At Synergy Environmental, our emphasis is on solving environmental problems which impact our clients business operations. To achieve this we apply a three step business solution approach in developing our proposals and scopes of work:

Step 1.  Determine Fund Availability
Before the job begins, we work with the client to determine funding available to pay for the release.  Sources considered:

  • State administered Underground Storage Tank Funds
  • Private Insurance and evaluation of applicability of claims against existing policies
  • Other Contractual indemnities available
 – critical for large portfolios of properties transferring together

Step 2.  Identify Objectives/ End Points
Once funding source is determined, we begin to develop a scope of work by considering site specific conditions which will impact direction of project, including:

  • Determine client’s business objective for future use of the site(s)
  • Evaluate State environmental regulatory framework and guidelines for Risk Based Closures and pitfalls to avoid
  • Perform streamlined due diligence to assess existing environmental conditions
  • Evaluate the presence of sensitive receptors to determine endpoints

Step 3.  Offer Fixed Price Terms (If Appropriate)
Project is initiated with a clear closure strategy in mind
. Fixed price cost is established prior to project initiation
. Insured Fixed Price Remediation (IFPR) and Environmental Liability Assumption (ELA) can be considered. 
Remediation is expedited to minimize downtime and interruption with ongoing business operations.
 End use is considered in developing plan for site restoration.

 

Examples of Innovative Synergy Contracts

Large Portfolio Transfer – Retail Gasoline Service Stations
 – changes in the petroleum distribution market have resulted in significant shifting of ownership of the real and personal property associated with retail gasoline service stations.  In addition to portfolio transfers attributed to merger and acquisition activity, most of the major international petroleum refiners and distributors (ExxonMobil, BP, Shell, etc…) have embarked on strategies to divest their holdings of these assets.  Synergy has successfully performed over 10 transactions, totaling over 400 individual properties.

Insured Fixed Price Remediation
 (IFPR) – IFPR is a generic description of a fixed price remediation project for which funding has been provided and escrowed for costs through to project completion at the initiation of the remediation project, including collateralization of potential cost overruns through insurance or other means.  The critical aspect of an IFPR solution is a dramatic improvement in cost certainty prior to project initiation.  The source of funding can vary from one or a combination of the following sources:

  • Remediation Trust Account
  • Qualified Settlement Trust (468B)
  • 
Collateralized Environmental Indemnity Agreement
  • Pollution Legal Liability Insurance
  • 
Cost Cap Insurance
  • Underground Storage Tank Insurance
  • State Underground Storage Tank Fund

Environmental Liability Assumption (ELA) –  
Synergy is able to consider assumption of liability in certain circumstances.  In a liability assumption transaction, Synergy will contractually take responsibility for completing site remediation to an agreed upon endpoint for a fixed fee lump sum amount.  Synergy’s commitment may or may not be collateralized by insurance or other financial mechanisms depending on the circumstances.

INSURANCE UNDERWRITING AND CLAIMS SUPPORT

  • Experienced insurance professionals on staff
  • Oversight of Underground storage tank removal and installation projects (certified personnel in Pennsylvania and New Jersey)
  • Oversight of Asbestos and lead paint abatement projects
  • Invoice review of environmental consulting/contracting costs
  • Cost recovery/subrogation technical support
  • PRP Settlement expertise – technical support and liability assumption
  • Cause and Origin analysis
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