Prospective Purchaser Agreements 

Examples

Site 1: North Portland Road, LLC (Larsen South)

Starting in 1964, this 15.5-acre site in Portland was the terminal for the transportation of bulk liquids and heavy equipment. On-site operations included truck fueling and tanker rinsing; the site contained ponds and later, a six-cell aeration treatment system designed to handle liquid wastes generated from truck rinsing. Over the years, companies operating at the site reported spills, and DEQ received complaints about unauthorized disposal of hazardous substances that affected the adjacent Columbia Slough. After operations ceased in the 1990s, the property trustee began looking for a buyer. By this time, contaminated subsurface soil and groundwater had been documented, involving a broad range of substances, including free-product petroleum, pesticides, and PCBs. North Portland Road, LLC wished to buy the property, and in December 2005 entered into a PPA with DEQ, executed as a judicial Consent Judgment. Under the Consent Judgment, North Portland Road agreed to conduct further investigation and removal/remedial actions, including possible deed restrictions governing future use of the property, as determined appropriate by DEQ under its Voluntary Cleanup Program. North Portland Road also agreed to provide funding for future investigative and remedial actions in the Slough. In return, the Judgment provided North Portland Road with a release from liability under Oregon law for releases of contamination at the property, including into the Slough. By executing the PPA as a Consent Judgment, North Portland Road also received protection from possible contribution action by third parties for the contamination.

• North Portland Road LLC Consent Judgment

Site 2: SeQuential Retail Station #1, LLC (McVay Highway Site)

Less than 1 acre in size and located along a commercial corridor adjacent to I-5 in Eugene, the former Franko facility sold gasoline from 1976 until its closure in 1991. At that time, the owners filed Chapter 7 bankruptcy, and the property was turned over to a bankruptcy trustee. Also in 1991, petroleum contamination from the site was observed during trenching along the highway just east of the site. Contamination had also migrated to a residential well west of the facility. In 1996, a private party purchased the property out of bankruptcy, removed the five USTs and removed contaminated soil. Subsequent assessment identified the former fuel pump islands as the primary source of contamination. Lane County eventually acquired the property through tax foreclosure, and in January 2005 removed over 400 tires and 15 drums of wastes from past investigations, as well as other miscellaneous debris from the property originating from transients and squatters. Based on the site’s size, location, and configuration, SeQuential Retail Station #1, LLC wished to purchase the site and construct its first retail biofuels facility, but was concerned about its potential liability for site contamination. In July 2005, SeQuential and DEQ entered into a PPA that released SeQuential from liability for existing contamination. In return, SeQuential agreed to provide $50,000 toward the cleanup and to complete development of its retail fueling facility. In conjunction with the PPA process, DEQ worked with Lane County to enhance the prospects for a property transaction, by using U.S. EPA grant funds to conduct further investigation of the site, and by helping the County secure a separate $200,000 grant from EPA to conduct needed removal/remedial actions. SeQuential completed its retail biofueling station in August 2006.

• SeQuential Retail Station #1 LLC Prospective Purchaser Agreement

Site 3: Advanced American Construction Properties, LLC (Marine Finance Co.)

Located on the Willamette River in the Portland Harbor area, the MFC facility has been used for office trailer storage, warehousing, and houseboat construction. In April 2000, DEQ and MFC signed a voluntary agreement to investigate the site. But because MFC was financially unable to conduct investigation and cleanup, DEQ declared the site an Orphan, and then conducted two rounds of environmental assessments. DEQ also removed abandoned waste containers and lead-acid batteries from the facility. The investigations revealed petroleum, metal, and PCB contamination somewhat above safe levels on the property and in adjacent sediment; however, no significant or widespread contamination was found. In November 2004, Advanced American Construction Properties, LLC signed a PPA with DEQ, in which DEQ released Advanced American from liability under Oregon law for releases of contamination at the property, including releases into the Willamette River. For its part, Advanced American agreed to complete a source-control evaluation and develop a plan to address potential impacts to the Willamette River from the site. The PPA also required a small removal of contaminated shallow soil, and implementation of a DEQ-approved stormwater and soil-management protocol during site development. Working with DEQ’s Voluntary Cleanup Program under the PPA, Advanced American conducted additional soil sampling in January 2005 and found no new areas of potential concern. Advanced American subsequently completed construction of a new building, and has consolidated its business operations at the site.

• Advanced American Construction Properties LLC Prospective Purchaser Agreement

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