ML24220A244

Email Dated 08 07 2024 Jlux, Cimarron Environmental Response Trust, (Cert) Regarding Cimarron Environmental Response Trust - Accrual of Some Expenditures to 2023, $700K, Identified as Unpaid as of 8/7/2024

ML24220A244
Person / Time
Site:	07000925
Issue date:	08/07/2024
From:	Lux J Environmental Properties Management
To:	Dooley L, Lewis J, Luzecky H, John Marshall, Yalen R Division of Decommissioning, Uranium Recovery and Waste Programs, State of OK, Dept of Environmental Quality (DEQ), State of OK, Office of the Attorney General, US Dept of Justice (DOJ)
References
Download: ML24220A244 (1)

Text

From: Lux, Jeff J To: Robert W. Yalen Esq. (Robert.Yalen@usdoj.gov); jennifer.lewis@oag.ok.gov; lee.dooley@deq.ok.gov; Jane Marshall; Luzecky, Hollis Cc: Hesemann, John; Crawford, Mathew D; James Smith; Rachel Miller; J. Paul Davis

Subject:

[External_Sender] Cimarron Environmental Response Trust - Accrual of Some Expenditures to 2023 Date: Wednesday, August 7, 2024 9:54:59 AM

Section 6.1 of the Trust Agreement for the Cimarron Environmental Response Trust states, As soon as practicable, but no later than 28 days after the end of each calendar quarter the Cimarron Trust shall submit to the Beneficiaries a written report, including: (a) financial statements of the Cimarron Trust at the end of such calendar quarter.

During March, personnel in the Accounting and Finance Department informed John Hesemann (Trust Administrator) and me (Trust Project Manager) that several invoices for work performed in 2023 had not yet been paid. It appears that when Bill Halliburton (the previous Trust Administrator) retired early in January 2024, and his responsibilities were transferred to Mr.

Hesemann, these invoices had not yet been approved for payment. All of these invoices were either issued by EPM or by Burns & McDonnell, which are paid directly from the Trust Accounts; they are not processed through the electronic accounts payable process that invoices from non-affiliated route through.

The total amount of these invoices (for work performed in October and November 2023) is nearly $700,000 and accruing these expenditures to 2023 will not result in exceeding the budget for any of the three accounts that were approved by the Lead Agencies. Accruing these expenditures to 2024 would make it essentially impossible to complete the work scheduled for 2024 without exceeding the budget that was approved by the Lead Agencies for 2024.

Within the next week, EPM will issue revised financial statements for the fourth quarter of 2023 and the first quarter of 2024 and will submit them with the financial statement for the second quarter of 2024. EPM will also review the invoice receipt, review, approval, and payment process for EPM and Burns & McDonnell invoices to minimize the potential for a recurrence.

Please feel free to call if youd like clarification or additional information.

Jeff Lux Project Manager Environmental Properties Management LLC A Subsidiary of Burns & McDonnell Engineering Company, Inc.

405-642-5152