Watson Millican & Company’s technical experts were retained by the seller of a petroleum refinery on the U.S. East Coast to assess compliance with certain post-closing clauses between the buyer and the seller.

The Issue

The Seller of a petroleum refinery engaged Watson Millican to review the executed purchase contract with the refinery buyer. Objective was to assess compliance with post-closing clauses involving buyer and seller commitments to address health, safety and environmental regulation requirements and resulting compliance costs to be incurred by the buyer during a defined time period. The seller was obligated under the contract to reimburse the buyer for a portion of certain defined compliance costs. Watson Millican experts were requested to determine buyer and seller performance under these clauses and assess monetary amount owed by the seller to the buyer.

Watson Millican & Company Scope

Watson Millican reviewed the information exchanged between the buyer and the seller, reviewed the applicable state and federal health, safety and environmental regulations under the terms of the contract, reviewed the buyer’s support for their incurred costs, and interviewed personnel with both the buyer and seller. Watson Millican experts determined which costs incurred by the buyer, and for which the buyer was requesting reimbursement from the seller, were valid, which were not valid, and which required further support under the contract terms. We participated in sessions with representatives of the buyer and seller resulting in a satisfactory resolution for both parties.

Project Scope:

  • Value: US $40 Million

  • Services:  Contract Review; Health, Safety, and Environmental Regulations and Compliance; Cost Review and Audit

  • Sectors: Refining and Chemicals