The European Union Environmental Liability DirectiveGraeme Cross
The Environmental Liability Directive (2004/35/EC) is
a legislative act of the European Union creating new
and significant potential liabilities for costs, damages
and losses for operators and companies regulated
by the ELD. All EU members have now adopted the
ELD into their national laws, making compliance
unavoidable for companies operating in EU member
states regardless of where they are headquartered.
The European Union Environmental Liability DirectiveGraeme Cross
The Environmental Liability Directive (2004/35/EC) is
a legislative act of the European Union creating new
and significant potential liabilities for costs, damages
and losses for operators and companies regulated
by the ELD. All EU members have now adopted the
ELD into their national laws, making compliance
unavoidable for companies operating in EU member
states regardless of where they are headquartered.
The Importance of Responsible Development in the Oil and Shale Gas Industry.pdfbobby Lee
In the digital age, responsible development is more important than ever, especially for industries such as the oil and shale gas industry, where sustainability practices are key for long-term success. We will discuss the benefits of sustainable energy practices, as well as the risks associated with unsustainable practices.
Northern Territory Fracking Implementation Plan a policy review.docxpicklesvalery
Northern Territory Fracking Implementation Plan: a policy review
Contents
Introduction
Background of fracking
Evaluation of Plan
Problem Framing
Policy Framing
Policy Implementation
Monitoring and Evaluation
Policy Implementation for Stakeholder
References
Introduction
Coal seam gas (CSG) is the major contributor for future fuel demand. New emerging technology called fracking is way for exploring new era of petroleum resources.
Better and cheaper than conventional method
Methods are clear but chemicals are used are still not well documented.
Fracking not only related to petroleum industry but also related to Water resource, ecology including marine ecology, health sector, air quality, and agricultural sector
Requires a joint management approach for any decision making about fracking
3
Background of Fracking
Fracking also known as hydraulic fracturing is a method for extracting unconventional gas from deep shale bed using high pressure water to make crack into petroleum bearing formations. Known as shale gas
Labelled as “clean” alternative to coal (Moore, 2013)
Pros
Alternative source of fuel
Low cost
More job opportunity
Cons
Requires huge amount of water
Contamination of ground water
Lose of potential aquifer
Can trigger earthquake
Fracking process
https://www.sbs.com.au/news/what-is-fracking-and-why-is-it-dividing-australia
As of AU water per capital is still better and showing less scarcity but its long drought and on going increase in demand raising a new think about current water policy.
Fracking also known as hydraulic fracking is a method for extraction gas and oil from deep underground using high pressure water to make crack into petroleum bearing formations.
(After CON) Fracking policies vary widely across Australia’s states and territories, and so do community attitudes.
4
How Fracking Threatens Drinking Water (https://www.cleanwateraction.org/features/fracking-threatens-drinking-water)
Ritchie & Roser, 2017
Threat for local water resources: contaminate both SW and GW (Batley & Kookana, 2012)
Open pit waste water storage facilities are responsible for risking death of animals and human health
Open disposal of fracking fluid
Gas production will last nearly 50 years
Gas production is temporary but damage of water bearing formation is permanent
Global Perspective
First used in 1940’s but popularized in 1990’s (Mooney, 2011)
Popularly used in USA
Australian Perspective
Started operation in 1960’s in the Cooper Basin
Fully/ partially moratorium imposed since 2017
Queensland currently sole produce of shale gas
WA onshore operation create large amount of GHG
Northern Territory Perspective
Started independent inquiry and review in 2016
Lack of management and regulatory system helps to halt fracking operation to avoid radioactive contamination (Waste, N.D.)
Large portion of NT owned by Aboriginal people
Continuous protest going on against fracking
NT Govt. issue moratorium on fracking in 2016 (Pepper .
Northern Territory Fracking Implementation Plan a policy review.docxhoney725342
Northern Territory Fracking Implementation Plan: a policy review
Contents
Introduction
Background of fracking
Evaluation of Plan
Problem Framing
Policy Framing
Policy Implementation
Monitoring and Evaluation
Policy Implementation for Stakeholder
References
Introduction
Coal seam gas (CSG) is the major contributor for future fuel demand. New emerging technology called fracking is way for exploring new era of petroleum resources.
Better and cheaper than conventional method
Methods are clear but chemicals are used are still not well documented.
