CenterPoint Energy 2009 Annual Report Download - page 40

18
ENVIRONMENTAL MATTERS
Our operations are subject to stringent and complex laws and regulations pertaining to health, safety and the
environment. As an owner or operator of natural gas pipelines and distribution systems, gas gathering and
processing systems, and electric transmission and distribution systems, we must comply with these laws and
regulations at the federal, state and local levels. These laws and regulations can restrict or impact our business
activities in many ways, such as:
• restricting the way we can handle or dispose of wastes;
• limiting or prohibiting construction activities in sensitive areas such as wetlands, coastal regions or areas
inhabited by endangered species;
• requiring remedial action to mitigate pollution conditions caused by our operations or attributable to former
operations; and
• enjoining the operations of facilities deemed in non-compliance with permits issued pursuant to such
environmental laws and regulations.
In order to comply with these requirements, we may need to spend substantial amounts and devote other
resources from time to time to:
• construct or acquire new equipment;
• acquire permits for facility operations;
• modify or replace existing and proposed equipment; and
• clean up or decommission waste disposal areas, fuel storage and management facilities and other locations
and facilities.
Failure to comply with these laws and regulations may trigger a variety of administrative, civil and criminal
enforcement measures, including the assessment of monetary penalties, the imposition of remedial actions and the
issuance of orders enjoining future operations. Certain environmental statutes impose strict, joint and several
liability for costs required to clean up and restore sites where hazardous substances have been disposed or otherwise
released. Moreover, it is not uncommon for neighboring landowners and other third parties to file claims for
personal injury and property damage allegedly caused by the release of hazardous substances or other waste
products into the environment.
The trend in environmental regulation is to place more restrictions and limitations on activities that may affect the
environment, and thus there can be no assurance as to the amount or timing of future expenditures for environmental
compliance or remediation, and actual future expenditures may be different from the amounts we currently
anticipate. We try to anticipate future regulatory requirements that might be imposed and plan accordingly to remain
in compliance with changing environmental laws and regulations and to minimize the costs of such compliance.
Based on current regulatory requirements and interpretations, we do not believe that compliance with federal,
state or local environmental laws and regulations will have a material adverse effect on our business, financial
position, results of operations or cash flows. In addition, we believe that our current environmental remediation
activities will not materially interrupt or diminish our operational ability. We cannot assure you, however, that future
events, such as changes in existing laws, the promulgation of new laws, or the development or discovery of new
facts or conditions will not cause us to incur significant costs. The following is a discussion of all material
environmental and safety laws and regulations that relate to our operations. We believe that we are in substantial
compliance with all of these environmental laws and regulations.