A developer purchases an old gas station site to build condominiums. He performs reasonable due diligence, including a Phase I environmental review, and finds no obvious contamination. Two years later, underground fuel tanks beneath the site begin leaking into the groundwater, and federal regulators determine cleanup will cost $2 million. Even though the developer did not cause the contamination and had no actual knowledge of it at purchase, the federal liability scheme applicable to contaminated property may hold him strictly responsible for cleanup costs as a current owner. Which federal liability framework applies to the developer's situation?
Correct Answer
B) CERCLA environmental liability concern
The developer is the current owner of a contaminated site and may be held strictly liable for cleanup despite his innocence and due diligence. That federal scheme imposing liability on parties dealing with contaminated property even when they did not cause the contamination is CERCLA.
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