Fracking not only related to petroleum industry but also related to Water resource, ecology including marine ecology, health sector, air quality, and agricultural sector
Requires a joint management approach for any decision making about fracking
3
Background of Fracking
Fracking also known as hydraulic fracturing is a method for extracting unconventional gas from deep shale bed using high pressure water to make crack into petroleum bearing formations. Known as shale gas
Labelled as “clean” alternative to coal (Moore, 2013)
Pros
Alternative source of fuel
Low cost
More job opportunity
Cons
Requires huge amount of water
Contamination of ground water
Lose of potential aquifer
Can trigger earthquake
Fracking process
https://www.sbs.com.au/news/what-is-fracking-and-why-is-it-dividing-australia
As of AU water per capital is still better and showing less scarcity but its long drought and on going increase in demand raising a new think about current water policy.
Fracking also known as hydraulic fracking is a method for extraction gas and oil from deep underground using high pressure water to make crack into petroleum bearing formations.
(After CON) Fracking policies vary widely across Australia’s states and territories, and so do community attitudes.
4
How Fracking Threatens Drinking Water (https://www.cleanwateraction.org/features/fracking-threatens-drinking-water)
Ritchie & Roser, 2017
Threat for local water resources: contaminate both SW and GW (Batley & Kookana, 2012)
Open pit waste water storage facilities are responsible for risking death of animals and human health
Open disposal of fracking fluid
Gas production will last nearly 50 years
Gas production is temporary but damage of water bearing formation is permanent
Global Perspective
First used in 1940’s but popularized in 1990’s (Mooney, 2011)
Popularly used in USA
Australian Perspective
Started operation in 1960’s in the Cooper Basin
Fully/ partially moratorium imposed since 2017
Queensland currently sole produce of shale gas
WA onshore operation create large amount of GHG
Northern Territory Perspective
Started independent inquiry and review in 2016
Lack of management and regulatory system helps to halt fracking operation to avoid radioactive contamination (Waste, N.D.)
Large portion of NT owned by Aboriginal people
Continuous protest going on against fracking
NT Govt. issue moratorium on fracking in 2016 (Pepper .
Implementation of 2015 EPA Vapor Intrusion (VI) Guides: Application in State ...Chris Lutes
Lutes, C., L. Lund, C. Holton and M. Bedan “Implementation of 2015 EPA Vapor Intrusion (VI) Guides: Application in State Programs”; AEHS 26th Annual West Coast Conference, March 2016, San Diego.
Washington State Stormwater Regulation and Compliance for Industrial and Construction Sites. From a CLE presentation I gave on April 27, 2010 in Seattle.
The Importance of Responsible Development in the Oil and Shale Gas Industry.pdfbobby Lee
In the digital age, responsible development is more important than ever, especially for industries such as the oil and shale gas industry, where sustainability practices are key for long-term success. We will discuss the benefits of sustainable energy practices, as well as the risks associated with unsustainable practices.
Northern Territory Fracking Implementation Plan a policy review.docxpicklesvalery
Northern Territory Fracking Implementation Plan: a policy review
Contents
Introduction
Background of fracking
Evaluation of Plan
Problem Framing
Policy Framing
Policy Implementation
Monitoring and Evaluation
Policy Implementation for Stakeholder
References
Introduction
Coal seam gas (CSG) is the major contributor for future fuel demand. New emerging technology called fracking is way for exploring new era of petroleum resources.
Better and cheaper than conventional method
Methods are clear but chemicals are used are still not well documented.
Fracking not only related to petroleum industry but also related to Water resource, ecology including marine ecology, health sector, air quality, and agricultural sector
Requires a joint management approach for any decision making about fracking
3
Background of Fracking
Fracking also known as hydraulic fracturing is a method for extracting unconventional gas from deep shale bed using high pressure water to make crack into petroleum bearing formations. Known as shale gas
Labelled as “clean” alternative to coal (Moore, 2013)
Pros
Alternative source of fuel
Low cost
More job opportunity
Cons
Requires huge amount of water
Contamination of ground water
Lose of potential aquifer
Can trigger earthquake
Fracking process
https://www.sbs.com.au/news/what-is-fracking-and-why-is-it-dividing-australia
As of AU water per capital is still better and showing less scarcity but its long drought and on going increase in demand raising a new think about current water policy.
Fracking also known as hydraulic fracking is a method for extraction gas and oil from deep underground using high pressure water to make crack into petroleum bearing formations.
(After CON) Fracking policies vary widely across Australia’s states and territories, and so do community attitudes.
