of the Comprehensive Environm e nt a l R es ponse , Compensation and Liability Act (CERCLA) (co mm o nl y kn ow n as th e " Superfund" law)
. 42 U.S.C. §§ 9601. et seq. I a m writing to r equest the a ss istance o f XL I nsurance in this e ff o rt , as th e EPA understand s that yo ur company is , or recently ha s been, active in the e nv ir o nmental in s urance market, including und erw riting ri s ks in the hardrock minin g industry. As background , the EPA pub lished a Priority Not ice in the Federal Reg ister (FR) on July 28, 2009 , identifying classes of fac i litie s in the hard rock mining 1 industry as th ose for which the EPA would fir st develop CERCLA sec tion I 08(b) requirement s. (See 74 FR 372 13.) In addition, CERCLA sec ti on I08(b)(2) refers to commercial insurers specifi ca ll y, where it states that: [t]he l eve l of financ ial re s ponsibility shall be init i al l y established, and, when necessary , adjusted to pr o t

ect aga in st the l eve l of ri s k w h ich the President in his discreti o n bel i eves is appropriate based o n the payment experience o f the [Hazardo us Substance S up e rfund , 26 U .S. C § 9507] , commercial insurers. cou rt s s ettlements and judgments. and vo luntary claims sa ti sfactio n . 42 U.S
. C. § 9608(b)(2). (Emphasis added.) Thus , as pa11 of its ru l e dev e lopm e nt activities. the EPA i s reachin g o ut to commercial insurers directl y for inf ormati on re ga rding their experience in the h ard r ock mining secto r. In particular. the EPA is inter ested in learni ng about:
• th e types of environmental risks at hard r ock mining faci I iti es that yo ur company currently covers or has covered in th e past and any environmental risks you explicit l y do not cover at hardrock min ing facil itie s;

1 The EPA included a definition of " ha rd rock mining" for purposes of that notice as classes of facil it ies which "extract , beneficiate o r process m e tal s ... and no n-m e tallic , non -fue l min eral s ... .'' 74 F R 372 14
. The EPA is working to refine this defi nition to c l earl y identif y tho se e ntitie s tha t are s ubj ec t to th e rul e. 1n 1erne1 Add ress (URL) • hltp://www

. epa.gov R o c y c l ed/Recycla b le • Pnnled wilh Vegelab l e 011 Based Inks on 100% Poslconsumer

. Process Chlonne Free Recycled Paper• the dol l a r value of cla im s and payment s at va rious classes of ha r d r

oc k minin g facilities inc luding inf ormation o n payment s o f re insurer s or co-insurers; • the frequenc y o f claim s and payments at various cla sses o fhardroc k mining facilities; • inf o rmati on o n how claim s and payment expe rien ce ha s varied by site characteristics and features ; and • inf o rmati o n o n the facilitie s ( includin g s ite l ocat ion s. facility type, and usa ge) a t which claim s were r ece ived and payment s were made including a de sc ripti o n of the types of liabilitie s for which payments were made and events that l e d to claims o r payments in th e pa st. To s upp ort us in deve loping th e proposed financ i al re s po n s ib i lity regu l ations , the EPA req uests that XL In su ran ce provide as much inf o rmati o n as po ss ible o n these topics , includin g inform ati o n on, and cop i es of, s pecific pol icies w ri nen by yo ur company. claims forms. and r e levant facilit y informati o n. It would be mos t helpful if you co uld prov ide the reque sted inf o rmation (e ither electronically or in hardcopy) by Jul y 6, 201 5 to: Michael P ease U.S. Environmental Prot ec ti on Agency 1 200 P ennsy lvania Ave. N W MC 5303P Wash in gton. DC 20460 peas e.michael @ epa.gov Finall y, and consistent with thi s r eq uest , the EPA also note s that CERCLA 108(b)(2) in structs the EPA " [t]o the maximum extent practicable , ... [t o] coop e rate with and seek the advice o f the commerc ial in s urance indu stry in de vel opin g financial r es po n s ibility requirement s : ' 42 U
. S.C. § 9608(b)(2f Accordingly. the EPA wishe s to maintain a dialogue with your company as the rul e making process moves forward. I apprec iate yo ur ass i s tance with thi s effort and l oo k forw ard to yo ur r espo n se. I am happy to di sc u ss thi s reque st with you further. Y o ur re spo nse would be cons id e r ed a vo lunt ar y s ubmi ssio n. Y o u may asse rt a claim of confide nti a l bu s ine ss inf o rmation ( CBI) coverin g the s ubmitted inf o rmation. See 40 C.F.R
. § 2 .203. Any sub mitte d inf o rmat io n cla im ed as CBI wil l be protected in a manner consistent with 40 C.F.R. P art 2, Subpart B. For mo re inf o rmati o n , inc luding inf o rmation re ga rdin g s ubmittin g potentia lly CB I data , please contact Michael P ease o f my staff at (703) 308-0008 or pe ase .michael @e pa . go v .

