A. Due diligence related to environmental regulation is very important because if the company violates any major rule, local authorities can exercise their right to penalize the company, up to and including, shutting it down operationally. Hence, this makes environmental audits for each property owned or leased by the company one of the key types of due diligence. The following should be reviewed carefully: b. List of environmental permits and licenses and validation of the same c. Copies of all correspondence and notices from the EPA or state and local regulatory agencies d. Verify that the company’s disposal methods are in sync with current regulations and guidelines e. Check to see whether there are any contingent environmental liabilities or continuing indemnification obligations