AbstractThe news that a company has been identified as a potentially responsible party (PRP) at a federal or state Superfund site usually sends a current of fear through the company's management. Even executives with experience in Superfund projects foresee a lengthy, complicated process that involves enormous expenditures and a possible public relations disaster. The author argues, however, that the Superfund process can be managed in a cost‐effective way, prevent reactive responses, inaction, and ineffective action, and applying the business acumen that enabled the company to prosper in the first place. This article explores a critical aspect of the remediation process—negotiation of settlements with regulatory agencies (EPA or a state department of environmental protection)—and details the practical steps needed to conduct those negotiations. It also describes common mistakes that can be avoided. For brevity and clarity, it is assumed that the company in question is the only PRP that has received a notice letter from the regulatory a