Download - Environmental Site Remediation
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The material provided herein is for informational purposes only and is not intended as legal advice or
counsel.
Environmental Site Environmental Site RemediationRemediation
LSRP vs. Environmental Consultant –LSRP vs. Environmental Consultant –Issues to Consider When Making the Issues to Consider When Making the
DecisionDecision
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Please help yourself to food and drinksPlease let us know if the room temperature is too hot or coldBathrooms are located past the reception desk on the rightPlease turn OFF your cell phonesPlease complete and return surveys at the end of the seminar
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Overview of the Site Overview of the Site Remediation Reform Act Remediation Reform Act (“SRRA”)/Licensed Site (“SRRA”)/Licensed Site
Remediation Professional Remediation Professional (“LSRP”) Program and (“LSRP”) Program and
Deadlines For ComplianceDeadlines For CompliancePresented by: Martha Donovan
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Reason for Enactment of Reason for Enactment of Site Remediation Reform Site Remediation Reform Act, Which Created the Act, Which Created the
LSRP ProgramLSRP Program
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What Did MA and CT Do in What Did MA and CT Do in Order to Address Their Order to Address Their
Remediation Case Backlog Remediation Case Backlog Through Licensed Site Through Licensed Site
Remediation Professionals?Remediation Professionals?
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What is a Licensed Site What is a Licensed Site Remediation Professional in Remediation Professional in
New Jersey?New Jersey?
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The Somewhat “Bumpy” The Somewhat “Bumpy” Transition in New JerseyTransition in New Jersey
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N.J.S.A. 58:10b-1.3 - N.J.S.A. 58:10b-1.3 - Remediation of Discharge of Remediation of Discharge of
Hazardous Substance; Hazardous Substance; RequirementsRequirements
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What About the Old What About the Old Cases/Those Pre-Existing Cases/Those Pre-Existing
11/4/09, Do We Need to Obtain 11/4/09, Do We Need to Obtain an LSRP?an LSRP?
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DeadlinesDeadlinesYes, NJDEP Really Means Yes, NJDEP Really Means
ItIt
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Other Important Other Important SRRA/LSRP IssuesSRRA/LSRP Issues
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Changes in Legal Changes in Legal Liabilities Under the LSRP Liabilities Under the LSRP
PrgoramPrgoramPresented by: Martha Donovan
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From the “Responsible From the “Responsible Party” PerspectiveParty” Perspective
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Same Issue From the Same Issue From the Consultant’s PerspectiveConsultant’s Perspective
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From the Client’s From the Client’s PerspectivePerspective
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From the LSRP’s and From the LSRP’s and Consulting Firm’s Consulting Firm’s
PerspectivePerspective
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From the Responsible From the Responsible Party’s PerspectiveParty’s Perspective
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From the Consultant From the Consultant (LSRP) Point of View(LSRP) Point of View
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From the Client’s Point of From the Client’s Point of ViewView
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From the Consultant From the Consultant (LSRP) Point of View(LSRP) Point of View
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You Get the Point?You Get the Point?
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Liability Issues to Fret AboutLiability Issues to Fret About(Both Responsible Parties and (Both Responsible Parties and
LSRPs)LSRPs)
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Presented by: Jeff Casaletto
Immediate Immediate Environmental ConcernsEnvironmental Concerns
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IEC Citations• Site Remediation Reform Act – N.J.S.A. 58:10C-2
(definition); N.J.S.A. 58:10C-16j (LSRP duty to report)• Technical Requirements for Site Remediation –
N.J.A.C. 7:26E-1.4 (reporting); N.J.A.C. 7:26E-1.8 (definition)*; N.J.A.C. 7:26E-1.14 (response actions and regulatory timeframes)*
• Administrative Requirements for the Remediation of Contaminated Sites – N.J.A.C. 7:26C-3.3(a)2 (mandatory timeframe)*
• IEC Guidance – Currently in draft form* [Not to be confused with Vapor Concern Guidance]
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IEC DefinitionA discharge that:1. Contaminates potable wells at or above
applicable standards2. Results in indoor air levels above screening
levels in Department's Vapor Intrusion Guidance*
3. Creates a toxic or harmful atmosphere in an occupied or confined space
4. Could result in an acute human health exposure, as further described in the Department's IEC Guidance
5. The catchall – any other condition that poses an immediate threat to the environment or to the public health and safety as further described in the Department IEC Guidance
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IEC Issues• LSRP reporting requirement• Regulation by guidance*• NJDEP oversight despite LSRP• Tight timeframes – immediate, 5-day*, 60-day*,
120-day, 270-day*• Mandatory timeframe* – March 1, 2011 or one
year from the date IEC required to be reported• Grace Period – all non-minor violations - $20,000
