What Should I Do if an Environmental Investigation Has Been Requested?

BE PROACTIVE BY CONTACTING AN INSURANCE ARCHEOLOGIST AND AN ENVIRONMENTAL CONSULTANT

Drycleaner pulling demand letter from environmental agency out of mailbox

BY: DRU CARLISLE

We understand that most people are unhappy when environmental issues pop up. This can happen when a Phase I Environmental Site Assessment (ESA) has uncovered Recognized Environmental Conditions (RECs), you’ve received a demand letter from an environmental regulatory agency, or you’re aware that you most likely have contamination. Back in the day, many industrial solvents and chemicals used in operations like dry cleaning and manufacturing were not known to be hazardous, so regulations were different than they are today. Even newer industrial operations can have minor hazardous leaks and spills causing environmental impacts that will need to be addressed when they are discovered. Depending on the past business operations at certain properties, sometimes environmental issues are inevitable. Fortunately, there are steps you can take to protect yourself and potentially minimize your out of pocket expenses.

In this blog, we’ll dive into effective strategies to address environmental issues.

BE PROACTIVE WITH INSURANCE ARCHEOLOGY

It’s never too early to prepare for the potential challenges associated with environmental issues; whether it’s finding funds to cover the expenses through insurance archeology or finding the right partner to lean on for support. This is why it’s important for drycleaners, industrial launderers and textiles, and manufacturers to be proactive and assemble their available resources before an environmental issue is discovered.

LOCATE YOUR OLD POLICY INFORMATION AND BUSINESS RECORDS

Business owners that search for their old comprehensive general liability (CGL) insurance policies before an environmental investigation begins will have an important step taken care of because these policies can be used to help pay for resolving environmental liabilities.

Historical CGL policies, once located and leveraged, typically cover the costs of your legal defense and will pay on your behalf of damages if you are found liable—up to the limits of your policy. Historical CGL policies are valuable assets that may be worth millions of dollars and depending on your situation and the state in which you conduct business, the out-of-pocket environmental cleanup costs may be minimal.

Infographic illustrating the what commercial general liability policies can be used to pay for, such as environmental and defense costs.
Once triggered historical commercial general liability (CGL) policies can be used to recoup or pay for 1) site investigation, 2) remediation/cleanup, 3) interim remedial measures, 4) building a legal case, 5) responsible party search, 6) interfacing with agencies, 7) defense against legal claims, and 8) legal fees. Additionally, CGL policies can be used to recoup costs already spent. To learn more about CGL policies, visit How Does It Work? CGL Policies and Insurance Archeology.

If locating your old policy information and business records proves to be too difficult to do on your own, you can bring in an experienced insurance archeologist to help find your old policy information, put together a corporate history and coverage chart for your company and property.  Insurance Archeologists utilize a number of methods for tracking down evidence of policies, whether your own, or past owners or operators.

Learn more about our insurance archeology services 

TAKE CHARGE OF YOUR ENVIRONMENTAL INVESTIGATION WITH AN ENVIRONMENTAL CONSULTANT

Since contamination devalues a business and a cleanup can take some time to do, it’s smart to act sooner than later, like when you’re ready to sell or pass on your business to the next generation. And now that you know how to find your old policy information and business records, it’s time to start strategizing with environmental experts to prepare for an environmental investigation.

DETERMINE THE RIGHT CONSULTANT FOR YOUR ENVIRONMENTAL STRATEGY

Experience matters and choosing an environmental expert with the right background and knowledge to guide you as you prepare your environmental strategy is crucial. Find environmental experts with significant experience in your industry. For example, drycleaners and industrial launders and textiles should look for experts with proven chlorinated solvent experience while manufacturers should look for experts with proven polychlorinated biphenyl (PCB) or hexavalent chromium experience.

The strategy may include an environmental investigation, a vapor intrusion assessment or maybe even an environmental remediation if contamination is found. It’s hard to know exactly what to expect when the process starts but having an experienced environmental consultant with expertise in your industry can make a big difference. They’ll have a better sense of what to expect at your business and will be there to help you navigate the decisions you’ll need to make to move forward with your environmental strategy.

While cleanup strategies are personal for each business, the overall steps are similar. A smart strategy begins with 1) finding what coverage is available, 2) determining the extent of contamination, and 3) implementing a site-specific cleanup plan.

The three steps to environmental cleanup including insurance archeology, environmental investigation, and environmental remediation
These are the steps to a smart environmental cleanup strategy. Read more about addressing environmental contamination.

There’s no need to face environmental liabilities or demand letters on your own. Business owners can take proactive steps to get in the driver’s seat and protect their assets with the support of insurance archeologists and environmental consultants. We strongly believe there shouldn’t be a financial barrier to performing meaningful environmental restoration work and that insurance policy coverage for environmental liabilities should be honored by the carriers.

