600,000-Acre Phase I Environmental Site Assessment and NFA Determinations

Green Diamond Resources (Green Diamond) wanted to acquire 600,000 acres of primarily timberlands in Klamath, Jackson, and Lake counties in Oregon and Siskiyou County in California. This is an area roughly the size of half of Rhode Island; the timberland is spread across 25 discontinuous parcels, which are as far as 120 miles apart. Included in the purchase were various sawmills, former logging camps, a nursery, and an orchard. This work had to be completed within the contractual 60-day due diligence period.

MFA conducted a Phase I ESA on behalf of Green Diamond. To assess a property of this size, MFA used a Geographic Information Systems-based analysis to identify sites of interest (SOIs). Historical, regulatory, and other information sources were used to query and assess which sites may be of potential environmental concern. The site visits included the SOIs as well as portions of the timberlands. In addition, interviews with the current owner, representative/employees, and the Oregon Department of Environmental Quality (DEQ) provided contextual information. Many of the identified SOIs included former logging camps that had been used for varying periods, depending on logging activity, from approximately 1920 through 1980. The camps were associated with temporary dwellings for employees and sometimes for their families. Some of the camps had a water well, sewage lagoon, or septic tank with leach field, and had on-site solid waste disposal. Aboveground petroleum storage tanks, truck/rail repair facilities, and electrical transformers were likely once present. Because of MFA’s work, Green Diamond was able to complete its environmental due diligence within the required period. More importantly, this work gave Green Diamond the information it needed to make business decisions, based on environmental impacts, about properties it did or did not want to purchase.

Following the Phase I ESA activities, MFA completed additional work and prepared Independent Cleanup Pathway (ICP) reports for each of the following sites: 

• Camp 4—ECSI 5434
• Camp 9—a portion of ECSI 3774
• Camp 14—ECSI 3775
• Georgia-Pacific Chemult—ECSI 2877
• Pokegama Sugar Pine and Lumber Co. (former)—ECSI 5261
• Southern Oregon Round Stock—ECSI 5370

Green Diamond subsequently purchased these properties and sought to address the DEQ listing in the Environmental Cleanup Site Information (ECSI) database. Green Diamond entered the ICP program for each site to achieve a No Further Action (NFA) determination for the property. The ICP reports identified approximately half of the sites as having a recognized environmental condition (REC) or a data gap (as defined by the American Society for Testing and Materials Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process [ASTM E1527-13 and E 2247-16]). All identified RECs were addressed via removal or further characterized with results indicating no unacceptable risk to human health or the environment. DEQ issued NFA determinations for all of these sites. Clarifying with the regulator that NFA was required brought Green Diamond clarity and comfort with respect to the use and management of these properties in relation to legacy hazardous substances and petroleum products.