E&LP client Sycamore KC Oil assumed the ownership and operations of twelve (12) gasoline service stations on the verge of bankruptcy. E&LP performed expedited Phase I assessments for the properties which were located across New Jersey, Pennsylvania and Maryland over the New Year’s holiday break. Based on our findings, we developed a range in costs to address the environmental liabilities at each site, and for the entire portfolio which supported the financing of the purchase through Bancorp.
After operating the facilities for four years, Bancorp requested that we conduct the Phase II investigations initially presented in our Phase I Reports, to refine the actual environmental cost liabilities at the sites. E&LP implemented the necessary site investigation to confirm the absence and/or presence of actual subsurface impacts in the identified potential areas of environmental concern.
Based on these efforts, E&LP was able to more accurately quantify the costs to achieve regulatory compliance at all of the sites; 1.5 times the upper value of the ranged served as the weighted credit/discount to support the sale of the entire portfolio.
Several of the sites were confirmed to be in compliance, and therefore were sold at market price without discount for potential environmental impacts.
Key Project Information
Client: Bancorp and Sycamore Petroleum
Location: New Jersey, Pennsylvania and Maryland