Due Dilligence - Gas Producer Purchase of 65 Miles of PG&E Gas Collection System
Project Description
Prior to the purchase of 65 miles of gas collection piping from PG&E in the Rio Vista Gas Field, Rosetta Resources wanted to perform a due diligence review of the piping system. The purpose of the review was to determine what specific piping facilities would be purchased and to assess the condition of the purchased facilities. An economic feasibility study was also required to validate the costs associated with the purchase
GTS Involvement
GTS performed the due diligence study for Rosetta Resources by categorizing and reviewing all construction, operation and maintenance records. Operating scenarios were developed to determine the facilities required to ensure the safe and efficient operation of the collection system. The review was used to determine the specific piping systems and associated equipment Rosetta would purchase and ultimately integrate into their existing collection system. GTS prepared the financial feasibility study justifying the final purchase price.
In addition, GTS provided a schedule of tasks necessary for Rosetta to assume the operation and maintenance of the acquired piping, and ensure compliance with DOT requirements. GTS developed the maintenance and operation plan, emergency response plan, manpower-staffing plan, mapping and record retention processes, and provided training to the operating personnel on the new procedures. GTS managed these tasks through the final purchase and incorporation of the 65 miles of main into the Rosetta system.