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ENVIRONMENTAL
Contamination Assessments, Environmental Audits, Environmental Site Assessments
 
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QUESTION: Is a gas station a good investment and what are the risks?

Florida Environmental Assessments

Gas stations are often on very desirable commercial properties with amenities such as corner or outparcel lots, easy access, visibility, and considerable consumer traffic. The decision to purchase an existing or former gas station property, either to continue as a gas station or convert the property to another use, should take into account the environmental risks associated with these facilities.

Gas stations typically have underground tank and piping systems, and unknown discharges are not uncommon. While the systems are required to be up-graded at periodic intervals to provide the maximum protection from discharges, and best management practices at present are designed to accomplish this, discharges can and have occurred.

Most states maintain databases that not only describe the type of fuel storage system, but also document discharges, and have on-line access to assessment and cleanup reports associated with a specific gas station.

Additionally, there are governmentally-funded cleanup programs that provide financial incentives and assist in the cleanup of discharges.

Gas Stations

For example, in Florida there are various state-funded cleanup options which range from complete state-funding to partial funding involving deductibles, cost percentages, or funding limits for eligible participants. Some of these programs are referred to as the Early Detection Incentive (EDI) Program, the Abandoned Tank Restoration Program (ATRP), the Pre-Approval Program, etc. Currently, facilities that are eligible for some type of state-funding are ranked and assigned a Priority Score. Available funds are distributed for cleanup based on the facilities' Priority Scores.

Information obtained during a Phase I Environmental Site Assessment should describe the current status of a gas station, whether discharges have occurred, the degree of contamination, whether the contamination has been addressed, the status of the cleanup, and whether any degree of state-funding is assisting in the cleanup.

If the Phase I Environmental Site Assessment indicates that there has never been a discharge or remediation of a discharge has been approved by the appropriate governmental agency, due diligence has been accomplished, and no further investigations are necessary.

If the Phase I Environmental Site Assessment indicates that there are still outstanding issues, then the user must take into account the financial considerations in purchasing such a property. These include determinations on who would be responsible for cleanup, whether the facility is eligible for governmental funding and the type of governmental funding that would be available.

Even without governmental funding assistance, petroleum cleanup is not as expensive as other types, such as dry cleaning solvents, pesticides, or heavy metals, which are hazardous wastes. Petroleum-affected soil can be excavated and transported for thermal-treatment to several facilities in Florida. Removal of the soil as the source of contamination usually results in rapid improvement in groundwater quality, and the governmental agency can approve a “Site Rehabilitation Completion Order“as a result of the cleanup, require Natural Attenuation Monitoring with no further cleanup, or issue a “Site Rehabilitation Completion Order with Institutional or Engineering Controls”. Any of these options would allow a potential purchaser to re-develop the property with minimal assessment-related requirements.

If contamination issues are unknown or unresolved, a Phase II Environmental Site Assessment on the gas station involving soil and groundwater testing should be conducted.







 
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