4
How Fracking Threatens Drinking Water (https://www.cleanwateraction.org/features/fracking-threatens-drinking-water)
Ritchie & Roser, 2017
Threat for local water resources: contaminate both SW and GW (Batley & Kookana, 2012)
Open pit waste water storage facilities are responsible for risking death of animals and human health
Open disposal of fracking fluid
Gas production will last nearly 50 years
Gas production is temporary but damage of water bearing formation is permanent
Global Perspective
First used in 1940’s but popularized in 1990’s (Mooney, 2011)
Popularly used in USA
Australian Perspective
Started operation in 1960’s in the Cooper Basin
Fully/ partially moratorium imposed since 2017
Queensland currently sole produce of shale gas
WA onshore operation create large amount of GHG
Northern Territory Perspective
Started independent inquiry and review in 2016
Lack of management and regulatory system helps to halt fracking operation to avoid radioactive contamination (Waste, N.D.)
Large portion of NT owned by Aboriginal people
Continuous protest going on against fracking
NT Govt. issue moratorium on fracking in 2016 (Pepper .
Northern Territory Fracking Implementation Plan a policy review.docxhoney725342
Northern Territory Fracking Implementation Plan: a policy review
Contents
Introduction
Background of fracking
Evaluation of Plan
Problem Framing
Policy Framing
Policy Implementation
Monitoring and Evaluation
Policy Implementation for Stakeholder
References
Introduction
Coal seam gas (CSG) is the major contributor for future fuel demand. New emerging technology called fracking is way for exploring new era of petroleum resources.
Better and cheaper than conventional method
Methods are clear but chemicals are used are still not well documented.
Fracking not only related to petroleum industry but also related to Water resource, ecology including marine ecology, health sector, air quality, and agricultural sector
Requires a joint management approach for any decision making about fracking
3
Background of Fracking
Fracking also known as hydraulic fracturing is a method for extracting unconventional gas from deep shale bed using high pressure water to make crack into petroleum bearing formations. Known as shale gas
Labelled as “clean” alternative to coal (Moore, 2013)
Pros
Alternative source of fuel
Low cost
More job opportunity
Cons
Requires huge amount of water
Contamination of ground water
Lose of potential aquifer
Can trigger earthquake
Fracking process
https://www.sbs.com.au/news/what-is-fracking-and-why-is-it-dividing-australia
As of AU water per capital is still better and showing less scarcity but its long drought and on going increase in demand raising a new think about current water policy.
Fracking also known as hydraulic fracking is a method for extraction gas and oil from deep underground using high pressure water to make crack into petroleum bearing formations.
(After CON) Fracking policies vary widely across Australia’s states and territories, and so do community attitudes.
4
How Fracking Threatens Drinking Water (https://www.cleanwateraction.org/features/fracking-threatens-drinking-water)
Ritchie & Roser, 2017
Threat for local water resources: contaminate both SW and GW (Batley & Kookana, 2012)
Open pit waste water storage facilities are responsible for risking death of animals and human health
Open disposal of fracking fluid
Gas production will last nearly 50 years
Gas production is temporary but damage of water bearing formation is permanent
Global Perspective
First used in 1940’s but popularized in 1990’s (Mooney, 2011)
Popularly used in USA
Australian Perspective
Started operation in 1960’s in the Cooper Basin
Fully/ partially moratorium imposed since 2017
Queensland currently sole produce of shale gas
WA onshore operation create large amount of GHG
Northern Territory Perspective
Started independent inquiry and review in 2016
Lack of management and regulatory system helps to halt fracking operation to avoid radioactive contamination (Waste, N.D.)
Large portion of NT owned by Aboriginal people
Continuous protest going on against fracking
NT Govt. issue moratorium on fracking in 2016 (Pepper .
Implementation of 2015 EPA Vapor Intrusion (VI) Guides: Application in State ...Chris Lutes
Lutes, C., L. Lund, C. Holton and M. Bedan “Implementation of 2015 EPA Vapor Intrusion (VI) Guides: Application in State Programs”; AEHS 26th Annual West Coast Conference, March 2016, San Diego.
Washington State Stormwater Regulation and Compliance for Industrial and Construction Sites. From a CLE presentation I gave on April 27, 2010 in Seattle.
