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Factors in Estimating Potential Response Costs of Spills and Releases

This article provides a discussion of the categories of response costs associated with releases of hazardous substances or petroleum into the environment and the factors to be considered in developing response cost estimates. To understand and estimate the costs of responding to sudden and accidental releases of hazardous materials or petroleum into the environment, a number of key factors must be considered. Detailed cost estimating approaches developed through the study of catastrophic marine oil spills are discussed for purposes of illustration, and then generalized for application to other types of spills. It is recognized that many practitioners will have access to detailed information on releases based on their own experience and it is anticipated that this article will provide additional insight, ideas, and a framework for estimating response costs.