In general, commercial locations that typically create demand for a Phase II Environmental Study include:

• Gas stations
• Dry cleaners
• Machine shops
• Manufacturing facilities
• Hazardous waste storage, etc.

Since an environmental liability negatively affects property value, Phase II assessments occur during a real estate transaction, or prior to an owner listing a property for sale.

Environmental liabilities are costs associated with regulatory-mandated cleanup, disposal of regulated waste, and civil liability. Civil liability occurs when contamination has migrated offsite, or tenants sue over exposure to hazardous materials.

Further site characterization is necessary once contamination is found to be significant and/or to exceed federal, state or local cleanup or human-health risk standards. These circumstances require agency consultation to pursue closure from a governing body. To obtain closure, the client will need a “no further action (NFA)” letter to make the property sellable. In certain situations, a liability transfer is negotiated and executed contractually. For regulatory-mandated cleanup and/or monitoring, the client can apply to available cleanup funds to recover money spent.

Tadco partners with several LSRPs to perform Phase II site assessments. We are also a leader in NFAs, having obtained thousands issued within a few days of investigation.

Useful Links:

https://www.nj.gov/dep/grantandloanprograms/

https://www.epa.gov/sites/production/files/2016-08/documents/final_nfa_document_layout_8-1-16.pdf

https://www.nj.gov/dep/srp/