|
3/25/22, 9:42 AM road -20210930
<br />Table of Contents
<br />Legal and Regulatory Risks
<br />We could incur material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual
<br />specifications.
<br />We provide our customers with products designed to comply with building codes or other regulatory requirements, as well as any
<br />applicable contractual specifications, including, but not limited to, with respect to durability, compressive strength and weight-bearing
<br />capacity. If our products do not satisfy these requirements and specifications, material claims may arise against us, our reputation could
<br />be damaged and, if any such claims are for an uninsured, non -indemnified or product -related matter, then resolution of such claim
<br />against us could have a material adverse effect on our financial condition, results of operations or liquidity.
<br />We are, and may continue to be, involved in routine litigation and government inquiries in the ordinary course of business.
<br />Due to the nature of our business, we are involved in routine litigation or subject to other disputes or claims related to our business
<br />activities, including, among other things, workers' compensation claims, employment-related disputes and issues related to liability,
<br />breach of contract or tortious conduct in connection with our performance of services and provision of materials. We are also subject to
<br />government inquiries in the ordinary course of business seeking information concerning our compliance with government construction
<br />contracting requirements and various laws and regulations, the outcome of which cannot be predicted with certainty. The outcomes of
<br />these inquiries and legal proceedings are not expected to have a material effect on our financial position or results of operations on an
<br />individual basis, although adverse outcomes in a significant number of such ordinary course inquiries and legal proceedings could, in
<br />the aggregate, have a material adverse effect on our financial condition and results of operations.
<br />Environmental laws and regulations and any changes to, or liabilities arising under, such laws and regulations could have a
<br />material adverse effect on our financial condition, results of operations and liquidity.
<br />Our operations are subject to stringent and complex federal, state and local laws and regulations governing the discharge of materials
<br />into the environment or otherwise relating to environmental protection and public health and safety. These laws and regulations impose
<br />numerous obligations applicable to our operations, including requirements to obtain a permit or other approval before conducting
<br />regulated activities; restrictions on the types, quantities and concentration of materials that can be released into the environment;
<br />limitations on activities on certain lands lying within wilderness, wetlands, and other protected areas; and assessments of substantial
<br />liabilities for pollution resulting from our operations. For example, a number of governmental bodies have finalized, proposed or are
<br />contemplating legislative and regulatory actions to reduce emissions of greenhouse gases, such as monitoring, reporting and emissions
<br />control requirements for certain large sources of greenhouse gases and greenhouse gas cap -and -trade programs. Because we emit
<br />greenhouse gases through the manufacture of HMA products and through the combustion of fossil fuels as part of our mining and road
<br />construction services, any such laws and regulations applicable to jurisdictions in which we operate could require us to incur costs to
<br />reduce greenhouse gas emissions associated with our operations.
<br />We have in the past been, and may in the future be, required to remediate contaminated properties currently or formerly owned or
<br />operated by us or third -party facilities that receive waste generated by our operations, regardless of whether such contamination
<br />resulted from our own actions or those of others and whether such actions complied with applicable laws at the time they were taken.
<br />In connection with certain acquisitions, we could assume, or be required to provide indemnification against, environmental liabilities
<br />that could expose us to material losses. Furthermore, the existence of contamination at properties that we own, lease or operate could
<br />result in increased operational costs or restrictions on our ability to use those properties as intended, including for mining purposes.
<br />Numerous government authorities, such as the U.S. Environmental Protection Agency (the "EPA") and analogous state agencies, have
<br />the power to enforce compliance with these laws and the permits issued under them. Such enforcement actions often involve difficult
<br />and costly compliance measures or corrective actions. Certain environmental laws impose strict liability (i.e., no showing of "fault" is
<br />required) or joint and several liability for costs required to remediate and restore sites where hazardous substances, hydrocarbons or
<br />solid wastes have been stored or released. Failure to comply with these laws and regulations may result in the assessment of sanctions,
<br />including administrative, civil or criminal penalties, compensatory damages, the imposition of investigatory or remedial obligations,
<br />and the issuance of orders limiting or prohibiting some or all of our operations. In addition, we may experience delays in obtaining, or
<br />be unable to obtain, required permits, which may delay or interrupt our operations and limit our growth and revenue.
<br />In certain instances, citizen groups also have the ability to bring legal proceedings against us if we are not in compliance with
<br />environmental laws, or to challenge our ability to receive environmental permits that we need to operate. In addition, claims for
<br />damages to persons or property, including natural resources, may result from the environmental, health and safety impacts of our
<br />operations. Our insurance may not cover all environmental risks and costs or may not provide sufficient coverage if an environmental
<br />claim is made against us. Moreover, public interest in the protection of the environment has increased dramatically in recent years. The
<br />https:/Avww.sec.gov/Archives/edgar/data/000171822V0001 71822721000107/road-20210930.htm 32/144
<br />
|