Screening Timberlands for On-Site Hazardous Waste Liabilities, 1990 Environmental Conference Proceedings

Under the Superfund Law passed in 1980 2nd amended in 1986, the United States Environmental Protection Agency (USEPA) has authority to require Potentially Responsible Parties (PRPs) to pay for the cost of hazardous waste site clean up. PRPs may include past and present owners of the property, as well as operators, generators, and transporters. As a result, environmental due diligence studies have become an important part of nearly all commercial real estate transactions because the liabilities associated with investigation and cleanup of a hazardous waste site are so high. Although timberlands are generally safe from hazardous waste contamination, the biggest threat to timberlands is from illegal dumping in remote areas. Therefore, screening methods have been developed to identify potential concerns.

Information gathered through these investigative activities is used to judge the level of environmental risk associated with the timberlands. A business decision can then be made on whether to proceed with the transaction or to conduct further investigations.