Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

The Partnership had an accrual for estimated environmental remediation costs of $20.1 million and $21.7 million as of September 30, 2015 and December 31, 2014, respectively. The environmental remediation liability represents management’s estimate of payments to be made to monitor and remediate certain areas in and around Port Gamble Bay, and at Port Ludlow, Washington.

In December of 2013, a consent decree and Clean-up Action Plan (CAP) related to Port Gamble were finalized with the Washington State Department of Ecology (DOE) and filed with Kitsap County Superior Court. The design of the remediation project was substantially completed in the second quarter of 2015 and, in the third quarter, the Partnership selected a contractor to complete the remediation work. Management's cost estimates for the project are based on amounts included in the construction contract and estimates for project management and other professional fees. Remediation activity began in late September of 2015 and will continue through 2017, followed by a period of monitoring activity.

The environmental remediation liability also includes estimated costs related to a separate remediation effort within the resort community of Port Ludlow. The liability for this project consists primarily of ongoing monitoring activity.

The environmental liability at September 30, 2015 is comprised of $14.8 million that management expects to expend in the next 12 months and $5.3 million thereafter.

Activity in the environmental liability is as follows:



(in thousands)	Balance at Beginning of the Period		Additions to Accrual		Expenditures for Remediation		Balance at Period-end
Year ended December 31, 2013	$	13,942	$	—	$	701	$	13,241
Year ended December 31, 2014	13,241		10,000		1,590		21,651
Quarter ended March 31, 2015	21,651		—		286		21,365
Quarter ended June 30, 2015	21,365		—		286		21,079
Quarter ended September 30, 2015	$	21,079	$	—	$	1,007	$	20,072