Do you have questions about environmental investigations? Contact us today.

 


 

Headshot of Director of Accounts, Dru Shields

Dru Carlisle, Director of Drycleaner Accounts
For over 10 years, Dru has helped numerous business and property owners facing regulatory action, navigate and manage their environmental liability. Dru has vast experience in assisting dry cleaners in securing funding for their environmental cleanups through historical insurance policies. Dru is a member of numerous drycleaning associations in addition to serving on the Midwest Drycleaning and Laundry Institute (MWDLI) advisory council and on the Drycleaning & Laundry Institute Board (DLI) as an Allied Trade District Committee Member.

 

Setting Your Environmental Investigation and Remediation Priorities

EVERYONE IS MAKING TOUGH DECISIONS RIGHT NOW ABOUT WHAT TO SPEND MONEY ON, AND WHAT CAN WAIT. IN THIS ARTICLE, I’LL WALK YOU THROUGH WHAT CAN WAIT AND WHAT CANNOT WAIT EVEN IN OUR CURRENT COVID-19 BUSINESS ENVIRONMENT.   

A red paper air plane moving forward with a new strategy away from a group of white paper air planes

BY: JEFF CARNAHAN 

The EPA and many State environmental agencies have issued statements providing loose guidance related to the potential availability of some slack in regulations due to COVID-19  and the financial stress that it has put on many responsible parties who are in a cleanup program. If you are in a position where there is a known release of hazardous substances from your operations or previous operations at your site, there are decisions that need to be made about whether or not to proceed with various aspects of the environmental investigation and cleanup process. Some things can wait, and some just cannot  

 ENVIRONMENTAL CONTAMINATION ISSUES THAT CANNOT WAIT 

There is an adage that says, “Do whatever you want, so long as it doesn’t hurt anyone. With environmental contamination issues, there is often the possibility that others could be put in harm’s way from exposure to hazardous substances. The work related to investigating and eliminating a direct exposure to contamination should be top priorities, and it really can’t be put on hold. Here are three scenarios where environmental cleanup shouldn’t wait: 

1. VAPOR INTRUSION ASSESSMENT

At sites where a subsurface release of volatile organic compounds (VOCs) such as PCE, TCE, or Benzene has occurred, the potential for vapor intrusion most likely exists at nearby buildings. If there are residences, daycare facilities, schools, or medical care facilities close by, that threat carries an even higher urgency. Whereas many investigations that include soil or groundwater sampling are measuring a potential exposure, vapor intrusion assessments measure actual exposure situations. If vapor intrusion is actually occurring at a building, the occupants are breathing the contamination directly. The VOCs mentioned above are all carcinogenic to some degree and are highly regulated. Exposure scenarios where their levels are identified at concentrations higher than risk-based screening levels are strictly enforced by regulatory agencies. If you are the responsible party for a release of VOCs and the vapor intrusion exposure pathway hasn’t been ruled out, appropriate sampling of the inhalation exposure pathway at nearby structures should not be delayedIf it is confirmed that levels of VOCs in the indoor air at sampled buildings are higher than the regulated levels, immediate actions to protect the occupants, such as the installation of a sub-slab depressurization system, will also be required.  

2. GROUNDWATER SAMPLING IN DRINKING WATER WELL PROTECTION AREAS

It is not uncommon for releases of contamination to migrate into the groundwater, and then become mobile and transport downgradient. Since groundwater is a valuable drinking water resource in many areas, the potential exists for contamination to make its way into potable water supply wells. Like vapor intrusion assessments, the sampling of groundwater for the presence of contamination within a well-head protection area is an assessment of a direct exposure for those who may drink that water. This type of exposure scenario, if likely or probable, is one where there should not be delay in making a determination if your release is impacting others. The timing is unfortunate, but sampling of the ingestion exposure pathway in this situation will be strictly mandated by regulatory agencies.  

3. SURFACE SOIL SAMPLING WITHIN INHABITED AREAS

One factor that allows subsurface soil sampling at contamination sites to proceed at a calculated pace is that many times the impacts are well below the ground surface. When this is the situation, the likelihood of people coming into contact with the hazardous substance is pretty low and may be limited to construction workers who may be digging in the area. When contamination appears to be present at the ground surface in a location that is frequented by people, especially children, the potential for direct contact with that soil is much higher. While this threat is less common than vapor intrusion or groundwater ingestion exposure, if your site fits into this scenario, be prepared for the regulators to demand that investigation and exposure mitigation measures be carried out, with little to no leniency.  

