June 21, 2011
Ms. Ann V. Kraus Environmental Specialist Federal Deposit Insurance Corporation (FDIC) - DRR/Field Operations Branch 40 Pacifica, Suite 1000 Irvine, California 92618
Re: Phase I Environmental Site Assessment
Asset Number: 103340057
Asset Name: Not Provided
Location: Southeast Corner of West 49th Street and 65th Avenue Evans, Weld County, Colorado 80831
Project #: 10267-0311
Dear Ms. Kraus:
Following is the digital report of the Phase I Environmental Site Assessment conducted on the above referenced location. This Report details the findings and conclusions of our evaluation.
As always, EPS Environmental Services, Inc. appreciates the opportunity to have provided our services and looks forward to serving your future needs. Should you have questions concerning this Report, or have further need of our services, please do not hesitate to call.
Sincerely,
Nicholas J. Cuzzone, P.E. Senior Project Engineer
NJC/lmh Enclosures PHASE I ENVIRONMENTAL SITE ASSESSMENT
Asset Number: 103340057 Asset Name: Not Provided Southeast Corner of West 49th Street and 65th Avenue Evans, Weld County, Colorado 80831
Prepared For:
Federal Deposit Insurance Corporation (FDIC) As receiver for FirsTier Bank
DRR/Field Operations Branch 40 Pacifica, Suite 1000 Irvine, California 92618
Prepared By:
EPS Environmental Services, Inc. 7237 West Devon Avenue Chicago, Illinois 60631
Nicholas J. Cuzzone, P.E. Senior Project Engineer
Reviewed By:
Peter N. Partipilo, C.H.M.M. Senior Environmental Specialist
Project Number:
10267-0311
June 21, 2011 TABLE OF CONTENTS 1.0 Summary ...... 1 1.1 Asset Information ...... 1
2.0 Introduction ...... 2 2.1 Purpose ...... 2 2.2 Scope of Services ...... 2 2.3 Limiting Conditions ...... 2 3.0 Property Description ...... 3 3.1 Location and Legal Description ...... 3 3.2 Description of Improvements On-site ...... 3 3.3 Current and Past Uses of the Property ...... 5 3.4 Current and Past Uses of Adjoining Sites ...... 5
4.0 Records Review ...... 6 4.1 Physical Setting Sources ...... 6 4.2 Federal and State Environmental Record Sources ...... 7 4.3 Historical Use Information ...... 8 5.0 Interviews ...... 11 6.0 Site Reconnaissance ...... 11 6.1 Underground Storage Tanks (USTs) ...... 12 6.2 Aboveground Storage Tanks (ASTs)/Storage Drums/Containers ...... 12 6.3 Chemical and/or Raw Materials ...... 12 6.4 Stained or Disturbed Surfaces/Stressed Vegetation ...... 12 6.5 Stormwater Run-off /Pools of Liquid/Pits/Drywells ...... 12 6.6 Waste Disposal Practices ...... 13 6.7 Polychlorinated Biphenyls (PCBs) ...... 13 6.8 Readily Visible Suspect Asbestos-Containing Material (ACM) ...... 13 6.9 Potential Lead-Based Paint ...... 14 6.10 Observations of Surrounding Sites ...... 14
7.0 Special Resources ...... 14 7.1 Endangered Species ...... 14 7.2 Protection of Wetlands ...... 15 7.3 Coastal Barrier Resources ...... 15 7.4 Floodplain Management/Wild and Scenic Rivers ...... 16 7.5 Areas of Scientific Significance ...... 16 7.6 Natural, Wilderness and Recreational Areas ...... 16 7.7 National Natural Landmarks ...... 16 7.8 Sole Source Aquifers ...... 17 7.9 Archaeological Resources/Historical Sites ...... 17
8.0 Findings and Conclusions ...... 18
9.0 Warranty and Limitations of Liability ...... 19 9.1 Confidentiality ...... 19 9.2 Reliance on Phase I Assessment and Report ...... 20 9.3 Sources of Information Relied Upon for Phase I Assessment and Report ...... 20 9.4 Certification ...... 20 FIGURES Figure 1 - Property Location Map Figure 2 - Property Sketch Figure 3 - Topographic Map
APPENDICES Appendix A – Statement of Work Issued by Client to EPS Environmental Services, Inc. Appendix B - Photographic Documentation Appendix C - Environmental Database Information Appendix D - Historical Information Appendix E - Special Resources Information Appendix F - Chain of Title/Lien Search Report Appendix G - EPS Environmental Qualifications 1.0 SUMMARY
EPS Environmental Services, Inc. (EPS Environmental) has performed a Phase I Environmental Site Assessment (Phase I Assessment) of Southeast Corner of West 49th Street and 65th Avenue in the City of Evans, Weld County, Colorado 80831 (Property) in conformance with the scope and limitations of the American Society for Testing and Materials (ASTM) Practice E 1527-05; Compliance Findings for the Federal Deposit Insurance Corporation (FDIC); and according to the standards and practices set forth in 40 Code of Federal Regulations (CFR) Part 312. Any exceptions to, or deletions from these practices are described in Section 2.3 of this report (Report).
This Phase I Assessment has revealed evidence of the following recognized environmental conditions1 (RECs) in connection with the Property:
There is a potential for unknown/unreported releases (e.g., spills, overfills, and/or leaks) of petroleum to have occurred from a suspect, out-of-service underground storage tank (UST) and negatively impacted underlying Property soil/groundwater.
The Property was identified on the Colorado DNR oil and gas well database with five (5) active (e.g. producing) oil/gas wells.
Refer to Sections 4.2, 4.3, 6.0 and 8.0 for additional discussion regarding these RECs. In addition, businesses environmental risks associated with the current (e.g., oil/gas extraction operations, etc.) or planned uses of the Property are individually discussed in Section 6.0 of this report. Moreover, Special Resources are individually discussed in Section 7.0 of this Report.
