Energy Sector

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Construction Energy Global Risk Management
Health Care Industrial Real Estate

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)