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A Phase I Environmental Site Assessment, often referred to as "environmental due diligence," is utilized by purchasers and lenders to evaluate a property for potential environmental contamination and to assess the potential liability for contamination present at the property.
In November 2005, the EPA issued the final All Appropriate Inquiries (AAI) Rule - Environmental Site Assessments, Phase 1 Investigations - that established the specific regulatory requirements and standards for conducting All Appropriate Inquiries to qualify for one of the three landowner liability protections under the CERCLA Brownfields Amendments.
• Only those purchasers who rigorously follow the All Appropriate Inquiries Rule prior to purchase may benefit from the CERCLA innocent landowner, bona fide purchaser or contiguous landowner liability exemption.
Quality is the key in Phase I environmental assessments
Sophisticated commercial real estate purchasers and their lenders require Phase 1 environmental site assessments when arranging a property loan, just as they require a title search. It might seem logical, then, to buy a Phase 1 investigation as a pre-defined and itemized package to achieve a cost saving. However, pre-planning and generic procedure are antithetical to a proper Phase I environmental site assessment.
The investigator using a pre-defined, tightly budgeted process, one not keyed to the specific property or geographic area, can't afford to pursue the unique aspects of a property. Buyers and lenders lulled by the apparent security of a unit price and generic procedures run significant peril if the Phase I assessment they accept does not meet the standards and practices defined by the final All Appropriate Inquiries Rule.
All Appropriate Inquiries - Phase I environmental site assessments - performed by Norcon Environmental follow the AAI / ASTM E 1527-05 standards of practice and are more likely to result in discovery of potential problems during the assessment process before purchase, as well as to hold up in court if contamination is found at any time post-purchase.
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NJ GREEN ACRES
The NJDEP Green Acres open space acquisition program requires NJ Governments to complete a preliminary assessment prior to receiving funding through the program. The purpose of a preliminary assessment is to identify the presence of any potentially contaminated areas of concern, through a diligent inquiry into the current and historic use of the site.
Norcon has completed over 30 preliminary assessment reports (PAR) for a variety of municipal & county entities. The investigation is completed according to the requirement as defined in the Technical Requirements for Site Remediation, N.J.A.C.7:26E-1.8.
A preliminary assessment report presents a history of ownership and use of a property, from the time the site was naturally vegetated or utilized as farmland in accordance with N.J.A.C. 7:26E-3.1(c).
If the assessment identifies the historic or current agricultural use of a property, the assessment report must address the potential for residual pesticide contamination. This requirement is based upon the findings of the Historic Pesticide Contamination Task Force March 1999 Findings and Recommendations for the Remediation of Historic Pesticide Contamination.
The Task Force's primary concern with historic pesticide residues is the potential risk to human health posed by inadvertent, chronic ingestion of contaminated soil, particularly by children. Of the several recommendations made in the Task Force's report, two appear to relate directly to Green Acres:
• Soil sampling should be conducted when an agricultural property changes land use (i.e. farmland developed into a housing development or municipal park); and
• Soil sampling should be conducted in former agricultural areas intensively used by children (schools, daycare centers, and playgrounds).
The historic use of agricultural pesticides like DDT, dieldrin, lead, and arsenic has resulted in persistent pesticide residues throughout NJ. Even though the pesticides were applied legally at the time under guidance from government agencies, the pesticide residues that remain are currently considered contaminants. During the transfer, financing, or development of a property that has a history of agricultural use, the possibility of historic pesticide residue being present must be considered.
Norcon offers clients both the technical environmental expertise to determine if historic pesticides are present and the proven ability to address the problem with a practical solution. There are various cleanup options available to meet the regulatory criteria. The resolution requires a thorough understanding of the regulations governing site cleanup, a complete grasp of cleanup options available, and the business sense to integrate the solution into the overall project.
Norcon provides the following services relating to historic pesticide concerns:
• Identification and evaluation of areas of concern (AOCs)
• Evaluation and recommendation of remedial action(s) for site cleanup
• Formulation of remedial costs
• Site remediation & Soil disposal
• In – situ soil blending
• Regulatory negotiation and coordination
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