World Fuel Services 2011 Annual Report Download - page 37

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• the operation of fuel storage and distribution facilities;
• workplace safety;
• fuel spillage or seepage;
• environmental damage; and
• hazardous waste disposal.
If we should fail to comply with these laws and other regulations, we could be subject to substantial
fines or penalties and to civil and criminal liability.
If we are involved in a spill, leak, fire, explosion or other accident involving hazardous substances or if
there are releases of fuel or fuel products we own, our operations could be disrupted and we could be
subject to material liabilities, such as the cost of investigating and remediating contaminated properties
or claims by customers, employees or others who may have been injured, or whose property may have
been damaged. These liabilities, to the extent not covered by insurance, could have a material adverse
effect on our business, financial condition, results of operations and cash flows. Some environmental
laws impose strict liability, which means we could have liability without regard to whether we were
negligent or at fault.
In addition, compliance with existing and future environmental laws regulating the delivery of fuel by
barge, truck or railcar, fuel storage terminals and underground storage tanks that we own or operate may
require significant capital expenditures and increased operating and maintenance costs. The remediation
and other costs required to clean up or treat contaminated sites could be substantial and may not be
covered by insurance.
Our fuel storage and transportation operations have inherent risks that could negatively
impact our results of operations and financial condition.
Operating fuel storage terminals and transporting fuel products carries with it the inherent risks of oil
spills and other environmental mishaps, fires, collisions and other catastrophic disasters, loss of life,
severe damage to and destruction of property and equipment, loss of product and business interruption.
Damage arising from such occurrences may result in third party lawsuits asserting large claims. We
maintain insurance to mitigate these costs, but there can be no assurance that our insurance would be
sufficient to cover the liabilities suffered by us from the occurrence of one or more of the risks described
above. Further, if we are negligent or otherwise responsible in connection with any such event, our
insurance may not cover our claim. Any of these occurrences, and any resulting media coverage, could
have a material adverse effect on our stock price and on our business, financial condition, results of
operations and cash flows.
If we are held liable for clean up and other costs related to several businesses we exited,
which handled hazardous and non-hazardous waste, such liability could adversely affect our
business and financial condition.
We have exited several businesses, such as the waste management and remediation services business,
that handled hazardous and non-hazardous waste. We treated and/or transported this waste to various
disposal facilities in the United States. We have been sued in the past and may be sued in the future as a
potentially responsible party for the clean up of such disposal facilities and may be held liable for these
and other clean up costs pursuant to U.S. federal and state laws and regulations. In addition, under these
laws and regulations, we may be required to clean up facilities previously operated by us.
Our operations may be adversely affected by competition from other energy sources.
Fuel competes with other sources of energy, some of which are less costly on an equivalent energy
basis. In addition, we cannot predict the effect that the development of alternative energy sources might
have on our operations.
Current and future litigation could have an adverse effect on us.
We are currently involved in certain legal proceedings in our ordinary course of business. Lawsuits and
other legal proceedings can involve substantial costs, including the costs associated with investigation,
litigation and possible settlement, judgment, penalty or fine. Although insurance is maintained to
mitigate these costs, there can be no assurance that costs associated with lawsuits or other legal
proceedings will not exceed the limits of insurance policies. Our business, financial condition, results of
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