Standard Practice for Limited Environmental Due Diligence: Transaction Screen Process

SIGNIFICANCE AND USE
4.1 Uses—This practice sets forth a procedure for conducting limited environmental due diligence . This practice is intended for use on a voluntary basis by parties who wish to assess the environmental condition of commercial real estate where a Phase I Environmental Site Assessment is, initially, deemed to be unnecessary by the user and the parties do not seek CERCLA LLPs . This practice is intended primarily as a commercially prudent or reasonable approach to conducting an inquiry designed to identify potential environmental concerns in connection with a property.  
4.2 Clarifications on Use:  
4.2.1 Use Not Intended for CERCLA Liability Protection—This document is not intended to permit a user to satisfy CERCLA LLPs, that is, the practices that constitute “all appropriate inquiries into the previous ownership and uses of the property consistent with good commercial or customary practice” as defined in 42 U.S.C. §9601(35)(B).  
4.2.2 Transaction Screen Does Not Identify Recognized Environmental Conditions—This practice does not define a scope of assessment sufficient to identify recognized environmental conditions as defined in 3.2.74 of Practice E1527 and 3.2.80 of Practice E2247.  
4.2.3 Residential Tenants/Purchasers and Others—Although this document is not intended for residential purposes, it may be used at the user’s discretion for residential tenants of multifamily residential buildings, tenants of single-family homes or other residential real estate, or purchasers of dwellings for residential use, to conduct a transaction screen in connection with these transactions.  
4.2.4 Site-Specific—This practice is site-specific in that it relates to assessment of environmental conditions on a specific parcel of commercial real estate. Consequently, this practice does not address many additional issues raised in transactions such as purchases of business entities, or interests therein, or of their assets, that may well involve environmental liabilities pertain...
SCOPE
1.1 Purpose—The purpose of this practice is to define a good practice in the United States of America for conducting a transaction screen2 for a parcel of commercial real estate where the user wishes to conduct limited environmental due diligence (that is, less than a  Phase I Environmental Site Assessment). If the driving force behind the environmental due diligence is a desire to qualify for one of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Landowner Liability Protections (LLPs), this practice should not be applied. Instead, the ASTM E1527: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process or ASTM E2247: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property may be used.  
1.1.1 This practice will not satisfy the requirement to conduct all appropriate inquiries into the previous ownership and uses of the property consistent with “generally accepted good commercial and customary standards and practices” as defined in 42 U.S.C. §9601(35)(B) to qualify for one of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Landowner Liability Protections (LLPs). Users who desire to conduct environmental due diligence to qualify for one of the CERCLA LLPs should conduct assessment activities in conformity with “Standards and Practices for All Appropriate Inquiries,” 40 C.F.R. Part 312, ASTM E1527: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process or ASTM E2247: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property.  
1.2 An evaluation of business environmental risk associated with a parcel of commercial real estate may necessitate investigation beyond that identified in this practice. See Sections 1.4 and 11...

General Information

Status
Historical
Publication Date
14-Jan-2014
Current Stage
Ref Project

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Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
Designation: E1528 − 14
Standard Practice for
Limited Environmental Due Diligence: Transaction Screen
1
Process
This standard is issued under the fixed designation E1528; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope 1.2 An evaluation of business environmental risk associated
with a parcel of commercial real estate may necessitate
1.1 Purpose—The purpose of this practice is to define a
investigation beyond that identified in this practice. See Sec-
good practice in the United States ofAmerica for conducting a
tions 1.4 and 11.
2
transaction screen for a parcel of commercial real estate
1.2.1 Potential Environmental Concerns—The goal of con-
where the user wishes to conduct limited environmental due
ducting a transaction screen is to identify potential environ-
diligence (that is, less than a Phase I Environmental Site
mental concerns, as defined in 3.2.35.
Assessment). If the driving force behind the environmental due
1.2.2 Other Federal, State, and Local Environmental
diligence is a desire to qualify for one of the Comprehensive
Laws—Thispracticedoesnotaddressrequirementsofanystate
Environmental Response, Compensation, and Liability Act
or local laws or of any federal laws. Users are cautioned that
(CERCLA) Landowner Liability Protections (LLPs), this prac-
federal, state, and local laws may impose environmental
ticeshouldnotbeapplied.Instead,theASTME1527:Standard
assessment obligations that are beyond the scope of this
Practice for Environmental SiteAssessments: Phase I Environ-
practice. Users should also be aware that there are likely to be
mental Site Assessment Process or ASTM E2247: Standard
other legal obligations with regard to hazardous substances or
Practice for Environmental SiteAssessments: Phase I Environ-
petroleum products discovered on property that are not ad-
mental Site Assessment Process for Forestland or Rural Prop-
dressed in this practice and may pose risks of civil and/or
erty may be used.
criminal sanctions for non-compliance.
1.1.1 This practice will not satisfy the requirement to
1.3 Objective—The objective guiding the development of
conduct all appropriate inquiries into the previous ownership
this practice is to facilitate standardized transaction screens.
and uses of the property consistent with “generally accepted
1.3.1 Note of Caution—The user should be cautious in
good commercial and customary standards and practices” as
applying this practice to properties with known current or
defined in 42 U.S.C. §9601(35)(B) to qualify for one of the
historic handling of hazardous substances or petroleum prod-
Comprehensive Environmental Response, Compensation, and
ucts.
Liability Act (CERCLA) Landowner Liability Protections
(LLPs). Users who desire to conduct environmental due
1.4 Considerations Beyond the Scope—The use of this
diligence to qualify for one of the CERCLA LLPs should
practice is strictly limited to the scope set forth in this section.
conduct assessment activities in conformity with “Standards
Section 11 of this practice identifies, for informational
and Practices for All Appropriate Inquiries,” 40 C.F.R. Part
purposes, certain environmental conditions (not an all-
312, ASTM E1527: Standard Practice for Environmental Site
inclusive list) that may exist on a property that are beyond the
Assessments: Phase I Environmental Site Assessment Process
scope of this practice but may warrant consideration by parties
or ASTM E2247: Standard Practice for Environmental Site
to a commercial real estate transaction. The need to include an
Assessments: Phase I Environmental Site Assessment Process
investigation of any such conditions in the scope of services
for Forestland or Rural Property.
should be evaluated based upon, among other factors, the
nature of the property and the reasons for performing the
assessment (for example, a more comprehensive evaluation of
1 business environmental risk) and should be agreed upon as
This practice is under the jurisdiction of ASTM Committee E50 on Environ-
mental Assessment, Risk Management and Corrective Action and is the direct additional services beyond the scope of this practice prior to
responsibility of Subcommittee E50.02 on Real Estate Assessment and Manage-
initiation of the Transaction Screen Process.
ment.
Current edition approved Jan. 15, 2014. Published February 2014. Originally
1.5 Organization of This Practice—Thispracticehasseveral
approved in 1993. Last previous edition approved in 2006 as E1528– 06. DOI:
partsandoneappendix.Section1istheScope.Section2refers
10.1520/E1528-14.
2
to other ASTM standards in the Referenc
...

