CERCLA Financial Responsibly For Mining Industry

Section 108(b) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980 establishes certain authorities concerning financial responsibility requirements. U.S. EPA is currently developing a proposed rule to establish financial responsibly requirements for the hard rock mining sector. EPA has already identified classes of hard rock mining facilities for which financial responsibility requirements will be first developed. In 2009, EPA identified classes of facilities within the Hardrock Mining industry as its priority for the development of financial responsibility requirements under CERCLA Section 108(b). In that notice, “hardrock mining” was defined as the extraction, beneficiation, or processing of metals (e.g., copper, gold, iron, lead, magnesium, molybdenum, silver, uranium, and zinc) and non-metallic, non-fuel minerals (e.g., asbestos, phosphate rock, and sulfur).

The proposed rule will establish requirements for financial responsibility, as well as notification and implementation requirements. EPA currently estimates that the proposed rule will be published in April 2011.

Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

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Energy Audit Basics - Types of Energy Audits

Energy efficiency experts generally recognize three levels of energy audits depending on the time and effort spent during the audit and analysis:

Level I, basic. This approach involves a cursory analysis of energy bills and a brief survey of the building to produce a rough estimate of how efficiently energy is used in the building. This level of effort will detect at least some of the "low-hanging fruit" and may suggest other options worthy of more study, but should never be viewed as comprehensive.

Level II, intermediate. This method provides a breakdown of how energy is used in the building as well as a broader range of savings options, including simple capital investments. It accounts for the "people factor" and its effect on uncertainty of savings, and also explores maintenance procedures and assesses any impacts savings measures may have on them.

Level III, advanced. This analysis digs into the details of any large capital projects you may be considering as a result of previous, simpler audits. Even more detailed data is gathered from field equipment, extensive test measurements are taken which may include spot-measurements and short-term energy monitoring, possible risks are assessed, and intensive engineering and economic analysis produces reliable estimates of project energy and financial performance with the high confidence needed for major capital projects.

Caltha LLP assists building owners and property managers in conducting commercial energy audits. To request a quote on-line, go to Caltha Quote Web Page.

For further information contact Caltha LLP at

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Should a Property Seller Conduct a Phase 1 Assessment?

In most property transactions, the Buyer and the Lender(s) have a keen interest in the condition of the property. This information, in part, is , of course, used to determine the fair price offered for the property and/or business. During this period, the Seller is most vulnerable –information gathered by the Buyer can be used to negotiate a lower purchase price. But, more importantly, a Seller can be responsible for any clean up or other actions required, whether or not the Buyer actually closes on the property. This information also becomes part of the record which may need to be disclosed to future prospective Buyers, in the event that the current Buyer drops out.

Therefore, Sellers need to be actively involved in all assessments of their properties. This article highlights some of the key considerations all Sellers should bear in mind.

First –expect that prospective Buyers will conduct an environmental assessment of the property. Because Landowner Liability Protections (LLPs) are available to prospective purchasers only if they performed an Environmental Site Assessment prior to closing, many Buyers will routinely conduct an assessment, regardless of any perceived risks. Beyond this, most Lenders will require some level of environmental review prior to issuing any loans. Assuming that prospective Buyers will want some level of environmental assessment, the first question Sellers should ask themselves is whether or not to conduct an assessment themselves, and provide a copy of the report to perspective Buyers. This obviously adds a small “up front” cost to selling the property; however, there are some clear benefits with this approach…

• Allows the Seller to preview the same information the Buyer will have access to;
• Identifies any issues early, allowing time to address them, rather than learning of issues from the Buyer late in the transaction process;
• Avoids further environmental reviews, if the reports are accepted by the Buyer and/or Lender

Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
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Environmental Assessment of Rural Agricultural Or Forestland Properties

Conducting a Phase 1 Environmental Site Assessment for a large, predominately undeveloped property presents special challenges when using the ASTM Standard Method E 1527 (Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process). A different ASTM Standard, E 2247 – 08 (Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property) was developed to address these issues. The purpose of E 2247 – 08 standard is to define good procedures for conducting a Phase I environmental site assessment of forestland or rural properties. To qualify for use of the ASTM standard, the property needs to meet certain criteria relating to size and land uses.

Like other ASTM standard practices, a valid ESA must be conduct by professionals meeting specific qualification requirements.