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
The Consultant’s ViewPhilip I. Brilliant, CHMM, LSRP
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
1. LSRP Obligation 2. LSRP as Advisor/Consultant – Outcome3. Success as an LSRP – the Profession!
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Extension of Mandatory Timeframes from 1 year to 2 years – except LNAPL;
Exercise “enforcement discretion” on regulatory timeframes;
Change the definition of an VI IEC from exceedance of Indoor Air Screening Levels to Rapid Action Levels. “Enforcement discretion” for tweeners.
PA for ISRA and SI for UST; and Initial Receptor Evaluation Requirement –
submit what you have by November 26, 2010.
BRILLIANT ENVIRONMENTAL SERVICES
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
When is an LSRP required? Anyone initiating remediation after November 4, 2009 needs an LSRP
Initiating remediation includes: 1) new discharge; 2) new triggering event under ISRA; 3) new PA, SI, RI, RAW, RAR which creates a new case; 4) case with existing NFA is reopened; 5) new person taking over remediation; 6) new deed notice or declaration of environmental restriction
Not a “new case” if you pass two prong test: Reported the original discharge/discovery of contamination as required by law, AND Have continuously remediated the site since then.
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
Overriding Concern of LSRP is Public Health, Safety and Environment Notification Requirements to NJDEP
Retention/Termination Discharge at site where LSRP is responsible Immediate Environmental Concern Client action or decision resulting in deviation from RAWP Material differences from prior reports
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
Temporary LSRPs – 406 New Cases Using LSRPs – 414 Cases Opting In – 522 (Shell, LNA, CFI)* RAO’s submitted – 17
As of September 8, 2010
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
Responsible Party to the NJDEP LSRP to the Board
The Board has not yet been established but will consist of 13 members
NJDEP Commissioner and State Geologist 11 public members, including 6 LSRPs, 3 from Statewide environmental organizations, 1 from a business organization and 1 from academic community
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
LSRPs have notification obligations independent of contracts Immediate Environmental Concerns – obligation to report by LSRP Due Diligence
Obligation to report where contamination discovered at sites for which LSRP is responsible
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
Area of Concern vs. Entire Site NJDEP issues NFAs; LSRPs issue RAOs RAOs receive the same liability protections afforded NFAs including Covenant Not to Sue Invalidation/Overturning:
NFAs Information not accurate or complete NJDEP can invalidate an NFA at anytime
RAOs NJDEP must find that remedy is not protective Can be audited up to three years after submission and invalidated/reopened
Obligation to submit entire file with RAO, including contracts, proposals, except for confidential documents
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BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
No contamination or 1 AOC (soil only) and historic fill = $450 2-10 AOCs, includes all UST sites, except unregulated = $900 11-20 AOCs, includes Landfills = $5,000 >20 AOCs = $9,500 Contaminated Media Additive = $1,400/media Example UST case with gw impact = $2,300/year
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Professional Judgment Clear, Accurate and Precise Contracts Open dialogue and discussion with client Fast response to NJDEP inspections Respect the fight that brought the LSRP
Program to New Jersey Reduction of Known Contaminated Sites Individual Reputation, not Company! Fast Acting and Fair Board
BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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For more information: http://www.nj.gov/dep/srp/srra/
Philip I. Brilliant, CHMM, LSRPBrilliant Environmental Services
(732) 818-3380 x [email protected]
BRILLIANT ENVIRONMENTAL SERVICES888-901-2537
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Increased Legal Increased Legal Liability Liability of LSRPsof LSRPsN.J. Site Remediation Reform Act =
Increased Responsibility/Liability of LSRPs
Presented by: Charles Miller
