Mary Mendoza in Law360: 5 Tips to Clear Environmental Hurdles in Oil and Gas Deals

08/18/2014


With oil and gas land deals flying fast and furious, clients are moving quickly to lock down hot properties, putting more pressure on environmental attorneys to complete sophisticated and complex due diligence reviews under a time crunch...

Here are five tips for reviewing potential environmental liabilities in oil and gas deals...

Learn to Triage the Deal
Closing windows for oil and gas deals are often set at 30 or 45 days, making an environmental review a race against the clock that requires lawyers to set priorities and focus first on the biggest potential problem areas, says Mary Mendoza of Haynes and Boone, LLP. That might be prioritizing financial obstacles or ongoing operations like old wells, and it often means not every property and not every issue can be fully assessed.

“I think that buyers in these deals do generally have to get comfortable with a greater degree of risk than you might in a non-oil and gas deal because you’re not going to have as much time,” Mendoza says. “That’s something that has to be understood.”

Excerpted from Law360, August 18, 2014. To view full article, click here (subscription required).

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