World Fuel Services 2012 Annual Report Download - page 33

If we fail to comply with environmental laws or other government regulations applicable to
our operations, we could suffer penalties or costs that could have a material adverse effect
on our business.
We are required to comply with extensive and complex environmental laws and other regulations at the
international, federal, state and local government levels relating to, among other things:
• the transportation and handling of fuel and fuel products;
• the operation of fuel storage and distribution facilities;
• workplace safety;
• fuel spillage or seepage;
• environmental damage; and
• hazardous waste disposal.
If we fail to comply with these laws or regulations, we could be subject to substantial fines or penalties
or to civil or 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 stock price, results of operations and financial condition.
Operating fuel storage and distribution terminals and transporting fuel products involve 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 fines and 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 that
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.
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