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Additional info for Environmental Management Systems Handbook for Refineries - Pollution Prevention Through ISO 14001

Sample text

Lockheed burned many millions of pounds of AP waste on their site. In addition, it had horrendous housekeeping problems, ranging from spent solvents (TCE, in particular) being thrown away in an uncontrolled manner by employees at times to the washing of building floors and processing equipment, where liquid waste streams were sent to pits, sumps, and sinkholes. While Lockheed maintained a large number of evaporation ponds and surface impoundments to contain much of its wastes, evidence suggests that these pits overflowed at times during period of excess production.

While Koppers/Beazer generally operated within the law; that is, it met the minimum legal compliance requirements by having a permit to operate, it acted irresponsibly. All environmental laws are understood to provide minimum standards aimed at protecting the public and the environment. Because legal standards are based on the premise of protection based on the overall good of society, they do not account for special circumstances. In the case of Tie Plant, the special circumstances are that this is a large wood treating facility immediately adjacent to a residential community.

The simple payback does not rely on discounted cash flows in the calculation. The SPB also ignores any changes in prices, such as energy, water, and labor escalation prices during the payback period. As with the DPB, the acceptable SPB for an investment is set at an arbitrary time period that is considerably less than the intended service period. Calculations based on the SPB generally result in a shorter year of payback since undiscounted cash flows are greater than their discounted counterparts (this assumes a positive discount rate).

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