Few environmental issues create more uncertainty than discovering contamination at a property.
Whether contamination is identified during due diligence, redevelopment planning, construction activities, or routine environmental investigations, the initial reaction is often the same:
“What happens now?”
Many people assume that discovering contamination automatically means a project is in trouble. In reality, contamination is often the beginning of a structured process designed to understand the issue, evaluate available options, and develop a strategy that aligns with the property’s future goals.
Here are five things that typically happen after contamination is discovered.
1. Confirm and Define the Issue
The discovery of contamination is usually the beginning of the investigation process, not the end.
Important questions often include:
- What contaminants are present?
- Where are they located?
- How extensive are the impacts?
- Is groundwater affected?
- Could contamination extend beyond the property?
Additional investigation is often necessary to answer these questions and provide a clearer understanding of site conditions.
Understanding the nature and extent of contamination is one of the most important steps in determining the appropriate path forward.
2. Evaluate Potential Risks
Once contamination is identified, the next step is understanding what it means.
Questions may include:
- Could people be exposed?
- Are groundwater resources affected?
- Could contamination migrate?
- Are nearby properties impacted?
- Does future property use influence risk?
The answers help determine the significance of the environmental condition and identify priorities for future action.
3. Understand Regulatory Requirements
Environmental regulations often provide a framework for addressing contamination.
Depending on site conditions and jurisdiction, important questions may include:
- Is regulatory notification required?
- Are voluntary cleanup programs available?
- What options exist for achieving closure?
- Are long-term obligations anticipated?
For example, Pennsylvania’s Act 2 program provides multiple pathways for addressing contamination and obtaining regulatory closure. Similar risk-based approaches are available in many states.
The objective is often to identify the most appropriate regulatory strategy for the property’s intended use and redevelopment goals.
4. Evaluate Response Options
One of the biggest misconceptions about contamination is that there is only one solution.
In reality, environmental professionals may evaluate a variety of response options depending on site conditions and project objectives.
Potential options may include:
- Additional investigation
- Monitoring
- Excavation
- In-situ remediation
- Engineering controls
- Institutional controls
- Risk-based remediation approaches
The appropriate response depends on factors such as the extent of contamination, future land use, redevelopment plans, regulatory requirements, and project timelines.
5. Develop a Strategy
Once environmental conditions are understood, project teams can develop a strategy that aligns with the property’s future goals.
For example:
Property Acquisition
The focus may be on understanding risk, allocating responsibility, and evaluating financial implications.
Redevelopment
The goal may be to integrate remediation activities with construction and site development.
Long-Term Ownership
The focus may be on managing environmental risk and obtaining regulatory closure.
Financing
The objective may be to reduce uncertainty and address lender concerns.
The contamination may be the same.
The appropriate strategy may be very different.
What Not to Do When Contamination Is Discovered
One of the most common mistakes is jumping to conclusions before enough information is available.
Avoid assuming that:
- The property is worthless.
- The transaction cannot move forward.
- Remediation will be prohibitively expensive.
- The project must stop immediately.
- There is only one solution.
In many cases, the initial discovery of contamination simply raises questions that still need to be answered.
The most productive response is often to gather additional information before making major business decisions.
Practical Questions to Ask
When contamination is discovered, consider the following:
- How extensive is the impact?
- Is groundwater affected?
- What regulatory options exist?
- What response alternatives are available?
- How does the contamination affect the property’s future goals?
The answers often provide the foundation for informed decision-making.
Final Thoughts
Discovering contamination does not automatically determine the outcome of a project.
What matters most is understanding the issue, evaluating the available options, and developing a strategy that aligns with the property’s future goals.
In many cases, contamination is not the end of the process.
It is simply the beginning of informed decision-making.