Best Practices for NEPA Compliance and Related Permitting for Projects on In...Trihydro Corporation
Regulatory framework for permitting wells and pipelines
Typical timeframes and hang-ups in the permitting process
Best practices for permitting
Programmatic approaches to well field development on tribal lands, including potential benefits to tribes, Bureau of Indian Affairs (BIA), and operators
Avoid Air-rors! Discuss the Air Regulations that Impact Oil and Gas DevelopmentTrihydro Corporation
Presentation about the air regulations affecting oil and gas development. Topics covered include NSPS OOOO, Leak Detection and Repair, Greenhouse Gas Inventory/Reporting, Optical Gas Imaging with Infrared Cameras
Presentation for 2013 EORI CO2 Conference in Casper, WY July 9, 2013.
Jay Christopher, Business Unit Manager of Air and Process Services for Trihydro, has over 35 years of energy industry environmental experience, specializing in air quality issues and permitting affecting complex facility operations.
Surface Disturbances and Ecological Resources Associated with Oil & Gas Devel...Trihydro Corporation
Presentation for 2013 EORI CO2 Conference in Casper, WY July 9, 2013.
Jana White, Ph.D. Ecologist for Trihydro, has nearly 15 years of experience working on diverse environmental projects. Her expertise includes biogeochemistry, botany, fate and transport modeling, and systems hydrology.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Legacy Issues Associated with Oil and Gas Development
1. Legacy Issues Associated with Oil and
Gas Development
George Mathes, P.E.
Vice President – Trihydro Corporation
August 27, 2013
2. Presentation Outline
Types of
Legacy Issues
Associated
with Oil & Gas
Development
Best Practices
to Address
Legacy
Environmental
Issues
Emerging
Issues
Affecting
Legacy
Liability
Case Studies –
The Good, The
Bad, and The
Ugly
Questions and
Discussion
5. Typical Sources of Legacy Impacts
Historic drilling pits
Historic releases and spills
Improper materials management
Waste disposal (NOD)
Leaking tank batteries
Junkyards / boneyard / landfills
Abandoned pipelines
Legacy compressor stations and gas
plants
Damaged well casing
Non-compliant operations
Air permits and reporting
NPDES discharges
Out of date SPCC plans
OSHA
6. Typical Legacy Issues and Costs
Soil and groundwater
impacts
NORM
Landfills/Boneyards
Compliance
Safety/OSHA
7. Best Management Practices (BMPs) to
Reduce Risk
Know what you are
buying, selling,
shipping, or
developing
Negotiation of
liability with buyer,
seller, NOD, etc.
Use of
environmental
pollution liability
insurance
8. BMPs for Legacy Issues– Due Diligence
DEFINE
OBJECTIVES
DATA ROOM
SEARCH
REGULATORY &
RECORDS REVIEW
SITE
ASSESSMENTS
AND INTERVIEWS
INTRUSIVE
ASSESSMENTS
AND SAMPLING
QUANTIFICATION
OF LIABILITIES
CONCLUSION
AND PATH
FORWARD
9. BMPs for Legacy Issues – Liability Transfer
Liability Transfer
and Management
Mechanisms
Baseline Water
Quality
Monitoring
Reductions in
Purchase Price
Escrow of
Environmental
Liability
Insurance –
PPL, 3rd Party,
Pre-Existing,
NOD
Institutional
Controls &
Legal
Agreements
Exclusions
10. Advantages of Knowing Legacy Risk
Conditions
Reduces risk by managing financial and business exposures
Eliminates or reduces unknown legacy conditions
Allows risk to be managed proactively
Negotiated with seller as environment defect
Environmental liability insurance bridges gap between buyer-seller
Exclusions manage “high-risk” elements
Manage liability reserves (Sarbanes-Oxley / Financial Accounting Standards)
13. USEPA Enforcement Initiatives
2014-2016
Reducing Air Pollution from
the Largest Sources
Cutting Hazardous Air
Pollutants
Keeping Raw Sewage and
Contaminated Storm Water
out of Our Nations Waters
Preventing Animal Waste
from Contaminating Surface
and Ground Water
Reducing Pollution from
Mineral Processing
Operations
Assuring Energy Extraction
Activities Comply with
Environmental Laws
14. Department of Energy (DOE)
Continuation
of “all of the
above”
Supportive
of Nuclear,
including
small
reactors
Shale gas the
preferred
“bridge”
Anticipated
fight over
LNG exports
15. Department of Interior (DOI)
Hydraulic Fracturing Rule
• August 23, 2013
• Main provisions include disclosure of chemicals, well
integrity, and management of drilling/flowback fluids
• Includes provision to defer to states if regulations are
more/equally restrictive
Regional Framework for Water Resources
Monitoring
• 7 Step Process
• Very, very extensive
• Being adopted/incorporated by more offices
16. Acquisitions and Divestiture Trends
2011
Projections were high for 2011
698 transactions
$300.6B
2012
Projections for steady growth
576 transactions
$321.5B
2013
Projected to moderate to 2011
levels
Sources: Deloitte Oil and Gas Mergers and Acquisitions Report, 2011
& 2012 and RR Donnelley, 2013 M&A Outlook.
