RE: [CPEO-BIF]

[<LSchnapf@aol.com >]

As a follow-up to the comment forwarded by Bob Hersh, the New York
brownfield legislation that is expected to become law in the fall
parallels the federal appropriate inquiry requirements.

The "appropriate inquiry" exercise will not be as important for the
pre-acquisition stage of a transaction but the post-closing
obligations. The bona fide prospective purchaser (BFPP)is required to
take reasonable steps with respect to contamination or it could lose its
status as a BFPP. I think commercially-sophisticated developers of
brownfield sites are going to understand this
requirement and make sure that they do adequate investigation so that
they will not later be said to have not exercised appropriate care
regarding the contamination.

Moreover, EPA and some states are now allowing use of field analytical
measurements (FAM) that provide real time data to
satisfy the procedural requirements for cleanups. The FAM techniques can
be more efficient in terms of cost and time and may
provide incentives for more thorough investigations.

On the other hand, many banks will probably continue to allow what I
call those "commodity-style" phase I reports that do take a very close
look at the sites. From what I hear, the lenders' representatives on the
neg-reg committee are resisting the more
instrusive types of ESAs.

Larry

Larry Schnapf
55 E.87th Street #8B/8C
New York, NY 10128
212-996-5395 phone
212-593-5955 fax
www.environmental-law.net website