This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation: E1528 − 06 E1528 − 14
Standard Practice for
Limited Environmental Due Diligence: Transaction Screen
1
Process
This standard is issued under the fixed designation E1528; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope
1.1 Purpose—The purpose of this practice is to define good commercial and customary a good practice in the United States of
2
America for conducting a transaction screen for a parcel of commercial real estate where the user wishes to conduct limited
environmental due diligence (that is, less than a Phase I Environmental Site Assessment). If the driving force behind the
environmental due diligence is a desire to qualify for one of the Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA) Landowner Liability Protections (LLPs), this practice should not be applied. Instead, the ASTM
E1527Practice: E1527Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process,
Process or ASTM E2247: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process
for Forestland or Rural Property may be used.
1.1.1 This practice will not satisfy the requirement to conduct all appropriate inquiries into the previous ownership and uses
of the property consistent with “generally accepted good commercial and customary standards and practices” as defined in 42
U.S.C. §9601(35)(B) to qualify for one of the Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA) Landowner Liability Protections (LLPs).Users who desire to conduct environmental due diligence to qualify for one
of the CERCLA LLPs should conduct assessment activities in conformity with “Standards and Practices for All Appropriate
Inquiries,” 40 C.F.R. Part 312, ASTM E1527: Standard Practice for Environmental Site Assessments: Phase I Environmental Site
Assessment Process or ASTM E2247: Standard Practice for Environmental Site Assessments: Phase I Environmental Site
Assessment Process for Forestland or Rural Property.
NOTE 1—The user is advised that this practice will not satisfy the practices that constitute all appropriate inquires into the previous ownership and
uses of the property consistent with good commercial or customary practice as defined in 42 U.S.C. §9601(35)(B) to establish the CERCLA LLPs.
1.2 An evaluation of business environmental risk associated with a parcel of commercial real estate may necessitate
investigation beyond that identified in this practice. See Sections 1.4 and 11.
1.2.1 Potential Environmental Concerns—In defining a standard of good commercial and customary practice for conducting a
The transaction screen of a parcel of property, the goal of the processes established by this practice conducting a transaction screen
is to identify potential environmental concerns, as defined in 3.2.343.2.35.
1.2.2 Other Federal, State, and Local Environmental Laws—This practice does not address requirements of any state or local
laws or of any federal laws. Users are cautioned that federal, state, and local laws may impose environmental assessment
obligations that are beyond the scope of this practice. Users should also be aware that there are likely to be other legal obligations
with regard to hazardous substances or petroleum products discovered on property that are not addressed in this practice and may
pose risks of civil and/or criminal sanctions for non-compliance.
1.3 Objective—The objective guiding the development of this practice is to facilitate standardized transaction screens.
1.3.1 Note of Caution—The user should be cautious in applying this practice to properties with known current or historic
handling of hazardous substances or petroleum products.
1.4 Considerations Beyond the Scope—The use of this practice is strictly limited to the scope set forth in this section. Section
11 of this practice identifies, for informational purposes, certain environmental conditions (not an all-inclusive list) that may exist
on a property that are beyond the scope of this practice but may warrant consideration by parties to a commercial real estate
transaction. The need to include an investigation of any such conditions in the scope of services should be evaluated based upon,
among other factors, the nature of the property and th
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