ENVIRONMENTAL CONTAMINATION ISSUES THAT CAN WAIT 

If you’ve already advanced your site investigation and/or remediation process past the point where you know whether there is a threat of an ongoing exposure, you can probably get some concurrence from the regulators to slow things down a bit. Here are two scenarios where environmental work could be postponed: 

1. POST-REMEDIAL ACTION MONITORING

Typically, after a cleanup action has been implemented, say a source area soil excavation or a groundwater cleanup, there is a period of time during which routine quarterly, semi-annual or annual groundwater monitoring is required to demonstrate that the project was successful. Sometimes the cleanup mark can be missed, and it isn’t known until post-remedial monitoring shows a rebound in contaminant concentrations. Although any delay in the performance of this monitoring has the effect of prolonging the amount of time until you get your regulatory closure, if it is necessary to route the funding to other, more critical business efforts, it is likely that you can get the relief you need. 

2. CLEANUP ACTIVITY IF ONLY YOUR PROPERTY IS IMPACTED

If you are involved in an environmental investigation and cleanup, and you have already shown through sampling that the extent of contamination doesn’t extend beyond your own property boundaries, it is also likely that you can put off cleanup for a period of time. Of course, if conditions were to arise in the meantime that involve the potential sale or refinancing of your property, the issue would once again be at the forefront and most likely the work would need to move forward to complete the deal.   

When economic conditions turn sour, as they are now, business leaders look to save cash on things that don’t absolutely need to happen right now. There are some situations, as we’ve discussed, where environmental projects may be delayed for a period of time to help out. Keep in mind, however, that as long as there is an environmental condition at your property that has not been closed through a regulatory program, your business and your property will never have its full value. Perhaps now is the time to seize the day and protect your assets’ value If this is your goal, it makes sense to keep the project moving.  

Contact us today to review your environmental investigation and remediation priorities. 

_____________________________________________________________________________ 

As seen in Cleaner and Launderer  

Jeff Carnahan, President
Jeff Carnahan, LPG, has 20+ years of environmental consulting and remediation experience. His technical expertise focuses on the investigation and interpretation of subsurface releases of hazardous substances for the purpose of evaluating and controlling the risk and cost implications. He has been a partner of the drycleaning industry for the past decade, and is a frequent contributor to the national drycleaning publication Cleaner & Launderer. He is an industry leader in understanding that environmental risk includes not only cleanup costs, but also known and unknown third-party liability.  

10 things we’re doing to make time for nature

UNITED NATIONS URGES THE WORLD TO LISTEN TO NATURE DURING TIME OF PANDEMIC AND CLIMATE CRISIS 

Three hikers make time for nature for 2020 World Environmental Day overlooking the Grand Canyon.

“The foods we eat, the air we breathe, the water we drink, and the climate that makes our planet habitable all come from nature.” That’s the beginning of the mission statement for this year’s UN World Environment Day theme; “Time for Nature.” This year’s edition comes at an unprecedented time when the world is facing a historic pandemic and the devastating impacts of climate change. The UN is urging everyone in the world to listen to the message that nature is sending us: To care for ourselves, we must care for nature.

WHAT IS WORLD ENVIRONMENT DAY?

World Environment Day began in 1974 and has grown into a global platform for raising awareness and taking action on urgent issues from marine pollution and global warming to sustainable consumption and wildlife crime. Every June 5th there’s a call to action to engage local governments, businesses, celebrities, and citizens to focus on a pressing environmental issue.

This year we have witnessed an alarming array of catastrophic episodes including the wildfires that swept through Brazil, Australia, and the US, locust infestations across Eastern Africa, and the global COVID-19 pandemic that has impacted millions of lives. All of these events demonstrate the interdependence of humans and the webs of life in which they exist.  

WHY SPENDING TIME WITH NATURE IS IMPORTANT

Getting time with nature has become a mental health necessity these past few months We’ve had time to reflect on our own personal impacts on the world around us. It’s forced us to think about the way we consume, what businesses we support, and how their practices impact the environment, who we elect as our leaders to safeguard our natural resources, and how we educate and talk to the next generations about protecting our precious planet.

HOW WE’RE SPENDING TIME WITH NATURE

As environmental engineers, geologists, and scientists, our team has an innate appreciation for nature. Before the pandemic, outside of our professional environmental work, we would conduct regular neighborhood cleanups to spend some time outdoors and protect the environment from the adverse impacts of improperly disposed of waste. Since we all can’t gather together, here’s how some are spending time outside and preserving and protecting their corner of the world. 

1. PICKING UP LITTER

EnviroForensics employee picks up beach glass and balloon trash on the beaches of Lake Michigan.

