Chapter 6 - FORM 6K • EPA REASONABLE STEPS LETTER

• Jurisdiction: Colorado

FORM 6K • EPA REASONABLE STEPS LETTER

Re: [property]

To Whom It May Concern:

[Company] has advised the U.S. Environmental Protection Agency, Region 8 (EPA) that [company] has contracted to purchase property known as [property] in [city], Colorado. [Company] plans to purchase the property at [address] pursuant to the procedures of Section 1031 of the Internal Revenue Code and move its operations there. The Internal Revenue Code requires title to pass initially through an intermediary, which in this case will be [intermediary]. [Intermediary] will hold title to the property for some period after closing, before passing title to [name].

[Company] has requested EPA's input on the "reasonable steps" that it should take with respect to contamination at [property] for which [company] is not responsible, in order to enhance its ability to avail itself of the bona fide prospective purchaser exemption in the newly enacted Small Business Liability Relief and Brownfields Revitalization Act ("Brownfields Act"), Pub. L. No. 107-118 (Jan. 11, 2002). In addition, [company] has also requested EPA's input on the federal "windfall lien" that could potentially apply to [property].

[EPA Recital of Facts]

[Company] has prepared and provided to EPA a draft environmental covenant, drafted to comply with the procedures of Colorado law (C.R.S. §§ 25-15-317, et seq.) that incorporates the above actions into an enforceable institutional control that could be executed and recorded in the City and County of Denver Land Records. A copy of the draft environmental covenant is attached.

EPA is still evaluating how to best implement the Brownfields Amendments to CERCLA, including factors to consider in construing "reasonable steps" described in Section 222 of the Brownfields Act pertaining to bona fide prospective purchasers. While EPA is not prepared to make any general statements about the meaning of "reasonable steps" at this time, some site-specific assistance in this case would serve the public interest by promoting the closure of this operable unit and promoting appropriate reuse of the property. Based on the information EPA has evaluated concerning the [property], the drafting, execution, and recording of an environmental covenant in a form similar to the attached draft and the proper operation...