Hot Environmental Topics

If you are buying a property for commercial use, you need a Phase I ESA to protect your financial interests in the property. Unfortunately, not every building was for sale when you were looking, so your search took months not weeks to find the right property.  To hasten the purchase, you are paying cash and avoid any bank delays,  but intend to get a mortgage after purchase.  The seller wants to settle fast, as they have owned the property for 26 years and are ready to move on.  Your attorney wants to protect your interests with Phase I.   You want to know when should the settlement date be.  So let's do a quick rundown of the timeline for Phase I.

Most Phase I's can be properly completed in 2 to 3 weeks. Some Phase I's can take 4 to 6 weeks.

Some Phase I's take even longer.

Why is the time spread different with each Phase (I,II, III)?

1. We start working on Phase I within 24 hours after a client engages Curren.  (Engage meaning signed contract, & payment).  This is the industry standard.
2. Part of starting the Phase I is acquiring historical records on the property.  Some of these records are purchased by companies that sell such records, it can take a few days to acquire these records.
3. Another aspect of a Phase I is requesting public records from local, county, and state agencies, these records are public records and can take five (5) to nine (9) business days to obtain from the government agencies.  You are dealing with the government, so it takes time.
4. There is also an owner interview and questionnaire as part of the process.  If the owner is unavailable, like in Cuba for two (2) weeks, well that delays this aspect.  Sure, we can interview a less knowledgeable party like the employee who worked at the property for 2 years, but wouldn't you rather have us interview the person who has 25 years of experience with the property?
5. On week two after contracting for the Phase I, you do your site visit, because by now you have obtained and reviewed historical records so you know about the property but need to walk the site to evaluate operations, chemical storage in short things that could affect the property on an environmental basis.  The historical research is looking at potential past environmental impacts to the property.
6. End of the second week or week three (3), the Phase I is complete, it gets peer-reviewed, digitized, and submitted.  You can also ride a unicorn to the settlement table.

What delays the Phase I?

Government records, perhaps you find there are 5,000 pages of documents at the state environmental agency, and it will take four (4) weeks to get those files out of storage and no the owner doesn't have any of these records. 

The owner delays our site inspection and doesn't want to get interviewed, which happens all the time.  Most people who bought a property skipped the Phase I and are not too keen on you doing an environmental assessment on the property.

The Phase I finds an Area of Concern (AOC) or a Recognized Environmental Condition (REC) that is not properly documented.  Oh, and we hear owners say how EPA was on site and checked everything.   Well, if the EPA is federal and if they came on site to evaluate anything, go buy another property because the issues are so bad on this site you need a Federal agency involved whereas the state agency would manage environmental issues on almost all sites.  Been doing environmental consulting since the 1990's I can count on 1 hand how many EPA-involved sites I have dealt with.   So these open issues require further evaluation, perhaps even testing, add a month or more.

Lastly, the Phase I finds a suspect issue that warrants a Phase II (testing).  It happens, it happens a lot, now someone has to spend more money to look for a problem and even more money if a problem requires remediation.     For example, a client is buying a building next to their own office building.  Phase I finds an old UST owner that said it was EPA approved (it was not).   The tank has to be removed and tested and oh it leaked and the tank hasn't been used in 15 years, yes owner forgot to mention it in the interview.  The realtor knew but also said it was all closed out and said this with a straight face and zero documents to support this claim.  Phase I finds a gasoline plume that appears to extend onto the property.  Legal, but the buyer wants to build another office building and this contamination can warrant a vapor barrier as part of the construction.  This adds cost and devalues the property for buyers who may want a concession in a price reduction.

Many companies will not tell you the downside of environmental work, but at Curren we believe in managing client expectations.  Sure, we do many Phase I reports in 2 weeks flat but many are not and by the time you call us you likely already have a due diligence end date AND settlement date,  Both of which were made before any environmental due diligence was performed. 