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
Areas of Potential New Risk
1. Professional Judgment Risksa. No more DEP approval of LSRP work
before remediation work beginsExample #1: NFA issued by NJDEP
vs. RAO issued by LSRP-Possible re-opener
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
Areas of Potential New Risk
1. Professional Judgment Risksa. No more DEP approval of LSRP work before
remediation work beginsExample #2: NJDEP decides financial assurance
vs.LSRP decides financial assurances- Excessive/Inadequate?- Errors in judgment impact on amount
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
Areas of Potential New Risk
1. Professional Judgment Risksa. No more DEP approval of LSRP work
before remediation work begins.Example #3: NJDEP decides interpretations of
regs vs. LSRP decides interpretations of regs- Wrong Interpretation
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
Areas of Potential New Risk
1. Professional Judgment Risks2. Documentation Risks
A. Record-keeping - SRRA places responsibility on LSRP to gather and maintain all records
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
Areas of Potential New Risk
1. Professional Judgment Risks2. Documentation Risks
A. Record-keepingB. Document submission
- SRRA places responsibility on LSRP to submit all retained documents when RAOs are issued- and DEP then posts those documents- Privilege issues?
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
Areas of Potential New Risk
1. Professional Judgment Risks2. Documentation Risks3. Conflict of Interest Risks
A. Due-Diligence DocumentsB. Privileged DocumentsC. IEC/reluctant client
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
Areas of Potential New Risk
1. Professional Judgment Risks2. Documentation Risks3. Conflict of Interest Risks4. Time-Element Risks
- LSRP now controls the clock
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
Areas of Potential New Risk
1. Professional Judgment Risks2. Documentation Risks3. Conflict of Interest Risks4. Time-Element Risks5. Risk of Reliance by Third-parties
- Third-party relies on LSRP’s RAO
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
1. Update documentation (proposals and contracts) to take into account added risks
A. Provision noting services will be in accordance with SRRA
B. Provision setting out LSRP’s obligation to maintain and preserve documents
C. Provision setting out LSRP’s obligation to submit documents
D. Provision setting out LSRP’s obligation to notify NJDEP under certain circumstances
E. Disclosure that failure to perform these obligations may result in fines/penalties
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
1. Update documentation (proposals and contracts) to take into account added risks.
F. Disclaimer of liability for client’s failure to:-Perform SRRA obligations-Fund remediation-Disclose relevant information-Follow LSRP’s recommended
actions
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
1. Update documentation (proposals and contracts) to take into account added risks
G. Disclaimer noting that issuance of RAO by LSRP is not a guarantee or warranty that the site is free of contamination, that the remediation complies with all legal requirements, or that it will be accepted by the NJDEP
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
1. Update documentation (proposals and contracts) to take into account added risks
H. Disclaimer noting that LSRP is not responsible for additional requirements imposed by NJDEP after review/audit, except to extent they arise out of LSRP’s negligence
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
1. Update documentation (proposals and contracts) to take into account added risks
I. Clearly set out responsibilities and obligations of LSRP and project owner
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Increased Legal Liability Increased Legal Liability of LSRPsof LSRPs
1. Update documentation (proposals and contracts) to take into account added risks
2. Review and update internal procedures, particularly as to document gathering and retention
3. Review insurance coverage
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What is Environmental Insurance?
Meredith MarcusFrenkel Environmental
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Should I Be Concerned?
Now What Do I Do?
How Do I Protect Myself and/or My Company?
