Firm Obtains Indemnification and Performance Agreement from Former Owner/Operator Oil Company for Developer Client
For a developer client in the mid-Atlantic area, environmental due diligence disclosed the presence of a former gasoline service station, which was supplied by a major petroleum oil company (“Oil Company”). The Oil Company was neither the seller of the property, nor in contractual privity with the developer. While former underground storage tanks had been removed, no final closure letter had ever been issued by the regulatory agency to the Oil Company). To resolve potential liability issues, the firm negotiated an agreement with the Oil Company under which it agreed to: a) characterize the site, and remove impacted soils and dewatering materials with oversight from the regulatory agency; and b) indemnify the developer client. The work performed by the Oil Company was coordinated timely with client’s construction work at site, encountered no problems or delays, and was documented with an official closure letter issued by the regulatory authority.