Targus’ client sought to renew or seek replacement of a prior environmental insurance policy and evaluate disposition options. The prior history of releases and resulting contamination warranted research to confirm that conditions had been rendered satisfactory for the purposes of the insurer and hypothetical prospective purchaser.
Targus reviewed a prior Phase I Environmental Sits Assessment and secured and evaluated additional state environmental regulatory documents pertaining to the subject property, a retail center. The subject property encompassed approximately 10 acres improved with six buildings adjoining a former drycleaning business. The drycleaning facility, Ho Cleaner, had been utilized for tetrachloroethene (PCE)-based dry cleaning operations for several years in the 1990s. A PCE release was confirmed to have affected water beneath the former drycleaner extending beneath the subject property. The degree and extent of contamination had been assessed and was defined in both shallow and deep groundwater, which information had been reported to the North Carolina Department of Environmental and Natural Resources (NCDENR, predecessor to the Department of Environmental Quality [NCDEQ]). The dry cleaner entered into the state Dry-cleaning Solvent Cleanup Act (DSCA) program.
In addition to defining the degree and extent of contamination, available assessment reports documented that PCE was the only contaminant and that groundwater was the only “non-source” (as distinct from “source”, being the dry cleaning facility) affected medium requiring control. The provided risk assessment was confirmed to address the required “non-source” receptors, points of exposure, considering pathways that included indoor and outdoor vapor inhalation for non-residential workers and potential construction workers. The local groundwater was confirmed to be an unused and non-beneficial resource.
Future land use was governed by Land Use Restrictions (LURs) that had been recorded for the affected subject property (a “non-source” facility) in the Notice of Dry Cleaning Solvent Remediation (NDCSR) for the source facility (Ho Cleaner) certified by the NCDENR. The Risk Management Plan on which the LUR was based had been approved by the NCDENR and called out necessity of prohibiting: use of groundwater underlying and downgradient from the source property; residential occupancy; activities that expose groundwater; and activities that cause vapor intrusion risk. The LURs were implemented at the source property and became effective upon recordation. Targus documented that annual LUR updates (LURUs) had been submitted as required. Since the contaminant concentrations beneath the subject property were demonstrated to be less than prior and updated NCDEQ risk-based screening levels, Targus opined that the groundwater impact constituted a controlled recognized environmental condition. As a result, the policy renewal and transaction were able to proceed as desired.