Barn es J ohns o n , r ecto r Offic e of Resourc e Co nservati o n and Recov e ry

2 Congress has also directed EPA to "c o ll ec t and an alyze information from the commercial insuran ce and financial industries regardin g the use and availab ility of necessary in s trum e nt s ( includin g surety bond s, le tters of credit and insurance) for mee tin g a ny new finan c ial respo ns ibility requirem e nt s a nd to make th at analy s is availabl e to th e Hou se and Sen ate Committees on Appro pri ations and t o the general public on the A ge ncy website 90 days prior to a proposed rulemakin g." (See R eprese ntati ve Rodgers ( KY ). "Explanatory Statemen t Submitted by Mr. R ogers of Kentucky, C hainnan of th e House Co mmittee on Appropriations Regard in g the H ouse Amendment t o th e Se nate Amendment to H
. R. 83." Congressional Reco rd 160 : 151 ( Dec II. 20 14) p. 1-19 767.)UNITED STATES ENVIRONMENTAL PROTECTION AGENC Y WAS HI NGTON, D

. C

. 20460

Lana Keppel Director Environmental Division AIG Environmental I 00 Connell Drive , Su ite 2 100 Berkley Height s , New J ersey 07992
Dear Ms. Keppel: 

### MAY 0 5 2015 OFFICE OF S OLID WAS TE AN D E M ER G E NCY RESPO N SE

The United States Environmental Protection Agency (EPA) i s in the process of developing proposed financial re s po n s ibility regulati o n s for hard rock mining facil iti es under sect i on I 08(b) of the Comprehensive Environmental Response , Compensation and Li ab ility Act (CERCLA) (commonly known as the ''Superfund " law). 42 U.S.C. §§ 960 I. et seq. I am writing to requ est the assistance of A IG Environmen tal in this effort , as th e EPA understands that yo ur company is. or recently has been , active in the environmen t a l in sura nce market , including underwriting ri sks in the hardrock mining industry. As background, the EPA publi shed a Priorit y Notice in the Federal Register (FR) on J uly 28, 2009 , identifying c l asses of facil iti es in the hard roc k minin g' industry as tho se for which the EPA would first develop CERCLA section I 08(b) requirements. (See 74 FR 37213.) I n addition. CERC LA sect i on I 08(b)(2) refers to commercial insurers specifically, whe re it states that: [t]he le ve l of financial responsibility s h al l be initially established, and, when necessary, adjusted to protect against th e level of risk which the Pre s ident in his discreti on believes is appropr i ate based on th e payment experience of the [H azardous Substance Superfund, 26 U.S.C 

### § 9507], comme rcial insurers, courts settleme nt s and judgments. and voluntary claims satisfac ti on. 42 U.S.C. § 9608(b)(2)

. (Emphasis added.) Thus, as part of it s rule devel op m e nt activities, the EPA i s reachin g out to commercial in s urers d ir ectly for inf o rmati on re gardi ng their expe ri e nce in the hard rock m in ing sec t o r. I n particular. the EPA is interested in learning about:
• the types of environmental risks at hardrock mining facilities th at your company currently covers or ha s covered in the past and any e nvironmenta l ri s k s yo u expl i ci tl y do not cover at hardrock mining facilities; • the dollar value of claims and payments at various classes of hardrock mining facilities includin g information o n payments of reinsurers or co-i n surers;
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 wo rkin g to refine this definition to clearly identify tho se en titie s that are s ubj ec t to th e rule. l n t eme t Address (URL) • h ttp :/ / www . epa . gov Recycled/R ecyclable • Printed w i t h Vegetable Ool Based Inks on 1 00 "/o Postconsumer

. Process Chlonn e F ree Recycled Paper• the f r equency of c laims and payments at various classes of hard r ock mining fac il ities; • inform a ti o n on how claims a nd pa y me nt ex pe ri ence has varie d by si t e c h arac teri st ic s a nd fea tures; and • inf o rmati o n on the facili ti es ( inclu ding si t e l oca tions. facility t y pe. and usage) at which claims were received and payment s we re made includin g a descripti on of the types of liabilitie s fo r which payment s were made and events that led to claims or payments in the past. T o s upport u s in developing th e pro posed financia l r es po n s ibilit y regulati o ns , the EP A r e que s ts that A IG Env iro nmenta l provide as mu c h information as poss ibl e o n th ese t opics, in c ludin g inf o rm a ti o n o n , and cop ies of

