Environmental insurance coverage disputes are frequently settled by a policy buyback, whereby the insurer repurchases its coverage from the insured. As appealing as such a settlement may seem, basedon the certainty of the resolution, the insurer's subsequent attempt to cede such losses to its reinsurers may raise a host of new issues that serve not only to resurrect the underlying coverage dispute but also to subject the insurer's cession decisions to intense scrutiny. This article examines such issues in the context of a hypothetical fact pattern and discusses the evidence, arguments, and legal principles that will likely govern the resolution of such environmental reinsurance coverage disputes.