Lead paint was ubiquitous because it was durable, resisted moisture, and dried fast, two highly prized attributes for paint.  The problem is lead paint was demined that human consumption of lead, via dust or paint chips, generated by deteriorating lead paint was a serious health hazard and in 1978 the Consumer Product Safety Commission banned lead in paint for residential use.  For the record most similar developed nations banned lead paint decades before the United States did.

Unless you complete a lead paint inspection, which is a surface-by-surface inspection of building material for lead paint, you assume that lead paint is present.    More about lead paint inspections can be found at  Lead Paint Inspection.

So you test to know 100% if and where lead paint is present or you assume paint or stain is lead-based.   

You can also have a limited lead paint inspection done when you are having renovation performed.  Limited area-specific lead paint inspections cost less because they take less time to complete. Questions?

Why should you care about lead paint?

1. Kids consume lead paint as it has a sweet flavor, and lead paint has long-term effects on children.  Lead doesn't leave your body.
2. When you renovate the lead paint dust that was generated from deteriorating lead paint, well it's lead-contaminated dust, and yes you are inhaling it, which means your children are inhaling lead. 
3. Hazard control is all about controlling your exposure pathway.  You don't want any chemicals where kids can come in contact with them, because you know chemicals are hazardous.   If you know where lead paint is in your home you are better prepared to manage it.
4. At Curren we recognize the risk of lead and care, so we discount the cost of lead paint inspections for residential sites to encourage people to perform the inspection. 

The contractor working on the lead paint must also be certified.

Any renovation, repair, or painting (RRP) project in a pre-1978 home or building can easily create dangerous lead dust. EPA requires that RRP (Renovation, Repair, Painting) projects that disturb lead-based paint in homes, childcare facilities, and preschools built before 1978 be performed by lead-safe certified contractors. Generally, EPA’s Lead RRP rule does not apply to homeowners doing RRP projects in their own homes. However, it does apply if you rent all or part of your home, operate a child care center in your home or if you buy, renovate, and sell homes for profit (i.e., a house flipper).

Learn About Lead Paint Inspection - 

Lead Paint FAQ

Lead Paint Inspections

The New Jersey Lead Safe law is making lead a concern for rental units, both tenants and landlords.    NJ’s New lead-based paint law went into effect on July 22, 2022, and affects ALL pre-1978 rental properties.   So if you are a landlord of a unit built before 1978 and you have not received a lead paint designation, you are subject to the law.  The law is also being called the Lead Based Paint Hazard Law.

How Can Curren Environmental help with compliance with lead inspections?

We understand common causes of paint deterioration and we will help you identify areas with problems (BEFORE WE INSPECT), it is essential to understand the cause of the damage to repair the paint. Our inspectors will talk you though what areas are common failures, which you can look for and address prior to inspection.     When Curren does inspect and if we find deteriorated paint, we will look for the cause of the deteriorated paint, so when you repair the issue it will not return.  Common causes of paint failure include:

Moisture damage
Friction and impact
Poor surface preparation

Deterioration of the building material

All single-family, two-family, and multiple-rental dwellings must be inspected.

This new lead law is being referred to as, New Jersey’s Lead Safe Certification and requires lead-paint inspections, visual &/or dust wipes on all nonexempt rental properties at tenant turnover or before July 22, 2024.  This means 1st inspection must be completed by July 22, 2024.   The inspections are perpetual. A lead-safe certificate is good for two (2) years but can last as long as three (3) years before a reinspection is needed if the tenant remains in the unit from the 1^st 2 years of issuance of the lead-safe certificate.

 What does the Lead Safe Certification lead law require of a property owner?

 If you rent a pre-1978 property that does not qualify for one of the exemptions, beginning July 2022, you will be required at a minimum to have a visual lead-paint inspection.  When we say the minimum, some towns have children with elevated lead blood levels, so units in these municipalities also require that lead dust wipe samples be obtained as part of the inspection.

