Prospective Purchaser Agreements

A Prospective Purchaser Agreement is a legally binding agreement between DEQ and a prospective purchaser or lessee of real property. A PPA limits the purchaser’s or lessee’s liability to DEQ for environmental cleanup of the property. In return for this liability release, the PPA must provide the state with a substantial public benefit (see below). The PPA does not provide protection from liability a purchaser or lessee may have under federal law or from liability for any new contamination that may occur after the purchaser or lessee acquires the property. A PPA must be negotiated with DEQ before the purchaser or lessee acquires an interest in the property. The following links will take you to fact sheets about PPAs and liability management, and to Oregon statutes that authorize DEQ to enter into PPAs.

• Fact sheets
  • Key Information About Prospective Purchaser Agreements in Oregon
  • Liability Management Tools for Buyers of Contaminated Property in Oregon
• Forms
• Laws and regulations
  • Prospective Purchaser Statute - ORS 465.327
• Examples of Prospective Purchaser Agreements
• Summary of different types of PPAs and their protections and public notice requirements

Eligible Sites:
Generally, eligible sites are properties contaminated with hazardous substances, including petroleum, where removal or remedial activities are needed to protect human health or the environment. DEQ may enter into PPAs for such sites at its discretion. In many instances, a PPA may be useful to facilitate the acquisition, cleanup and redevelopment of contaminated property; however, a PPA may not be appropriate or useful in all cases.

Eligible Applicants:
A PPA may be available for an individual, business, nonprofit, governmental body or any other entity that intends to acquire contaminated property. The prospective purchaser or lessee must not have caused or aggravated the contamination at the property, and must not have been affiliated with individuals or entities responsible for the contamination.

Substantial Public Benefit:
Among other qualifying criteria, Oregon law requires DEQ to determine that the state will receive a substantial public benefit from entering into a PPA. What this means will differ from site to site, because each property presents a unique set of cleanup and redevelopment issues and opportunities. In general, a PPA will include some combination of: substantial funding for cleanup or a commitment to perform substantial cleanup; productive reuse of a vacant or abandoned industrial or commercial facility; or a development by a government entity or nonprofit organization to address an important public purpose.

Beginning the PPA Process:
Please call DEQ's PPA program coordinator at 503-229-5512 (800-452-4011 x5512 toll-free in Oregon) if you have questions about the program or want to discuss whether a PPA may be appropriate and useful for your transaction.

Below is a link to DEQ’s guidance document for the PPA program, describing the program in greater detail. It includes qualifying criteria, costs for applying for a PPA, and the process for developing a PPA. There are also links to documents that DEQ will ask you to prepare and submit once you and DEQ decide that a PPA is appropriate for your transaction.

• DEQ Prospective Purchaser Agreement Guidance PDF
• For additional documents and forms needed to complete a transaction, visit the Publications and Forms page. This link will take you directly to the PPA section.

[print version]