An environmental liability exists when there is a requirement, based on statute, regulation, or legal agreement to perform cleanup (i.e., removal, containment, disposal) from federal operations that resulted in hazardous waste. Environmental liabilities must be recognized on the financial statement for probable and measurable future outflows or expenditure of resources for environmental cleanup, closure, and/or disposal action. A probable environmental liability exists when it is more likely than not that hazardous waste resulted from operations where the Department of Defense (DoD) was likely involved. A measurable environmental liability exists when a dollar value can be estimated for the cleanup costs or study needed to define further cleanup parameters.