Visual Inspection:  Just as at sounds like, visual lead inspections look for hazards.  How does one identify lead-based paint hazards?  Lead-based paint hazards is deteriorating lead-based paint peeling, chipping, chalking, cracking, or damaged paint. Lead dust can form when lead-based paint is scraped, sanded, or heated. Dust also forms when painted surfaces bump or rub together. Lead chips and dust can reside on surfaces and objects that people touch.

We examine all painted building components for deteriorated paint or visible surface dust, debris, or residue. We look for paint chips or dust from painting activities that were not cleaned up and paint residue on floors.

Where does the NJ lead safe certification require inspection be performed in a rental unit?

The initial lead inspection including subsequent periodic lead-based paint inspection applies to interior spaces within dwellings. This is interpreted to include any common areas that tenants of a rental dwelling have access to, including hallways and basements, in two-family and multiple dwelling rentals.   In short you are inspecting interior areas, exterior areas such as porches  are not part of the inspection. 

Who can perform lead inspections for rental units?

The lead inspection can only be done by  

1) Municipal local agency inspection program,  

2) NJ DCA-certified Lead Evaluation contractor hired by the municipality

Or

3) the property owner can hire directly a NJ DCA Certified Lead Evaluation contractor to provide the required inspection services. 

No matter who the lead licensed individual is, there is a fee for the lead inspection. The lead inspection fee is outside of the $20 fee the lead law requires the municipality to collect on a per-unit basis.

Visual Lead Inspections

Landlords can hope for the best outcome from the lead inspection, which is that no lead-based paint hazards are found during the inspection, and the local agency or the DCA-certified lead evaluation contractor can certify the dwelling unit as lead-safe on a form prescribed by the department of Community Affairs.

A failure of the lead inspection would be that lead hazards are found, then the property owner must address the hazard.   Properly addressed by means of either lead-based paint abatement or lead-based paint hazard control methods.   Additionally, if the lead evaluation entity (municipal or private) finds that a lead-based paint hazard exists in a dwelling unit upon conducting the inspection under this law, the lead evaluation contractor or permanent local agency shall notify the Commissioner of Community Affairs.

The photo below is a friction surface. Old door, multiple coats of paint and freshly painted.  When you open and close the door the door rubs, the newer white paint has rubbed off and an older layer of paint (green) is visible.  This would fail an inspection.

Lead hazards that are addressed require a lead re-inspection. Specifically, the lead law states that “upon completion of correcting any lead-based paint hazard identified during the visual Lead Safe Certification Inspection”, the Lead evaluation contractor or permanent local agency shall conduct a follow-up inspection (visual &/or dust wipes) of the unit to certify that the hazard no longer exists.  

The lead law places documentation and notification requirements on property owners. Owners are required to provide copies of all Lead Safe Certifications (per unit) and leases to the DCA inspector during their five (5) year multiple dwelling inspection.  Property owners are also required to provide copies of a current or newly issued Lead Safe Certificate to new residents specific to the unit they will be renting as part of the lease documents.

If a resident resides within the unit during the re-lead safe certification renewal cycle for three (3) years, the resident must sign a copy of the Lead Safe Certification.   This documentation must be maintained by the owner and made available during future DCA inspections.   Compliance is mandatory under the law failure to follow failure to comply can incur fines of up to $1000 per unit per week.

What to do to get ready for compliance?  Call Curren Environmental, we have been consulting on environmental issues in real estate since the 1990s.

888-301-1050

Do you think your property is exempt from lead inspections? The property must meet the following criteria: 

1. The property has been certified to be free of lead-based paint,
2. The property was originally constructed during or after 1978,
3. The rental unit is in a multiple dwelling that has been registered with the DCA as a multiple dwelling for at least 10 years either under the current or a previous owner and has no outstanding lead violations from the most recent cyclical inspection performed on the multiple dwelling under the “Hotel and Multiple Dwelling Law,”
4. Is a single-family or two-family seasonal rental dwelling that is rented for less than 6 months duration each year by tenants that do not have consecutive lease renewals; VRBO rentals fit this definition as long as the lease is shorter than 6 months per rental.
5. Dwellings that have been certified to be free of lead-based paint under N.J.A.C. 5:17-3.6(b).
6. The unit is owner-occupied.

