In 2013 Dragun Corporation was asked to conduct a series of seminars on environmental due diligence. We discussed proposed changes to AAI, BFPP strategies, VI considerations, and Michigan specific issues including changes to Part 201, mobile NAPL, residual NAPL, and migrating NAPL. We also provided the three environmental due diligence "musts" for environmental site assessments in Michigan.

1. The Dragun Corporation Presents:
Environmental Due Diligence
Updates -2013
Jeffrey A. Bolin, M.S., CHMM
Farmington Hills, MI | Windsor, ON |Toronto, ON
(c) Copyright 2013 Dragun Corporation
www.dragun.com

2. Environmental Due Diligence Updates
The Phase I “Standard”
• Do I really need a Phase I ESA?
• A brief history of the Phase I ESA and liability protection
• What are the potential changes and what do you need to
know now?
(c) Copyright 2013 Dragun Corporation
www.dragun.com

3. Environmental Due Diligence Updates
Revision schedule for ASTM 1527-05
•Revision identified as 1527-13 (fall 2013 final…or will it just
go away?)
• What will this mean in context of the federal All
Appropriate Inquiry regulation (40 CFR 312)?
(c) Copyright 2013 Dragun Corporation
www.dragun.com

4. Environmental Due Diligence Updates
Changes to ASTM 1527
• No vapor intrusion evaluation “requirement” as
originally anticipated…but what should you “do
with” vapor intrusion?
(c) Copyright 2013 Dragun Corporation
www.dragun.com

5. Environmental Due Diligence Updates
Changes to ASTM 1527
• Changes to definitions: REC and HREC what does it mean
(would you recognize an HREC ?)
• New term – Controlled REC (CREC): how much risk?
• Review regulatory agency files for the property and
adjoining properties, why/why not?
(c) Copyright 2013 Dragun Corporation
www.dragun.com

6. Environmental Due Diligence Updates
Summary of the ASTM Changes
Source: EDR Insight May 3, 2013
(c) Copyright 2013 Dragun Corporation
www.dragun.com

7. Environmental Due Diligence Updates
Changes to CERCLA
• BFPP was only available to Landowners
• Now Tenants can qualify for CERCLA protection
independent of landowner
• Tenants conducting Phase I ESAs – is this a good
idea or a waste of money?
(c) Copyright 2013 Dragun Corporation
www.dragun.com

8. Environmental Due Diligence Updates
Michigan Part 201 Changes
• How do these apply to your site assessment efforts?
• New “Guidance Document for the Vapor Intrusion
Pathway,” May 2013
• Draft NAPL Management guidance, June 2013
• Revised Due Care guidance
(c) Copyright 2013 Dragun Corporation
www.dragun.com

9. Environmental Due Diligence Updates
Vapor Intrusion
• MDEQ guidance for investigation and screening values
(indoor air and sub-slab soil gas)
• Manufacturing facilities (NAICS code of 31-33): MIOSHA
standards
(c) Copyright 2013 Dragun Corporation
www.dragun.com

10. Environmental Due Diligence Updates
NAPL Management
• MDEQ previously required all NAPL to be removed
• New considerations: (1) Mobile NAPL, (2) Migrating
NAPL, and (3) Residual NAPL
• Vapor Intrusion and NAPL
(c) Copyright 2013 Dragun Corporation
www.dragun.com

11. Environmental Due Diligence Updates
Due Care
• MDEQ is developing several procedure documents
and a website devoted to due care
• MDEQ is currently evaluating how to incorporate the
SBA loan process, residual NAPL, vapor intrusion, etc.
into due care
(c) Copyright 2013 Dragun Corporation
www.dragun.com

12. Environmental Due Diligence Updates
Case Study
• HUD Loan
• “Federal Government Approved” consultant
• Check-box approach
• REC suggested VE/VI potential
• “Must do” indoor air sampling
• Peer review
• Used science/reason/logic and avoided Pandora’s Box
For more information about this or other success stories, contact Alan Hahn (ahahn@dragun.com) or Jeffrey
Bolin (jbolin@dragun.com) at 248-932-0228
(c) Copyright 2013 Dragun Corporation
www.dragun.com

13. Concluding Thoughts
Three Environmental Due Diligence “Musts” for
Assessing Sites In Michigan
1. There are changes to Michigan Part 201 and ASTM. Modify your
property transaction strategy accordingly.
2. Do NOT miscalculate the VI factor.
3. Find and keep a trusted team of advisors close-at-hand.
(c) Copyright 2013 Dragun Corporation
www.dragun.com

14. Environmental Due Diligence Updates
Biography
Jeffrey A. Bolin, M.S., CHMM Jeff’s advice on any environmental matter will
carefully weigh the scientific-regulatory issues in proper context with business
concerns. His clients trust that he will provide a rational and measured approach
on merger & acquisitions, divestitures, and assessment of current and future
environmental liability. From complex RCRA Closures to securing improbable
remediation action plans, clients count on Jeff to deliver. His clients have sought
his expertise and advice on sites across the United States, Canada, South
America, and Europe.
Questions or concerns about environmental site assessments? Contact Jeff at
(jbolin@dragun.com ) 248-932-0228.
(c) Copyright 2013 Dragun Corporation
www.dragun.com

15. Contact Information
www.dragun.com
Farmington Hills
30445 Northwestern Hwy., Suite 260
Farmington Hills, MI 48334
Tel: (248) 932-0228
Windsor
436 Elmstead Road, RR1
Windsor, Ontario N8N 2L9
Tel: (519) 979-7300
Toronto
112 George Street
Toronto, Ontario M5A 2M5
Telephone: (416) 800-2140
Contacts:
Jeffrey A. Bolin
(248) 932-0228, x125
jbolin@dragun.com
Mark E. Resch
(248) 932-0228, x 133
mresch@dragun.com
Celebrating our 25th Year
(c) Copyright 2013 Dragun Corporation
www.dragun.com