1.1 Asset information
Asset Name and Address: Asset Name Not Provided Southeast Corner of West 49th Street and 65th Avenue Evans, Weld County, Colorado 80831
Asset Number: 103340057
Financial Institution: FirsTier Bank, Louisville, Colorado
FDIC Four/Five Digit Financial Institution Identifier: 10334 (FIN)
Asset Type: Owned Real Estate (Residential)
FDIC Service Center: FDIC-DRR
1 According to ASTM Practice E 1527-05, a recognized environmental condition (REC) means “the presence or likely presence of any hazardous substances or petroleum products on a Property under conditions that indicate an existing release, a past release, or a material threat of a release of any hazardous substances or petroleum products into structures on the Property or into the ground, ground water, or surface water of the Property. The term includes hazardous substances or petroleum products even under conditions in compliance with laws.” Moreover, according to the ASTM E 1527-05, a “historical recognized environmental condition” (HREC) is defined as a condition which in the past would have been considered a REC, but which may or may not be considered a REC currently. 40 Pacifica, Suite 1000 Irvine, California 92618
Asset Manager: Not Provided
2.0 INTRODUCTION
EPS Environmental was retained to conduct the Phase I Assessment of the Property by the Federal Deposit Insurance Corporation, as receiver for FirsTier Bank (Client).
2.1 Purpose
The purpose of the Phase I Assessment was to identify readily apparent, potential sources of environmental liabilities associated with the Property and to qualify for the landowner liability protections to Comprehensive Environmental Response Compensation and Liability Act (CERCLA) liability in conjunction with the user requirements as defined by the FDIC.
2.2 Scope of Services
The scope of services agreed upon by the Client and performed by EPS Environmental is consistent with the recommendations set forth in the ASTM Standard Practice for Environmental Site Assessments (Standard E 1527-05) and according to the standards and practices set forth in 40 CFR Part 312, FDIC guidelines (FDIC Phase I Environmental Site Assessment (for the Identification of Environmental Hazards and Special Resources, February 2006) and Related Laws and Authorities. Moreover, with the exception of potential vapor intrusion/biological hazards per Client directive, potential environmental business risks are discussed in this Report, which include suspect wetland vegetation, equipment containing hazardous or regulated substances and radon gas levels. It should be noted, any data gaps and/or de minimis concerns identified on the Property are discussed within the text of this Report.
The scope of services performed by EPS Environmental was set forth in the Statement of Work (Appendix A) under the Solicitation/Award Letter (Contract No. RECVR-10-G-0193-0003) issued by the Client to EPS Environmental dated January 5, 2011 and modified March 8, 2011.
2.3 Limiting Conditions
The presence of vegetation, debris piles, oil extraction equipment, and lawn care equipment limited observations in isolated areas of underlying exterior surfaces. Furthermore, various floor coverings, furniture, stockpiled debris, equipment, shelving, and insufficient lighting limited observations in isolated areas of underlying interior surfaces. Moreover, the presence of dense vegetation, and fencing limited observations of the adjacent sites as viewed from the Property and public right-of-ways. Therefore, EPS Environmental makes no guarantees as to existing conditions of underlying surfaces or areas that could not be readily inspected.
2 Due to time constraints, a response to the Freedom of Information Act (FOIA) request submitted to the Colorado State Historic Preservation Office (SHPO) for information regarding the Property has not been received at the time of this writing. However, EPS Environmental opines this data gap is not material to the extent that would alter the findings and conclusions of this report. In the event information is received that alters the Findings and Conclusions of this Report, it will be promptly forwarded to the Client.
Most importantly, as no Plat of Survey was provided for the Property, exact Property boundaries could not be determined and the sizes of the Property and buildings have been estimated.
Any other limiting conditions pertaining to this Phase I Assessment are described in associated Sections of this Report.
3.0 PROPERTY DESCRIPTION
3.1 Location and Legal Description
The Property is located at the southeast corner of West 49th Street and 65th Avenue, approximately 4¾- miles west of Highway 85, in the City of Evans, Weld County, Colorado. The Property is situated in an agricultural and residential setting. See Figure 1 - Property Location Map following the text of this Report. The partial legal description for the Property provided by the Client is as follows:
Tracks 2 and 11, Outlots 1 and 13, Lots 1 through 29, Block 1; Lots 1 through 42, Block 2; Lots 1 through 14, Block 3; Lots 1 through 37, Block 4; Lots 1 through 36, Block 5; Lots 1 through 54, Block 6; Lots 1 through 18, Block 7; Lots 1 through 30, Block 8;Lots 1 through 20, Block 9; Lots 1 through 26, Block 10; All in Rehmer Lake Subdivision, a subdivision of the City of Evans, County of Weld, State of Colorado.
The Parcel Identification Numbers (PINs) provided for the Property by the Client are included in Appendix D, Historical Information.
3.2 Description of Improvements On-Site
3.2.1 Property Size
The Property consists of one (1) rectangular-shaped parcel of land encompassing 215.57± acres. See Figure 2 - Property Sketch.
3.2.2 Structures
Six (6) main structures, associated with a farmstead (all ages/sizes have been estimated), are located in the north portion of the Property as described below:
3 Building A - Residential structure (circa 1956), estimated 1,200 square feet in size; Building B - Out building (circa 1959), estimated 1,800 square feet in size; Building C - Out building (circa 1925), estimated 300 square feet in size; Building D – Garage (construction date unknown), estimated 325 square feet in size; Building E – Barn (circa 1925), estimated 400 square feet in size; and Building F - Loft-style Barn (circa 1934), estimated 600 square feet in size.
In addition, four (4) small sheds, less than 100 square feet in size, were identified on the Property; a small underground storage area was also observed on the Property.
3.2.2.1 General Construction
Building A is constructed of wood and masonry on a full basement. The remaining buildings are constructed of wood on concrete slabs or earthen floors.
3.2.2.2 Interior Finishes
The interior of Building A consists of wood, ceramic- and/or vinyl tiled floors; gypsum board and/or plaster walls; and gypsum board and/or plaster ceilings. The interiors of the remaining buildings consist of wood, concrete, and/or earthen floors; masonry, block, wood, and/or plaster walls; and wood, metal, and/or plaster ceilings.
