TRC

Preparation for Sale - Natural Gas Exploration

TRC performed an environmental risk assessment to determine the impact of fracking on valuation.

Industries

Client

International Private Equity Firm

Project Location

North America

An international private equity firm recognized possible exposure in portfolio company assets in the natural gas exploration sector. As the debate on fracking intensified in North America, EU and UK in 2012, TRC was engaged to perform an Environmental Liability Risk Assessment for North American operating portfolio companies, focused on the fracking operations performed during well development.

TRC’s work addressed operational practices as they compared to regulatory requirements across the portfolio. TRC developed a detailed questionnaire for comparison of practices across multiple regulatory regimes and well drilling practices. As certain investments spanned years of operating history and the practice of fracking, the review included well completion records, proposed well installation plans, and all aspects of site development: drilling, well development, pipeline distribution tie-in, site demobilization and restoration. TRC’s work-product included recommendations for adoption of a risk approach to limit future exposures where significant liabilities could be better managed or eliminated.

Investment awareness increased. Upon completion of the Risk Assessment, the TRC deal/technical team provided the investment teams with specific recommendations to mitigate future risks in this rapidly growing sector.

Client benefited from breadth of experience of advisory team. TRC personnel, with extensive experience in the oil and gas industry, brought highly competent technical resources to the environmental deal team. Each advisor held a minimum of 20 years experience in the sector, with a depth of operational and regulatory expertise. The combination of this deep techncial knowledge with the business risk advisory approach enlisted by the TRC environmental deal team, served the client with a winning result.

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