Environmental Due Diligence for Petroleum Assets

Trihydro provided environmental due diligence services to a confidential client acquiring over 1,500 leases of petroleum assets within the Illinois Basin.

The project involved classifying the risk level of each lease. Our team reviewed background materials and conducted field evaluations to verify site conditions. Given the number of sites and the age of many of the petroleum storage facilities, we identified numerous operational and environmental issues with the leases.

Developing a Site Risk Ranking

Trihydro used the due diligence findings to develop a relative site risk ranking and determine which sites presented considerable environmental risks and might require additional evaluation to understand environmental defects. Our team prepared remedial cost estimates for each lease based on the hazard ranking and assumed/identified environmental defects associated with each asset.

Trihydro’s role in categorizing, characterizing, and estimating environmental liabilities facilitated the successful transaction between the buyer and seller and helped the client obtain environmental insurance for the accrued liabilities.