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Phase I/II Due Diligence

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H&H is an industry leader in Phase I & II Environmental Site Assessments (ESAs) for due diligence as part of property and facility transactions.  PFAS are not currently designated by the EPA as a Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) hazardous substance; therefore, the presence of PFAS at a property does not constitute a Recognized Environmental Condition (REC) in accordance with the ASTM Phase I ESA Standard for due diligence purposes.  However, PFAS may be designated as CERCLA hazardous substances in the future, a release of PFAS may have the potential to impact human health and the environment, and may present business environmental risks including future environmental liabilities for a property.

During a recent due diligence project in partnership with a local real estate developer, H&H evaluated the environmental risk associated with former dyeing machine manufacturing operations.  Manufacturing operations included treatment of metal components in an anti-corrosion solution (referred to as “pickling”) and discharge of associated waste fluids to a surface impoundment.  Due to the use of PFAS in certain pickling solutions, H&H identified the potential presence of PFAS as a potential environmental concern.  Subsequently, a Phase II ESA was completed to evaluate potential PFAS impacts.  Following confirmation of the presence of PFAS in groundwater and discussions with regulatory personnel, H&H facilitated the property transaction by estimating costs for an escrow agreement to assess the extent of PFAS impacts and achieve a risk-based regulatory closure.