Sediment Liability Management

Client: Oil and Gas Production Client

Summary: Cardno ENTRIX facilitated an oil and gas production client with a portfolio of more than 200 sites with potential sediment impacts issues. The client identified a need for a method to assess potential risks from possible sediment conditions in order to effectively manage total life cycle costs. In addition, the client wanted to generate information leading to more efficient strategies for managing sediment sites. Cardno ENTRIX professionals utilized online surveys combined with probabilistic financial modeling to asses the risk associated with potential sediment impacts. The online survey techniques enable rapid data collection from all sites within the portfolio. These surveys were sent to operations and environmental managers associated with the various facilities. Probabilistic modeling techniques provided information of the total expected future sediment costs. Sensitivity analysis identified cost drivers at the various sites. The probabilistic modeling determined that the top ten sites contributed to 90 percent of the potential costs. Additional management responses are being considered for these sites.