General Motors 2nd Round Settlement with EPA

General Motors reached a settlement with EPA to pay almost $51 million to resolve it's allocated liabilities at 34 sites in 11 states. This amount is in addition to the $773 million clean-up liability encompassing 89 sites in 14 states at the end of 2010. $15 million is in cash, the remainder in warrants and stock. This new batch of sites appear to be multi party sites, whereas the previous 2010 settlement appears to be one party superfund (closed or active) facilities. Federal superfund sites include: Springfield Township Dump, Reclamation Oil, Forest Waste Products, H. Brown Co. and 68th Street Dump. This author is not sure if these amounts will have a material impact on earnings since the new company's stockholder equity will not be reported until after the new year; and materiality is 4% of stockholder equity. EFIS has or will soon have all available volumetric information, revised waste-in lists and EPA's cost recovery database for the entire country. Once this information is cross referenced with the Consent Decrees and Administrative Orders on Consent under Superfund (CERCLA), EFIS will be able to determine if this estimate is in fact true and accurate to resolve General Motors (GM) liabilities.