Now that it’s light enough to enjoy nature after work, I spend most of my evenings hiking and taking photos of the Indiana Dunes. During my walks, I’ll pick up trash (I have a record for picking up 39 balloons in one walk – 31 mylar and 8 latex). I also spend entirely too much time looking for beach glass (truly addicting). 

Michele Murday, Northwest Indiana Regional Manager

 

2. GARDENING


EnviroForensics employee plants pots on a sunlit driveway

I love any kind of gardening and can be found outside in our yard planting or transplanting on any sunny weekend day! My favorite plant is Russian Sage but it spreads easily in a bed so I keep mine in pots. We also have some iris plants that are from Jeff’s grandmother’s garden, still blooming! Here is a pic of my new plant babies, including succulents, some Russian Sage, some Salvia, Milkweed, some edible herbs, Flowering Onions, a mini Aloe plant, and a couple of unknowns that I brought from our old house!

Morgan Saltsgiver, Director of Brownfields & AgriBusiness

 

3. GROWING YOUR OWN FOOD


Garden in a wooden raised plant bed in a backyard

Grow your own, so you know what’s in it. I used treated lumber for these raised beds. I line the insides with landscaping cloth. My wife got the cloth bags at the ends. We have had fantastic fingerling and new potatoes from them.

Mark Nommay, Warehouse Manager

Plants in ceramic rectangular planters on a second story wooden deck

I don’t pretend to know how to garden (I always kill the lavender plants I try to grow), but I do keep a vegetable garden every year. Homegrown tomatoes and cucumbers are the best part of summer. This year I’m trying for a few variations of peppers, too. 

Dru Shields, Director of Accounts

 

4. SPENDING TIME IN COMMUNITY GREEN SPACES

Triangle Park in the Windsor Park neighborhood in Indianapolis, Indiana

My husband and I recently moved to the Windsor Park neighborhood in Indianapolis, Indiana. We commune with nature by landscaping and walking in our area. We’re lucky to have Triangle Park, Fletcher Park, Spades Park, and Brookside Park all near us. It’s incredible to have so much greenery and towering trees living downtown. When we’re walking, we pick up trash and talk to our neighborhoods. My husband has joined the board of the Windsor Park Neighborhood Association, and we’re excited to be investing in our community.

Elizabeth Hemingway, Marketing Director

 

5. CAMPING

Campsite in woods with camping trailer, dog, chairs, and fire wood.

Camping, hiking, and mountain biking is how our family has fun in the great outdoors.  Not sleeping on the ground any more thanks to the USS Winnebago!  

Brad Lewis, Principal Scientist

 

6. FISHING

Brian Moskalick holding a fish he caught at Kentucky Lake

I spend a lot of time at our Kentucky Lake home fishing.

Brian Moskalick, Field Professional

 

7. REPLACING FRONT LAWN WITH NATIVE AND NON-INVASIVE GROUNDCOVER

Grassless front lawn with native plants and ground cover in Wisconsin

We just finished removing our front lawn for a butterfly and edible garden. We have a cherry tree, serviceberry, blue berry, currants, and hops alongside coneflowers, butterfly bush, and other native and non-invasive ground cover and shrubs. Several butterflies and pollinators have already been spotted. We also completed the installation of our third rain barrel to capture more runoff. This should significantly reduce the solar gain on the house, limit rainwater runoff, and will just be a pleasant place to read a book or enjoy a beverage.

Rob Hoverman, Northern Midwest Director

 

8. WANDERING

Motorcycle on a remote road overlooking a grassy, sunlit valley

I make time for nature by turning down unknown roads in remote places in order to stumble upon vistas such as these.

Jeff Carnahan, President

 

9. SPENDING TIME AT A NATIONAL OR STATE PARK 

Grass and tree covered hills on sunny day in Brown County State Park, Indiana

Nothing beats a day trip of biking through Brown County State Park’s beautiful views and forested areas to get some fresh air and exercise. The rolling hills have provided an entertaining bike course to explore and enjoy over the weekends.

Jackie Cabrera, Marketing Manager

 


Woman at the Little Grand Canyon in the Little Grand Canyon in Southern Illinois

My wife and I love to hike! One of our favorite hiking spots is the beautiful Little Grand Canyon in Shawnee National Forest in Jackson County, Illinois.

Mark Phillips, Regional Director

 

10. PASSING DOWN AN APPRECIATION FOR NATURE TO THE NEXT GENERATION

Boy standing in a creek with long branch in hands

I was raised playing in the creek beside our house. It’s where I found my love of geology. To me, it is the best place on earth. Now I love playing with my son in the creek and getting lost in the woods.

Jennifer Hallgarth, Director of Consulting Services


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