BP Site Portfolio Management

bp-site-caIn 2010, INNOVEX was retained by BP as a technical and environmental policy consultant to evaluate potential human health and ecological threat for 223 retail petroleum contaminated sites in California. The purpose of the project was to optimize BP’s environmental program by accelerating investigation and cleanup activities for sites that posed a threat to the environment, and advocating for No Further Action (NFA) for cases where no threat existed. As part of this project, INNOVEX developed an environmental life-cycle analysis and classification system for BP to rank each case and identify the optimal path for environmental liability management. This novel approach to environmental life-cycle management, as well as the classification system, was wholly embraced by BP, and the system was rolled out worldwide.

Less than one year into the project, INNOVEX had obtained environmental case closure on 18 cases that were found to pose no environmental threat, at an estimated $1.47 million life-cycle cost savings to BP. By the second year, INNOVEX had obtained case closure on an additional 11 cases, and optimized the cleanup strategy on over a dozen more cases. By the time the program ended in 2012, an estimated $5.4 million of environmental life-cycle costs were eliminated for $978,000, resulting in over a five-fold return on investment.

Because of the innovative approach and overwhelming success of the California life-cycle management project, BP asked INNOVEX to develop and implement an environmental management strategy for a portfolio of retail gasoline contamination cases in Washington.