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Chemical distributor and supplier

Mitigating Liabilities for a Chemical Company

The Challenge

A chemical distributor and supplier had a cluster of facilities in close proximity in New Jersey. Each facility was subject to a number of historical and on-going remediation projects. New cleanup obligations would be triggered by the transaction in accordance with ISRA.

This required a detailed evaluation of past, present, and future environmental remediation liabilities.


  • Due Diligence
  • Site Investigation and Remediation
  • Environmental Compliance

The Solution

Aeterra identified and classified environmental remediation liabilities for each facility. Collaborating with the client in real-time, Aeterra characterized the remediation liabilities (risks to human receptors at each property, risks to business operations in conducting remediation, liability for implementing remedial actions, etc.). The evaluation included assessing liabilities attributable to the chemical company, as well as those attributable to historical owners of the properties with ongoing remedial obligations.

Equipped with a range of potential or likely remedial scenarios, the company was able to address each of the identified liabilities. Aeterra prepared corresponding engineering cost estimates to achieve regulatory closure. Throughout the process, Aeterra collaborated with the company and their counsel to identify and pursue risk mitigation strategies.

The Results

The results allowed the chemical company to build effective risk mitigation measures into the transaction structure and establish a corrective action plan that clearly identified

  • responsible entities
  • timelines to achieve closure
  • expected costs

The company mitigated an estimated $2.2MM to $4.3MM in environmental remediation liability.

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