Page 10 - ICG Full Business Plan

Market Overview (U.S.)
The United States has gone through a spike in oil production in the last 10 years creating a renewed demand for rms with the capability toperformon-siteremediationofdrillcuttingsandoil eldwastes. Thespikeinoilproductionhasalsoburdenedinfrastructurethatmovesthis oiltore neries. Highwayandrailsystemscommonlysu erfromaccidentalspills. Infact,three eryderailmentsinvolvingcrudeoilinthepast year have caused increased concerns about these shipments. The same fracking technologies that have brought new life to U.S. oil elds have alsohadsimilare ectsonoil eldsaroundtheworld,causingatremendousincreaseinwastegeneration. Thereisashiftwithintheoilandgas industry away from on-site waste pits. This is increasing the amount of oil eld waste going to land lls because there are not enough on-site options for waste treatment.
According to the North Dakota Department of Health, last year 1.7 million tons of oil eld waste hit the land lls of North Dakota. At an average rate of $65/ton, this equals about $113 million on disposal costs. Contingent liability follows this waste into the land ll. Companies that bury their contamination continue to be liable for the waste - forever. If (usually when) the land ll ultimately has containment issues, the EPA les claims against every person or company that disposed of waste in that land ll. The amount of planned drilling is increasing, not decreasing. The outlook is strong for the next 10 years.
Summary
The US market appears strong for the next ve years. On the regulatory front, changing legislation, new overall risk management strategies, higher site limits, and a more realistic approach to site cleanup based on actual risk as opposed to assumed risk, will facilitate remediation e orts. Intheprivatesector,redevelopmentofcontaminatedsites,includingurban,corporateproperties,andMGPcleanupwillbroadenthe market. Theseredevelopmentprojectsareasigni cantrevenueopportunityforUSR. Inaddition,thegovernmentmarketremainsstrong,and will continue to rely heavily on the ability of the Company to provide the appropriate services to their contractors.
Consul(ng & Engineering
Remedia(on / Industrial Svcs
Analy(cal Services
Solid Waste Management
Hazardous Waste Management
Resource Recovery Water Treatment Works Water U(li(es
U.S. Remedia(on 2015
0 10 20 30 40 50 60 70
10
data source: the U.S. Dept. of Commerce