OP TECH ENVIRONMENTAL SERVICES INC - 10-K filing on 2013-06-07

Commitment and Contingencies	12 Months Ended
Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]
Commitment and Contingencies	15. Commitment and Contingencies The Company is subject to various federal, state and local regulations relating to environmental matters, including laws which require the investigation and, in some cases, remediation of environmental contamination. The Company's policy is to accrue and charge to operations environmental investigation and remediation expenses when it is probable that a liability has been incurred and an amount is reasonably estimable. The Company settled a lawsuit for $450,000 in 2009. There are two litigations that arose from that suit. The Company entered into an agreement to contribute 15% to any settlement of the actions, proving the Company deems the total proposed settlement reasonable. The Company settled both litigations in 2012 for $1,050 and $48,000 respectively. The Company has accrued a liability of $49,050 at December 31, 2011 for these settlements. In 2012, the Company paid a settlement for $100,000 with the New York State Department of Labor related to asbestos operations. The Company has accrued a liability of $100,000 at December 31, 2011 for this settlement. The Company’s asbestos handling license is current and in compliance. The Company is a party to various proceedings arising from the normal course of business. Based on information currently available, management believes adverse decisions relating to litigation and contingencies in the aggregate would not materially affect the Company's results of operations, cash flows or financial condition. It is reasonably possible, however, that a change in estimate could occur within one year which may affect the Company's results of operations, cash flows or financial condition. The State of New York (NYS) began an examination of the Company’s sales and use tax returns for December 2008 through May 2012 that is estimated to be completed during the second quarter of 2013. As of December 5, 2012, NYS has proposed adjustments of approximately $140,000 to the Company’s sales and use tax positions, and Management is currently evaluating those proposed adjustments. The Company has accrued $170,000 liability related to sales tax to account for the proposed adjustments and potential penalties related to the audit as of December 31, 2011.

Commitment and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

15. Commitment and Contingencies

The Company is subject to various federal, state and local regulations relating to environmental matters, including laws which require the investigation and, in some cases, remediation of environmental contamination. The Company's policy is to accrue and charge to operations environmental investigation and remediation expenses when it is probable that a liability has been incurred and an amount is reasonably estimable.

The Company settled a lawsuit for $450,000 in 2009. There are two litigations that arose from that suit. The Company entered into an agreement to contribute 15% to any settlement of the actions, proving the Company deems the total proposed settlement reasonable. The Company settled both litigations in 2012 for $1,050 and $48,000 respectively. The Company has accrued a liability of

$49,050 at December 31, 2011 for these settlements.

In 2012, the Company paid a settlement for $100,000 with the New York State Department of Labor related to asbestos operations. The Company has accrued a liability of $100,000 at December 31,

2011 for this settlement. The Company’s asbestos handling license is current and in compliance.

The Company is a party to various proceedings arising from the normal course of business. Based on information currently available, management believes adverse decisions relating to litigation and contingencies in the aggregate would not materially affect the Company's results of operations, cash flows or financial condition. It is reasonably possible, however, that a change in estimate could occur within one year which may affect the Company's results of operations, cash flows or financial condition.

The State of New York (NYS) began an examination of the Company’s sales and use tax returns for

December 2008 through May 2012 that is estimated to be completed during the second quarter of

2013. As of December 5, 2012, NYS has proposed adjustments of approximately $140,000 to the

Company’s sales and use tax positions, and Management is currently evaluating those proposed adjustments. The Company has accrued $170,000 liability related to sales tax to account for the proposed adjustments and potential penalties related to the audit as of December 31, 2011.