At Letterle, we are experienced at helping small to mid-size businesses clean up problems associated with petroleum contamination and walking them through the complicated maze of regulatory compliance. If you have experienced a release from a regulated storage tank or are involved in the transfer of contaminated property, we can help!
Environmental Due Diligence Can Be Complicated...We Clear It Up For You.
There are a myriad of environmental issues to evaluate in the purchase or refinance of commercial real estate - especially if that real estate has ever contained an underground or aboveground petroleum storage tank.
With a staff of state licensed geologists and engineers, as well as environmental scientists and field technicians, Letterle has the environmental professionals, resources and experience to competently perform your environmental due diligence and to conduct your environmental assessments under the prevailing industry standards such as ASTM E1527-05.
We will identify and help you understand recognized environmental conditions and provide options to help you remediate those conditions and keep your property acquisition moving to the point of closing.
Introduction
The Phase I Environmental Site Assessment (ESA) has become an essential step in buying, selling or financing any piece of commercial real estate.
The purpose of the Phase I ESA is to evaluate the property for possible contamination and to identify “recognized environmental conditions.”
Sampling and chemical analysis of air, water and building materials is typically not performed in a Phase I ESA; although it may be recommended.
All Appropriate Inquiries
Under Federal law, you may be held strictly liable for cleaning up hazardous substances on property that you purchase (or finance) regardless of who caused the contamination.
However, under the same Federal law, there is a defense to strict liability for those who can demonstrate that, among other things, they did not know and had no reason to know that any hazardous substance was disposed of on the property. This is known as the “innocent landowner defense.”
To be eligible for the defense, the purchaser must have undertaken, prior to the acquisition, “all appropriate inquiries” into the previous ownership and uses of the property. The “all appropriate inquiries” test must be consistent with good commercial or customary standards and practices.
Fortunately, the US Environmental Protection Agency has adopted ASTM E1527-05 entitled “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process” as the accepted customary standard for conducting the “all appropriate inquiries” test.
Therefore, if the Phase I ESA follows ASTM E1527-05, then it meets the Federal “all appropriate inquiries” test and can be used to satisfy the innocent landowner defense.
Contents of the Phase 1 ESA
Letterle will follow the ASTM E1527-05 procedures to make certain you qualify for the innocent landowner defense and are made aware of “recognized environmental conditions.”
At a minimum, Letterle will perform the following tasks depending on the agreed-upon scope of work:
Prepare a written report
Review historical sources to determine use of the property since first developed
Review government agency records
Conduct a site visit to view the property and adjoining sites
Interview past and present owners, operators and occupants of property as needed
Search for recorded environmental cleanup liens and use limitations
Apply specialized knowledge on the part of persons seeking liability protection
Consider relationship of the purchase price to value of the property if not contaminated
Evaluate commonly known or reasonably ascertainable information
Assess obviousness and ability to detect contamination by appropriate investigation
Main Office
2859 Oxford Boulevard
Allison Park, PA 15101
Phone: 412-486-0600
Fax: 412-486-0674
Email: tjennewine@letterleassociates.com
Franklin Office
191 Howard Street, Suite 108
Franklin, PA 16323
Phone: 814-432-2167
Fax: 814-432-2632
Email: tkier@letterleassociates.com
Bellefonte Office
629 East Rolling Ridge Drive
Bellefonte, PA 16823
Phone: (814) 355-2241
Fax: (814) 355-2410
Email: streschow@letterleassociates.com
Introduction