As merger-and-acquisition activities increase in the midstream energy sector, managers are finding that environ-mental liabilities can be significant. Purchasers' risks can include remedial obligations and compliance risks that should be quantified. Customary due-diligence approaches used in other industries are not relevant or practical due to the unique nature of midstream assets and the associated multiple regulatory frameworks. Therefore, it is important, as well as prudent, that midstream operators be aware of—and consider—several critical elements to achieve successful environmental due diligence for soil, water, waste and air compliance. These critical due-diligence elements include: 1. Deal structure 2. Confidentiality and cooperation 3. Regulatory compliance 4. Pollution liability 5. Estimated liability 6. Asset list and asset profile 7. Purchase and sale agreement 8. Allocated risks 9. Consultants
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