Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies Related to Discontinued Operations

v3.19.1
Commitments and Contingencies Related to Discontinued Operations
12 Months Ended
Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Commitments and Contingencies Related to Discontinued Operations
Commitments and Contingencies Related to Discontinued Operations
Discontinued operations represent former mining activities, the last of which ended in 2002. Pursuant to an agreement with the United States Environmental Protection Agency (the “EPA”), the Company performed certain remediation actions at a property sold over fifty years ago. This remediation work was completed by September 30, 2015. As of December 31, 2018 and 2017, the Company has established a contingency provision related to discontinued operations, which was $497,000 and $522,000, respectively. No change to the provision was required for either of the three or twelve month periods ended December 31, 2018. For the three and twelve month periods ended December 31, 2017, the Company increased the provision $275,000 and $440,000 ($172,000 and $276,000, net of tax benefit of $103,000 and $164,000, respectively). This increase resulted mainly from changes in the scope of the project as required by the EPA and the state of Washington.
The remaining balance of the accrued remediation costs as of December 31, 2018, mainly represents estimated future charges for EPA response costs and monitoring and provisions for potential future remediation efforts of the property as required by the state of Washington. The total costs to be incurred in future periods may vary from this estimate. The amounts recorded in the aforementioned contingency provision are not discounted. The provision will be reviewed periodically based upon facts and circumstances available at the time.