Section 6 Owner Liability

• Library: Environmental Law 2007 Supp

SBLRBRA includes exemptions from owner and operator CERCLA liability for contiguous properties and bona fide prospective purchasers.

The contiguous property exemption excuses from liability persons that own land contaminated solely by a release from contiguous property owned by someone else. To be exempt, the owner:

• must not have caused or contributed to the release

• must not be potentially liable or affiliated with any other person that is potentially liable for response costs at the facility

• must have exercised appropriate care with regard to the release

• must have provided full information and cooperation to parties performing response actions or natural resource restoration

• must have conducted appropriate inquiry at the time of purchase; and

• must not have known or had reason to know of the contamination.

The bona fide prospective purchaser exemption relieves bona fide prospective purchasers from owner and operator liability as long as the purchaser does not impede the performance
of a response action or natural resource restoration. To qualify as a “bona fide prospective purchaser,” one must meet the following criteria:

• All disposal took place before the date of purchase.

• The purchaser made all appropriate inquiry.

• The purchaser exercised appropriate care with respect to any release.

• The purchaser provides full cooperation, assistance, and access to persons authorized to undertake response actions or natural resource restoration.

• The purchaser complies with land use restrictions and does not impede performance of institutional...