Question

The City of El Paso owns and operates two landfills located in the East (Clint) and Northeast (McCombs) areas of the City of El Paso. Closure and post-closure care of the landfills are subject to the requirements of Subtitle D of the Resource Conservation and Recovery Act (P .L. 94/580) and Sections 330.250-256 of Title 30 of the Texas Administrative Code administered by the Texas Commission on Environmental Quality (TCEQ), formerly the Texas Natural Resource Conservation Commission (TNRCC). If the the percentage of landfill capacity used is approximately 32.38%, as of August 31, 2018, the estimated total current cost of closure and post closure care remaining to be recognized is $78 million and approximately $22.0 million was recognized as landfil liability as of 7/31/2018, The regulations require the City of El Paso to place a final cover on each landfill when it ceases to accept waste and to perform certain maintenance and monitoring functions for 30 years after the closure of each landfill. If the City of El Paso spent $2 million on the final cover, then the Landfill liability as of 8/31/2018 will be

		$25.26
		$22
		$3.26
		$1.26

Answer 1

a. $ 25.26

Particular	Amount
Estimated Total Current Cost of closure and post closure care of Landfill Capacity	$ 78 million
% of Landfill Capacity used	32.38%
Landfill Liability as of 31st Aug, 2018 [ $ 78 million * 32.38% ]	$ 25.26 millions

(b) is not correct answer as it is Landfill Liability balance at the beginning of the month.

(c) is not correct answer as it is the amount for which landfill laibitility provision is created in this month.

Landfill Liability balance at the end $ 25.26

Landfill Liability balance at the beginning   $ 22.00

Landfill Liability Provsion Created this month $ 3.26

d) is not correct answer as it is net provision of Landfill Liability:

Provision of Landfill Liability $ 3.26

Less: Cover Amount $ 2.00

Net Landfill Liability $ 1.26