Management Report - Beursgorilla

ArcelorMittal Annual Report 200974 Consolidated Financial StatementsNotes to the Consolidated Financial Statements continuedArcelorMittal and Subsidiaries(millions of U.S. dollars, except share and per share data)Environmental LiabilitiesArcelorMittal’s operations are subject to abroad range of laws and regulations relatingto the protection of human health and theenvironment at its multiple locations andoperating subsidiaries. As of December 31,2009, ArcelorMittal had establishedreserves of 743 for environmental remedialactivities and liabilities, including 348 inprovisions relating to Europe, 219 inprovisions relating to the United States,151 in provisions relating to South Africaand 17 in provisions relating to Canada.ArcelorMittal and the previous ownersof its facilities have expended substantialamounts to achieve or maintain ongoingcompliance with applicable environmentallaws and regulations. ArcelorMittal expectsto continue recording provisions in thisrespect in the future.United StatesArcelorMittal USA’s environmentalprovisions of 210 are mainly related toinvestigation, monitoring and remediationof soil and groundwater investigationat its current and former facilities andto removal and disposal of PCBs andasbestos-containing material. Theenvironmental provisions include oneto address ArcelorMittal USA’s potentialliability at two Superfund sites.ArcelorMittal USA’s largest environmentalprovisions relate to investigation andremediation at Indiana Harbor (East),Lackawanna, and its closed miningoperations in southwestern Pennsylvania.In 1990, ArcelorMittal USA’s Indiana Harbor(East) facility was party to a lawsuit filed bythe U.S. Environmental Protection Agency(the “EPA”) under the U.S. ResourceConservation and Recovery Act (“RCRA”).In 1993, ArcelorMittal Indiana Harbor(East) entered into a Consent Decree,which, among other things, requiresfacility-wide RCRA Corrective Action andsediment assessment and remediation inthe adjacent Indiana Harbor Ship Canal.ArcelorMittal USA’s provisions forenvironmental liabilities includeapproximately 11 for RCRA CorrectiveAction, and 25 for sediment assessmentand remediation at this site. Remediationultimately may be necessary for othercontamination that may be present atIndiana Harbor (East), but the potentialcosts of any such remediation cannotyet be reasonably estimated.ArcelorMittal USA’s properties inLackawanna, New York are subject to anAdministrative Order on Consent with theEPA requiring facility-wide RCRA CorrectiveAction. The Administrative Order, enteredinto in 1990 by the former owner,Bethlehem Steel, requires the Company toperform a Remedial Facilities Investigation(“RFI”) and a Corrective Measures Study, toimplement appropriate interim and finalremedial measures, and to perform requiredpost-remedial closure activities. In 2006,the New York State Department ofEnvironmental Conservation and the EPAconditionally approved the RFI.ArcelorMittal USA has executed Orders onConsent to perform certain interimcorrective measures while advancing theCorrective Measures Study. These includeinstallation and operation of a ground watertreatment system and dredging of a localwaterway known as Smokes Creek. TheCompany executed a Corrective MeasureOrder on Consent in 2009 for other siteremediation activities. ArcelorMittal USA’sprovisions for environmental liabilitiesinclude approximately 47 for anticipatedremediation and post remediation activitiesat this site. The reserved amount is basedon the extent of soil and groundwatercontamination identified by the RFI and theremedial measures likely to be required,including excavation and consolidation ofcontainments in an on-site landfill andcontinuation of groundwater pump andtreatment systems.ArcelorMittal USA is required to prevent acidmine drainage from discharging to surfacewaters at closed mining operations insouthwestern Pennsylvania. In 2003,ArcelorMittal USA entered into a ConsentOrder and Agreement with the PennsylvaniaDepartment of Environmental Protection(the “PaDEP”) requiring submission of anoperational improvement plan to improvetreatment facility operations and lowerlong-term wastewater treatment costs. TheConsent Order and Agreement also requiredArcelorMittal USA to propose a long-termfinancial assurance mechanism. In 2004,ArcelorMittal USA entered into a revisedConsent Order and Agreement outlining aschedule for implementation of capitalimprovements and requiring theestablishment of a treatment trust that thePaDEP has estimated to be thenet present value of all future treatmentcost. ArcelorMittal USA has been funding thetreatment trust and has a period of upto ten years to reach the current target valueof approximately 29. After the treatmenttrust is fully funded, the treatment trust willthen be used to fund the continuing cost oftreatment of acid mine drainage. Althoughremote, ArcelorMittal USA could be requiredto make up any deficiency in the treatmenttrust in the future. ArcelorMittal USA’sprovisions for environmental liabilities includeapproximately 28 for this matter.