Troubled Waters - Dispute over Wastewater Treatment Costs
Arbitration, North America
A chemical plant disputed wastewater treatment fees charged by its petrochemical complex operator, claiming costs didn't reflect actual loading. Baker & O'Brien evaluated the tenant plant's wastewater and the complex's overall contaminant loading. Our expert report and deposition testimony supported the resolution of the fee dispute.
Petrochemical plants and other large industrial facilities generate wastewater that may contain elevated levels of particulate and chemical contaminants. The contaminants must be removed or reduced below prescribed levels before the facility can discharge the water back to its source. Large complexes with multiple operating plants typically have centralized wastewater treatment units that gather and treat wastewater from the various operating units.
A chemical manufacturer operated a production plant as a Tenant within a larger petrochemical complex owned and operated by the Landlord. The Landlord provided various services to the Tenant and charged negotiated fees for each service. A dispute arose over the Landlord's assessed costs for treating the Tenant’s wastewater.
The Landlord claimed that the Tenant’s plant contributed a significant portion of its total site wastewater loading. As such, the Landlord allocated a significant amount of its wastewater treatment costs to the Tenant. The Tenant claimed that the invoiced charges were excessive and not reflective of its production unit’s actual wastewater loading.
Baker & O’Brien was engaged to analyze the relevant data provided, including the flows and contaminant levels (the “loading”) of the Tenant’s wastewater compared to the overall site’s wastewater loading. We presented our analysis and opinions in an expert report and provided deposition testimony.
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Gary N. Devenish
Vice President
- Industry
- Chemicals and Petrochemicals
- Service
- Arbitration / Litigation / Operations and Maintenance
- Region
- North America