Pro Tip

If you have not tested for lead-based paint and the property is pre-1978 original construction, the law states you must assume it is lead-based paint.

What is Environmental Due Diligence?

Environmental due diligence is the process that evaluates the environmental conditions and risks associated with a property. The process can be at the request of land developers, lenders, attorneys, or private owners who intend to purchase, refinance, or occupy a property.

The rub with performing environmental due diligence in real estate is buyers spend countless hours researching properties to purchase and when the right one is found, no one wants a delay or a cause a problem.

Environmental due diligence is essential for anyone looking to buy a property, whether commercial or residential. Hidden environmental liabilities are a massive problem you can face when purchasing a property that has not been evaluated for environmental due diligence; before making any large real estate transactions, make sure to understand the importance of this process.

When Is Environmental Due Diligence Required?

Lending institutions typically require environmental due diligence before they will finance a real estate purchase, refinance an existing loan, or accept collateral for a construction loan. If a cash buyer is involved, it is up to them to decide if a Phase I or other form of due diligence is necessary.

Who Benefits from Environmental Due Diligence?

Anyone purchasing a property can benefit from environmental due diligence, even if a lending institution is not involved in the sale. The process reduces the chances of someone purchasing real estate inheriting ecological concerns created by the former owners, it also provides an essential legal defense should issues arise.  Buyers get to know if there are environmental issues.  Sellers, although they typically would prefer a buyer not do due diligence, can avoid liability after the sale in the event contamination is found when a Phase I was not performed.  Lastly, lending institutions ensure that their loan is protected from contamination that can diminish the value of the asset.  A million-dollar property with a $400,000 cleanup is not worth 1 million dollars.

How Does Environmental Due Diligence Protect You?

Suppose environmental due diligence is performed before purchasing a property. In that case, the purchaser can gain protection from being held accountable for any pre-existing contaminations on the land according to the Comprehensive Environmental Response, Compensations, and Liability Act provisions. If this process is not completed, the new owner can be held responsible for repairing the contamination.

Buyers can also avoid being hit with the cost of environmental cleanup.   After completing tens of thousands of property transactions, the cleanup of sites is most commonly found when the current owner was lax in performing any environmental due diligence.     There are many properties that are being sold or planned to be sold that have been held by the owner for a number of years and they never did any environmental assessment of the property.  

What Does the Comprehensive Environmental Response, Compensation, and Liability Act (CERLCA) Require?

CERCLA establishes the process of determining who is liable for any hazardous substances on a property. Any property owners who are found to violate environmental due diligence can have to pay fines and fix the issues are their own expense, even if they aren’t responsible for the original contamination. Merely owning a contaminated property is enough to make you liable in the eyes of the law; this is why environmental due diligence is so necessary.

What is common Environmental Due Diligence?

The most common environmental due diligence is performing a Phase I ESA.  Phase I is an investigation into past and current ownership and uses of a property to assess the potential existence of hazardous substances or petroleum contamination on, in, or at a property.  It will even look at neighboring properties to see how they can affect the target property.   A Phase I ESA investigation is purely research and a site visit.  There is no testing during Phase I because you don't know if you have to test a site until Phase I is completed.   

There is a level of service you can expect from Phase I as they must be completed by an “environmental professional”.   The goal of the Phase I ESA is to identify recognized environmental conditions (“RECs”) that may affect the property or trigger liability for the buyer and determine whether further due diligence in regard to the RECs is appropriate.  Further evaluation can be Phase II or Phase III.  More about a Phase II & III can be found here  Phase II,  Phase III

A great resource with questions and answers regarding Phase I's can be found below. 

Phase  I  FAQ

Due Diligence Questions?  Call the Experts

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"Why would I have my home inspected or assessed for lead paint risks?"

