Due Diligence

Technology continues to impact the way due diligence research is conducted, but the basic requirements remain the same. Transactions such as corporate mergers, sales, divestitures and exchanges have resulted in the need for due diligence research of varying levels.  This process is necessary for the transfer of title information and other documentation for many different projects.

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 is to assure that the entire system is legally protected with the proper right of way documentation.  If a gap is detected, Sendero personnel determine the cause of the discrepancy and recommends possible curative actions.

A comprehensive review of title information provides a history of ownership.  Sendero personnel then carefully analyze the details in order to extract information such as:

            •          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

Sendero can also 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 are evaluated to determine expirations and payment information. 

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. Sendero customizes these activities after consultation with the client to determine precise due diligence requirements. Sendero creates a due diligence checklist to assure that all details are covered and to prepare a report in compliance with the client’s requirements.