We have potential environmental liability for a number of properties due to prior ownership, mergers, former customary practices or business relationships. These legacy sites include former operating facilities that we no longer own, existing operating facilities with previously undiscovered petroleum releases, or facilities owned by others with whom we conducted business in the past. Working with other potential responsible parties, these sites are evaluated and remediated using approved methods.
One example of Progress Energy’s leadership role on environmental remediation is the cleanup of former manufactured gas plants (MGPs). From the 1800s through the mid-1950s, MGPs produced gas that was used for heating and lighting in homes and businesses. Although we never operated these facilities, many of our current and former subsidiaries did. Byproducts, such as coal tar, remained on site due to the standard business practices of that era and now pose environmental concerns. MGPs stopped operating after most of the country switched to natural gas during the 1950s.
In Florida, we are leading potential responsible party (PRP) groups at two former MGP sites. The PRP group directs the work of environmental consultants that investigate and remediate the environmental contamination resulting from the prior operation of these facilities. In North Carolina, we have signed an administrative agreement with the Department of Environment and Natural Resources to voluntarily assess and remediate 11 MGP sites.
Through the end of 2008, remediation has been conducted at eight of these sites, and an environmental investigation had been started at all but one of these sites. Where possible, we restore these former MGP properties to a level suitable for redevelopment. For example, in Asheville, N.C., we donated the restored property to the city for redevelopment as a riverfront park and greenway. In New Bern, N.C., we are donating one of these properties to Tryon Palace for use by its North Carolina History Education Center. In Raleigh, N.C., the former MGP site is now part of the new Raleigh Convention Center.
We also have been involved with several federal Superfund sites as a result of conducting business with former site operators. Progress Energy, usually with a large number of other entities that did business with site operators, directs and funds the assessment and remediation with the approval of the EPA. An example is the Ward Transformer Site in Raleigh, where Progress Energy is one of about 250 PRPs but has taken the lead in coordinating remediation of the site. Legacy sites at operating facilities, such as historic fuel oil releases, however, are handled by the appropriate state agency.
During the last 11 years, we spent more than $48 million on the investigation and remediation of legacy sites. We have accrued another $30 million to $35 million that will be used over the next 15 years on other known legacy sites.