1. Your child has been diagnosed as having lead poisoning. The most common home-based source of lead exposure is deteriorating lead-based paint which results in settled dust that young children can encounter.  
   
2. You live in a home built before 1978 where small children are or will be living.  Lead paint was banned nationally in 1978, some states banned lead paint earlier.
3. You are going to remodel, take down walls, enlarge a room, etc., anything that is going to disturb lead-based paint or generate lead-based paint dust and chips that can harm you and your family.
   

When buying a home, federal law allows the purchaser to conduct lead testing to determine whether lead-based paint or lead-based paint hazards are present. This is of particular importance if you have or plan to have young children in the home, but what type of lead inspection do you need, Lead Paint Inspection or Lead Paint Risk Assessment?

If you are concerned about possible lead exposure to you, your family and pets, or visitors, then knowing if a hazard exists and where is the first line of defense against the hazard. 

What is the difference between a Lead Paint Inspection (LPI) and Lead Paint Risk Assessment?

A Lead Paint Inspection (LPI) is a surface-by-surface investigation to determine whether there is lead-based paint in a home or child-occupied facility, and where it is located. Certified inspectors or risk assessors can only perform lead Paint Inspections. Lead-based paint inspections determine the presence of lead-based paint.  Lead Paint Inspections utilize an X-Ray Fluorescence device to establish the presence, if any, of lead-based paint. XRF units produce x-rays and allow the user to determine on-site if a surface contains lead paint.  Inspections by using testing equipment. It is beneficial in determining whether lead-based paint is present prior to purchasing, renting, or renovating a home, and identifying potential sources of lead exposure at any time.

A Lead Paint Risk Assessment is an on-site investigation to determine the presence, type, severity, and location of lead-based paint hazards (including lead hazards in paint, dust, and soil) and suggests ways to control them. Risk assessments can be legally performed only by certified risk assessors. A Risk Assessment does not have to test for lead as most inspections are performed with the presumption that lead paint is present.

You can also have a combined inspection and risk assessment.  With any of these options, the risk assessor or inspector will provide you with a written report of findings.

Lead Paint inspections determine if lead is present and where on the property.  A lead paint risk assessment presumes lead paint is present and assesses hazards associated with lead paint.

Lead Paint Inspection Procedure

The lead-based paint survey begins with inspectors/risk assessors walking the subject property and documenting room equivalents, testing combinations, and selecting test locations all while looking for lead-based paint. The walls/sides of the property are distinguished by Side A, B, C, or D. Wall or side A is facing the street, then moving clockwise would be wall/side B, C (located at the rear of the property), and D. After the testing strategy is determined, the inspector/risk assessor uses a Lead Paint Spectrum Analyzer (XRF) to determine the lead content (mg/cm2) of painted surfaces at the subject site.  Surfaces with paints or coatings with concentrations of 1.0 mg/cm2 or greater are considered lead-based paint. The inspection follows  EPA’s work practice standards for conducting lead-based paint activities (40 CFR 745.227), the U.S. Department of Housing and Urban Development (HUD) Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing (Guidelines), and all State and local regulations.

Lead Risk Assessment Procedure

Lead risk assessment entails a comprehensive visual evaluation of potential lead hazards, including lead-based paint, lead dust, lead in water, and/or lead in soil.  Testing can be completed as part of risk assessment. If you have questions regarding lead paint inspections please give our office a call.

Lead-Based Paint Inspections in Rental Dwelling Units as per  P.L. 2021, c. 182 aka New Jersey's Lead Safe Law July 2022

What New Landlords need to Know

July 22, 2022, New Jersey’s newest lead-based paint law is now in effect and the law affects all pre 1978 rental properties. The law is being referred to as New Jersey’s Lead Safe Certification and requires rental property owners to complete a lead paint inspection. The inspection is either visual or visual and wipe sampling depending on the municipality.