It should be noted; according to the Property representative, the interior of Building A was completely remodeled in 2009.
3.2.2.3 Heating and Cooling Sources
Building A is heated and cooled by a propane-fired, electric-operated heating, ventilation and air conditioning (HVAC) unit.
3.2.3 Remaining Grounds
The remaining grounds consist of farmland containing several concrete-lined irrigation swales. The northeast portion of the Property contains Rehmer Lake which is surrounded by a low-lying wetlands area; an additional low-lying wetlands area is present in the southwest portion of the Property. Other features of the Property include several dirt roads which lead to five (5) oil/gas extraction wells and related extraction equipment. Refer to Section 4.2 for additional information regarding the oil/gas extraction equipment. See Figure 2 - Property Sketch and Appendix A - Photographic Documentation, following the text of this Report.
3.2.4 Potable Water Source
According to the Property representative the City of Evans supplies drinking water from the Clear Creek Basin, South Platte River, and the Cache La Poudre Basin to the Property and surrounding area. The water is collected and treated by the Thornton water treatment Plant/the 4 Wes Brown Treatment Plant. According to the Water Department, the water is tested periodically for contaminants and is in compliance with all EPA Safe Drinking Water Act regulations; unless a local drinking water advisory has been issued. No potable or monitoring wells were reported or observed on the Property. It should be noted, according to the City of Evans the Property is not currently connected to the City of Evans water supply. If a private potable well exists on the Property, EPS Environmental recommends the water be sampled periodically for contaminants to ensure compliance with all EPA Safe Drinking Water Act regulations. See Appendix D, Historical Information for a copy of the City of Evans correspondence.
3.2.5 Wastewater/Stormwater Discharge
Sanitary wastewater on the Property is discharged into a septic system on the Property. Stormwater run-off is managed by natural infiltration of Property soil and/or flows toward low-lying/wetland areas, Rehmer Lake, and/or drainage ditches along the public right-of-ways. Refer to Section 6.5 for additional discussion.
3.3 Current and Past Uses of the Property
3.3.1 Current Uses
The Property is farmland utilized for agricultural production and a farmstead. Based on site observations, the general work and housekeeping practices appear to be fair. As noted above, five (5) oil/gas extraction wells and related equipment are located on the Property. Refer to Section 4.2 for additional discussion.
Typically, Colorado farming includes short-term crops. The characteristics of the surface soils on the Property do not appear to have been extremely altered. Physical inspection did not reveal evidence of odors or discoloration in the surface soil layers from previous pesticide or herbicide use. EPS Environmental opines the presence of pesticides or herbicides, if any, do not exist above regulatory levels.
3.3.2 Past Uses
According to historical aerial photographs reviewed, the Property has historically been a farmstead and farmland used for agriculture production. Refer to Section 4.3 for additional information regarding historical uses of the Property.
3.4 Current and Past Uses of Adjoining Sites
3.4.1 Current Uses
The Property is surrounded as follows:
North: West 49th Street
5 Farmland, containing oil and gas extraction equipment
South: Farmland, containing oil and gas extraction equipment
East: Dairy Farm / Rehmer Lake Vacant land / Residential
West: 65th Avenue Farmland, containing oil and gas extraction equipment
It should be noted, no neighboring personnel were present on the adjacent sites; therefore, no interviews could be conducted.
3.4.2 Past Uses
The surrounding sites have historically been utilized as farmsteads and farmland since development. Refer to Section 4.3 for information on the historical use review regarding the adjacent sites.
4.0 RECORDS REVIEW
4.1 Physical Setting Sources
The following sources were reviewed to provide information on the topographic and geologic characteristics of the Property and surrounding area. Additionally, a county radon study was reviewed to provide statistics on the Property’s potential radon risk.
4.1.1 U.S. Geological Survey 7.5 Minute Series Topographic Map
According to the Milliken Quadrangle map, the general topography of the area displays an approximate sixty (60) foot decrease in elevation within 850 feet southeast of the Property. See Figure 3 for a copy of the Topographic Map.
Visual observation made during the Property inspection identified the surface topography grade to slope to the southeast. Based on the Quadrangle map reviewed, the near surface groundwater flow is likely to the southeast towards a town ditch and the Platte River.
4.1.2 Geologic Map of Colorado, Prepared in Cooperation with The Geological Survey of Colorado “1979”
The Property is located on the Laramie Formation Kl. This Cretaceous Age system consists of quartzose sandstone, claystone, and lenticular subbituminois coal beds in the lower 200 feet. The Fox Hills Sandstone consists of sandstone and siltstone that is gray-orange, fine-grained and weathers to light brown rounded outcrops. See Appendix C, Historical Information for a copy of the Geologic Map reviewed.
6 4.1.3 USDA Natural Resources Conservation Service, Web Soil Survey 1998
Generally, the Property is located in an area including Olney loamy sand; Olney fine sandy loam; and Tassel Fine Sandy loams. The Olney series consists of very deep, well drained soils that formed in Ogallala or similar sediments. The Olney soils are on hills and plains, used primarily as irrigated cropland, or as native pastureland. Typically the Tassel soil has a surface layer of grayish brown, very friable, calcareous fine sandy loam. The underlying material is light brownish gray, calcareous fine sandy loam with few fine fragments of sandstone. See Appendix D, Historical Information for a copy of the Soil Map.
It should be noted, no documentation was provided or readily available regarding whether imported fill material was used on the Property during construction. As the nature and origin of the imported fill material, if any, is unknown, there is a potential for hazardous substances to be present in imported fill material underlying the Property. Therefore, due to the lack of comprehensive documentation regarding the nature and origin of imported fill material, if any, and lack of environmental regulations prior to existing mandates, EPS Environmental cannot render an opinion regarding the condition of the imported fill material, or potential effects on the Property's subsurface conditions.
Consequently, should future construction activities or subgrade utility work involve excavation and off-site disposal of imported fill material, the imported fill material may require waste characterization analysis to be properly disposed at a facility licensed to accept such waste, according to applicable federal, state, and local laws and regulations. As such, the imported fill material, if any, would be considered a business environmental risk (i.e., additional construction costs) in connection with the Property.