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Possible RAO Reopeners – First 3 Years
NJDEP required to provide additional review of at least 10% of all documents submitted annually by the LSRP
Board required to audit annually the submissions and conduct of at least 10% of the LSRPs
DEP may provide additional review of any document submitted if: Any deficiencies, errors or omissions will result in the inability to
determine if the remediation is protective of the public health safety or the environment
The remediation will not be protective of the public health, safety or the environment
DEP can invalidate an RAO if the remedial action is not protective of public health, safety or the environment
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Possible Reopeners – After 3 Years
Same as was present with a No Further Action Determination:
Undiscovered contamination is found at the site Reason to believe there is contamination (e.g., neighboring
property) New cleanup standards Failure to comply with conditions of the RAO
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Policy Options
3-year Policy to coincide with 3-year Auditing Period
Policy during remediation (to cover unknown conditions)
Include both remediation period and after RAO (5-10 years)
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Environmental Impairment Liability (EIL) Pollution Legal Liability (PLL)
Owners and Operators – must have insurable interest
First Party: Cleanup for Owners and Operators for conditions on, at or under your site
Third Party: Bodily Injury, Property Damage and Cleanup caused by pollution conditions that emanated from your site
Legal Defense Costs
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What It Covers
Unknown Pre-Existing Conditions Pre-Existing – Existed PRIOR to policy effective date Unknown – insured not aware of condition (buried surprises)
Excluded – Known Pre-Existing Conditions
Upon Receipt of (RAO) – policy endorsed to cover regulatory reopeners
Discovery of New Conditions from New Operations New – introduced or released AFTER policy effective date
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Coverage Enhancements
Business Interruption Loss of Rents Relocation Costs Loan Interest Development Delay Other Soft Costs
Property Diminution (based on reduction of FMV)
Natural Resource Damages (many standard now)
Contractual Liability
Non-Owned Disposal Sites (NODs)
Transportation of Waste (Contingent)
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The Policy
Claims Made Often Multi-Year Terms (3, 5, 10)Limits $1 million - $50 millionMinimum Premium Starting at $5,000Duty to DefendDefense Costs Included in LimitsMultiple LocationsRetroactive Dates (extends pre-existing)Minimum Earned Premium (25-100%)Reinstatement of Aggregate for multi-year optional
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Contractors Pollution Liability Policy
Third-party bodily injury and property damage including: Cleanup for pollution conditions caused by the contractor
(new condition) Cleanup for existing conditions exacerbated by the
contractor
Often packaged with general and professional liability policies
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Professional Liability – Is My LSRP Covered?
Sample Insuring Agreement. “We will pay on behalf of the insured, all loss that the insured
is obligated to pay as a result of claims first made against the insured and reported to the Insurance Company during the policy period or extended reporting period arising out of professional services rendered on or after the retroactive date”
Who is an Insured under Coverage D (E&O)a. Named Insured listed on the declarations pageb. Any partner, officer, director, stockholder, or employee of the
Named Insured but only while rendering prof. services on behalf of the Named Insured
c. Heirs, executives, administrators, etc…
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Professional Liability – What’s Covered?
Insurance procured by your LSRP to cover losses caused by their professional recommendations
Losses are usually “monetary” in nature as opposed to “bodily injury” or
“property damage” Water intrusion due to improper design or abatement - $4.2MM Project delays due to negligent engineer - $3.1MM Cost overrun due to a consultants error - $1.4MM
Must be caused by a “negligent” act, error or omission
Must occur after Retroactive Date
Defense Costs - even if your firm is not ultimately liable, defense costs can be substantial.
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Professional Liability – What’s Excluded?
Intentional and Dishonest Acts “Known or Should Have Known”
Contractual Liability (assumed liability)
Fines and Penalties
Warrantees and Guarantees
Faulty Workmanship
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Examples – Violations Likely Not Covered
• April 2008, a private party filed a complaint with the Board alleging that the LSP had failed to follow state regulations while working in 2007 on a contaminated site. The complaint alleged that the LSP excavated contaminated soil and conducted dewatering without previously filing a plan of this work with the DEP. The Complaint also alleged that the LSP failed to obtain a federal permit for discharge of treated groundwater to a storm drain that discharged to a river.
• The LSP failed to address an open IRA condition in a Phase II submittal regarding Site A when the LSP knew or should have known that required IRA activities (namely indoor air sampling at an adjacent residence) needed to be completed.
• In the Phase II submittal for Site A, failing to identify the residents in the adjacent residence as potential human receptors or to discuss vapor migration as a potential human exposure pathway to the adjacent residence.
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Questions & Answers Questions & Answers SessionSession
Thank you for coming!