What landlords need to know

The New Jersey lead law requires that the landlord of residential properties (apartments, houses, duplexes, etc.) hire a certified lead evaluation contractor to perform inspection on target properties single family, two-family and multiple rental dwellings for lead-based paint hazards every three years. The first inspection must be completed by July 22, 2026, or at tenant turnover if that occurs prior to July 22, 2026.

If your rental property has not had lead testing performed previously and you would have obtained a Lead Free certification, then you are to assume lead paint is present and have the lead paint inspection performed. In short if you don’t have paperwork stating the building has no lead paint you must perform the required inspections.

Curren Environmental offers lead based paint risk assessments and lead based paint inspections for NJ property owners.   888-301-1050

Visual Lead Safe Certification: The Curren certified lead inspector will perform a visual inspection of all interior areas of the rental unit, looking for deteriorated paint. New Jersey considers deteriorated paint to be chipping, peeling or flacking paint.   If no deteriorated paint is found the rental unit owner can receive a Lead Safe Certificate which is good for 2 years.

For example, one of the photos below would pass the lead safe inspection, the other would not.

Dust Wipe Testing for Lead Safe Certification:   The Curren certified lead inspector will perform a visual inspection of all interior areas of the rental unit AND obtain dust wipe samples for laboratory analysis.   If no lead is found by the analysis above government standards, the rental unit owner can receive a Lead Safe Certificate which is good for 2 years.

Call the Experts Since 1998

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Bank-owned properties with Environmental Issues.

Curren started dealing with Bank owned properties both residential and commercial starting in the 1990s.  Aside from the fact that buying a bank-owned property means you are buying a property that the owner will make no representations on, you are also likely buying a property with an environmental issue.  So due diligence is of paramount importance to protect your best interest.    For commercial sites a Phase I is mandatory and expect a Phase II.   For residential aside from a typical home inspection, you will need to pull the trigger on a tank sweep and mold inspection (be sure to get air sampling with the mold inspection).

Be double concerned if the bank-owned property was flipped.  

Flippers don’t do due diligence generally, so they are out looking for problems.  What issues have we seen with buying a flipped home $10,000 to $210,000 of Environmental remediation?  These costs relate to unhealthy levels of EDA leaching from the water pine, leaking oil tanks, hidden structural issues, and of course mold.

Pro Tip - We find mold issues in approximately 80% of former bank-owned sites.  The #1 reason is that the home was vacant and stuff happens when no one is home, like uncontrolled humidity and of course water leaks and rain entry into the structure that gets confidently covered over by the flipper.

Don’t Blame the Bank for Environmental Issues.

Unfortunately for both banks and borrowers, many mortgages fall into foreclosure with the bank taking title to the property.  Banks want to loan money not foreclose and clearly, people that obtain a mortgage do so with the intention of enjoying homeownership. 

But economic hardships happen,  in the 2007 recession thousands of homes had mortgages that were more than the property was worth, triggering a wave of foreclosures.  Mostly

The photo below, a restaurant that the bank owned.  The place sold and still smells of mold.

The rub with bank-owned properties is that the bank must take the asset back because the mortgagor is not paying the mortgage.  So if the house has a leaking roof,  the bank has to manage it.  Can you say mold?  Obvious issues with the home have to be addressed so the home does not decrease in value and is also in a condition where the house can be sold.    Undisclosed oil tanks are not an issue on the banks' priority list.  In practice, most banks are not equipped to process a foreclosed property.  Remember banks lend money, yes they have people to manage foreclosed properties but that is not their primary business so do not expect them to excel at it.    Banks are also looking to minimize their losses as they are now forced with taking a property back, so corners get cut. 

Did you know most banks once they take a property back utilities are shut off? If the house has a sub pump and it rains, well water fills the basement and mold grows. 

Pro Tip - Environmental issues can drive a property into foreclosure because the costs of remediation and the amount owed on the mortgage can exceed the property value.

