EDR Chicago DDD REC-CREC-HREC

Smart Data.

Smarter Workflow.

Case Studies: HREC-CREC-RECDeterminations

Moderated by: Anthony J. Buonicore, P.E., BCEE, QEP

Panelists:

Jeff Watson, National Lead—Environmental Due Diligence,

Enercon Services

Lynn Smith, Environmental Due Diligence Leader, V3

Companies

Nick Albergo, Senior Consultant, GHD Consulting Services, Inc.

1.REC-HREC-CREC Definitions in E1527-13

REC-HREC-CREC E1527-13 Definitions

▸ REC – presence or likely presence of

any hazardous substances or

petroleum products in, on, or at a

property: (1) due to any release to the

environment; (2) under conditions

indicative of a release to the environment;

or (3) under conditions that pose a

material threat of a future release to the

environment.


HREC – a past release of any hazardous

substances or petroleum products that has

occurred in connection with the property and has

been addressed to the satisfaction of the

applicable regulatory authority or meeting

unrestricted use criteria established by a

regulatory authority, without subjecting the

property to any required controls.


▸ CREC – a REC resulting from a past release of

hazardous substances or petroleum products that has

been addressed to the satisfaction of the applicable

regulatory authority (e.g., as evidenced by issuance of a

NFA letter or equivalent, or meeting risk-based criteria

established by the regulatory authority), with hazardous

substances or petroleum products allowed to remain

in place subject to the implementation of required

controls.

2.Session Format

▸ Facts of Each Case

▸ Panelists’ Opinions

▸ Audience Participation

Case One

▸ TARGET PROPERTY: 20 year old multifamily housing complex

(six stories, no basement below the building, gas heating)

▸ LOCATION: on a commercial main street

▸ GOVERNMENT RECORDS: No “hits” on the target property

▸ SITE VISIT: no evidence of contamination on the property

▸ PRIOR USE: vacant land

▸ Abutting the property (cross-gradient topographically) is a

shopping center that according to the city directory search had a

dry cleaner that cleaned on-site for more than 30 years but

which closed approximately ten years ago

▸ SOIL TYPE: loamy sandy soil

THE QUESTIONDoes the former dry cleaner create a REC-HREC-CREC

on the target property?

Case Two

▸ TARGET PROPERTY: 40 year old shopping center built slab-

on-grade

▸ LOCATION: on a busy, commercial main street

▸ GOVERNMENT RECORDS: disclose a former gas station on

the target property that had a LUST, but which was cleaned up

(USTs removed and replaced, contaminated soil removed and

contaminated groundwater cleaned to state

industrial/commercial standards, state issued an NFA letter)

▸ PRIOR USES: did not reveal any other uses that might have

had an environmental concern

▸ No environmental concerns were uncovered in the surrounding

area

▸ SOIL TYPE: silty clay

THE QUESTIONDoes the former gas station create a REC-HREC-CREC


Case Three

▸ TARGET PROPERTY: an office building built on a brownfield

site (former industrial site that operated from 1930s to the

1960s)

▸ PRIOR USE: Former industrial site manufactured cosmetic

applicators, tubes and dispensers for the cosmetics industry and

used chlorinated solvents principally for cleaning

▸ The site was investigated in the late 1980 and early 1990s.

▸ Metals and VOCs were found in the soil and VOCs in the

groundwater, above state commercial/industrial cleanup

standards.

▸ The state allowed the use of RBCA to establish soil and

groundwater cleanup levels.

▸ State issued an NFA letter.

THE QUESTIONDoes the former industrial site create a REC-HREC-

CREC on the target property?

Case Four

▸ TARGET PROPERTY: a shopping center with no tenants

having environmental issues

▸ PRIOR USE: A gas station that previously existed on the

property was in the LUST database

▹ Contaminated soil with BTEX was excavated and removed

from the site.

▹ Contaminated groundwater with BTEX was treated with an SVE

system until levels were demonstrated below the existing

residential cleanup level.

▹ The state issued an NFA letter.

THE QUESTIONDoes the former gas station create a REC-HREC-CREC


Case Five

▸ TARGET PROPERTY: has been a shopping center for

more than 50 years with no current tenants having

environmental issues.

▸ The property is being sold.

▸ PRIOR USE: vacant land

▸ The last Phase I (conducted in accordance with E1527-

05 in 2006 by a reputable Phase I firm) did not indicate

evidence of any RECs associated with the property or in

the surrounding area.

▸ You are asked to “update” the last Phase I.

THE QUESTIONSWould you agree to update the previous Phase I?

Would there still be any potential REC issues or would

this likely be a case of no RECs?

Case Six

▸ TARGET PROPERTY: a newly constructed office

building in the CBD built on a property that included a

former gas station.

▸ The former gas station had USTs that were removed.

▸ Sampling indicated BTEX contaminated soil that was

excavated and taken off-site.

▸ Groundwater was not sampled.

▸ The property received an NFA letter from the state.

▸ The new office building included a multi-level (four

levels) underground parking garage.

▸ No other environmental issues were uncovered in the

site inspection, or the government and historical records

check.

THE QUESTIONWould the former gas station represent a REC on the

property?

REC-HREC-CRECRelationship

Presence, or likely presence, of

contamination in, at or on the

target property.

Is it de minimis? Has it been addressed?

Would regulatory

officials view cleanup as inadequate

today?

Are there restrictions?

YES

NO

NO

YES

REC(“Bad REC”)

De minimis(“Not a REC”)

NO

CREC(“Good REC”)

HREC(“Not a REC”)

YES

YES

NO

Thanks to today’s panelists!

Jeff Watson, National Lead—Environmental Due Diligence, Enercon

Services

Lynn Smith, Environmental Due Diligence Leader, V3 Companies

Nick Albergo, Senior Consultant, GHD Consulting Services, Inc.

Real Estate

EDR Chicago DDD REC-CREC-HREC