. specific policies written by yo ur company, c l aims fo rm s, and relevant facilit y in formation
. It would be most helpful if yo u cou ld provide the requested inf orm ation (e i ther electronically or in hardc opy) by Jul y 6, 20 15 t o: Michael P ease U.S
. Environmental Pro tection Agency 1200 Pennsy lvania Ave. W MC 5303P Washingto n , DC 20460 pease.m ic hae l @ epa.gov Finally , and consiste nt w ith thi s request , the EPA a lso notes that CERCLA I 08(b)(2) in s truc ts the EPA ''[t)o the maximum exte nt practicable,
... [to] cooperate wit h and seek th e advice of the commerc ial in su r ance industry in developing financial responsibility requirements .'" 42 U.S .C. § 9608(b)(2) 2 • Acc o rdingl y. the EPA wishes to maintain a dialogue with your company as the rulemaking process move s forward
. I ap pr ec iate yo ur ass istanc e w ith this e ffort and loo k forward t o yo ur response. I am happ y to di scuss this r equest w ith you fut1 her. Your re s ponse wou ld be co n s id ered a vo luntary s ubmi ss i on. Y ou may assert a c laim of confidential business informatio n (C BI ) coverin g the s ubmitted informati o n. See 40 C.F.R. § 2.203. Any submitted information c laimed as C BI wil l be pro tected in a manner co n sisten t with 40 C.F .R
. Part 2. Subpart B
. For more inf orm atio n, in c ludin g inf ormation regarding submitt in g potentiall y CB I data , plea se co ntac t Michae l Pea se of m y s t aff at (703) 308-000 8 or pease.michacl (@ epa.gov .
S in cerely.

Barnes John so n , Di cto r Office of Resource Co n servatio n and Reco ve ry

2 Co ngress has a lso directed EPA to "co ll ect and analyze information from the com merc ia l in s ur ance a nd financial indu s tries regarding the use and avai lab il it y of neces sa ry instrument s (includ in g surety bo nd s, letters of credit and insurance) for meeting any new financial respon sibili ty requirements a nd to make that analysis available to the H ouse and Senate Committees on Appropriations and to the general public on the Agency website 90 days prior to a proposed rulemaking
... (See R epresentative Rodgers (K Y). ·· Ex planatory Statement Submitted by Mr. Rogers of Kentu cky. Chairma n of the House Co mmittee on Appropriations Re garding the House Amendment to the Senate Amendment to H.R. 83." Congressional Record 160: lSI (Dec II , 20 1 4) p . H9767 .)Robert Owen s Senior Vice Pre s ident ACE Westche ster UNITED STATE S ENVIRONMENTAL PROTECTION AGENC Y WA S HIN GTO N , D
. C
. 20460



## MAY 0 5 2015

455 Mark et S treet, 17 th Floor San Franc isco, Ca lif ornia 94105
Dear Mr. Owen s: OFFICE OF S OLID WA STE AN D E M ERGE NCY R ES P O N SE

The United States Enviro nm ental Protection Agency (EPA) is in the process of devel o ping proposed financial r espo n s ibil ity regulati o n s for hard rock mining facil itie s under sect i on I 08(b) of the Comprehensive Enviro nmental Re spo nse , Compensation and Liability Act (CERCLA) (commonly known as the ''Superf und ' ' law) , 42 U.S.C. §§ 960 I , et seq. I am writing to reque st the assistance of ACE Group in thi s ef

fort , as the EPA understand s that yo ur company is . or recentl y ha s been. acti ve in th e environmental in s urance marke t. including underwriting risk s in the hardrock minin g industry. As background , the EPA publi shed a Priority Notice in the Federal Register (FR) o n July 28, 2009 , identifying clas s e s offac il itie s in the hard rock mining' industry as those for which the EPA would fir st develop CERCLA sect ion I 08(b) requirements. (See 74 FR 37213.) I n addit io n , CERCLA section I 08 (b )(2) refers to commercial insurer s spec ifically. where it st ates that: [t)he level of financial r es ponsibility shall be initially establi s hed. and, when ne cessary , adju s ted t o protect against th e level of ri s k wh i ch the Pre side nt in his discretion believes i s appropriate based on th e payment experience of the [ H azardous Substance Superfund , 26 U.S.C 

