Abstract: Performing Environmental Assessments of Petroleum Exploration and Development Properties to Determine Environmental and Financial Impacts

John F. Mahoney

Considering environmental and economic issues is important in managing hydrocarbon exploration and development properties. The petroleum industry must address environmental concerns to limit financial liability and reduce potential environmental impacts. With the increase in transfers of production properties amongst companies, especially the small to mid-size firms, more financial institutions are requiring environmental assessments. In some cases environmental assessments are performed by field operators on a routine basis to ensure that their activities are complying with regulations and to identify potential concerns that may periodically occur. These environmental assessments identify the known and potential environmental concerns pertaining to the subject property. The scope of ork for environmental assessments includes: reviewing historical activities, determining compliance with

environmental regulations, evaluating the potential for impact to the local drinking water aquifer(s), inspecting the site to determine if activities may impact the environment, and interviewing knowledgeable parties pertaining to the field activities. Field operators must maintain a working management of their environmental practices associated with their field activities to reduce the potential impact to the environment and to limit their financial liabilities. Also, it is important for companies, who are purchasing or obtaining the rights to producing properties, to determine the environmental liabilities of the site before signing the dotted line.

AAPG Search and Discovery Article #90986©1994 AAPG Annual Convention, Denver, Colorado, June 12-15, 1994