brown field sites & remediation - an overview

8/7/2019 Brown Field Sites & Remediation - An Overview

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Brownfield Sites & RemediationAn Overview for

ISO 14001 Awareness Training


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Brownfield Sites & Remediation

How do we decide on a particular cleanup technology ?

Will it be approved by regulators? What will it cost?

How do we use back-of-the envelope, feasibility studyand design-quality evaluations of remediation methods?

Examples and rule-of-thumb guidelines

Managing remediation cost, uncertainty and risk inbrownfield transactions


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Environmental Remediation and CostComponents

Site investigationo Monitoring wellso Sampling and analyzing soil and groundwater

Risk assessmento Define risk posed by the contaminationo Set cleanup objects and endpoints

Engineering studies and designo Identify cleanup methods

oDesign and estimate cleanup costs Direct remediation costs

o Capital expenditureso Operating, maintenance and monitoring

Indirect costs Can equal direct project costs!o Environmental insuranceo Administrationo Contingencies


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Remediation Considerations

At what stage environmentally is the brownfield project early in thesite assessment or is remediation underway? What is the transaction framework with regard to environmental

matters?o Are you responsible for cleanup?o Seller or a third party responsible?

Single asset or a portfolio of properties

What is known about the environmental conditions at the property?


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Remeditation Considerations (cont.)

Environmental as a percentage of overall transaction sizeo The smaller the environmental costs as a proportion of the brownfield

deal the better -- becomes less of a transaction risk

Regulatory framework dictates complexity and endpointso Asbestos easy to quantify and estimateo UST sites simple, well-known cleanup methods, public trust fundso Landfills increasing complexity both environmental & geotechnicalo

State Superfund sites more requirements - potentially higher costso Federal Superfund sites minefield of obligations, usually very costly


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Contaminants at Brownfield Sites

Gasoline, oil and other petroleum products Lead (especially lead paint), arsenic and other

metals Asbestos Degreasing and cleaning solvents PCBs - transformers and light balasts Combustions products and other semi-volatile

organic compounds (SVOCs and PAHs) Radiation Radionuclides

D

ioxins and furans Explosives


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Cleanup Technologies atBrownfield Sites

Soil and sedimento Excavate and dispose and/or treat off-siteo Cap, cover or containment

o Excavate, treat via biological/physical/chemicaltreatment and reuse on-site

o In-place biological/physical/chemical treatmento Other treatment processes

Groundwatero Pump-and-treat via biological/physical/chemical

treatmento Containmento In-place biological/physical/chemical treatment


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Cleanup Technologies Institutional Controls

Single most important development forbrownfields

Environmental land use controls -- also known as institutional

controls, activity and use limitations, and environmental userestrictions

Legal and administrative measures to protect human healthand environment

Risk based - residual contamination allowed

Limit exposure by restricting activity, use, and access toproperties with residual contamination


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How to Estimate Environmental Costs

Step 1 Review the available site informationo Assessment reports, engineering feasibility studies, cleanup plans and

estimates

Step 2 Determine if there is enough info to make an estimateo If yes proceed to Step 3o If no stop or complete further assessment and then proceed

Gates -- $100,000+ site investigation Burlington -- $15,000 engineering analysis

Step 3 Build a conceptual model of the cleanup actiono For example: Remove a UST, close a landfill, clean up solvents

Step 4 Prepare a back-of-the-envelope estimateo Utilize rule-of-thumb values for the remediationo Add insurance and other transaction and response costso Add a very healthy contingency (up to +100%)


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How to Estimate Environmental Costs (cont.)

Step 5 Input environmental costs to overall transaction modelo D

etermine if the the deal works with a conservative estimateo Assess deal sensitivity to environmental are the costs a large part?

Step 6 Re-estimate environmental costso Prepare a more precise estimate -- Feasibility Study qualityo Solicit quotes for environmental insuranceo Re-assess sensitivity to environmental costs and re-evaluate as needed


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Rule of Thumb Environmental Costs

Environmental Item Description Cost Notes

Assessments, Surveys and Study Items

Phase I Site Assessment Document review and site visit $1,500 - $7,500 Set ASTM methodology

Phase II Site Assessment On-site testing soil andgroundwater

$10,000 -$100,000s

Site-specific scope

Asbestos Survey Identify asbestos and estimate

abatement costs

$2,500 - $35,000 Determined by facility size

and potential for asbestos

Engineering Feasibility Study &Detailed Cost Estimate

Estimate cleanup with + 50% to30% range

$5,000 - $50,000 Dependent on quality ofsite assessment

Cleanup and Abatement Items

Asbestos Abatement Abate asbestos in buildingmaterials

$10,000 -$1,000,000+

Remove asbestos costdepends on facility size

Leaking UST Removal andGasoline or Fuel Oil Cleanup

Remove tanks and cleanup soiland groundwater

$50,000 -$500,000

EPA estimates averageUST cleanup cost $250K.

Paid with public funds.

Landfill Closure Liner cover system, leachatecontrol and methane gas

collection

$100,000 -$200,000 peracre of landfill

Additional costs incurreddepending on site

improvements

Chlorinated solvents PERC from dry cleaning &PERC, TCE and otherdegreasing solvents

$300,000 Millions

Low end dry cleanersHigh end industrial sites

with large spills


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Managing Brownfield Remediation Risk

Risks Managed with Environmental Insuranceo

Cost Cap Insurance Cleanup cost overruns - More volume of waste, cleanup simply moreexpensive to implement, inability to get an NFA

o Pollution Legal Liability Finding unanticipated contamination Third party claims bodily injury and property damage

Low probability of occurrence, but high cost

Changes to cleanup standards Generally, standards are being relaxed Low risk

Risks retained by the brownfield investor/developero Payment of deductibles usually only a few $100,000so Insurance does not pay claimso Claims exceed insurance coverage limits

Because of insurance, environmental may be the least risky aspectof our deals!

brown field sites & remediation - an overview

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