In 2015, oil price volatility severely impacted our Client’s ability to fund projects, leading to cost-saving measures across their portfolio that included employee lay-offs. Nonetheless, they still had decommissioning obligations in the Appalachian Basin, and looked to GZA to help them move the projects forward.
GZA proposed a turnkey lump sum approach to this project. Our Client had long maintained a high level of involvement in their decommissioning projects, including on-site company health and safety coordination and project management. GZA’s strong track record of health and safety and fiscal management gave the Client the confidence to shift to leaner corporate operations, giving GZA complete authority over each project and location.
Decommissioning activities included storage tank closure, pipeline removal, building demolition, pad preparation for well closure, access road improvements, temporary stream crossings, erosion and sediment controls, and final site reclamation.
In 2016, the Client awarded GZA the second and third phases of the decommissioning project under this new model. Using cost-tracking data from the first set of projects, GZA further refined the budgets to provide the Client with greater value.
GZA successfully completed this project under the leaner operations while maintaining the high health and safety standards expected by GZA’s own internal program and our Client’s.
The lump sum turnkey approach allowed our Client to forecast their budgets based on set pricing and shift their management focus to other assets. GZA demonstrated the turnkey lump sum method of decommissioning could successfully accomplish the Client’s goals while maintaining rigorous health and safety standards and reducing costs.