Selling a gas station comes with unique environmental considerations that owners and realtors must address to ensure a smooth, legally compliant transaction. The operations associated with gas stations can result in releases of contaminants from underground storage tanks (USTs) and other pollutants, making environmental due diligence essential.
Common Environmental Contaminants at Gas Stations
Gas stations commonly use the following constituents, which if released into the environment, can require extensive environmental investigation and remediation:
- Volatile Organic Compounds (VOCs): Common VOCs found in gasoline products include benzene, toluene, ethylbenzene, and xylene (BTEX).
- Chlorinated Solvents: Used in engine repair and painting operations and can pose risks to human health.
- Heavy Metals: Lead and other metals found in gasoline and automotive products can contribute to contamination.
The Importance of Environmental Due Diligence – Avoiding Liability
A Phase I Environmental Site Assessment (ESA) is a critical tool in managing liability when buying or selling a property.
- Strict Liability: Purchasers can be held liable for contamination even if they did not cause it.
- Joint and Several Liability: Multiple parties can be held responsible for the entire cost of cleanup.
Conducting a thorough Phase I ESA is crucial for accessing legal defenses and limiting exposure to environmental liability.
Legal and Regulatory Framework
Federal Laws
1. CERCLA: Commonly known as Superfund, CERCLA addresses cleanup and liability issues for contaminated sites.
2. RCRA: Governs the management of hazardous waste and underground storage tanks.
Environmental Checklist Before Selling a Gas Station
-
Conduct a Phase I ESA
- Review property history and contamination risks.
-
Review UST and AST Records
- Conduct integrity testing if necessary.
-
Investigate Past Spills or Leaks
- Review regulatory records and remediation efforts.
-
Check for Vapor Intrusion Risks
- Perform sub-slab vapor testing if needed.
Best Practices for Sellers and Realtors
- Engage an environmental attorney early in the process.
- Disclose environmental information upfront.
- Stay informed about environmental regulations.
Conclusion
Selling a gas station presents unique environmental challenges, including potential contamination from underground storage tanks, hazardous waste, and vapor intrusion.
Conducting thorough due diligence and adhering to environmental regulations is essential to manage liabilities and protect all parties involved.