4.1.4 Radon
The Property is located in Weld County in which 47% of samples tested had radon levels greater than 4.0 picocuries per liter (pCi/L). The United States Environmental Protection Agency (USEPA) has set a remedial action level of 4.0 pCi/L for residences. An average level of 5.0 pCi/L was detected in Weld County. This screening data is included as a guide to general background conditions, and should not be construed as site-specific data.
4.2 Federal and State Environmental Record Sources
Federal and State databases were reviewed by Environmental Data Resources, Inc. (EDR) for recorded environmental concerns on the Property and known sites within the Approximate Minimum Search Distance, as designated in the ASTM Standard E 1527-05. See Appendix B - Environmental Database Information, for a copy of the EDR Report.
Property
The Property was identified on the Colorado Department of Natural Resources (DNR) oil/gas well database as having five (5) active oil/gas wells and one (1) “abandoned location” well.
7 According to information obtained from the Colorado Soil and Gas Conservation Commission, a permit to install a well, named Lesser #2-33, was issued in 1995. It should be noted; this well was never installed.
The remaining five (5) wells are operated by Noble Energy Inc., under the well names Lesser PM # J33-1, Lesser PM # J33-8, Lesser PM # J33-2, Lesser # J33-7A, and Lesser PM # J33-7. These wells are reported as currently active and producing. It should be noted that the oil/gas wells and equipment were assessable during the recent site reconnaissance via dirt roads. No evidence of leaks or surface staining was apparent in the vicinity of the wells or equipment. According to information obtained from the Colorado Soil and Gas Conservation Commission, the wells were installed between 1988 and 1994. Inspection permits for these five (5) wells indicated “satisfactory” rankings. No reported oil leaks or staining were noted in any of the inspection records reviewed. As there is a potential for a release (e.g., spills, overfills and/or leaks) to occur from the active oil/gas wells, the active well extraction systems present a recognized environmental condition (REC) in connection with the Property. Refer to Sections 4.3, 6.0 and 8.0 for additional discussion.
Adjacent Sites
The sites north, south, and west of the Property were identified on the DNR oil/gas well database as having active (e.g. producing) oil/gas wells. These wells and related equipment were observed during the Property inspection. Based on physical distances from the Property, these sites should not present a readily apparent environmental concern to the Property. Refer to Section 6.12 for additional discussion.
Remaining Listed Sites
Based on the physical distances from the Property, the remaining listed sites should not present a readily apparent environmental concern to the Property.
Un-mappable Sites
Due to inadequate address information, three (3) un-mappable sites were listed on the database. Using the limited address/name recognition provided by EDR coupled with off-site reconnaissance, it does not appear the un-mappable sites are located within ¼-mile radius of the Property. As such, based on the assumed distances of the remaining un-mappable sites from the Property, these sites should not present a readily apparent environmental concern to the Property.
4.3 Historical Use Information
The following reasonably obtainable sources of information were reviewed or contacted to determine the historical uses of the Property. When feasible, information pertaining to the adjacent sites was reviewed.
8 4.3.1 Aerial Photographs (Aerials) - 1948, 1969, 1971, 1984, 1988, 1993, 1999 and 2005 provided by EDR
The 1948 through 1993 Aerials depict the Property as a farmstead and farmland used for agriculture production. It should be noted; irrigation ditches and swales are visible throughout the farmland area of the Property. Rehmer Lake and a low-lying area present on the northeast portion of the Property and an additional low-lying area is present on the southwest portion of the Property. The 1999 and 2005 Aerials depict the Property as currently identified. It should be noted that oil/gas wells were reportedly installed on the Property in 1988; however, due to the quality of the Aerials, the oil/gas wells were only discernible on the 1995 and 2005 Aerials.
The Aerials were also reviewed for the adjacent sites. In general, the Aerials depict the surrounding sites as Rehmer Lake, farmland, farmsteads and/or with residential structures. See Appendix D, Historical Information for copies of the Aerials reviewed.
4.3.2 Historical Building Permits, via Freedom of Information Act (FOIA) request to the City of Evans and Weld County Building Department
According to the Weld County Building Department, the Property is not located within their jurisdiction. According to the City of Evans Building Department, no records are on file for the Property. See Appendix D, Historical Information for a copy of the FOIA requests and responses.
4.3.3 Environmental Records, via FOIA request to the City of Evans
According to the City of Evans Fire Department, no records of environmental significance are on file for the Property. See Appendix D, Historical Information for a copy of the FOIA request.
4.3.4 Zoning, via the City of Evans Zoning Map
According to the Zoning map, the Property is zoned Planned Unit Development (PUD) district and Single Family Residential district (R-1). The R-1 district appears to be related to the future development plans for the Property. See Appendix D, Historical Information for a copy of the zoning information.
4.3.5 Waste and Hazardous Materials Landfills
According to the Colorado Department of Public Health and Environment, no hazardous waste landfills or environmental covenants were identified within one (1) mile radius of the Property. However, one (1) solid waste site was identified within the radius. Based on physical distance from the Property (approximately one (1) mile, this site should not present a readily apparent environmental concern to the Property. See Appendix D, Historical Information for a copy of the map reviewed.
9 4.3.6 Environmental Liens and Activity & Use Limitations (AULs)
The Client did not provide EPS Environmental any information regarding environmental liens or litigation regarding environmental concerns on the Property. An environmental questionnaire regarding liens, AULs and for environmental documents that may have aided in the preparation of this report was not provided to EPS Environmental. EPS Environmental opines this data gap is not material to the extent that would alter the findings and conclusions of this report.
It should be noted; six (6) representative Parcel Identification Numbers were used for the Property when obtaining the Chain of Title and Environmental Lien Search. Information (including but not limited to the owner on record and legal descriptions) is based on availability of reasonably ascertainable information at the time of obtaining the chain of title and environmental lien search. Additionally, the legal description is based on the most recent available conveyance of the land.
