Since 2016, Barr has helped a midstream and upstream fuels client evaluate assets prior to purchase as part of its mergers-and-acquisitions due diligence process. The assets included pipeline and breakout tanks, pump stations, compressor stations, rail and truck terminals, and saltwater disposal wells.
The largest project included evaluation of documents provided by the seller and onsite environmental and engineering evaluation of the property and assets. The company did not have enough personnel to perform an evaluation of numerous potential assets within a short timetable, so it hired Barr to assist.
We began by reviewing documents provided by the seller detailing the assets, after which we prepared questions and issues to address during the ensuing on-site inspections. We then prepared a briefing package for the company’s board of directors summarizing our findings and detailing potential engineering and environmental liabilities. Our evaluation included a cost range and an opinion of material significance.
When the two sides agreed to terms of an acquisition, Barr prepared an ownership change matrix outlining the updates, notifications, and changes required for environmental permits, plans, programs, and notifications. In addition, we provided temporary on-site staff augmentation throughout the transition and assimilation of assets.