Hepaco acquires Trans Environmental

HEPACO LLC (Charlotte, N.C.), a provider of environmental and emergency response services, has acquired Trans Environmental (Loves Park, Ill.), an environmental remediation, industrial cleaning, and emergency response services company. Trans founders Matt Warneke and Jeff Lonas will continue to lead the company. HEPACO is majority-owned by Gryphon Investors, which purchased it in August 2016. HEPACO has 31 locations in more than 20 states in the Mid-Atlantic and Southeast United States.

HEPACO CEO Ken Smith said, “We are very excited to have completed the strategic acquisition of Trans.  We have been impressed by Trans’ high service quality, outstanding safety culture, blue chip customer base and strong organic growth.”  Mr. Smith added, “The acquisition of Trans benefits customers of both companies as it enables HEPACO to provide emergency response and other environmental services in the greater Chicago area while also allowing Trans’ customers increased geographic coverage capabilities through HEPACO’s operations in the Eastern U.S.”

Mr. Warneke stated, “We are very excited to join the HEPACO team.  The Company’s sterling reputation and financial resources offer a great path to our continued development.   We are looking forward to accelerating the growth opportunities for both our customers and our employees.”

In November 2017, HEPACO acquired Emergency Response & Training Solutions (“ERTS”). Based in Jacksonville, FL, ERTS is a provider of emergency response services to Fortune 500 companies through a national network of third-party vendors.

Concern about Hazmat Incidents at Canada’s Proposed Spaceport

In a joint venture with several US firms, Halifax-based Maritime Launch Services (MLS) is building Canada’s first spaceport near Canso, Nova Scotia. At a total cost of $304 million—a figure that includes the cost of the first rocket launch and promotional expenses—the launch pad is slated to deliver commercial satellites to low Earth orbit aboard Ukrainian-built rockets on a due south trajectory, and at a cost of $60 million per launch.

Stephen Matier, left, president of Maritime Launch Services and Maksym Degtiarov, chief designer of the launch vehicle at the Yuzhnoye Design Bureau, talk with reporters at a meeting of the proposed Spaceport project team in Dartmouth, N.S. on December 11, 2017. (THE CANADIAN PRESS/Andrew Vaughan)

The Canso Spaceport Facility will be 20 hectares in size and is aimed at attracting firms that want to put satellites into orbit for commercial purposes.  The site will include a control centre, launch area and “horizontal integration facility,” where materials will be prepared for the launch and some propellants will be stored

The company would like to launch as many as eight rockets per year starting in 2022.

There are concerns about the spaceport from government experts.  Specifically, concerns related to environmental and health & safety issues.  Recently released documents released by the province detail numerous questions about the planned Canso Spaceport Facility.  Nova Scotia’s environment ministry will not approve the project unless their concerns are addressed.

The specific concerns of the N.S. Environment Ministry is how the company will address an explosion, crash or fuel leak.  According to the recently released government document, a spill would “destroy the impacted ecosystems with no chance of recovery within the next several hundred years.”

According to the Maritime Launch Services proposal, the rockets would use nitrogen tetroxide and unsymmetrical dimenthyl hydrazine, or UDH, for the second portion of their launch into the atmosphere.

A letter from the Canadian Defence Department says the military “does not have sufficient knowledge” to assess the impacts of an accidental discharge of the UDH on the land or surface water, but “suggests an assessment should be completed.”

A professor at the University of British Columbia has raised concerns about an “exceedingly toxic” rocket propellant that will be used at the Canso, N.S., operation. Michael Byers, a political science professor at UBC, said there is a danger associated with UDH — which he said is known in Russia as “the Devil’s Breath.”

Professor Byers stated “If something goes wrong on launch, you know, if the rocket were to tip over and explode, or if there were some kind of spill during transportation or assembly, you’d still have a serious health and environmental concern.”

Other government officials comment that there isn’t enough information in the proposal to assess potential dangers.

Chuck McKenna, a manager with the resource management unit of the provincial Environment Department, says detailed plans on how dangerous goods will be stored and handled weren’t provided.

He says this should include details on the potential effects of a chemical accident, prevention methods and emergency response procedures.

Johnny McPherson, an expert on air quality in the provincial Environment Department, says in his submission that the first stage propellants of a rocket can create “black carbon (soot)” that is “harmful if inhaled because of small particle size and damaging effects.”

The government comments were made in response to the environmental assessment of the project prepared by a consultant.

Nova Scotia Environment Minister Margaret Miller said last week the environmental assessment, submitted in July, didn’t contain sufficient information for her to make a decision on whether to approve the project.

