Environmental Liabilities Associated Real Estate Transitions LIFE SCIENCES

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Transcription:

Environmental Liabilities Associated Real Estate Transitions

Agenda Presentations on Limiting Liability When Engaged in Property Transactions Focus on Lab Decommissioning Panel Discussion

Panel Members Kevin Brayton, New England Director Life Sciences Ross Hartman, Corporate Services Director Craig Sasse, Senior Engineer Sandy Perry, Consulting Division Manager Ann M. Sobolewski, Posternak Blankstein and Lund

Liability in Transactions Understanding Liability Entering or Leaving Space Lease obligations Real Estate Unknowns when occupying Address regulatory requirements Community reaction bad press

Real Estate Liabilities Liability Under the Lease Indemnification Requirements Statutory Liability as an Operator Tort Claims-Health and Safety

Common Scenarios Owned vs. Non-Owned Lessee or Lessor or Sub-Lessee Lab Relocation from One Site to Another Internal Move inside a Facility Build-Out and Move into another area Renovation Closure of Facility

Liabilities When Entering Space Previous use? Poor housekeeping by previous occupants Residual chemicals (surfaces, drains, HVAC, etc.) Unknown or poorly documented decontamination activities Exposures to renovation contractors or new occupants

Liabilities When Leaving Space Lease obligations What standards? Uncertainly if space is clean Renovating contractor safety Liabilities associated with re-cleaning Claims after vacating space Unexpected costs!

ANSI Standard, August 2008 ANSI Laboratory Decommissioning Standard is a new industry standard. Decommissioning Assessment Report Conduct sampling and analysis and prepare Decommission Plan Remediate and decontaminate Completion of Final Decommission Report

Benefits of ANSI 1. Accurate assessments 2. Ensures proper decontamination in accordance with developed plan 3. Establishes performance standards for defining clean 4. Mitigates additional costs for re-cleaning 5. Document provides protections

EH&S Initial Assessment & Needs Analysis Site specific investigations (inspection, interviews, government review, etc.) Past activities determined and future use Identification of potential contaminants Identify all stakeholders Regulatory requirements Financing

EH&S Initial Assessment & Needs Analysis Initial lab closeout Bulk chemical removal Radiation survey Biological decontamination Intrinsic hazardous materials Lead paint, PCBs, asbestos containing materials, mercury, etc. Assess for remaining EH&S Concerns Initial Assessment Report

EH&S Site Investigation Coordination with all Stakeholders Develop Site Investigation Scope of Work Field Sampling Plan EH&S Plan QA/QC Perform Site Investigations General observations Sample collection Instrumentation Analytical Assess investigation data Documents likely contamination, if any Used to develop decontamination contract and plan

EH&S Decommissioning Plan Scope of Work List applicable regulatory compliance EH&S Plan QA/QC Design remediation Areas of decontamination or remediation Outline schedule for contamination of areas Specific work activity procedures Waste management Verification sampling & analysis Compare to risk criteria and QA/QC plan

EH&S Decommissioning Plan - Cont Sampling & Analysis Site Specific Chemicals of Concern RCRA Metals PCBs Perchloric Acids (Fume Hoods) Picric Acids Pesticides Dioxins

Decontaminations Chemical Radioactive Biological

All Decontaminations Typical Decontamination Areas to consider: Fume Hoods & Bio-Cabinets Bench Tops Drawers & Cabinets Floor and Wall area s Instrumentation Sink Traps - Possible Mercury Chemical Storage Areas Cold Storage Rooms Neutralization Tanks

Chemical Decontamination Chemical inventory review Chemical move Duct Staining How clean is clean Benchtop streaking Security and signage

Biological Decontamination Agents Used Safety Protocols Hoods/Cabinets Appropriate Disinfectants

Radiological Decontamination Time Issues Stop all activities Allow >45 days Submittals Survey Plan Survey Stickers/Traffic Scintillation equipment Final Status Review Report

Demolition Considerations Waste in Need of Special Attention: Lead Paint Asbestos (flooring, tiles, etc.) PCB Material (capacitors, transformers, caulking, etc.) Mercury containing devices CFC Devices (ACs, refrigerators, etc.) Exit Signs Possible Radiation

Post Decommissioning Report Report to Include the Following: Verification work was conducted in accordance with Decommissioning Plan Visual Inspections Before/After Pictures Clearance Sampling Documentation Chain of Custody Waste Disposal Paperwork Post Decontamination Surveys

Post Decommissioning Report Cont. Statement of Acceptable Level of Risk Signed by CIH Review of Plan & Report acceptable level of risk Confirm ANSI Standards Records of decontamination Activities For Future Reference Reports limit potential liability when occupying, Lesseing or leaving space

Real Estate Transfer Lenders and purchasers perform due diligence investigations on real estate prior to transfer CERCLA Liability Protections through All Appropriate Inquiry Investigations lead to understanding a property s environmental liability. Parties negotiate equitable property value and conditions of the transaction if the sale proceeds.

Property Assessment Environmental consultants for buyers and sellers scrutinize and document property use to identify through Phase I s or Phase II s and Recognized Environmental Conditions Clear documentation of laboratory decontamination eliminates concern during real estate due diligence.

Thank You!! Panel Discussion Ross Hartman, RHartman@Triumvirate.com Kevin Brayton, KBrayton@Triumvirate.com Craig Sasse, CSasse@Triumvirate.com Ron Souza, RSouza@Triumvirate.com Ann M. Sobolewski, asobolewski@pbl.com