An environmental lien search was provided by EDR which provides results from a search of available current land title records for environmental cleanup liens and other activity and use limitations, such as engineering and institutional controls for the Property. No environmental liens or Activity & Use Limitations (e.g., land use restrictions) were identified in the lien search report. It should be noted, the legal current owner identified in the lien search is FirsTier Bank. See Appendix E for the EDR Environmental Lien Search Report.
Furthermore, a Chain of Title report was obtained from EDR. According to the Chain of Title Ownership Report, the current owner(s) of record is FirsTier Bank. The chain of title identified no entities of environmental significance for the Property. See Appendix E for a copy of the chain of title.
4.3.7 Sanborn Fire Insurance Maps (Sanborns) ordered from EDR
According to EDR, no Sanborn map coverage was available for the Property or surrounding area. See Appendix D, Historical Information for a copy of the no Sanborn coverage letter.
4.3.8 City Directory Abstract provided by EDR
The city directory search utilizes business and telephone directories to list individuals and/or companies associated with a specific address to assist in former uses of the Property. No city directory listings were reported available for the Property or adjacent sites. See Appendix D, Historical Information for a copy of the search report.
4.3.9 Historical Topographic Maps provided by EDR
Topographic maps for the years 1951 and 1969 were reviewed for the Property and adjacent sites. The 1951 and 1969 topographic maps depict the Property improved with a farmstead and farmland; Rehmer Lake and the low-lying areas are also depicted on the Property during these times. The surrounding areas appear as farmsteads and farmland on the 1951 and 1969 topographic maps. In
10 general, the topography of the Property and surrounding area currently appear unchanged as identified on the historical topographic maps reviewed. See Appendix D, Historical Information for copies of the topographic maps reviewed.
Based on the historical information provided by the Aerials and historical topographic maps reviewed, it appears the Property has been improved with a farmstead and farmland used for agricultural production since development. As farmland is considered a developed use, historical documentation was not practically reviewable prior to development of the Property. However, EPS Environmental opines no additional historical sources are required to be reviewed.
5.0 INTERVIEWS
The following individual was interviewed for specialized knowledge concerning the Property. The relevant information provided by these individuals has been incorporated in the appropriate Sections of this Report.
Mr. Robert Wolfe - Property representative - Interviewed and accompanied EPS Environmental during the site reconnaissance.
It should be noted, the former Property owner(s)’ contact information was not provided or readily ascertainable to EPS Environmental; therefore, the former Property owner(s) was not interviewed. However, EPS Environmental opines this data gap is not material to the extent that would alter the findings and conclusions of this report.
6.0 SITE RECONNAISSANCE
The site reconnaissance was conducted on April 19, 2011 at approximately 11:30 a.m. by Ms. Lara M. Hoffman, Project Manager for EPS Environmental (Appendix F). The site reconnaissance was initiated by observing the Property and adjacent sites from public thoroughfares and concluded by walking the public right-of-way. The interior of the Property buildings and the remainder of the farmstead were inspected on June 13, 2011 at approximately 10:30 a.m. by Mr. Nicholas J. Cuzzone, P.E., Senior Project Engineer Photographic documentation of significant environmental features has been included as Appendix A.
On April 19, 2011 the weather conditions were clear with a temperature of approximately 53 degrees Fahrenheit and winds of approximately five (5) miles per hour from the south. On June 13, 2011 the weather conditions were sunny with a temperature of approximately 78 degrees Fahrenheit and winds of approximately 15 miles per hour from the southwest The ground surfaces were dry on both days.
11 6.1 Underground Storage Tanks (USTs)
Two (2) pipes, equipment typically associated with an UST, were observed adjacent to the south exterior wall of Building D. As there is a potential for a release (e.g., spills, overfills, and/or leaks) of petroleum to have occurred from the suspect UST, the suspect UST presents a REC in connection with the Property.
The Colorado Division of Labor and Environment (CDLE) was contacted for additional information regarding the suspect UST, however a response has not been received at the time of this writing. EPS Environmental opines this is not material to the extent that would alter the findings and conclusions of this report. In the event information is received that alters the Findings and Conclusions of this Report, it will be promptly forwarded to the Client. Refer to Section 7.0 for additional discussion.
6.2 Aboveground Storage Tanks (ASTs)/Storage Drums/Containers
Six (6) (size unknown) ASTs reported as containing flammable liquids (presumably oil), associated with the oil/gas extraction operations, are located on the Property. No leaks or surface staining in the vicinity of the ASTs was observed. Refer to Sections 4.2 and 8.0 for additional discussion.
EPS Environmental observed several household size containers of routine cleaning and maintenance supplies, fertilizer, and pesticides in isolated areas of the Property buildings. The containers appeared in good condition and no staining was observed on the underlying surfaces.
No additional ASTs, storage drums or unidentified containers were observed on the Property.
6.3 Chemical or Raw Materials
No bulk quantities of chemicals or raw materials were observed on the Property.
6.4 Stained or Disturbed Surfaces / Stressed Vegetation
A burn area with charred vegetation was observed west of the Property buildings. According to the Property representative, scrap wood, yard waste and other similar debris from the Property is burned in this area. It should be noted; no charred containers, cans, or other environmentally significant burned items were observed in the burn piles.
No additional signs of stained or disturbed surfaces or stressed vegetation were observed on the Property.
6.5 Stormwater Run-off/Pools of Liquid/Pits/Drywells
Stormwater run-off is managed by natural infiltration of Property soil and/or flows toward low- lying/wetland areas, Rehmer Lake, or drainage ditches along the public right-of-ways. No pools of liquid, pits or drywells were observed on the Property.
12 6.6 Waste Disposal Practices
According to the Property representative, solid waste generated from the Property is removed by a local waste company. No hazardous or special waste streams were reported or identified being generated from the Property at the time of the site reconnaissance.
It should be noted, several piles of miscellaneous debris, common household trash, wood, and yard waste were observed in several areas of the Property. EPS Environmental recommends the waste be removed and disposed according to applicable regulations.
6.7 Polychlorinated Biphenyls (PCBs)
No suspect PCB containing equipment was observed on the Property.
