Learn More About Environmental Due Diligence and Risk Management

Hi! My name is Cassie Anderson and I am a Business Development Representative in the Indianapolis, Indiana office of August Mack Environmental, Inc. Prior to transitioning to a business development position, I spent the last three years at August Mack specializing in Phase One Environmental Site Assessments, All Appropriate Inquiry Assessments, Transaction Screen Assessments, asbestos and mold surveys as well as indoor air quality sampling. I plan to spend my time on this blog focusing on topics related environmental due diligence and risk management. I hope you enjoy what you read and feel free to give me a call at 317.916.3151 or send me an e-mail at canderson@augustmack.com to further discuss any of these posts.

"But Do I Have To...."

Monday, August 9, 2010 by Cassie Anderson
We've all said these five little words at some point in our lives...maybe not recently, maybe not even since we were five years old. 

But when a client asks, "But do I HAVE to do a Phase 1 Environmental Assessment?"  My answer is always the same..."You don't HAVE to do one, but you don't HAVEto wear a parachute when you jump out of an airplane either." 

Although they are not legally required, Phase 1 Site Assessments protect your liability as a potential purchaser.  See some of my past posts for applicable liability protections. But keep in mind that if you choose to jump without a parachute you assume all the risk and responsibility for that choice.

Hoosier Energy Rural Electric Cooperative, Inc. Settlement

Monday, July 26, 2010 by Cassie Anderson
(Washington, DC - July 23, 2010) The U.S. Environmental Protection Agency (EPA), the Justice Department, and the state of Indiana announced that Hoosier Energy Rural Electric Cooperative, Inc. has agreed to pay a civil penalty of $950,000 and install and upgrade pollution control technology at its two coal-fired power plants in Indiana to resolve violations of the Clean Air Act. The settlement, filed in federal court today, will reduce harmful air pollution by more than 24,500 tons per year and requires Hoosier to spend $5 million on environmental projects. Full settlement details can be found at www.epa.gov/compliance/resources/cases/civil/caa/hoosier.html

Keep in the know about Environmental News in your region at www.epa.gov/newsroom/
 

Indiana Heating Oil Tanks

Monday, July 12, 2010 by Cassie Anderson
After a client called me last week regarding the rules of heating oil tanks in Indiana I did a quick search of the web for more information to send him for a good point of reference. So I thought everyone might benefit from this reference; however, regulations on heaitng oil tanks vary from state to state, so check with your state environmental regulatory agency for more information on your state!
 
Here's what the Indiana Department of Environmental Management (IDEM) says about heating oil tanks:

Heating oil tanks that are for consumptive use on the premises are not regulated by the UST Section. If, however, they leak, it should be reported and must be cleaned up. If a release is detected at a residential heating oil tank, please contact the IDEM Spill Line at (317) 233-7745 or toll-free at (888) 233-7745.

Home heating oil tanks are fairly common. Many were installed in the 1940s and later abandoned. Typically, they are 100-500 gallons in size. Unfortunately, many of these systems leaked or may still leak due to corrosion (rust). Most were abandoned without proper closure. There are no grant or loan programs available to the homeowner to investigate or cleanup leaks from these USTs. If you own and are seeking to buy or sell a home with a heating oil UST that is no longer in use, you should consider taking steps to reduce your current and future human health risk and financial liability. There are UST closure procedures for regulated USTs, which should be followed. If possible, the UST should be removed along with the associate piping. If the UST is inaccessible, it can be closed in place. You can use the advice given for the FAQ titled "How Should I select a Consultant". It is not necessary for them to have experience with the IDEM ELTF program in this situation as it does not apply.

If you have limited resources and have no reason to suspect that the UST leaked, the minimum that should be done is to empty the tank of its contents. The oil and water should be containerized and recycled or disposed of properly. Many communities offer free "Tox-A-Way" programs as a way to properly dispose of "household hazardous waste". Next all piping should be disconnected and removed, if possible. This will ensure that the UST cannot be filled again. Finally, the empty UST should be filled with an inert material such as sand or pea gravel. For more information regarding household hazardous waste programs in your community, visit the following Recycle Indiana Household Hazardous Waste page or call toll-free at (800) 988-7901.

Protect Your Investment!

