HomeMy WebLinkAboutRe: purchase of property JUN, 15, 2005 4: 08PM LINDQUIST & VENNUM N0. 742 P. 2
LINDQ UIST & VEN--./UM P., l_
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4200 IDS OENVR IN DENVFR:
80 SOUTH EIGHTH STREET 600 17TH STREET,SUITE 1900 SOUTH
MINNEAPOLIS,MN 55402.2274 DENVER,CO 60202-5441
TELEPHONE:612-371-3211 TELEPHONE:303-573-5900
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ATTORNEYS AT LAW www,lindquisLeom
MICHAELS.MARGVLMS
(612)371-3903
mmargulies @ lindquisccom
June 15, 2005
Patti Jo Hermann Pat OIson
Edina Realty Edina Realty
150 West Lake Street 150 West Lake Street
Wayzata, MN 55391 Wayzata, MN 55391
Re: Stanton -Purchase of 1160 Tonkawa Road, Orono, Minnesota from Patrick and
Susan Stevens
Dear Ms. Hermann and Ms. Olson:
This will follow up my telep one conversations with both of you regarding this matter.
In preparation for closing, it appears; at there is one detail that needs to be dealt with from the
purchase agreement relating to the prior oil tank. The Amendment to Purchase Agreement dated
March 24, 2005, requires that Seller "document that the oil tank has been removed or abandoned
according to state guidelines."
The Stantons received a shortore from the prior owners indicating that they had had the
tank grouted. While this is helpful, I think there is some additional information and disclosure
which is required.
The MPCA guideline ocuments (see www.vca.state.mn.us-publications-ust-
factbooklet.vdf.url) say the following with respect to abandoned tanks:
"Heating tanks that have beer out of service longer than a year are considered to
be abandoned and must be properly closed. Proper closure involves either
removing the tank from the ground or properly closing it in place- Closure in
place requires prior approval- from your local fire official or State Fire Marshal.
You may contact your local fl a official by calling your city hall."
These same guidelines Indic a that a site assessment (soil or groundwater sampling) is
recommended. However, the WCA takes a stricter stand with respect to property which is
residential in nature and/or which ad oins a major water body because leaching or leaking from
the old tank, if uncorrected, could po e a major problem.
Therefore, assuming that the11 a is no closure letter or other inspection signoff from the
MPCA available with respect to the, ctions which the prior owners took with respect to sealing
the tank, we need to ask the question whether any soil testing was done, whether an
Doc#2027910\I
JUN. 15. 2005 4: 09PM LINDQUIST & VENNUM N0. 742 P. 3
LINDQUIST & VENNUM P.L.L.P.
Patti Jo Hermann
Pat Olson
June 15,2005
Page 2
environmental consultant was involvc d, and if so review the reports extending from that work_
Simply draining the tank and filling il with grout does not deal with the question of whether the
tank actually leaked before being sea ed. If it did, the "plume" will still be there. It may have
migrated but if this was heating oil ( ihich is heavy in substance) it may not have migrated far.
This issue could be of some consequt rice if it reaches the lake or groundwater connected to the
lake.
Therefore, if there are no testi relating to the soil around the tank from the time that the
tank was sealed, the best practice noN& is to complete several borings around the tank area. They
should be reasonably deep to ensure that there is no contamination under or around the tank.
One concern is that even side borings may not tell the complete story as side borings may "miss"
a hole in the bottom of the tank which sends fuel oil straight down below the tank.
Our suggestion is that Sellers engage the services of a qualified environmental engineer
to do the following:
(01) Complete a record se ch of the tank -routing in 1994 to see if there are any
records approving the Action in 1994-
(02) Complete a soil inves igation of diesel range organics (DRO) in the area of the
tank, including a possible Geoprobe (a truck mounted drill rig) drilling at the side
and, if possible, under he tank itself.
This firm uses Liesch &Asso iates and we suggest that you call Eric Hesse at Liesch and
he can arrange for this work, if you sc choose. He can be contacted at (763) 559-1423.
While we are hopeful that the,-e was no leak from the tank, we don't know for sure until
that area is tested. If the Seller does I of complete the testing at this time, it becomes an issue for
the Stantons to have to deal with sub equent to closing in future refinancings or sale_ In the end,
even if there was some leakage, it is ➢ kely that it is a problem easily dealt with. Accordingly, the
Stantons would be amenable to an art ingement whereby the closing proceeds with a post-closing
obligation by the Seller to complete t e testing and deal with any material adverse results that are
shown by the testing.
Please call me after you hav6. had the opportunity to review this letter so that we may
discuss how the Sellers want to procetd.
JUN, 15. 2005 4: 09PM LINDQUIST & VENNUM N0, 742 P. 4
LINDQUIST & VENNUM P.L.L.P.
Patti Jo Hermann
Pat Olson
June 15, 2005
Page 3
Thank you very much For your assistance.
Very truly yours,
LINDQUST &VENNUM P.L.L.I>_
IYV44AcF d•7Kf .
Michael S.Margulies
MSM/ ao
cc: Dr.Marshall Stanton
I