6.8 Readily Observable Suspect Asbestos-Containing Material (ACM)
ACM had been used extensively in the construction of buildings prior to 1980. According to the USEPA, ACM is commonly found in three forms: (1) sprayed or troweled-on ceilings and walls (surfacing materials), including structural fireproofing; (2) in insulation on pipes, ducts, boilers, tanks or mechanical equipment [thermal system insulation (TSI)]; and (3) in "miscellaneous materials," such as, floor tiles, roofing felts and shingles, or wall boards. ACM is of greatest potential concern when it is friable, particularly if it is damaged or deteriorated. Friable, by definition, refers to a material that, when dry, can be crumbled, pulverized, or reduced to powder by hand pressure. Friable ACM is more likely than non-friable ACM to release fibers when disturbed or damaged. Airborne asbestos fibers can pose a potential respiratory health risk to building occupants who are exposed.
Though an asbestos survey and sampling were not a part of this Phase I Assessment, the building was inspected for the presence and condition of readily observable suspect ACM.
The following chart summarizes suspect ACM to include, but is not limited to:
HOMOGENEOUS NON- LOCATION CONDITION FRIABLE MATERIAL FRIABLE
Wallboard system/Plaster Buildings A, B Fair to Good X
12”x12” & 9”x9” Floor Tiles Building A Fair to Good X
Roofing materials* Roofs Good to Poor X * Roof on Building A was replaced in 2010
Based on the condition, location, and potential for damage, EPS Environmental opines that the suspect ACM can be managed in-place by implementing a site-specific Operations & Maintenance program. If future renovation activities are planned, an asbestos survey should be conducted by an accredited inspector to include those areas of the building that were previously inaccessible due to physical barriers (requiring a considerable amount of disassemble). Subsequently, any damaged 13 ACM and/or ACM in the affected areas should be repaired, encapsulated and/or removed as necessary by a professional asbestos abatement firm following all applicable regulations prior to any activities that have the potential to disturb ACM.
It should be noted, in 1995, Occupational Safety and Health Administration (OSHA) enacted regulations establishing affirmative record keeping and information transfer duties for commercial and industrial building owners and lessees. OSHA regulations require building owners determine the presence, location, and quantity of asbestos-containing material (ACM).
6.9 Potential Lead-Based Paint
Painted surfaces were observed throughout the buildings and appeared to be in good condition. Based on the age of the building, the paint may contain lead above regulatory limits. Lead is a known hazard that results in deterioration of the central nervous system when ingested or absorbed by humans. Therefore, the painted surfaces should be properly maintained. As significant lead exposure can arise from removal, repair, renovation, or demolition of the painted surfaces, testing is recommended to determine lead content prior to such planned renovation activity. If the painted surfaces are confirmed to contain lead above regulatory limits, professional abatement activities should be exercised in a manner that will not endanger the health or safety of workers and/or building occupants. Proper disposal of flakes, chips, dust or other lead-bearing debris, if any, resulting from the work should also be exercised. It should be noted; local authorities can order lead paint abatement should exposure to children be suspected.
6.10 Observations of Surrounding Sites
Oil and gas extraction equipment, including wells and ASTs, were observed on the farmland north, west, and south of the Property. Based on physical distance from the Property (equipment is located over 100 feet from the Property), the oil/gas extraction equipment on the adjacent sites should not present a readily apparent environmental concern to the Property.
No additional recognizable environmental concerns were visually identified on the surrounding sites as observed from the Property and public right-of-ways.
7.0 SPECIAL RESOURCES
7.1 Endangered Species
The U.S. Fish and Wildlife Service (USFWS) defines an endangered species as one that is in danger of extinction within all or a significant part of its natural range, A threatened species is defined as a species identified as one that will likely become endangered within the foreseeable future.
According to the USFWS website, five (5) types of birds (Least tern, Whooping crane, Mexican spotted owl, Mountain plover, and the Piping plover), one (1) type of fish (Pallid sturgeon), three (3)
14 species of plants (Ute ladies’ –tresses orchid, Colorado butterfly plant, and the Western prairie fringed orchid), and one (1) mammal (Preble’s meadow jumping mouse) were identified in Weld County and listed as endangered and/or threatened.
Additionally, an initial project scope was conducted through the Information Planning and Conservation (IPAC) System; the species listed at the County level were also identified as endangered or threatened species in the vicinity of the Property. Furthermore, no wildlife refuge areas were indicated on the Property. It should be noted, in order to avoid, minimize and/or mitigate adverse effects that may result from future activities on the Property (e.g., demolition, new construction), Section 7 Consultation may be required. See Appendix D, Historical Information for a copy of the preliminary assessment.
7.2 Protection of Wetlands According to U.S. Fish and Wildlife Service, National Wetlands Inventory Map, the northeast portion of the Property and an isolated area near the southwest Property boundary are designated as protected wetlands. The wetlands are characterized as a Palustrine Emergent and Palustrine Open Water wetlands. It should be noted that wetlands vegetation was identified in these areas during the recent site reconnaissance. The identified wetlands may affect future development activities and may necessitate the performance of wetlands delineation. See Appendix D, Special Resources for a copy of the Wetlands Map reviewed.
7.3 Coastal Barrier Resources
Coastal barriers are unique landforms that provide protection for diverse aquatic habitats and serve as the mainland's first line of defense against the impacts of coastal storms and erosion.
The United States Congress (Congress) recognized the vulnerability of coastal barriers to development by passing the Coastal Barrier Resources Act in 1982 (CBRA). By restricting Federal expenditures and financial assistance which have the effect of encouraging development of coastal barriers, Congress aimed to minimize the loss of human life, wasteful expenditure of Federal revenues, and damage to fish, wildlife, and other natural resources associated with coastal barriers along the Atlantic and Gulf of Mexico coasts. The CBRA, while not prohibiting privately financed development, prohibits most new Federal financial assistance, including flood insurance, within a designated Coastal Barrier Resources System (CBRS).