Tuesday, July 6, 2010 by Cassie Anderson
With the first half of 2010 officially behind us, we are forced to look ahead.   While transactions in the commercial real estate are still seemingly depressed and lenders are still looking at the future with "cautious optimism," people should still understand their environmental due diligence during the limited number of transactions taking place.  Now more than ever, the Phase One Environmental Site Assessment is a must! 

Until someone invents a money tree...Investors and loan officers should be looking at a property from all angles in order to protect themselves. From appraisals to Phase 1 Environmental Assessments; Property Condition Assessments to land surveys...Valuing a property from every direction is growing ever more important in order to get the most "bang for your buck" during a property transaction!

IDEM and the Independent Closure Process

Monday, June 28, 2010 by Cassie Anderson
The Indiana Department of Environmental (IDEM) has created a process to independently achieve closure on some cleanup sites. This process became available on April 15, 2010 and is referred to as the Independent Closure Process (ICP). The ICP offers a number of benefits to IDEM and responsible parties. Throughout the past several years, IDEMs State Cleanup Program (State Cleanup) has experienced flat or decreasing revenues while the number of State Cleanup sites increases. IDEM does not receive sufficient funding to assign IDEM staff to all State Cleanup sites. As a result, most low priority sites receive little or no attention while IDEM appropriately focuses on medium and high priority sites. The ICP provides a mechanism for closure with very little IDEM involvement or expense.

For further details and to see if your site qualifies, check out Michael Schutz's full length newsletter article at: www.augustmack.com/Newsletter/2010/May/Article0245.html

Bank Foreclosure Result in a Lender Lawsuit

Friday, June 25, 2010 by Cassie Anderson
FROM EDR INSIDER June 2010:

Foreclosure Leads Bank to Sue Dry Cleaner
An Illinois-based lender filed an environmental lawsuit after foreclosing on a seemingly benign property that was later found to be contaminated. In 2009, the bank foreclosed on a two-family home. Since then, the bank discovered that a nearby dry cleaner had allegedly contaminated the property, along with the surrounding area. As a result, the bank is now suing the dry cleaning company, its owner and its lender. The plaintiff is seeking $10,800 for environmental testing and an additional $300,000 for nuisance, negligence and trespassing.

The residence is located on a block targeted for purchase and redevelopment by the city. According to local reports, the PCE plume allegedly caused by the dry cleaner is delaying this project. The bank has tried for months to resell the foreclosed home unsuccessfully, and claims that the presence of contamination has stigmatized the site and ruined its marketability, even given the proposed redevelopment for the area. With the projected coming wave of foreclosures by banks on both residential and commercial properties, this story demonstrates the importance of conducting environmental due diligence upfront. Even properties that are not associated with high-risk operations and are in high-demand neighborhoods can have associated environmental issues that need to be addressed prior to property resale.

Environmental Due Diligence FAQs

Wednesday, June 9, 2010 by Cassie Anderson
So are they Phase 1 Environmental Assessments? Is it written Phase One Environmental Site Assessment? Phase I Environmental Site Assessment?...so many names for one little project...but they are so much more!  Check out some of our frequently asked questions about Phase I ESAs (had to add one more in there) at www.augustmack.com/Newsletter/2008/May/Article0089.html

Bankruptcy & Environmental Liability

Wednesday, June 2, 2010 by Cassie Anderson
According to the American Bankruptcy Institute, 43,546 U.S. Businesses filed for bankruptcy in 2008. In 2009, this number increased to 60,837 businesses! Under Section 363 of the U.S. Bankruptcy Code, a bankruptcy trustee or debtor-in-possession can sell assets, such as real estate, free and clear of liens, claims and interest. 

Sounds like a pretty stellar deal for potential purchasers, huh? BUUUUTTT.... how does that affect environmental liability as these real estate parcels are sold off?  Who ultimately is fiscally responsible for the environmental assessment and remediation of seemingly abandoned, contaminated properties?

More to come...
 

WOO HOO 3-DAY WEEKEND!

Friday, May 28, 2010 by Cassie Anderson

Like many Americans, I will be celebrating the Indianapolis 500 and Memorial Day with a Hatfield's & McCoy's style FAMILY REUNION! 
 


Hope everyone has a Happy & Safe Memorial Day Weekend!

