DowDupont Merger "Environmental" Expectations

With news of the merger / $130Billion "Megadeal" between Dupont and Dow Chemical, and proposal to split into three groups (specialty products, agriculture, materials), job reductions are anticipated, 16 directors would be established, and shareholders would hold 50% of DowDupont.  However, what should be expected for the environmental liabilities associated with each "former" Giant?  Should we expect the same optimism for Pompton Lakes that was presented for Dupont's proposed Chemours spinoff company earlier in the year?   How about in West Virginia?  Realistically, let’s hope that there are minimal delays in the remedial progress (including assignments of the remedial managers), as the corporate lawyers, regulators, consultants, and experts sort it out, and most importantly let's hope that the safety (and future) of those that are/were directly affected from past environmental releases are kept paramount. 

How Much and How Long Will It Take? Vol. II

For this week’s blog we’ll look at Phase I Environmental Site Assessments (Phase 1’s), which is often the due diligence starting point for a broad range of properties both inside and outside of New Jersey.  Although a Preliminary Assessment (PA) is the first phase of the process set forth in the New Jersey Technical Requirements for Site Remediation, we’ll focus on Phase I’s as they are commonly required by lending / financial institutions and conducted in accordance with ASTM Standards.  So…why do a Phase I and “How much will it cost and how long will it take?” 

Start with the why: the purpose of a Phase I ESA is to enable a party to satisfy one the CERCLA landowner liability protections. In layperson’s speak: the Phase I ESA allows a party to identify environmental “issues” on a commercial Site (real property) before taking ownership and potentially becoming liable for someone else’s spill and/or contamination.   

How much and how long will it take? If an environmental professional tells you $1,000 and it will take 1-week to complete, you must have found a super black Friday deal!  But wait…are you willing to accept a lower-value effort to save a few dollars, especially when the long-term costs associated with soil and/or groundwater contamination could be tens of thousands of dollars, if not millions?    Hopefully not.  A Phase I ESA that is completed in accordance with current ASTM standards will typically take a few weeks, cost between $2,000 and $3,000 and be completed by an environmental professional with at least 5 years of experience.

Some other key points to consider:

  • Professional judgement varies between individuals and corporations, which may ultimately impact whether a Recognized Environmental Condition (REC) is properly identified and whether future investigations are warranted.

  • Local or state agencies generally must respond to an Open Public Records Act (OPRA) request within 7 days (these are generally key resources to obtain “historical” information on a Site).

  • Phase I ESAs do not include testing or invasive studies, mold, lead-based paint, asbestos and radon (generally referred to as non-scope considerations).

  • Consider talking with a reputable real estate or environmental attorney.

  • A Phase I ESA should not be viewed as a commodity, as the quality, consistency, and pricing is highly variable. 

For further information regarding Phase I’s (and/or the Due Diligence process), please don't hesitate to contact us.  tfrancis@cardinallsrp.com

How Much and How Long Will It Take? Vol. 1

Those are really the two most important questions aren’t they?  Because this topic can cover a lot of ground, we’ll try to focus on a few key items for the next few weeks as they pertain to the “environmental industry” in New Jersey.  For this week (or “Volume 1”), we’ll look at those properties subject to the New Jersey Industrial Site Recovery Act (ISRA), “which requires the remediation of certain business operations prior to the sale or transfer or upon its cessation of on-site businesses.”  Unfortunately for many industrial / manufacturing businesses in New Jersey, the owners and/or operators are generally unaware of this requirement, and once they are made aware, just want to know how much it will cost and how long it will take.   Fair questions!  Unfortunately, the answers are not that simple. As a result, and as a starting point, the best approach is to:

  • Start the process as early as possible, and well in advance of the earliest ISRA trigger(s). 

  • Talk to an environmental attorney or a Licensed Site Remediation Professional (LSRP).

  • Identify and determine if your North American Industry Classification System (NAICS) number is regulated under the ISRA rule.

Once this “pre-cursory” review is conducted, the process, and the cost and duration can be properly assessed.  Generally, this type of review can be completed in a few weeks (if not shorter). Conversely, if required, a  Preliminary Assessment (PA) may take several weeks to complete (contingent on the complexity of a site), while the process could take months or even years to complete if subsurface contamination (e.g. soil or groundwater) is identified.  Costs would also increase substantially.  Or….can the operation qualify for a Deminimis Quantity Exemption (DQE) and thus, shorten the timeframe and reduce costs?  Possibly.  Regardless of where you may fall, it’s better to find this out early…and not get surprised later on.  

For further information regarding the ISRA process, or how we can help you navigate through the NJDEP regulatory process, please don't hesitate to contact us.  tfrancis@cardinallsrp.com

Thomas Francis, LSRP, LEED AP+

LSRPs & Professional Judgment

There are over 600 Licensed Site Remediation Professionals (LSRPs) in New Jersey, and expect the professional judgment of each to cover the whole gamut of environmental (remediation) interpretations and/or recommendations.  The New Jersey Department of Environmental Protection (NJDEP) recognized this several years ago; however, numerous technical guidance documents are available to site practitioners that, when used in conjunction with regulatory requirements, should allow LSRPs to use their professional judgment and close remedial cases quicker than has been done in the past.  To date, the process has been relatively successful and will only continue to improve in the future, but be wary of the varying degrees of professional judgment by LSRPs.  As with any profession, experience affects judgment, so don't hesitate to properly vet an LSRP before retaining them.  Understanding their level of professional competency and comfort levels with rendering specific environmental decisions will ultimately impact the success (or failure) of a project.

 

For further information regarding the LSRP program, or how we can help you navigate through the NJDEP regulatory process, please don't hesitate to contact us.  tfrancis@cardinallsrp.com

Thomas Francis, LSRP, LEED AP+

Welcome to Cardinal Environmental Consulting, LLC

Cardinal Environmental Consulting would like to thank you for visiting our blog, and hope that you find the information provided is useful.  We will continue to provide periodic updates in the environmental consulting industry because, as a small business, our goal is to help our partners* navigate through the myriad of rules and guidance documents established by regulators (and other stakeholders), to ultimately close cases.  For us at Cardinal, our partners mean our clients, other consultants, our vendors, and really any other individual or group that is dedicated to the protection of public health, safety, and the environment.

The rules are constantly changing, but sharing our insight and experiences (good or bad) with others allows all of us to make better, informed decisions and ultimately raise the standard of professionalism (and quality) in this industry.

Stay tuned!