The reality is with an uncertain economy, homes fall into foreclosure, making the bank responsible for the upkeep and future sale of the asset. Many of these properties have active and often times inactive tanks, and failing infrastructure, if you let the property fall into the bank's hands you don’t have the funds to maintain the property.  

Regarding tanks, the homeowner may have converted to natural gas, leaving the tank in place as it was just another expense.  Fast forward to today, the home is being sold "as is", the bank represents that a tank is onsite, but that’s it.  No warranties regarding contamination are expressed or implied.  

Buyer comes along and tests the tank because they are savvy enough to know tanks can leak and tank leaks are expensive to clean up.  They do a boring and find oil and either want to back out of the deal or want to know the cost for cleanup so they can negotiate the sales, and lower the cost of the purchase.  The problem is all they know is the tank leaked, clearly if the tank didn’t leak no cleanup is required no further worry.  What they don’t realize is that a tank leak is a whole other issue and you have to go into an investigative or diagnostic phase to determine the extent of the contamination.  Budget $3,000.00 to $5,000.00 on average to define (delineate) the contamination so remedial costs can be developed.  Delineation is akin to an architect drafting plans to build a home or an addition.  The architect's plans allow the owner to split costs on construction as the plans define things like the size of the house, the number of bedrooms, bathrooms, and type of windows, in short, the details that make up the bigger picture.  A delineation says the contamination goes 16’ deep, groundwater is 14’ so you have a groundwater issue, contamination extends 2’ onto the neighbor's property, 6’ under the house, etc. get the picture?  

A tank test says hey there is an oil by the tank, a delineation says where the oil stopped flowing.  It gives you a 3D map you can follow to determine how much soil needs to be removed.

Now, what buyer is going to spend thousands of dollars to figure out remedial costs the bank may not even agree to since the sale is as is?  The answer is not many, people hope that the leak only costs 5k or $10,000.00, when in reality the cost could be $70,000 or $110,000.  You don’t know until you wrap your hands around the size.

Your best outcome is either to bite the bullet and do the delineation so you can actually have real costs to clean up or push the bank to delineate so you can negotiate a purchase price knowing the cleanup is only $42,000.00.   What bank is going to give a mortgage on a property that needs $42,000.00 worth of cleanup?

Now I just discussed neglect of the property during bank ownership.  How about intentional damage?   We see it, you can imagine losing a property is stressful.   Well, it can drive people to do destructive things. Think pulling out the cooper plumbing lines, cutting electrical wires, hammering holes in Sheetrock, and even dumping chemicals in the ground. Yea the last one is real we had a $800,000 property become bank owned, and the owner dumped oil, gas, and other compounds in the ground.  A neighbor told us he drained a boat into the ground and dumped oil out of lawn equipment on the ground.  You really can’t make this stuff up.

Environmental issues relating to real estate are complicated, you can trust issues want a firm with over 2 decades of experience.  Call Curren at 888-301-1050.

It is not unheard of that buildings are built on top of oil tanks.  Definitely not a good idea, but the structure was typically built either before environmental regulations or without regard for the regulations, or the oil tank. 

Every oil tank that is underground and even under a building has the possibility of leaking.  When a tank leaks you may have to clean up the leak, which requires removing soils (soil remediation).  How do you do soil remediation when you have a structure over the tank?    The photo below is a garage, where the walls were supported and the floor and contaminated soil was removed.  

If you want to buy a house with a tank under the house or think of selling a house with a tank in this situation, think again.  The concern with oil tanks is they leak and if they leak you may have to clean them up and that can cost money.  I know a number of properties that owners tried to sell, but having a tank buried under the sunroom was a sticking point and prevented a sale.  The only way these houses went to the settlement table was by having the owner cut open and clean the tank and take samples to show the tank did not leak.  Yes, a project like this can cost thousands of dollars but these are costs that are the responsibility of the property owner even if they never used the tank and bought the house knowing a tank was under a structure. 

In practice, many tanks that are under a garage, house or porch we find are not leaking. Why?  Well because you have an umbrella over the tank being the structure.  The house keeps the tank dry which in turn inhibits rust.  Don't get me wrong some do leak, but the drier any metal is the more corrosion resistance will occur.