Miller has given the company one year to provide additional information and studies.

The company’s president has said he’s confident the firm will finish the study in response to the concerns raised, and it is “optimistic” it can address the issues raised.

Gaps on the movement of dangerous goods in Northern Canada

As reported by the The Canadian Press, the Canadian federal government says it doesn’t know enough about how, when, and where dangerous goods move through the Canadian North, highlighting the potential risks of a major spill or other disaster.

As a result, the possible effects on public safety and the environment are also unclear, Transport Canada acknowledges.

The department is commissioning a study to help fill in the knowledge gaps and improve readiness when it comes to movement of goods ranging from explosives and flammable liquids to infectious substances and radioactive materials.

The effort will focus on regions north of the 55th parallel as well as on more southerly, but isolated, areas in eastern Manitoba and northern Ontario, says a newly issued call for bids to carry out the study.

The overall goal is to fully identify the hazardous substances transported throughout these areas and the major hubs that link to relevant airports, marine ports, ice roads, railroads, mines, refining sites, manufacturing plants and warehouses.

The information will help Transport Canada pinpoint potential risks and make decisions concerning safety regulations and compliance, the tender notice says.

A stark reminder of the difficulty of moving goods in northern Canada came when the only rail line to Churchill, Man., was flooded and it became impossible to deliver freight overland until an ice road was built.

There are also virtually no freight rail lines north of the 60th parallel, except for rail access to Hay River in the Northwest Territories, the notice says. Considering the seasonal nature of ice roads and ports, there are limited routes for movement of dangerous goods in or out of northern Canada and other remote areas, it adds.

The tenuous nature of northern transportation systems mean there are “gaps in information” about the kinds of dangerous goods transported, the volume of shipments and the sort of emergency response systems available.

“We continuously examine ways to make transportation in Canada safer for all and this assessment is part of our effort to ensure even greater knowledge regarding the handling of goods in the North,” said Transport Canada spokeswoman Annie Joannette.

She declined to provide additional information given the competitive tender process underway.

The most valuable element of the exercise could be the educational process of better informing people about the risks of transporting dangerous substances, said Rob Huebert, a northern studies expert at the University of Calgary.

“It’s always about the follow-through,” he said. “Because you can have all these exercises through the ying-yang, but if you’re not setting up the system properly and then maintaining the system, what’s the point of having it?”

Until now, Canada’s emergency preparedness efforts have largely been focused on maritime response and less on land-based accidents, he said.

“I think a lot of people always forget that the North is an area that is just so different from every place else.”

North American Rail Network (Transportation Safety Board of Canada)

U.S. Government RFP for Remediation Services at Superfund Site: Opportunity for Small Business

The U.S. Army Corps of Engineers is planning to issue a Request for Proposals (RFP) sometime in September 2018 as a small business set-aside under NAICS code 562910, size standard 750 employees.  The U.S. Army Corps of Engineers, New England District intends to issue an RFP for a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) remediation services task-order contract for Operable Units (OUs) 3, 4, and 6 of the Raymark Superfund Site in Stratford, Connecticut.  Raymark generated waste containing asbestos, lead, copper, PCBs, and a variety of solvents, adhesives, and resins as by-products of its manufacturing operations. U.S. EPA recently approved one Record of Decision that specified the selected remedies for OUs 3 (Upper Ferry Creek), 4 (Raybestos Memorial Ballfield), and 6 (Additional Properties) of the Raymark Superfund Project. The solicitation will be released on FedBizOpps. https://www.fbo.gov/spg/USA/COE/DACA33/W912WJ18R0003/listing.html

This undated photo provided by the U.S. Environmental Protection Agency shows the Raymark property, in Stratford, Connecticut

U.S. Government RFP for Remediation Services – Small Business Opportunity

U.S. Department of Energy, Office of Environmental Management, Oak Ridge, TN. Recently issued a solicitation for the Characterization, Deactivation/Demolition, and Remediation Services of Low-Risk/Low-Complexity Facilities and Sites for the Oak Ridge Office of Environmental Management.

This procurement will be a total small business set-aside under NAICS code 562910, size standard 750 employees.  DOE anticipates awarding one or more IDIQ contracts for support services in Oak Ridge, Tennessee, in accordance with the Federal Facilities Agreement.

The Y-12 National Security Complex, Oak Ridge National Laboratory, and East Tennessee Technology Park encompass numerous facilities, soils, concrete slabs, containerized and non-containerized debris, and aging legacy waste populations that require investigation and additional characterization to determine appropriate disposal options.

The estimated maximum value of the contract is $24.9M for a period of performance of five years from date of award.  The full solicitation synopsis is available on the DOE Environmental Management procurement website at FedConnect.

