managing potential liability under chapter 21e lucas rogers, esq., massdep 1
TRANSCRIPT
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Managing Potential Liability under Chapter 21E
Lucas Rogers, Esq., MassDEP
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Chapter 21E was amended in 1998 with three goals in mind:
• Ensure Cleanup
• Encourage Redevelopment
• Preserve Green Space
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How do we accomplish these goals?
• Liability Relief• Financial Incentives
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• Eligible Person
• Eligible Tenant
• Municipalities
• Others
Who’s Eligible for Liability Relief?
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Why is this important?
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What Do You Get?
• Liability Endpoint for Eligible Persons• Exemptions and/or Defenses for others• Contribution Protection• Brownfields Covenant Not to Sue
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Who is an Eligible Person?
• Current Owner or Operator• Who did not cause or contribute to the
contamination• Who did not own or operate the site at the
time of the release
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Who is an Eligible Tenant?
• Operators• Did not cause or contribute to the
contamination• Tenancy starts after the release is reported
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When is a Municipality Eligible?
• Took the property for taxes
• Acts diligently to divest itself of ownership or possession of the site
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Liability Relief for Eligible Persons
• Liability Endpoint – c. 21E, § 5Cowhen cleanup is complete, your liability ends
to the Commonwealth under 21E to 3rd parties for 21E liability and common law
property damage claimso liability relief extends to subsequent owners
• Does not apply to new releases
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Exemptions & Defenses as Liability Relief Apply to:
• Eligible Tenants
• Municipalities
• Certain downgradient property owners
• Secured Lenders
• Redevelopment Authorities
• Holders of Certain Restrictions
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Exemptions & Defenses to Liability are Conditional
Ongoing Requirements:
• Notify of new releases• Allow access• Prevent exposure/access to existing
contamination• Imminent Hazards must be addressed• Contain further releases from on-site sources• Comply with the MCP in response actions
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Contribution Protection
c. 21E, § 3A(j)(2)
Purpose is to provide incentives to owners & operators for voluntary cleanups
• Protection from claims for contribution, response actions and equitable share in a settlement with the state
• Notice of the settlement & an opportunity to comment
• The settlement applies to “matters addressed” in it, and those must be defined
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Brownfields Covenant Not to Suec. 21E, §3A(j)(3)
Purpose:
• Provide liability relief beyond what 21E provides, for the more complex sites
• Promote economic redevelopment & physical revitalization of the community
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Brownfields Covenant Not to Sue
Available to:• Causally Responsible Parties
o Must achieve & maintain permanent solution or remedy operation status
• Eligible Persono If they can not achieve an endpoint
o Must achieve & maintain temporary solution• Applicable regulation is at 940 CMR 23.00
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What do they get?• Protection from the Commonwealth:
o response action costso natural resource damageso contribution claims
• Protection from third parties for:o contributiono response action costso property damage under common law
Brownfields Covenant Not to Sue