When decommissioning the tank, a confirmation that the tank did not leak can be acquired by soil sampling.  This entails entering and cleaning the tank of all residual petroleum compounds (liquid and sludge).  The empty cleaned tank can then be removed and soil samples acquired from the tank excavation.    But in the case of a tank under a building where removal is not practical, you can cut holes through the shell of the cleaned tank and obtain soil samples. 

So you see there is no reason you can't take soil samples from tanks that have been filled in place.  People who own tanks do not want to take soil samples because they may get bad results.  The saying goes if you do not test you have a 100% chance of finding nothing.

The photo series below is of a tank under the crawl space floor that was cleaned and tested.  The rub was that the tank leaked and remediation was necessary.  So contaminated soil had to be removed.

The tank was removed, and the soil contamination removed.  A picture is worth a thousand words.

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Licensed in Delaware  Pennsylvania & New Jersey

If you are involved with an oil tank removal project, it is probable your first tank removal and likely your last. The odds of you making the best decision are slim. Let’s agree that the best tank removal is one where the tank does not leak and you don’t have to remediate.

That said, you could expect a cost for tank removal on average to be about $1,800.00. This cost entails the time to get permits, equipment, and labor to excavate the tank, trained personnel to cut open and clean the tank, oil recovery, tank removal, soil sampling, backfill material, and labor, and ultimately a report from the company so you can document the tank removal. The tank report is completed weeks after removal and is performed in an office utilizing the notes and data collected from your site. Sounds like a lot for $1,800.00, well it is.

Let’s talk about what makes your tank removal the best tank removal.

Your cost is close to the average cost of $1,800.00. Why, well the firm that sells these services has to do the work at a market rate where they can make money. Otherwise, they are offering the work at a loss, with the plan that they will make the money on the backend, which is the remediation and even small remediation can cost over $8,000.00. You get what you pay for, remember that.

If you buy a house that had an oil tank, you want to know that the tank did not leak. The only way to know that is if you have testing completed. Being the owner of the tank you may think you do not want to have testing done, or else you may find a problem. After 25 years of dealing with tanks the bottom line question, everyone wants to know is if the tank leaked. Buyers and sellers because that answers can make or break a real estate transaction. Bottom line tank soil samples when the tank is removed

Why do many contracts for tank removal not include soil sampling? Short answer, it is cheaper. Soil samples cost $120.00 on average and with two soil samples being the average number acquired sampling can raise the cost by $240.00, plus the time to write a report that talks about the test results. Look, you are removing an old buried metal object, you are fooling yourself if you don’t think that rust and extensively have not occurred to the tank. Your low-cost tank removal company is counting on this and will be happy to give you a cost to remediate the tank once contamination is discovered.

Why do many contracts not include a report of the tank removal? Cost again is the culprit. If you write a report you need someone present during tank removal that will be taking notes, photos, and soil samples and will eventually sit behind a desk to type a report. That all takes time and there is a cost involved. The bottom line make sure the contract includes a report.

Tank removal site assessment soil samples when acquired for independent laboratory analysis provide quantitative, not qualitative data. New Jersey and Pennsylvania have one comparative standard for number two heating oil in the soil and that is by laboratory analysis. Visual, oil water agitation, or olfactory evaluations have no standards so you have no foundation to lay an opinion.

Residential tank removals do not specifically require that you obtain soil samples. This conflicts with the interest of a purchaser (mortgage or insurance underwriter) for a site when hard data is requested. Legally you do not need to test, if a buyer wants to test prior to purchase it is their due diligence and hence their cost. Obviously, it is less expensive to acquire samples from an open excavation at the tie of removal, as opposed to post-removal and backfilling.

What is the best tank removal? The best is one where testing and a report are provided as part of the tank removal. It is what is required for commercial sites, so why wouldn’t you do the same for a residence?