BUSI401 CHAPTER 9 Flashcards
SOURCE SITES
Source sites are the sites on which contamination is, or has been, generated.
NON SOURCE SITES
Non-source sites are sites onto which contamination, generated from a source site, has migrated.
ADJACENT SITE
An adjacent site is not contaminated, but shares a common property line with a source site.
PROXIMATE SITES
Proximate sites are not contaminated and not adjacent to a source site, but are in close proximity to the source site.
Polychlorinated Biphenyls
PCBs, or polychlorinated biphenyls, are composed of hydrogen, carbon, and chlorine and are commonly used in electrical equipment. Dumping of the material is a common cause of site contamination. Only inconclusive evidence suggests that PCBs cause cancer, but when heated, they can break down in to carcinogens. Remediation is usually removal and replacement.
**NOTES ONLY
Asbestos is a naturally occurring family of fibrous silicate materials that have a tendency to break into dispersible dust, that is, become friable. The level of risk is directly related to the level of airborne fibres, so friability is significant only when the material is exposed to the environment in an uncontained form. If inhaled, this dust accumulates in the lungs where it can cause significant health problems such as asbestosis, a fibrositic condition, and mesothelioma, a rare form of cancer that can lead to fatal lung cancer.**
**NOTES ONLY
Asbestos is a naturally occurring family of fibrous silicate materials that have a tendency to break into dispersible dust, that is, become friable. The level of risk is directly related to the level of airborne fibres, so friability is significant only when the material is exposed to the environment in an uncontained form. If inhaled, this dust accumulates in the lungs where it can cause significant health problems such as asbestosis, a fibrositic condition, and mesothelioma, a rare form of cancer that can lead to fatal lung cancer.**
**NOTE ONLY
The substances grouped into the asbestos family have significantly different characteristics and risks. About 95% of the asbestos-in-place is chrysotile, a white mineral with curly fibres that tend not to be taken up in the lungs. Crocidolite, or blue asbestos, has long, thin and straight fibres that penetrate narrow lung passages. This uncommon form is associated with most adverse health effects of asbestos.’**
**NOTE ONLY
The substances grouped into the asbestos family have significantly different characteristics and risks. About 95% of the asbestos-in-place is chrysotile, a white mineral with curly fibres that tend not to be taken up in the lungs. Crocidolite, or blue asbestos, has long, thin and straight fibres that penetrate narrow lung passages. This uncommon form is associated with most adverse health effects of asbestos.’**
NOTE ONLY
Removal of asbestos from a building can actually increase the risk. Unless all safeguards are taken, removing asbestos from a building —which disturbs the asbestos and disperses its fibres into the air — can actually increase the risk of asbestos-related disease, rather than reduce the risk as intended. However, in order to attract a purchaser to a property with an asbestos-containing building, removal of asbestos may be needed — in some, but not all, instances a price reduction of an amount sufficient to pay for removal may be acceptable.
NOTE ONLY
Removal of asbestos from a building can actually increase the risk. Unless all safeguards are taken, removing asbestos from a building —which disturbs the asbestos and disperses its fibres into the air — can actually increase the risk of asbestos-related disease, rather than reduce the risk as intended. However, in order to attract a purchaser to a property with an asbestos-containing building, removal of asbestos may be needed — in some, but not all, instances a price reduction of an amount sufficient to pay for removal may be acceptable.
Three factors are critical to the effect that a hazardous substance has on value . . .
Three factors are critical to the effect that a hazardous substance has on value:
- Quantity: how much, and in what concentration
- Toxicity: the dosage that must be ingested to have a lethal effect
- Persistence: how long the substance stays. Some substances can persist after visible evidence is gone. Studies have shown that the visible presence of a substance can be more important than technical persistence in low quantities.
List 4 federal statutes governing enviromental law in Canada
Federal Statutes include the following:
- Canadian Environmental Protection Act
- Canadian Water Act
- Fisheries Act
- Transportation of Dangerous Goods Act
- Department of Environment Act
CONTROL MECHANISMS
Control mechanisms can be categorized by their primacy: the tank holding radioactive water is a primary control mechanism, while the berm surrounding the tank is a secondary control mechanism.
TRUE OR FALSE? Both common law principles and statutory obligations apply to situations of environmental damage.
TRUE
Both common law principles and statutory obligations apply to situations of environmental damage.
Persons who may find themselves faced with environmental liability problems
Current landlords or tenants
Previous landlords or tenants
Employees, agents, officers, or directors of a business
Real estate agents, property managers, environmental consultants
Governments and their Agencies and Ministries may be liable under statute or on the basis of providing incorrect advice or information to the public.
Any person who is aware that certain types of pollution are occurring or are likely to occur must make reasonable efforts to prevent or assist in preventing the pollution and to report it to the appropriate authority.
Environmental Stigma
An adverse effect on property value produced by the market’s perception of increased environmental risk due to contamination.
An impairment of marketability and/or loss in value caused by environmental contamination and measured as the difference in market value before and after the contaminating event or events other than those conditions capable of being cured by remediation of the property.
Liability Allocation Factors
Key factors used to determine liability of contaminated properties.