19. Case Study – The Good
Acquisition details
Specific scope of work
Project
completion/solutions
20. Case Study – The Bad
Non-Owned Wastewater
Treatment / Disposal
Facility
CERCLA
Action
21. Case Study – The Ugly
Legacy Field –
Impacts to
domestic wells
noted in 2008
USEPA
commenced
investigation in
2009
USEPA deferred to
WY for evaluation
and assessment in
June 2013
Determine Accurate Cashflows (acquisitions)Identify/Quantify LiabilitiesFinancialEnvironmentalPotential Third Party ClaimsAssess risk associated with disposal facilitiesTo make educated and responsible business decisions!
Historical or pre-existing environmental conditions that increase risk Common Legacy Environmental Risks includePits—soil and GW impacts (HC and brine), remediation, BI/PD, damage to reputation, regulatory interaction, legal feesActive Tank batteries and separation– similar to pits but more visible—soil/GW, remediationInactive (Junk) batteries—soil and GW remediation, removal scrap of equipment, regrading and reclamation of locationJunkyards/Boneyards- NORM, soil and GW impacts, disposal of materials—scrap, disposal if NORM impacted, remediation of soil/GWImproperly abandoned gathering lines—may not have been purged, corrode and leak over time, out of sight, regulatory pain, remediation, PD, Damaged or corroded well casing, provides a direct conduit to aquifers and thereby receptors, hard to see until a claim/suite is brought, BI/PD, third party litigationNoncomplianceAir– Jay need for replacement/retrofitting of equipment, fines, possible shut in wells-loss of productionNPDES – fines, shut in-loss of production, remediation of surface water, sediments, BI/PD, third party, SPCC – big issue for EPA inspectors in past few years, fines, damage to reputation, potential for catastrophic release-soil, GW, surface water impactsOSHA- stairs, machine guarding, confined space signspossible lawsuits, workers comp, BI, third party,
Soil and Groundwater most common sources Tanks and separation/ well head/pitsHighly conservative and variable cost rangesSoil impacts common sources pits, tank batteries, boneyards, landfillsrange from $7.5K to $45K for PCS $5K to $40K for salt/brine releasesGroundwater impacts—highly variable –depth to GW material released, age and duration of releaseShallow remediation $80-180KDeeper GW remediation $200 to 550K Does not include damage to reputation (big for publically traded firms), dimished property value, BI/PD, or third party /damages just to restore GW and deal with regulatory agencies NORM –Not present in all fields, reservoir dependent, found in boneyards, identification/screening and disposal, cost to remediate soil, cost for disposal $5K to 50K depends on volumeLandfills and BoneyardsHighly variable, depends on size and materials, and types of issuesRanges from $10K simple/small, minor soil impacts, to $50K for larger locations to this add the soil or GW remediation costsAbandoned tank batteries--$30 to 55K includes removal of the tanks and separator, no soil or GW remediation, and reclamation of locationCompliance – identification of one issue commonly triggers other inspections.Air Issues- highly variable and always evolving, cost include tangible equipment to retrofit for compliance, combustors, and other control devices, fines and fees--fines range from $10K to $Millions, highly variableNPDES – if applicable, not as many discharge permits issues today, routine sampling and reporting $5K to 15K/year to sample and report, if out of compliance– cost to retrofit or replace equipment to meet discharge requirements $15K to over $100K depending on equipment type and limitsSPCC plans– relatively low cost but very visible and of interest to EPA inspectors- cost to update a single location plan $3-$7K, field wide plans $20 to 75K depending on the size of the field, does not include cost to repair berms $5 to 10K/berm; cost to replace tanks $5 to 27K depending on size, type, foundation, etc.., separator replacement $14 to 27K to replaceSafetyOSHA Well head deficiencies—no covers on belts, pump jack not fenced, access attractive nuisance for children/livestock , does not include BI, third party damages or litigation costs, $3 to 12KTank Battery deficiencies stairways, access ports, not fenced, if in accessible areas $5 to 9 K H2S cost to install monitoring, warning equipment, monitor, and reporting $15 to 25K cost depends on the cost of the meters, number of meters, frequency of monitoring, and alarm frequency
Due diligenceRegulatory records reviewOperator records reviewLocation inspectionsIdentifications of env issuesQuantification of env deficienciesNegotiate from a knowledgeable position- detailed, supported and quantified due diligenceUse of Insurance for large cap issues, greater than $1MM—GW, BI/PD, third party, legalBy reducing risk and liability allows for money to go directly to the EOR process and oil production
