Selling a contaminated property does not necessarily erase the seller’s environmental responsibility.

 

I saw this firsthand in California.

 

In one matter, we traced petroleum contamination back approximately 35 years to a gasoline station that had previously operated on the property. The station had one long-time owner-operator, which helped narrow the investigation considerably. Laboratory analysis of the petroleum contamination provided additional evidence: characteristics of the fuel were consistent with petroleum products from that earlier period, helping establish when the release likely occurred. Taken together with the property’s historical records and other evidence, the findings connected the former operation to the environmental condition.

 

Even though decades had passed and the property had subsequently changed hands, we successfully recovered money from the former operator to help address the contamination.

 

Recovery from a previous owner or operator is not available in every environmental matter. However, when credible evidence identifies a former operator as the source of a petroleum release or other contamination, that party may still face financial responsibility—even many years after leaving or selling the property.

 

The lesson extends beyond gasoline stations and underground storage tanks. Environmental exposure can arise from many former operations—a refueling facility, industrial activity, or even an agricultural property where an aboveground fuel tank leaked into the soil.

 

When contamination is discovered, investigators look at more than the present owner. They may examine historical records, prior uses, tank registrations, permits, aerial photographs, environmental reports, and other evidence to identify when the release occurred and who may have caused or contributed to it.

 

Selling the property does not necessarily end the inquiry into who caused the contamination. The precise responsibility depends on the facts, applicable law, available defenses, and the strength of the evidence, but transferring title alone does not necessarily eliminate the exposure.

 

Current purchasers also need to be cautious. Buying the property may bring responsibility for an existing environmental condition unless appropriate due diligence and legal protections are established before acquisition.

 

That is why a Phase I Environmental Site Assessment matters. It helps establish the property’s historical uses and identify recognized environmental concerns. When the Phase I warrants additional investigation, a Phase II can provide the testing necessary to understand the nature and extent of a potential problem.

 

Environmental history has a long memory.

 

Before buying, selling, or operating property associated with fuel storage or another environmentally sensitive use, understand the site’s history, retain qualified environmental professionals, and obtain advice appropriate to the transaction.

 

The building may disappear. The pumps may disappear. The property may change hands. But the contamination—and potentially the responsibility for it—can remain.