In 1990, Congress passed the Coastal Barrier Improvement Act (CBIA). The CBIA tripled the size of the System established by the CBRA. The CBIA also prohibits the issuance of new Federal flood insurance within "otherwise protected areas" on buildings constructed after November 16, 1991, unless the building is used in a manner consistent with the purpose for which the area is protected. Otherwise Protected Area's (OPA’s) are generally used for certain activities such as fish and wildlife research and refuges.
According to the U.S. Fish and Wildlife Service John H. Chafee Coastal Barrier System Map, the State of Colorado does not have coastal barriers.
15 7.4 Floodplain Management / Wild and Scenic Rivers According to the National Flood Plain Data, the Property is not located within a 100- or 500-year floodplain. In addition, according to National Wild and Scenic Rivers System Map, no wild or scenic rivers are located on the Property. See Appendix D, Special Resources for a copy of the data reviewed.
7.5 Areas of Scientific Significance
Based on review of available information, no areas of scientific significance are associated with the Property. In addition, a FOIA request was submitted to the Colorado Historic Preservation Agency, State Historic Preservation Office (SHPO); however, a response had not been received at the time of this writing. In the event environmentally significant information is received that would alter the Findings and Conclusions of this Report, it will be promptly forwarded to the Client. EPS Environmental opines this data gap is not material to the extent that would alter the findings and conclusions of this report. See Appendix C, Historical Information for a copy of the FOIA request.
7.6 Natural, Wilderness and Recreational Areas According to a review of the U.S. National Wilderness Preservation System Map, the Property is not located within a designated wilderness area. Additionally, no designated recreational areas were identified on the Property. It should be noted, several natural areas over one (1) acre total, including wetlands and overgrown vegetation were observed on the Property. Therefore, a biological and conversation data system request was submitted to the Colorado National Heritage Program for an evaluation of potential impacts to rare resources on the Property. However a response has not been received at the time of this writing. In the event environmentally significant information is received that would alter the Findings and Conclusions of this Report, it will be promptly forwarded to the Client. EPS Environmental opines this data gap is not material to the extent that would alter the findings and conclusions of this report. See Appendix C, Historical Information for a copy of the request submitted.
7.7 National Natural Landmarks
According to the US Department of Interior (DOI), the Property is not a historical preservation site; not listed as a national landmark site; not listed with a national trail(s); and is not listed as a national park.
It should be noted, a FOIA request was submitted to the SHPO for the Property; however, a response has not been received at the time of this writing. In the event environmentally significant information is received that would alter the Findings and Conclusions of this Report, it will be promptly forwarded to the Client. EPS Environmental opines this data gap is not material to the extent that would alter the findings and conclusions of this report. See Appendix C, Historical Information for a copy of the FOIA request.
16 7.8 Sole Source Aquifers
The EPA has designated 77 Sole Source Aquifers nationwide. According to the Environmental Protection Agency (EPA) Region 8 Sole Source Aquifer map, there are currently no sole source aquifers designated in Colorado. See Appendix D, Special Resources for a copy of the map reviewed.
It should be noted, SSA designation provides only limited federal protection of ground water resources which serve as drinking water supplies. It is not a comprehensive ground water protection program. Although designated aquifers have been determined to be the "sole or principal" source of drinking water for an area, this does not imply that they are more or less valuable or vulnerable to contamination than other aquifers which have not been designated by EPA. Furthermore, ground water value and vulnerability can vary considerably both between and within designated aquifers.
7.9 Archaeological Resources/Historical Sites Neither the Property or nearby sites were identified as a Historical site; on the National Registry of Historical Places; or as a designated Indian Reservation.
Moreover, a FOIA request was submitted to the SHPO for the Property; however, a response has not been received at the time of this writing. In the event environmentally significant information is received that would alter the Findings and Conclusions of this Report, it will be promptly forwarded to the Client. EPS Environmental opines this data gap is not material to the extent that would alter the findings and conclusions of this report. See Appendix C, Historical Information for a copy of the FOIA request.
Based on review of environmental databases, historical Property use, special resource maps/agencies and observations during the site reconnaissance, there are no hazards or nuisances which would present a health or safety threat to Property occupants.
17 8.0 FINDINGS AND CONCLUSIONS
EPS Environmental Services, Inc. (EPS Environmental) has developed and performed all appropriate inquiries of a Phase I Environmental Site Assessment (Phase I Assessment) in conformance with the scope and limitations of the American Society for Testing and Materials (ASTM) Practice E 1527-05; FDIC guidelines (FDIC Phase I Environmental Site Assessment (for the Identification of Environmental Hazards and Special Resources, February 2006); and according to the standards and practices set forth in §312.10 of 40 Code of Federal Regulations (CFR) Part 312 for the Property. Any exceptions to, or deletions from these practices are described in Section 2.3 of this Report.
This Phase I Assessment has revealed evidence of the following recognized environmental conditions1 (RECs) in connection with the Property:
Out-of-Service Underground Storage Tank (UST) on the Property
Two (2) pipes, equipment typically associated with an UST, were observed adjacent to the south exterior wall of Building D. As there is a potential for a release (e.g., spills, overfills, and/or leaks) of petroleum to have occurred from the suspect UST, the suspect UST presents a recognized environmental condition (REC) in connection with the Property.
To determine whether a release of petroleum occurred from the UST and negatively impacted underlying Property soil/groundwater, a limited subsurface investigation would be necessary.
Current Oil and Gas Extraction Operations
The Property was identified on the Colorado Department of Natural Resources (DNR) oil/gas well database with five (5) active (e.g. producing) oil/gas wells. Additionally, three areas containing oil/gas extraction equipment (well(s), pumps, ASTs, and related equipment) were identified on the Property. It should be noted that the oil/gas wells and equipment were assessable during the recent site reconnaissance via dirt roads. No evidence of leaks or surface staining was apparent in the vicinity of the wells or equipment. According to information obtained from the Colorado Soil and Gas Conservation Commission, the wells were installed between 1988 and 1994. Inspection permits for these five (5) wells indicated “satisfactory” rankings. No reported oil leaks or staining were noted in any of the inspection records reviewed. As such, the current oil and gas extraction operations present a REC in connection with the Property.