An aerial view of the Oak Ridge National Laboratory campus.

Environmental Consultant’s Disclaimer of Liability to Vendor effective against Third Party Purchaser

by Stanley D. Berger, Fogler Rubinoff

On July 23, 2018 the Court of Appeal for Newfoundland and Labrador in the case of Community Mental Health Initiative Inc. v. Summit Lounge Ltd. 2018 NLCA 42 upheld summary judgment dismissing a purchaser’s claim against two engineering companies (consultants) alleging negligence in the conduct of a Phase 1 Environmental Site Assessment performed for the vendor. The agreement between the consultants and the vendor and the final report both indicated that the assessment was prepared solely for the benefit of the vendor and that the consultants accepted no responsibility for any damages suffered by any third party. Significantly, the plaintiff-purchaser had knowledge of the disclaimer, having been provided with a copy of the final report by its real estate agent prior to the closing of the transaction. The Court of Appeal referred to the Supreme Court of Canada’s decision in Edgeworth Construction ltd. v. N.D. Lea & Associates Ltd. [1993] 3.S.C.R. 206 as well as decisions from appeal courts in Ontario Wolverine Tube (Canada) Inc. (1995) , 26 O.R. (3d) 577 and B.C., Kokanee Mortgage M.I.C. Ltd. 2018 BCCA 151 and summarized the legal principles as follows: (at par. 23) “… an express disclaimer of liability can be an effective bar against a claim by a third party who relied on work in the knowledge of the disclaimer. Permitting third parties to rely on reports which are expressly protected by a disclaimer would undermine the ability of contracting commercial parties to govern their own affairs.”

IMPLICATIONS FOR REAL ESTATE TRANSACTIONS AND ENVIRONMENTAL CONSULTANTS?

The long established principle of privity of contract i.e. that the rights and obligations in a contract apply only to the parties to the contract have been further tested by this decision. For engineering consultants, the decision highlights the importance of exacting express disclaimer clauses restricting responsibility for the reporting information to the party retaining them. For purchasers of real estate, it reinforces the necessity of obtaining indemnities from the vendor for undiscovered contamination or if that is not realistic, retaining an independent environmental consultant to verify any consulting reports given to them by the vendor.

This article was first published on the Fogler Rubinoff LLP website.

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About the Author

Mr. Stanley Berger serves as the Partner at Fogler, Rubinoff LLP. Mr. Berger joined the law firm of Fogler Rubinoff on July 4, 2013. Before joining Fogler Rubinoff, he served for 14 years as Assistant General Counsel to Ontario Power Generation Inc (OPG). In that capacity he provided legal services on licensing, environmental assessment, regulatory compliance, liability, security, decommissioning and waste management to the Nuclear Division of OPG.  Mr. Berger provided strategic legal advice and representation on aboriginal litigation and participated in First Nation settlement negotiations. Prior to joining OPG, he served as the Deputy Director of the Law Division for Prosecutions for the Ontario Ministry of Environment. In that capacity he managed the prosecution staff and helped shape prosecution policy. 

WSP to acquire Louis Berger for $400 million

WSP Global Inc. will acquire Berger Group Holdings, Inc. (Morristown, N.J.), the parent company of Louis Berger, for $400 million to be financed by an underwritten term loan. Louis Berger is a professional services firm mainly active in the transportation, infrastructure, environmental, and water sectors, as well as in master planning.  Louis Berger has approximately $480 million in annual net revenues and $45 million in normalized EBITDA.  Its 5,000 employees are mostly in the United States, with U.S. operations representing around 70% of 2018 net revenues (excluding disaster response revenues).

The acquisition of Louis Berger will increase WSP’s presence in regions it has targeted for growth, such as continental Europe, and will increase WSP’s exposure to the U.S. federal sector, according to Alexandre L’Heureux, WSP’s president and CEO.

ICF to Acquire DMS Disaster Consultants

ICF (Fairfax, Va.) has agreed to acquire DMS Disaster Consultants (Boca Raton, Fla.), a disaster planning and recovery services firm, which will operate as part of ICF’s disaster management and resilience division. DMS assists public sector clients with pre-disaster services and post-disaster recovery, including the development of comprehensive insurance, risk management, and risk mitigation strategies. ICF will also get DMS’s project management software, disasTRAX. The DMS team consists of about 50 employees, including engineers, architects, adjusters, risk managers, forensic accountants and project managers.

The National Brownfield Summit – A Brief Recap

By David Nguyen – Staff Writer

This year’s conference is about charting the future of the CBN. (Image from CBN).

