Phase I Findings - Do I need to be concerned?

Although the residential use of the property was
not a concern, two past activities on-site had the
potential to result in releases of hazardous
substances. A 500-gal diesel UST was operated
on-site and was recently removed by the Owner.
MPCA records indicate that the UST was not
registered and the single walled tank did not
meet State and Federal standards for leak and
spill prevention. The UST was not evaluated for
leaks when removed. Therefore the former UST
is considered a current Recognized
Environmental Condition at the Subject
Second, a clandestine drug laboratory (CDL)
was at subject property operated prior to January
2000. During this period, the site used an on-site
septic system. Therefore in addition to the
potential for direct releases from this operation,
it is possible that chemical wastes were
discharged to the septic system. Therefore the
former clandestine drug laboratory on-site is
considered a current Recognized Environmental
Condition at the Subject Property.

And does it necessitate a Phase II?

Yes, you need to be concerned. If you buy this then you could become responsible if the EPA or state DEQ requires remediation due to ever-increasing regulatory oversight and lowered thresholds for soil / water contamination,… Also if this property has water wells nearby and people start getting sick there is liability associated with that if linked back to these contaminants.,

I have had a dirty Phase 1 ESA come back too when contracting a former gas station parcel. It included a recommendation to perform a Phase 2 to confirm contamination, and the extent to which it may or may not require remediation. Phase 2 will run 10-20K depending on the number of wells drilled, and if you don’t like the result and back out it’s an expensive Due Diligence item.

Did your assessor make any recommendation, and if so, a quote how much that would cost? Could be good to ask about risk mitigation strategies like Innocent Owner Certification. Those also cost about 5K. This is why most people back away after a dirty Phase 1.

I was just reviewing your previous thread from Feb on this. Sounds like I should reach out to Renz. The property switched over from well/septic to all city services in 2004.

I’ve asked for quote on Phase II and am waiting to hear back.

I assume you have brought these to the Seller’s attention. I’d be curious if you could convince them to cover the Phase 2, otherwise you walk. And if the Phase 2 confirms remediation needed then they cover that cost or you walk. Agree would be good to get opinion on all of this from Renz.