As with other ASTM standards for Phase I Environmental Site Assessments, the standard only addresses 1) contaminants within the scope of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and 2) petroleum products. Persons using the ESA report might want to consider additional issues which are outside the scope of the Phase I ESA, including:

• Asbestos-Containing Building Materials,
• Best Management Practices,
• Radon,
• Lead-Based Paint,
• Lead in Drinking Water,
• Wetlands,
• Regulatory compliance,
• Cultural and historic resources,
• Industrial hygiene,
• Health and safety,
• Ecological resources,
• Endangered species,
• Indoor air quality,
• Biological agents, and
• Mold.
  

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

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EPA Takes Public Comment On All Appropriate Inquiry Standard

The U.S. Environmental Protection Agency’s (EPA’s) Office of Solid Waste and Emergency Response (OSWER) has scheduled a listening session on EPA’s All Appropriate Inquiries standards, as promulgated as a final rule on November 1, 2005. The All Appropriate Inquiries rule (70 FR 66070) sets federal standards and practices for conducting all appropriate inquiries, as required under Sections 101(35)(B)(ii) and (iii) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).


The listening session will be held on March 17, 2010, from 9:30 a.m. to 12:00 (noon). The listening session will take place in room 1153 of the EPA East Building at 1201 Constitution Ave. NW, Washington D.C.


The purpose of the session is for EPA to listen to the views of stakeholders and the general public on the current standards and practices for all appropriate inquiries. EPA wants to provide stakeholders and the general public an opportunity to comment on the current implementation of the standards.


The listening session is open to the general public. Anyone wishing to provide their views to EPA on the rule, or to listen to the views of other parties, are invited to attend the listening session. Any person may speak at the listening session; however, EPA encourages those planning to make oral comments to pre-register with the Agency.

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
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Who Can Conduct Phase I ESA - All Appropriate Inquiries

The individual who supervises or oversees the conduct of the AAI investigation or Phase 1 Environmental Site Assessment and signs the final report required in the AAI regulation must meet the definition of an “Environmental Professional” provided in the AAI Final Rule (40 CFR §312.10).

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
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When Must All Appropriate Inquiries Be Conducted?

When must All Appropriate Inquiries be conducted?


All Appropriate Inquiries must be conducted or updated within one year prior to acquiring ownership of a property. Certain aspects or provisions of All Appropriate Inquiries (i.e., interviews of current and past owners, the review of government records, the on-site visual inspection, and searches for environmental cleanup liens) must be conducted or updated within 180 days prior to acquiring ownership of a property .

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
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Caltha LLP Website

What is All Appropriate Inquiry?

“All Appropriate Inquiries,” or AAI is the process of conducting due diligence or a Phase I Environmental Site Assessment to determine prior uses and ownership of a property and assess conditions at the property that may be indicative of releases or threatened releases of hazardous substances at, on, in, or to the property. The standards and practices established as comprising “All Appropriate Inquiries” are set forth in regulations promulgated at 40 CFR Part 312.

EPA recognizes two ASTM International Standards as compliant with the AAI requirements: ASTM E1527-05 “Standard Practice for Environmental Site Assessments: Phase I EnvironmentalSite Assessment Process” and E2247-08 “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property.”

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

SEC Guidance On Disclosing Climate Change Business Risks

On January 27, 2010, the U.S. Securities and Exchange Commission (SEC) voted to issue new interpretive guidance as to when business risks associated with climate change trigger mandatory disclosure requirements. SEC's guidance highlights the following areas as examples of where climate change may trigger disclosure requirements:

• Impact of Legislation and Regulation: When assessing potential disclosure obligations, a company should consider whether the impact of certain existing laws and regulations regarding climate change is material.
• Impact of International Accords: A company should consider, and disclose when material, the risks or effects on its business of international accords and treaties relating to climate change.
• Indirect Consequences of Regulation or Business Trends: Legal, technological, political and scientific developments regarding climate change may create new opportunities or risks for companies. As such, a company should consider, for disclosure purposes, the actual or potential indirect consequences it may face due to climate change-related regulatory or business trends.
• Physical Impacts of Climate Change: Companies should also evaluate for disclosure purposes the actual and potential material impacts of environmental matters on their business.
  

The new SEC guidance clarifies that when complying with disclosure requirements, public companies should consider impacts of proposed and pending climate change legislation, regulation and international accords, indirect consequences of regulation or business trends, and actual and potential material impacts of environmental matters on their business. A formal SEC's interpretive release is expected to be released shortly and posted on the SEC website.

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website