Managing and Mitigating Environmental Risks           Urban Land Institute Real Estate Development Process: Part 1        ...
OverviewEnvironmental Liability ExposureEnvironmental Site AssessmentsGovernmental Liability P t tiG        t l Li bil...
Environmental Liability Exposure Environmental Impacts CERCLA & State Equivalents   Status liability – Owners/Operators...
Environmental Liability Exposure Other Federal and State Statutes   Clean Water Act     √   Wetlands     √   Storm water...
Environmental Liability Exposure Increased Development Costs    Waste management    Waste water    Asbestos    Wetlan...
Environmental Site Assessment All Appropriate Inquiry (Phase I) Identifies Recognized Environmental   de     es ecog ed ...
Environmental Site Assessment AAI Does Not           Radon  Cover:                 Mold   Petroleum            Munici...
Environmental Site Assessment If Contamination Issues → Phase II  Invasive Sampling of               p g    Soil    Gro...
Governmental Liability Protection CERCLA Defenses   Innocent Landowner   Contiguous Property Owner   Bona fide Prospec...
Governmental Liability ProtectionTexas Voluntary Cleanup Program Remediate to meet Texas standards Certificate of Comple...
Governmental Liability ProtectionTexas Innocent Owner/OperatorProgram Immune from liability if    Property contaminated ...
Governmental Liability ProtectionTexas Innocent Owner/OperatorProgram IOP Certificate of Completion confirms  eligibility...
Governmental Liability ProtectionTexas Municipal Setting Designation            p         g     g City ordinance restrict...
Contractual Liability Allocation Disclosure Obligations Remediation Agreements “As Is” Li bilit R l  Liability Release...
Environmental Insurance Clean Up Cost Cap   may not be available Site Pollution Liability Insurance Green Building Res...
Trends    Trends    Thank You!    Th k Y !Questions & AnswersQ             Presented by:             Sally A. Longroy
Upcoming SlideShare
Loading in...5
×

Managing And Mitigating Environmental Risks - Urban Land Institute

483

Published on

Managing and Mitigating Environmental Risks in Real Estate Transactions

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
483
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Managing And Mitigating Environmental Risks - Urban Land Institute

  1. 1. Managing and Mitigating Environmental Risks Urban Land Institute Real Estate Development Process: Part 1 Sheraton Dallas Hotel January 20, 2012 by: Sally A. Longroy
  2. 2. OverviewEnvironmental Liability ExposureEnvironmental Site AssessmentsGovernmental Liability P t tiG t l Li bilit ProtectionContractual Liability ProtectionEnvironmental Insurance
  3. 3. Environmental Liability Exposure Environmental Impacts CERCLA & State Equivalents  Status liability – Owners/Operators  Joint and several  Strict  Retroactive  Perpetual
  4. 4. Environmental Liability Exposure Other Federal and State Statutes  Clean Water Act √ Wetlands √ Storm water management g  Endangered Species Act
  5. 5. Environmental Liability Exposure Increased Development Costs  Waste management  Waste water  Asbestos  Wetlands  Lead paint Land-use Restrictions Claims from Third Parties Unknown Environmental Conditions
  6. 6. Environmental Site Assessment All Appropriate Inquiry (Phase I) Identifies Recognized Environmental de es ecog ed o e a Conditions (RECs) Components  Records review  Site reconnaissance I t i Interviews  Report  Qualified environmental professional
  7. 7. Environmental Site Assessment AAI Does Not  Radon Cover:  Mold  Petroleum  Municipal solid waste  Asbestos in buildings b ildi  Wetlands  Lead-based paint  Endangered species  Lead in drinkingg water  A h l i l and Archeological d cultural  Indoor air pollution/vapor g y  Regulatory intrusion compliance
  8. 8. Environmental Site Assessment If Contamination Issues → Phase II Invasive Sampling of p g  Soil  Ground water  Surface water  Sediment Release Reporting Obligations
  9. 9. Governmental Liability Protection CERCLA Defenses  Innocent Landowner  Contiguous Property Owner  Bona fide Prospective Purchaser p Requires “All Appropriate Inquiry”  ASTM E1527-05 – consistent with final rule on AAI  Codified at 40 CFR Part 312
  10. 10. Governmental Liability ProtectionTexas Voluntary Cleanup Program Remediate to meet Texas standards Certificate of Completion – releases future owners and lenders from liability to Texas Must apply before taking title Must apply before performing remediation
  11. 11. Governmental Liability ProtectionTexas Innocent Owner/OperatorProgram Immune from liability if  Property contaminated by release or migration from off-site source or sources, and  Did not cause or contribute to the source or sources of the contamination
  12. 12. Governmental Liability ProtectionTexas Innocent Owner/OperatorProgram IOP Certificate of Completion confirms eligibility IOP Certificates are not transferable
  13. 13. Governmental Liability ProtectionTexas Municipal Setting Designation p g g City ordinance restricts potable use of g groundwater Eliminates exposure pathway so may  Lower cleanup standards  Reduce investigation/remediation requirements  Reduce remediation costs TCEQ certifies the ordinance
  14. 14. Contractual Liability Allocation Disclosure Obligations Remediation Agreements “As Is” Li bilit R l Liability Release P i i Provisions Indemnity Provisions Successor Property Owner Problem
  15. 15. Environmental Insurance Clean Up Cost Cap  may not be available Site Pollution Liability Insurance Green Building Restoration Storage Tank Liability Insurance
  16. 16. Trends Trends Thank You! Th k Y !Questions & AnswersQ Presented by: Sally A. Longroy
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×