No one wants a bad surprise or environmental headache that is expensive or affords bad press. Legacy conditions can be a significant capital outlay of > $1 MKnowing the Legacy Risks upfront can potentially eliminate operational interruptionsGreat negotiation toolBridge the gap allows a Win-Win to be achieved
Interesting period of the economy: (INSERT GRAPHIC FOR EACH BULLET POINT – from BD)Recovering from the worst economic downfall since the great depressionEnvironmental regulations are rapidly evolving, vary dramatically from state to state, and can be quite confusingTechnology/science are changing – things that previously fell in to the “don’t worry about” category are now becoming risk and cost drivers (vapor intrusion, 1,4-dioxane)CERCLA laws (and lawyers) are around every corner – you think you doing everything right, ship waste to an approved facility, and it comes back to haunt youFinancing is becoming more difficult to obtain and banks, lending agencies are scrutinizing all aspectsFinancial account standards & sarbanesoxley have raised the bar with regard to estimates for liability – particularly for publicly traded companiesBusiness is highly competitive, and some businesses are looking to divest or sell in an increasingly consolidating marketSome companies have been hoarding cash – are looking to buy properties, assets, all or portions of companies3rd party liability can be a substantial concern; claims resulting in millions of dollars; - huge affects on reputation in a new world with a 24-hour news cycle
Confirmed on July 18th – air major focus; long time adminstratorMcCarthy, 59, is a 25-year veteran of state and local government in New England, where she worked for Republicans including former Massachusetts Governor Mitt Romney. “She’s worked for four Republican governors and the last Republican candidate for president,” Republican Senator Lamar Alexander of Tennessee told reporters before the vote. “We’re not likely to get a Democratic head of the Environmental Protection Agency who’s got a record any better than that.” With a strong Boston accent, short shock of white hair and disarming sense of humor, McCarthy won the praise of environmentalists, who largely support the administration’s efforts, and industry groups, which have fought them. “What many in industry appreciate about her style is her directness and openness to engagement,” Scott Segal, a lawyer representing power producers and oil refiners at Bracewell & Giuliani LLP, said when she was nominated in March. While utilities or coal producers may object to the regulation, “McCarthy listens and allows for the possibility of midcourse corrections,” he said.
Ernest Moniz; confirmed May 16thPrior to his appointment, Dr. Moniz was the Cecil and Ida Green Professor of Physics and Engineering Systems at the Massachusetts Institute of Technology (MIT), where he was a faculty member since 1973. At MIT, he headed the Department of Physics and the Bates Linear Accelerator Center. Most recently, Dr. Moniz served as the founding Director of the MIT Energy Initiative and of the MIT Laboratory for Energy and the Environment and was a leader of multidisciplinary technology and policy studies on the future of nuclear power, coal, nuclear fuel cycles, natural gas, and solar energy in a low-carbon world.
Sally Jewell – Sworn in on April 12, 2013
As EOR grows as a very viable operational model, we see an increase in acquisitions2011 projected increase in M&A, higher than 20102012 projected steady, not huge growth, Less deals than 2011 but bigger deals $2013 projected to moderate, after a big surge in 4thQtr 2012These are just projections, deals are driven by market forces
Illinois Basin Asset Acquisition --Details of the Acquisition$100MM+89,000 acres of oil production in 3 states265 noncontiguous leases--Due Diligence Scope of WorkData room/File ReviewRegulatory Compliance review (3 states, Commissions and env regulatory agencies)Physical visits to each leaseEnvironmental defect Cost Estimates/Engineering supportPreparation of a Summary reportEnvironmental Insurance support--Project Completion/SolutionsIdentified and quantified cost for mitigation of risk (between $9 and 11MM)Presented to seller, above walk away, both sides wanted to move this forwardInvited 7 env insurance firms for a presentation of env DD findings and tour of representative assetsCompetitively bid insurance providers on pollution liability insurance coverage, Negotiated with seller to pay env insurance premiums, including existing conditions (!!)Bottom line value –focused Env DD saved operator ($9-11MM), -- allows buyer both financial and insurance liability protection, and allowed the buyer to focus on oil production