4406_BlueRidgePaper_ Response to Financial Assurance Request re Taxes & Fees_FID1812551_20230707

pactiv 00
evergreen -
July 7, 2023
Via Electronic Mail [sarah.moutos( _deg.nc.gov]
Sarah M Moutos
Environmental Program Consultant
NCDEQ, DWM — Solid Waste Section
North Carolina Department of Environmental Quality
1646 Mail Service Center
Raleigh, NC 27699-1646
[Address]
[City, State ZIP]
[Phone]
pactivevergreen.com
RE: Response to Request for Financial Assurance for Taxes and Expenses
Solid Waste Management Facility Permit No. 4406-INDUS-1984
Blue Ridge Paper Products LLC, a wholly owned subsidiary of Pactiv Evergreen Inc.
Dear Ms. Moutos:
The letter is being provided in response to your June 2, 2023 correspondence indicating
that NCDEQ-DWR's Solid Waste Section (the "Section") would like to add a line item to the
financial assurance estimates for the above -referenced landfill (the "Landfill") for the maintenance
of taxes and fees for at least 30 years of post -closure care of a funded trust, should the standby
trust need to be turned into an active account with the bank. From follow-up discussions, it is our
understanding that the Section has not required an estimate of taxes and fees for other landfills
located within North Carolina utilizing a standby trust as the financial assurance mechanism, and
that the request is based in part on the Section's concern regarding the March 6, 2023
announcement that Blue Ridge Paper Product LLC ("BRPP") is closing its paper mill in Canton,
North Carolina, and downsizing its paper converting facility in Waynesville, North Carolina.
As further discussed below, BRPP has confirmed that the surety bond will be
executed by Evergreen Packaging LLC ("Evergreen Packaging"), the parent company of
BRPP, and the surety (Berkley Insurance Company) is also requiring an indemnity
agreement with Pactiv Evergreen Inc. ("Pactiv Evergreen"), the parent company of
Evergreen Packaging. Because both Evergreen Packaging and Pactiv Evergreen are
guarantors for the surety bond that will be utilized as the financial assurance for the
Landfill, BRPP respectfully requests that the Section withdraw its request to add taxes and
fees and approve the financial assurance estimate submitted to the Section on May 17,
2023 so that Evergreen Packaging can execute and secure the surety bond for $23,985,500.
BRPP is the owner and operator of the Canton Mill (including the associated Landfill) and
the Waynesville converting plant, both located in Haywood County, North Carolina. BRPP is a
wholly -owned subsidiary of Evergreen Packaging, which is in turn a wholly -owned subsidiary of
Pactiv Evergreen. Pactiv Evergreen is a publicly -traded company with more than 75 facilities
throughout the United States, Canada and Mexico. In North Carolina alone, excluding the Canton
and Waynesville facilities, Pactiv Evergreen has seven (7) seven manufacturing, warehouse

and/or distribution operations located in Raleigh, Greensboro, Kinston, Mooresville, Huntersville,
Aberdeen and Salisbury, which together employ around 1,100 people. The Raleigh location is a
converting plant (similar to Waynesville) that is owned by Evergreen Packaging, with around 120
employees. The remaining six (6) North Carolina locations fall under the Pactiv side of the
business, with Pactiv Evergreen as the parent company of all seven (7) locations.
Despite the closure of the Canton mill and downsizing of the Waynesville converting plant
in Haywood County, North Carolina, Evergreen Packaging and Pactiv Evergreen — both
guarantors of the surety bond that will be issued by Berkley Insurance Company — are active
manufacturing entities with a strong presence in North Carolina and the United States. For these
reasons, we believe that the Section's request to require an additional line item including taxes
and fees for at least 30 years in the estimated financial assurance for the Landfill is unwarranted,
and inconsistent with the Section's requirements for other landfills in North Carolina. With respect,
we therefore request that the Section withdraw its June 2, 2023 request, and approval of the
estimated financial assurance in the amount of $23,985,500. Upon approval, Evergreen
Packaging will proceed with execution of the surety bond with Berkley Insurance Company and
the indemnity from Pactiv Evergreen.
If you have questions regarding this letter or request, please feel free to reach out to me
at 919-349-9299. 1 genuinely appreciate the Section's consideration of the information provided
herein and your consideration of this request.
Sincerely,
Fern Paterson
Assistant General Counsel - EHS