Fee based Liability & Risk Transfer Programs (LRTPs) are a process whereby environmental liabilities are contractually shifted from one entity – typically the Responsible Party or Potentially Responsible Party – to another.
If done correctly, Liability & Risk Transfer Programs can effectively eliminate environmental liabilities both contractually and statutorily. LRTPs are often utilized by publicly traded corporations seeking to make balance sheet improvements, public and private companies involved in merger and acquisitions activity and companies going through the process of restructuring.
LRTPs are complex transactions that involve legal, real estate, accounting, finance, insurance, regulatory and environmental professionals. Whether a LRTP is for a single site or a portfolio careful considerations should be made prior to entering the market. Transferors should possess detailed knowledge concerning asset and liability attributes – including baseline valuations. Acceptable future site uses – including proposed deed restrictions. Insurance products to be utilized. Internal accounting requirements concerning FAS- 143 Asset Retirement Obligations, and much more.
Having successfully navigated dozens of LRTPs EnviroAnalytics Group is uniquely positioned to ensure your projects success. We will help you and/or your counsel, with the design, market initiation, vetting of bidders, contract negotiation and closing.
ELT Applications
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- Mergers & Acquisitions
- Bankruptcy – Restructuring
- Corporate Divestitures
- Risk Management
- Cost Certainty – Reduction Programs
- Balance Sheet Improvement
- Asset Retirement
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