To support the acquisition of a 300-mile pipeline that extended from Pittsburgh to Philadelphia, Pennsylvania, an ASTM-standard Phase I ESA was required to identify any environmental concerns associated with the pipeline. Based on the results of the Phase I ESA, a Phase II ESA and further due diligence investigation was required.
Pipeline Assessment Project Work
To evaluate potential liability associated with acquisition of this property, AGES staff performed ASTM-standard Phase I ESA. A fly-over of the pipeline was conducted via helicopter and all applicable files and records were reviewed as needed to complete the Phase I ESA. A Phase I ESA report was then prepared and submitted to the client.
During the Phase I ESA, several areas of concern (waste disposal areas and fuel pumping stations) were identified. To further evaluate these areas, AGES staff developed a scope of work for the Phase II ESA that included soil, sediment and groundwater sampling on a fast-track schedule. Additional due diligence, including additional file reviews and interviews with staff who had managed the pipeline many years before the project, was also performed to clarify apparent inconsistencies between available records and previous staff interviews. Based on several discrepancies identified during the due diligence, the client eventually opted not to proceed with the acquisition.
Thorough due diligence identified key environmental concerns and several discrepancies in information provided by seller. Opting out of the transaction resulted in significant cost savings for the client by avoiding potential long-term environmental liability.