Energy Sector

Back to main MMA Environmental page

Loss scenarios in the energy sector from environmental risk are highly publicized. Environmental risk affects a company’s bottom line by potentially triggering serious business interruption, financial penalties and negative publicity. MMA Environmental has a unique blend of customized solutions to manage risk and create opportunity through:

• identifying environmental permitting restrictions
• evaluating legacy environmental risk driven by historical operations and contaminated real estate that may or may not have been related to the company’s current operations
• quantifying and transferring environmental risk through pollution legal liability insurance or comparable financial mechanism and remediation liability transfer via fixed price contracts to third-party contractor
• providing strong litigation support

Risks

• M&A with poorly quantified environmental risk
• excess liability from known/unknown pollution conditions
• inadequate reserve
• requirements for legacy risks
• third-party legal action
• pollutant releases and costly cleanup

Solutions

• environmental risk assessment
• strategic environmental planning
• operational and legacy risk modeling and quantification
• portfolio liability wind down
• full service environmental

MMA Environmental In Action - Energy

Our client was concerned with long-term remediation liability associated with the sale of a large portfolio of petroleum distribution networks.

MMA Environmental provided:

• quantitative risk modeling of legacy environmental risks
• methodology to transfer remediation liability to viable purchasers and third-party contractors through placement of fixed-price contracts and specialized insurance products
• increased property value and marketability with environmental barriers removed
• services to eliminate environmental uncertainty,  allowing the divestment within one year and the seller to be confident in their environmental exposure

Download Energy Sector Information Sheet (PDF)