Environmental Due Diligence Update 2013

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

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?



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)?



Changes to ASTM 1527

•No vapor intrusion evaluation “requirement” as originally anticipated…but what should you “do with” vapor intrusion?



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?



Summary of the ASTM Changes

Source: EDR Insight May 3, 2013



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?



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



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



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



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



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 ([email protected]) or Jeffrey Bolin ([email protected]) at 248-932-0228

mailto:[email protected]


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.



BiographyJeffrey 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 ([email protected] ) 248-932-0228.


http://www.dragun.com/us/project/Henkel%20Morenci%20Project%20Profile%20November%202011%20Final.pdf

http://www.dragun.com/us/project/TRW%20Project%20Profile%20December%202011%20Final.pdf


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Windsor436 Elmstead Road, RR1Windsor, Ontario N8N 2L9Tel: (519) 979-7300

Toronto112 George StreetToronto, Ontario M5A 2M5Telephone: (416) 800-2140

Contacts:Jeffrey A. Bolin Mark E. Resch(248) 932-0228, x125 (248) 932-0228, x [email protected] [email protected]

www.dragun.com

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Celebrating our 25th Year(c) Copyright 2013 Dragun Corporation www.dragun.com



Environmental Due Diligence Update 2013

Real Estate