1According to ASTM Practice E 1527-05, a recognized environmental condition (REC) means “the presence or likely presence of any hazardous substances or petroleum products on a Property under conditions that indicate an existing release, a past release, or a material threat of a release of any hazardous substances or petroleum products into structures on the Property or into the ground, ground water, or surface water of the Property. The term includes hazardous substances or petroleum products even under conditions in compliance with laws.” Moreover, according to the ASTM E 1527-05, a “historical recognized environmental condition” (HREC) is defined as a condition which in the past would have been considered a REC, but which may or may not be considered a REC currently. 18 EPS Environmental recommends legal counsel be retained to prepare an agreement and/or review any agreement(s) in place that assures the owners of the oil/gas well(s) will be held responsible for any contamination present due to extraction operations conducted the Property.
9.0 WARRANTY AND LIMITATIONS OF LIABILITY
The Phase I Assessment and this Report are of limited scope, and do not provide sufficient information to eliminate the total risk of the presence of contamination or other liabilities. Significantly higher levels of exploratory efforts than those performed in this Phase I Assessment are required to accumulate sufficient information to determine all environmental liabilities associated with the Property. Subsurface investigations and testing were beyond the scope of this Phase I Assessment.
EPS Environmental warrants that the Phase I Assessment has been conducted in accordance with generally accepted investigatory methods utilized by professional environmental consultants and includes the recommended practices for the "Phase I Environmental Site Assessment Process" contained in the ASTM Standard E 1527-05. EPS Environmental further warrants that the findings and conclusions in this Report are based exclusively on the Phase I Assessment. The investigatory methods that EPS Environmental utilized in the Phase I Assessment have been developed to provide the Client with information regarding apparent indications of existing or potential environmental conditions relating to the Property and are limited to the conditions that were observed at the time of the investigation of the Property. The findings and conclusions contained in this Report are also limited to the information available on the Property at the time that the Phase I Assessment was conducted. There is a distinct possibility that conditions may exist at the Property, which were not apparent during the preparation of the Phase I Assessment. In conducting the Phase I Assessment and preparing the Report, EPS Environmental relied on the information obtained from Property owner/operators or other persons, and government agencies having knowledge of operations and practices of the Property. EPS Environmental has assumed that this information is accurate and complete, except when independent investigation has indicated otherwise.
The Phase I Assessment did not attempt to determine whether the facilities operating on the Property are in compliance with existing environmental regulations. This Report discusses and summarizes areas of potential environmental concern for the Property itself. This Report provides no other warranties, expressed or implied.
9.1 Confidentiality
EPS Environmental will hold the Report and all field observations and related documents in strict confidence and will not disclose these items except to the Client or except as ordered by any state or federal agency or court of law.
19 9.2 Reliance on Phase I Assessment and Report
The Phase I Assessment has been conducted, and this Report has been prepared, exclusively for the Federal Deposit Insurance Corporation (FDIC) as receiver for FirsTier Bank (“Client”) and it is intended that only the Client will rely on the Phase I Assessment and Report. The Phase I Assessment and Report will be solely for the benefit of the Client and may not be relied upon by other parties.
9.3 Sources of Information Relied Upon for Phase I Assessment and Report
All information that EPS Environmental has relied on in conducting the Phase I Assessment and preparing the Report, not specifically identified as generated by EPS Environmental or any federal, state, or local agency, has been supplied by or derived from data provided by the Client and Property representative.
9.4 Certification
We, Lara M. Hoffman and Peter N. Partipilo, CHMM, declare that, to the best of our professional knowledge and belief, we meet the definition of Environmental Professional as defined in 40 Code of Federal Regulations (CFR) Part 312. We have the specific qualifications based on education, training, and/or experience to assess a property of this nature, history, and setting similar to the Property. We have developed and performed all appropriate inquiries in conformance with the standards and practices set forth in §312.10 of 40 CFR Part 312.
To the best of any information and belief, the facts stated in the Report are true and are made under a penalty of perjury as defined in Section 32-2 of the Criminal Code of 1961 [720 ILCS 5/32-2]. It is perjury for any person to sign an audit report that contains a false material statement that the person does not believe to be true.
Nicholas J. Cuzzone, P.E. Peter N. Partipilo, CHMM Senior Project Engineer Senior Environmental Specialist
20 FIGURES Figure 1 - Property Location Map
0 mi 1 2 3 Copyright © and (P) 1988–2009 Microsoft Corporation and/or its suppliers. All rights reserved. http://www.microsoft.com/streets/ Certain mapping and direction data © 2009 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, including: © Her Majesty the Queen in Right of Canada, © Queen's Printer for Ontario. NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ. © 2009 Tele Atlas North America, Inc. All rights reserved. Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc. © 2009 by Applied Geographic Systems. All rights reserved. Farmland Farmland Dairy Farms
West 49th Street
A B D C E Inactive Burn pile F Farmstead Propane Fill pipes AST debris pile
Farmland Farmland Low-lying /
Avenue wetlands Area th 65 Dirt Road Rehmer Lake
debris Low- piles lying/ wetlands Area
Approximate Property Farmland Boundary
FIGURE TWO – PROPERTY SKETCH
Southeast Corner of West 49th Street Key: and 65th Avenue Oil/Gas Well Evans, Colorado Oil/gas equipment North Dirt road EPS Environmental Services, Inc. 7237 West Devon Avenue, Chicago, Illinois 60631
not to scale Date: 04/19/11 Project # 10267-0311 TOPOGRAPHIC MAP North PROPERTY ADDRESS Figure 3 EPS ENVIRONMENTAL SERVICES, INC.
7237 West Devon Avenue Rehmer Lake Subdivision Milliken Evans, Colorado Chicago, Illinois 60631 Quadrangle APPENDIX A
PHOTOGRAPHIC DOCUMENTATION Right: View of Residential Structure and Outbuilding Looking South from West 49th Street Below: View of Building F looking southwest from West 49th Street EPS Environmental Services, Inc.