Keep on the look out next week for posts on Environmental Liability as it relates to bankruptcy...


Ecological Resources as a Non-Scope Consideration

Sunday, May 23, 2010 by Cassie Anderson
Ecological resources are those resources that are from the natural environment such as, water, fish and fauna, and/or habitats.  

When conducting a Phase One Environmental Site Assessment, these resources are important to take into consideration especially when development activities are scheduled to occur on a site.  Many states and local municipalities regulate the disturbance of natural habitats of certain fish and animal species and/or the disruption of some waterways or bodies.  For more details on what types of habitats, etc. are protected, check with your state Department of Natural Resources. 

For Indiana, visit www.in.gov/dnr/ for contact information.

Brownfield Financial Assistance

Thursday, May 20, 2010 by Cassie Anderson
Did you know that the Indiana Brownfields Program offers financial assistance primarily to qualifying political subdivisions (as defined by Indiana Code 13-11-2-164(c)) in Indiana to assess, demolish and remediate Brownfield sites.
 Indiana Brownfields Program
For more information on Indiana Brownfield Assistance, check out www.in.gov/ifa/brownfields/2366.htm#taxincentives or for more information on your state programs visit www.epa.gov/brownfields/state_tribal/state_map.htm.

Endangered Species: Phase One Environmental Site Assessment Concern

Thursday, May 20, 2010 by Cassie Anderson
Much like the ecological resources discussed during one of my previous blog entries, endangered species are an issue that needs to be highlighted during a Phase One Environmental Site Assessment during development activities, if pertinent. 

Again, many state and local agencies regulated the disturbance of certain habitats of recognized endangered species or those that provide ideal conditions for endangered/threatened species.

For a listed of endangered species in your state, check out www.fws.gov/ecos/ajax/tess_public/pub/stateOccurrence.jsp

Not a part of a Phase One Environmental Site Assessment, but on a federal level: 

"The National Environmental Policy Act (NEPA) requires federal agencies to integrate environmental values into their decision making processes by considering the environmental impacts of their proposed actions and reasonable alternatives to those actions.

To meet NEPA requirements federal agencies prepare a detailed statement known as an Environmental Impact Statement (EIS). EPA reviews and comments on EISs prepared by other federal agencies, maintains a national filing system for all EISs, and assures that its own actions comply with NEPA."

Cultural & Historic Resources

Tuesday, May 18, 2010 by Cassie Anderson
When completing a Phase One Environmental Site Assessment, especially for development or redevelopment purposes, it is very important to consider the cultural & historic significance of the property. Many of these landmarks are protected by various environmental regulations and acts dating back as far as 1935!

The United States Geological Survey (USGS) posts the following definitions:

 

  • Historic and Cultural Properties - Those nonrenewable remains of human activity, occupation, artifacts, ruins, works of art, architecture, and areas of religious significance that were of importance in human events. These resources consist of physical remains, areas where significant human events occurred--even though physical evidence of such events no longer exists and the physical setting immediately surrounding the actual resource. Historic and cultural properties include both prehistoric and historic remains.
  • Landmark - A district, site, building, structure or object, in public or private ownership, judged...to possess national significance in American history, archeology, architecture, engineering and culture.
  • National Natural Landmark - An area of national significance located within the boundaries of the U.S. or on the Outer Continental Shelf designated by the Secretary of the Interior that contains an outstanding representative example(s) of the nation's natural heritage, including terrestrial communities, aquatic communities, landforms, geological features, habitats of native plant and animal species, or fossil evidence of the development of life on earth. (36 CFR Part 62.2)
For more information on this and further clarification by the USGS - visit recreation.usgs.gov/env_guide/cultural.html

Oops...

Monday, May 17, 2010 by Cassie Anderson
So I let my blog fall WAAAY behind, my apologies. Time can totally get away from you if you let it, I guess. 

Stay tuned, I will try to be more diligent and get some good entries posted about Phase 1 Environmental Assessments (and other non-scope considerations), environmental due diligence, environmental assessment and remediation! 

In the meantime, check out this article on the increase in Phase One Environmental Site Assessment activity: www.elabs7.com/functions/message_view.html

MOLD! The new four letter word

Wednesday, March 31, 2010 by Cassie Anderson
Seems like every time you turn around the media is all hyped up about MOLD!!!!  Mold CAN be a health concern, but it's important to recognize that we are surrounded by hundreds of different types of mold all of the time. 