On June 13, 2018, The Canadian Brownfields Network (CBN) held their 8th annual conference, taking the form of a National Brownfield Summit. This year also marks the 15th anniversary of the 2003 National Roundtable on the Environment and the Economy report, and the cornerstone of this year’s summit was to revisit the original report and reflect on the progress since then, as well as the challenges that still need to be addressed.

Keynote Speaker

After an introduction by president Grant Walsom, the conference began with the keynote speaker Marlene Coffey, Executive Director of the Ontario Non-Profit Housing Association, who spoke about previous examples of the developments on Brownfields, including housing developed on a Goodyear Tires site, or the Vancouver Olympic village or Toronto Pan American housing facilities.

She spoke of Toronto’s current housing crisis and how costs have outpaced income for many renters due to the market response to the economic growth in the Greater Toronto Area, as well as Hamilton and Waterloo. She also spoke about how condominium development is preferred due to the pre-selling and reselling markets providing profit and equity for the developer before and during construction.  Contrast that to rental housing, where developers of must put up front all costs of development before any profits.

The city of Toronto’s plan to address these concerns include building 69 000 affordable rental units within 10 years, extending the life of 260 000 units, as well as income support for 311 000 households. In addition, the federal government launched the National Housing Strategy in 2017, with $40 billion over 10 years to support affordable housing initiatives across Canada. Coffey reports that municipality participation is key to obtaining funding for affordable housing, and a role that can be played is to donate available land for development.

Current Affairs

A series of professional presentations followed, discussing various emerging investigation and remediation techniques. These included Dr. Barbara A. Zeeb discussing the use of phytotechnologies to remediate brownfield sites. She compared the traditional method of soil excavation, transport, and disposal to phytoextraction – the use of plants to remove the contaminant while leaving the soil intact and reusable, such as using natural and native species to remove organics like DDT. Other benefits include its cost effectiveness and the uptake of greenhouse gasses, but technologies are site specific, and can take years to remediate fully – highlighting the role that phytoremediation can play alongside traditional remediation methods.

A legal update with lawyer John Georgakopoulos provided an overview of legal cases currently before the courts, with implications for the brownfield development. His presentation compared cases of regulatory liability to civil liability and about managing environmental liabilities through exercising due diligence. He noted, however, that due diligence plays a bigger role in regulatory liability and a smaller role in civil liability, and he encouraged environmental liability protections like environmental insurance and regulatory liability protection.

Cross-Country Check-Up Panelists Kerri Skelly (front left), Lisa Fairweather (centre) and Krista Barfoot (left) with President D. Grant Walsom (back). (Photo from the CBN).

A cross-country checkup with panelists from across Canada discussed the changing landscape for excess soils. Speakers include Krista Barfoot (of Jacobs Engineering Group) speaking about Ontario’s proposed guidelines on excess soils, such as the emphasis on the use of excess soil management plans and addressing issues such as situations where there is no beneficial reuse site. Lisa Fairweather spoke about the Alberta’s Remediation Certificate and its impacts on reducing barriers to brownfields development; and Kerri Skelly spoke about British Columbia’s new excess soil regulations and its goals of clarifying rules for businesses moving soil and increasing the opportunity for soil reuse.

Angus Ross (left) with Grant Walsom. (Photo from the CBN).

Before breaking up into working groups, the final presentations reviewed the current state of brownfield development in Canada. Angus Ross, who chaired the original task force, discussed how the National Strategy succeeded in addressing liability issues, financial funding, and building public awareness of brownfields. A major recommendation was the formation of a national brownfield network, which led to the CBN.

Ryerson PhD student Reanne Ridsdale presented findings on a survey of about 6,500 brownfield remediated sites across Canada, where 80 participants were polled, including environmental consultants, government officials, lawyers and financiers.

Reanne Ridsdale presenting the results of the CBN/Ryerson survey. (Photo from the Daily Commercial News).

Following was a presentation by a Ryerson student planning studio group compared brownfield policies of each province, based on criteria such as clear policies, an accessible brownfield site inventory, and incentives for development. Ontario, Quebec, and British Columbia were considered to be very progressive in their policies towards brownfield development, but improvements could still be made across Canada in terms of standardizing rules and policies and producing developer friendly guidelines for site remediation. Then PhD student Reanne Ridsdale talked about the results of the CBN/Ryerson survey of the brownfield community’s view of progress in the last 15 years. Respondents indicated that the CBN is too eastern focused on central and eastern Canada, with little presence in the Prairies, as well as being too research-focussed and not conducting enough outreach.