3 MAIN PHASES OF AN ESA
There are three main phases of ESAs.
First and foremost, it is simply necessary to determine if there is a possibility that environmental contamination exists at a site by commissioning the preparation of a Phase I ESA.
Once the client is satisfied that the presence of contamination is possible, a Phase II ESA should be requested.
Finally, if the presence of contamination at the site is confirmed, a Phase III ESA must be prepared to ascertain the severity and to propose a suitable plan of action and/or prevention.
Records Review
To collect data on past activities on the site that could be interpreted as contributing to existing contamination.
The first activity in a Phase I ESA.
Phase II ESA
Confirms the existence or absence of environmental contamination.
Intended to further reduce or eliminate uncertainty where the potential contamination of a property has been identified.
Phase III ESA
Describes the extent of contamination and possible remediation alternatives as well as
the cost to remediate.
ESA THREE PHASES
The process of performing an environmental site assessment/investigation can involve three phases:
• Phase I: Determines if there is a reasonable basis to suspect the presence or absence of an environmental risk.
• Phase II: Confirms the presence or absence of a suspected environ¬mental risk.
• Phase III: Determines the extent of a known environmental risk and develops an appropriate plan of action to reduce the risk to an acceptable level.
TRUE OR FALSE?
Phase I ESA does not involve the investigative procedures of sampling, analyzing, and measuring
ANSWER
TRUE
NOTE ONLY
Although ESAs are not a legal requirement throughout Canada, the Canadian Standards Association (CSA) standard has become accepted in Canada as typical due diligence for property transactions. Phase I ESAs are guided by the Canadian Standards Association Standard Z768 (1994)
— CAN/CSA-768-01
NOTE ONLY
Although ESAs are not a legal requirement throughout Canada, the Canadian Standards Association (CSA) standard has become accepted in Canada as typical due diligence for property transactions. Phase I ESAs are guided by the Canadian Standards Association Standard Z768 (1994)
— CAN/CSA-768-01
Levels of Assessment
Factors to be considered
Types of activities that have occurred on the property and neighbouring properties
Framework of legislation and published guidelines that apply to the property
Materials used on the property
Types of processes and operations on the property
Amount of information available concerning environmental compliance on the property
Client’s need for additional information
Uses of Phase I ESAs
Financial
Baseline Studies
Regulatory
Site Remedial Measures or Redevelopment
RISK OF DEVELOPING ASBESTOS RELATED DISEASE
The risk of developing an asbestos-related disease is directly related to exposure to airborne fibres. For example, there is little risk in a building where the asbestos is contained and does not become airborne, or where the fibres become airborne but never reach an area where people could be exposed to them.
TRUE OR FALSE?
Removal of asbestos from a building can actually increase the risk.
ANSWER: TRUE
RADON GAS
Radon gas is a naturally occurring radioactive element. Radioactive elements give off ionizing radiation and can lead to mutated DNA and cells, with cancer as one possible outcome. According to Health Canada, on average, 10 percent of lung cancers are attributable to radon exposure worldwide and in 2006, an estimated 1,900 lung cancer deaths in Canada were due to radon exposure. Radon is the second leading cause of lung cancer, after smoking.’
Define Isolation
Separating the risk from the transportation mechanisms present, from the environment in general, and from human beings.
Define Encapsulation
A complete enclosure of a waste in another material in such as way as to isolate it from external effects such as those of water or of air; e.g., casting toxic waste into something like concrete which is insoluble and thus inaccessible to water and other substances that might bring out the hazardous material.
COSTS DUE TO CONTAMINATION?
Costs that can arise from the presence of a hazardous substance fall into several categories:
Cost to Cure a contamination problem is often the major concern.
Liability could accrue to the owner for damages to the public, adjacent landowners, and subsequent purchasers, even if the property is a non-source site. Recovery of costs from the owner of the source-site may not always be possible!’
Inability to Finance can diminish the market value of contaminated property. Since contamination can impair loan security, lenders are reluctant to finance contaminated property. Financing may be available from more expensive secondary sources, or the purchaser may need to rely on equity.
Disruption. Contamination and ensuing remediation activities could temporarily or permanently disrupt all or part of the normal use of a property.
Increase in Operating Costs. For example, operation of remediation equipment might increase utility costs, changes may be required for ventilation, or costs may increase for landscaping and exterior maintenance.
Reduction in Net Operating Income. Contamination may preclude certain uses with alternative uses resulting in lower rent. Net rental income might decline due to higher vacancy rates or increased tenant turnover leading to higher leasing commissions, legal fees, and rent inducements.
NOTE
Both common law principles and statutory obligations apply to situations of environmental damage. A person may be found liable for environmental contamination without even realizing it — ignorance is no defence. It is important to understand what constitutes liability. It is everyone’s responsibility to keep the environment safe and healthy, not just the parties directly involved with the contamination.
NOTE
Both common law principles and statutory obligations apply to situations of environmental damage. A person may be found liable for environmental contamination without even realizing it — ignorance is no defence. It is important to understand what constitutes liability. It is everyone’s responsibility to keep the environment safe and healthy, not just the parties directly involved with the contamination.