### § 9507] , commercial insurers , cou rt s se ttlement s and judgments , and vo luntar y claim s satisfaction. 42 U.S.C. § 9608(b)(2). (Emphasis added.) Thus, as part of it s rule developm ent activ itie s, the EPA is reachin g out to commercial insurers directly for inf ormat ion r egardi ng their experience in the hard rock mining sec t o r. I n particular. th e EPA is intere sted in learning ab out:
• the types o f environmental ri s ks at hardroc k mining facilitie s that your company currentl y covers o r ha s c ove red in the past and any environmental ri sks you explicitly do not co ver at hard rock minin g facil itie s; • the dollar value of claim s and payments at various classe s o f hardrock minin g facilities includin g inf o rmati o n on payment s o f reinsurers o r co-insurers;

1 Th e EPA in c luded a d e finiti o n of " hard rock minin g" f o r purposes ofthat noti ce as classes of facilities which " extract. beneficiate o r process metal s .. . and non-metallic. non-fu e l minerals
.. . . " 74 FR 372 14. Th e EPA is working to r efi ne thi s definition to clearl y id e ntify those e ntiti es that are subjec t to the rule. l n t eme t Add r ess (URL) • hltp :/f www . epa . gov RccyclodfRecyclable • Printed w ith Vege t able Oil Based I nks on 1 00% Postconsumer

. Process Chlonne Free Recycled Paper• the frequency of claims and payments at various classes of hardrock mining facilities; • inf o rm ation on how cla i ms and payment expe rienc e has varied by site characteristics and features; and • inf o rmati o n on the facilities ( including s ite l ocatio ns. facility t ype. and usage) at which claims were recei ved and payments were made includin g a description of the t ypes of liabiliti es for which payment s were made and events that l ed to claims or payments in the past. To suppo rt u s in developing the proposed financia l r espo n s ibility regulations, the EPA r equests that ACE Group provide as much information as possible on these topics , including informati o n on , and copies of. spec ific polici es wr itten by your company, claims forms , and relevant facility informati o n. It would be mos t helpful if yo u co uld provide th e reque s ted inf o rm at i o n (e ither e lectronically or in hardcopy) by July 6, 2015 to: M i chac l Pease U.S. Environmental Pro t ec tion Agency 1200 Pennsylvania Ave. W MC 5303P Washington
. DC 20460 pease.michael @e pa.gov Finally, and consistent w ith thi s request , the EPA also notes that CE RCLA I08(b)(2) instructs the EPA "[t]o the maximum exte nt practicabl e .... (to] cooperate with and seek the advice of th e commercial insuranc e industry in developing finan c ial responsibility r eq uirements ." 42 U
.. C.§ 9608(b)(2f Accordingly, the E P A wishes to maintain a dialogue with yo ur company as th e rulemakin g process moves forward. I app reciate your assistance with thi s effort and look forward to your r espo nse . I am happy to discuss th is request with you further. Your r espo nse wou ld be considered a voluntary submiss i o n. You may assert a c laim of confidential busine ss inf o rmation (CBI) covering the submitted informati o n. See 40 C .F.R
. 

### § 2.203
. Any submitted inf o rmati on claimed as C BI wi ll be protec ted in a manner consistent wi th 40 C.F.R. P art 2
. Subpart B. For mo re informati o n , including inf or

mation regardin g submitting potentiall y CBI data , please contact Michael Pease of my s taff at (703) 308-0008 o r pease.michae l @e pa.gov . Sincerely.

Barnes J ohn so n , Di ctor Office of R eso urce Conservation and Recov ery

2 Co ngre ss ha s also directed EPA to "collect and ana l yze infom1ation from th e commercial in s ura nce and financial indu s tri es regardin g th e usc a nd avai lability of necessary instrume nt s (includi ng s ure t y bonds, letters of credit and insurance) for meeting any new financial re spo ns ibility requirem e nt s and to make that ana l ysis available to th e H ouse and Senate Comminees on Appropriations and to the general public on th e Agency website 90 days prior to a proposed rulemaking ." (See R epresentative Rodgers (K Y). ·'Explanatory Statement Submined by Mr
. Rogers of Kentucky. Chairman of the House Comm inee on Appropriations R egarding the Hou se Amendment to the Senate Amendment to H.R. 83." Congressional Recordl60:151 (Dec 11 , 2014)p. H 9767.)