Development of a Site Corrective Action Cost Comparison Model Based on the ASTM RBCA Guide and Decision Theory

BP Environmental Remediation Management (ERM) is currently responsible for corrective action for more than 1500 service station properties. BP ERM has developed a proprietary spreadsheet-based cost model to predict corrective action expenditures. These predictions are used to develop annual budgets, provide a benchmark for corrective action expenditures and to manage the environmental reserve that was established for corrective action at these sites. BP ERM has initiated a program to incorporate a risk-based decision process (RBDP) into their corrective action project management consistent with the ASTM Guide for Risk-Based Corrective Action (RBCA) for Petroleum Releases (ASTM E 1739-95). This project developed a new spreadsheet cost model for BP using a decision analysis framework to provide a basis for evaluating and predicting the cost of corrective action based on the new RBDP approach to corrective action. The model presented here provides a foundation for the analysis of future costs for corrective action under a new decision-making process. This model will assist BP corrective action project managers in evaluating sites at the tier upgrade decision. It may also prove useful in determining the value of a land use restriction during real estate sale negotiations and discussions with property buyers. The analysis presented here confirms the value of choosing the RBDP for corrective action.