Due Diligence Scope of Services

Current business transactions such as corporate mergers, sales, divestitures and exchanges have resulted in the need for due diligence research. This process is necessary for the transfer of title information and other documentation to affect transfers for facilities such as pipelines and station sites.

The typical due diligence examination begins with a comparison of the right of way documents and system maps and creation of a project line list. This process, conducted by Coates Document Specialists and/or attorneys, is to assure that the entire system is legally protected with the proper right of way documentation. If a gap is detected, Coates determines the cause of the discrepancy and recommends possible curative actions.

A comprehensive review of title information provides a history of ownership. Coates then analyzes each document line by line, county by county, extracting information from each document and/or right-of-way agreement. Extracted information may include:

Due Diligence• Legal description of properties
• Facilities covered
• Location of facilities
• Grantors, addresses, contacts, footage, cost, annual fees, special conditions
• Width and length of right-of-way
• Beginning and ending mileposts
• Recording data
• Amendments to easements
• Encumbrances
• Identification of fee and licensed lands
• Number of line rights
• Assignability
• Product and other restrictions
• Above ground appurtenances
• Work space
• Ingress and egress
• Expiration of rights
• Prepaid damages
• Costs to exercise additional rights
• Abandonment provisions

Coates can examine the client's permits with local, county, state, federal and tribal jurisdictions to determine term limits, expiration dates, assignability and renewal requirements. Leases and term agreements can also be evaluated to determine expirations and payment information. Coates can plot easement coverage on system maps, identifying any gaps, and prepare agreement exhibits.

Information gathered from this comprehensive analysis is entered into a database, with hard copy files organized and provided to the client in an agreed upon format. The information can be organized in a way that is user friendly, so that the client can easily access parcel information starting either from the line list or from maps.

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