If visible mold growth is observed during the site visit portion of a Phase One Environmental Site Assessment, it is likely to show up in your final Phase I report as a non-scope consideration.

For more information about mold, check out Bill Glaze's article at www.augustmack.com/Newsletter/2008/October/Article0134.html

Indoor Air Quality

Monday, March 29, 2010 by Cassie Anderson
One of the non-scope consideration that is sometimes seen in the Phase One Environmental Site Assessment Report is Indoor Air Quality (IAQ). 

Poor indoor air quality  can be caused by a variety of sources such as high temperature and humidity or poor ventilation.  And there are even more sources of indoor air pollutants including (but not limited to) asbestos, radon, carbon monoxide, combustion sources (oil, gas, kerosene, wood, etc.), and even the use of household cleaners. 

IAQ issues are especially prominent in commercial offices or multi-tenant spaces.  For more information on addressing IAQ as a Property Manager, visit our newsletter archives at www.augustmack.com/Newsletter/2009/February/Article0164.html and BREATHE EASY!
 


August Mack specializes in environmental, health and safety compliance; environmental due diligence; environmental site remediation; and sustainable business strategies to the industrial, legal, financial, health care and government sectors throughout North America. August Mack has offices in Indiana, Michigan, Missouri, Ohio and Pennsylvania. For more information on August Mack's environmental, health and safety services, visit www.augustmack.com or call 800.579.0770.


 

Industrial Hygiene

Friday, March 26, 2010 by Cassie Anderson
The Occupational Safety and Health Administration (OSHA) defines Industrial Hygiene as follows: "Industrial hygiene is the science of anticipating, recognizing, evaluating and controlling workplace conditions that may cause workers' injury or illness. Industrial hygienists use environmental monitoring and analytical methods to detect the extent of worker exposure and employ engineering, work practice controls and other methods to control potential health hazards."

Well, that sums it up...right? Not so much. Industrial hygiene is basically the science of protecting the health and safety of people in their workplace through evaluating and controlling conditions in such a way to protect the well-being of employees. A good first step to achieve acceptable industrial hygiene is to have an industrial hygienist evaluate the current conditions at a facility and aid in writing a plan to correct or modify any areas of concern.

August Mack specializes in environmental, health and safety compliance; environmental due diligence; environmental site remediation; and sustainable business strategies to the industrial, legal, financial, health care and government sectors throughout North America. August Mack has offices in Indiana, Michigan, Missouri, Ohio and Pennsylvania. For more information on August Mack's environmental, health and safety services, visit www.augustmack.com or call 800.579.0770.

Wetlands

Friday, March 26, 2010 by Cassie Anderson
"Wetlands are lands where saturation with water is the dominant factor determining the nature of soil development and the types of plant and animal communities living in the soil and on its surface." (Cowardin, December 1979)

There are different types of wetlands, but they generally include swamps, bogs, marshes, etc.

During a Phase One Environmental Site Assessment, a field scientist can typically identify vegetation indicative of a wetland environment and can even search databases for federally recorded wetlands on a property (try it out at www.fws.gov/wetlands/). However, it is important to note that this non-scope item does not qualify as a full wetlands delineation which establishes the existence and size of a wetland area. 

When developing wetlands there a many requirements to consider. For more information or regulatory guidance by state, check out www.epa.gov/owow/wetlands/regions.html.

 
tamarack bog

Lead in Drinking Water

Friday, March 19, 2010 by Cassie Anderson
Another non-scope consideration that is will likely show up during a Phase One Environmental Site Assessment is lead in drinking water.  Consumption of lead has been shown to cause various adverse health effects. 

Plumbing with lead or lead solder could lead to lead in drinking water. Buildings constructed prior to 1986 are more likely to have lead pipes, soder, fittings or fixtures. You cannot see, smell or taste lead, and boiling your water will not get rid of lead.

There are "at-home" tests for lead in drinking water for residences, but I would recommend hiring an environmental consultant to sample and document testing for commercial, industrial, retail, or multi-family units to provide a third-party and unbiased report.