eSPARC was contracted to perform an environmental fatal flaw diligence review for a midstream oil and gas acquisition. The potential owner was not able to attend the site walkthroughs in person and needed eSPARC to identify red flag environmental liabilities associated with the purchase.
During the fatal flaw analysis of available environmental public data, eSPARC discovered that a compressor had recently caught fire and damaged the compressor building itself. This compressor fire was not disclosed to our client and incident details were not provided in the data room.
By immediately alerting our client about the equipment destruction, our client was able to cover the $1.5 million in damages via the final negotiated purchase price of the asset.