Financial Assurance Cost Estimating & Reporting

Federal, state, and international governments require the provision of financial assurance estimates for both environmental liabilities (for example, RCRA) and development projects. EHS Support has extensive experience in the production of financial assurance estimates for a broad range of projects including remediation liabilities and potential facility post closure liabilities. In development of the financial assurance estimates for remediation activities, EHS Support has used many of the same tools developed for SEC cost estimation.

Recently, the requirements for financial assurance have been extended to large resource projects both in the US and internationally. These requirements have been driven by greater government scrutiny of large scale development projects because of the number of historically orphaned sites in which state and federal funds are now paying for rehabilitation.

EHS Support has created and tailored a series of models to allow for the development of defendable financial assurance estimates for large oil and gas development projects.

We designed and implemented a series of methodologies that ensure cost estimates reflect “realistic” cost scenarios and are not overly conservative. Through intense regulatory advocacy, these systems and tools have been accepted in all of the regulatory environments in which we have worked, and have been integral to management of long term costs associated with provision of bank guarantees and insurance for these financial assurance amounts.

We have experience on numerous coal seam gas and shale gas projects where total development costs are anticipated to exceed $100 billion, and the potential environmental liabilities for decommissioning of facilities and rehabilitation are on the order of $200 to $400 million per proponent.

Contact Bruce Martin today to learn more about how we can reduce your risk and cost of environmental due diligence.

 

FA Cost Estimating & Reporting Team: