Standard Practice for Limited Environmental Due Diligence: Transaction Screen Process

SCOPE
1.1 Purpose—The purpose of this practice is to define good commercial and customary practice in the United States of 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 Practice E 1527 for Environmental Site Assessments: Phase I Environmental Site Assessment Process, may be used.Note 1
The user is advised that this practice will not satisfy 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) 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 transaction screen of a parcel of property, the goal of the processes established by this practice is to identify potential environmental concerns, as defined in 3.2.34.
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 the reasons for performing the assessment (for example, a more comprehensive evaluation of business environmental risk) and should be agreed upon as additional services beyond the scope of this practice prior to initiation of the Transaction Screen Process.
1.5 Organization of This Practice—This practice has several parts and one appendix. Section is the Scope. Section refers to other ASTM standards in the Referenced Documents. Section , Terminology, has definitions of terms not unique to this practice, descriptions of terms unique to this practice, and acronyms. Section is Significance and Use of this practice. Section is the Introduction to the Transaction Screen Questionnaire. Section sets forth the Transaction Screen Questionnaire itself. Sections contain the Guide to the Transaction Screen Questionnaire and its various parts. Section provides additional information regarding non-scope considerations. See 1.4.
This standard does not purport to address all of the safety concerns, if any, associated with its use. It is...

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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:E1528–96
Standard Practice for
Environmental Site Assessments: Transaction Screen
1
Process
This standard is issued under the fixed designation E 1528; 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 (e) indicates an editorial change since the last revision or reapproval.
1. Scope would not be the subject of an enforcement action if brought to
the attention of appropriate governmental agencies.
1.1 Purpose—The purpose of this practice, as well as
1.1.2 Two Related Practices—This practice is closely re-
Practice E 1527, is to define good commercial and customary
lated to Practice E 1527,a Phase I Environmental Site Assess-
practice in the United States of America for conducting an
2
ment. Both are environmental site assessments for commercial
environmental site assessment of a parcel of commercial real
real estate. See 4.3.
estate with respect to the range of contaminants within the
1.1.3 Petroleum Products—Petroleum products are in-
scope of the Comprehensive Environmental Response Com-
cluded within the scope of both practices because they are of
pensation and Liability Act (CERCLA) and petroleum prod-
concern on many parcels of commercial real estate and current
ucts. As such, this practice is intended to permit a user to
custom and usage is to include an inquiry into the presence of
satisfy one of the requirements to qualify for the innocent
petroleum products when doing an environmental site assess-
landowner defense to CERCLA liability: that is, the practices
ment of commercial real estate. Inclusion of petroleum prod-
that constitute “all appropriate inquiry into the previous own-
ucts within the scope of this practice is not based upon the
ership and uses of the property consistent with good commer-
applicability, if any, of CERCLA to petroleum products.
cial or customary practice” as defined in 42 USC §
1.1.4 CERCLA Requirements Other Than Appropriate
9601(35)(B). (See Appendix X1 for an outline of CERCLA’s
Inquiry—This practice does not address whether requirements
liability and defense provisions.)
in addition to appropriate inquiry have been met in order to
1.1.1 Recognized Environmental Conditions—In defining a
qualify for CERCLA’s innocent landowner defense (for ex-
standard of good commercial and customary practice for
ample, the duties specified in 42 USC § 9607(b)(3)(a) and (b)
conducting an environmental site assessment of a parcel of
and cited in Appendix X1).
property, the goal of the processes established by this practice
1.1.5 Other Federal, State, and Local Environmental
is to identify recognized environmental conditions. The term
Laws—This practice does not address requirements of any
recognized environmental conditions means the presence or
state or local laws or of any federal laws other than the
likely presence of any hazardous substances or petroleum
appropriate inquiry provisions of CERCLA’s innocent land-
products on a property under conditions that indicate an
owner defense.Usersarecautionedthatfederal,state,andlocal
existing release, a past release, or a material threat of a release
laws may impose environmental assessment obligations that
of any hazardous substances or petroleum products into
are beyond the scope of this practice. Users should also be
structures on the property or into the ground, groundwater, or
aware that there are likely to be other legal obligations with
surface water of the property. The term includes hazardous
regard to hazardous substances or petroleum products discov-
substances or petroleum products even under conditions in
eredon propertythatarenotaddressedinthispracticeandmay
compliance with laws. The term is not intended to include de
pose risks of civil and/or criminal sanctions for non-
minimis conditions that generally do not present a material risk
compliance.
of harm to public health or the environment and that generally
1.2 Objectives—Objectives guiding the development of this
practice and Practice E 1527 are (1) to synthesize and put in
writing good commercial and customary practice for environ-
1
This practice is under the jurisdiction of ASTM Committee E-50 on Environ-
mental site assessments for commercial real estate, (2) to
mental Assessment and is the direct responsibility of Subcommittee E50.02 on
facilitate highquality, standardized environmental site assess-
Commercial Real Estate Transactions.
Current edition approved Oct. 10, 1996. Published December 1996. Originally
ments, (3) to ensure that the standard of appropriate inquiry is
published as E 1528 – 93. Last previous edition E 1528 – 93.
practical and reasonable, and (4) to clarify an industry standard
2
All definitions, descripti
...

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