Charting the Future

The day was capped off with breakout discussion groups to discuss “challenge questions” and allow attendees to contribute ideas to future CBN activities to advance brownfield developments. Challenge question topics included the roles of the federal, provincial, and municipal governments, the development of a brownfield inventory, innovations in brownfield developments, and the societal impacts of brownfield development on communities. One of the key discussion points was for the CBN to promote a “Put Brownfields First” mentality, particularly within governments. This includes developing a financing model/regime for governments to support brownfield developments, particularly in smaller municipalities, as well as to harmonize rules and guidelines for brownfield development. In addition, the CBN should facilitate the education of brownfields to local communities and involve land owners and developers in the process of implementing brownfield policies.

The National Brownfield Summit provided an amazing opportunity for members and attendees to provide input towards the goals of the CBN. More information about the Canadian Brownfields Network can be found at https://canadianbrownfieldsnetwork.ca/ including the summit program and information about the presenters.

BP Reports Drilling Mud Spill Off Nova Scotia

BP Canada Energy Group recently reported an unauthorized discharge of drilling mud from the one of its drilling operations off the coast of Nova Scotia. The company estimated approximately 136,000 litres of drilling mud were discharged.

Anita Perry, BP Canada’s regional manager for Nova Scotia

Anita Perry, BP Canada’s regional manager for Nova Scotia, said a preliminary look at the spill has led the company to believe the cause is mechanical failure, though the investigation is not complete.
Perry said this is not a common occurrence, but the organization has response plans in place to manage spills. She said that before drilling was done in the area, a survey was conducted to assess environmental risks.
“Prior to drilling we did not identify any corals or any species there that could be damaged. So we do not believe there will be any damage,” said Perry.
The company suspended drilling during the investigation of the cause of the spill.

Risks to the Environment

Stacy O’Rourke, the director of communications at the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) said the synthetic-based mud is dense and sinks rapidly to the sea floor and the synthetic-based oil in the mud has low toxicity.

Ms. O’Rourke added that the effects of these types of spills are usually limited to the area immediately surrounding the well and are associated with the physical smothering of the seabed due to coverage by the mud.

She said the spill happened earlier in the day on Friday, and both the board and coast guard were notified. As of Friday evening, O’Rourke said no one on the board was at the spill.

The incident occurred approximately 330 kilometres from Halifax on a drill rig called the West Aquarius.

West Aquarius drill rig off the coast of Nova Scotia

CBC interviewed Tony Walker, a professor from the Dalhousie University School for Resource and Environmental Studies, about the potential impacts of the release of drilling mud on the environment. The Professor said that in looking at the project’s environmental assessment report, carried out by the Canadian Environmental Assessment Agency (CEAA), the drilling mud spill may still be cause for concern.

Professor Walker said while a water-based mud is available for use in this type of drilling, the assessment outlines BP’s decision to use the synthetic, because it can better handle potential gas buildup and temperature regulation.

“Certainly, a synthetic-based mud does contain chemicals and potentially oils and diesel and that sort of thing,” he told the CBC. Walker said he reviewed data from the report based on a 3D modelled test and scaled down the impacts based on the June 22 incident.

“It could [result in] impacts of a kilometre or more from the drilling site. It could actually cover and smother [ocean floor dwelling] organisms; it could impact fish species which have larvae and eggs on the seabed.”

Professor Walker told the CBC that the CEAA report also references data from past drill sites, where little to no spilling was reported, in which surrounding marine habitats took up to five years to recover from drilling.

“The kind of consistent thread or theme I get from the report … is that if there are releases, it’ll be localized and it’ll have short term impacts,” Walker told the CBC.

“A kilometre is quite a big area, and [the report] talks about a recovery period of about five years for recolonization. I wouldn’t call five years entirely short-term.”

Nova Scotia’s energy minister says he’s concerned about spill of the drilling fluids off the province’s coast. However, he also added that he remains committed to growing the oil and gas industry.

Geoff MacLellan said he has “complete confidence” in the Canada-Nova Scotia Offshore Petroleum Board’s investigation into BP Canada’s leak of 136 cubic metres of synthetic drilling mud on Friday.

Approval to drill was granted in the Spring

BP Canada Energy Group was given approval in the spring of 2018 to drill of the coast of Nova Scotia. At the time, the Aspy D-11 exploration well was the first in BP Canada’s Scotian Basin Exploration Project. It was estimated that up to seven exploration wells could be drilled off the southeast coast of Nova Scotia over a three-year period.

At the time of the issuance of the approval, Anita Perry of BP Canada Energy stated in a phone interview with Canada’s National Observer, “We’re confident we addressed all issues and risks for a safe drilling program.”