BMR » Topics » Environmental Matters

These excerpts taken from the BMR 10-K filed Feb 13, 2009.
Environmental Matters
 
Under various federal, state and local environmental laws and regulations, a current or previous owner, operator or tenant of real estate may be required to investigate and remediate releases or threats of releases of hazardous or toxic substances or petroleum products at such property, and may be held liable for property damage, personal injury damages and investigation, clean-up and monitoring costs incurred in connection with the actual or threatened contamination. Such laws typically impose clean-up responsibility and liability without regard to fault, or whether the owner, operator or tenant knew of or caused the presence of the contamination. The liability under such laws may be joint and several for the full amount of the investigation, clean-up and monitoring costs incurred or to be incurred or actions to be undertaken, although a party held jointly and severally liable may obtain contributions from the other identified, solvent, responsible parties of their fair share toward these costs. These costs may be substantial, and can exceed the value of the property. The presence of contamination, or the failure to properly remediate contamination, on a property may adversely affect the ability of the owner, operator or tenant to sell or rent that property or to borrow using such property as collateral, and may adversely impact our investment in that property.
 
Federal asbestos regulations and certain state laws and regulations require building owners and those exercising control over a building’s management to identify and warn, via signs, labels or other notices, of potential hazards posed by the actual or potential presence of asbestos-containing materials, or ACMs, in their


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building. The regulations also set forth employee training, record-keeping and due diligence requirements pertaining to ACMs and potential ACMs. Significant fines can be assessed for violating these regulations. Building owners and those exercising control over a building’s management may be subject to an increased risk of personal injury lawsuits by workers and others exposed to ACMs and potential ACMs as a result of these regulations. The regulations may affect the value of a building containing ACMs and potential ACMs in which we have invested. Federal, state and local laws and regulations also govern the removal, encapsulation, disturbance, handling and/or disposal of ACMs and potential ACMs when such materials are in poor condition or in the event of construction, remodeling, renovation or demolition of a building. Such laws may impose liability for improper handling or a release to the environment of ACMs and potential ACMs and may provide for fines to, and for third parties to seek recovery from, owners or operators of real properties for personal injury or improper work exposure associated with ACMs and potential ACMs. See “Risk Factors — Risks Related to the Real Estate Industry — We could incur significant costs related to governmental regulation and private litigation over environmental matters involving asbestos-containing materials, which could adversely affect our operations, the value of our properties, and our ability to make distributions to our stockholders” under Item 1A. below.
 
Federal, state and local environmental laws and regulations also require removing or upgrading certain underground storage tanks and regulate the discharge of storm water, wastewater and other pollutants; the emission of air pollutants; the generation, management and disposal of hazardous or toxic chemicals, substances or wastes; and workplace health and safety. Life science industry tenants, including certain of our tenants, engage in various research and development activities involving the controlled use of hazardous materials, chemicals, biological and radioactive compounds. Although we believe that the tenants’ activities involving such materials comply in all material respects with applicable laws and regulations, the risk of contamination or injury from these materials cannot be completely eliminated. In the event of such contamination or injury, we could be held liable for any damages that result, and any such liability could exceed our resources and our environmental remediation insurance coverage. Licensing requirements governing use of radioactive materials by tenants may also restrict the use of or ability to transfer space in buildings we own. See “Risk Factors — Risks Related to the Real Estate Industry — We could incur significant costs related to government regulation and private litigation over environmental matters involving the presence, discharge or threat of discharge of hazardous or toxic substances, which could adversely affect our operations, the value of our properties, and our ability to make distributions to our stockholders” under Item 1A. below.
 
In addition, our leases generally provide that (1) the tenant is responsible for all environmental liabilities relating to the tenant’s operations, (2) we are indemnified for such liabilities and (3) the tenant must comply with all environmental laws and regulations. Such a contractual arrangement, however, does not eliminate our statutory liability or preclude claims against us by governmental authorities or persons who are not parties to such an arrangement. Noncompliance with environmental or health and safety requirements may also result in the need to cease or alter operations at a property, which could affect the financial health of a tenant and its ability to make lease payments. In addition, if there is a violation of such a requirement in connection with a tenant’s operations, it is possible that we, as the owner of the property, could be held accountable by governmental authorities (or other injured parties) for such violation and could be required to correct the violation and pay related fines. In certain situations, we have agreed to indemnify tenants for conditions preceding their lease term, or that do not result from their operations.
 
Prior to closing any property acquisition, we obtain environmental assessments in a manner we believe prudent in order to attempt to identify potential environmental concerns at such properties. These assessments are carried out in accordance with an appropriate level of due diligence and generally include a physical site inspection, a review of relevant federal, state and local environmental and health agency database records, one or more interviews with appropriate site-related personnel, review of the property’s chain of title and review of historic aerial photographs and other information on past uses of the property. We may also conduct limited subsurface investigations and test for substances of concern where the results of the first phase of the environmental assessments or other information indicate possible contamination or where our consultants recommend such procedures.


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While we may purchase our properties on an “as is” basis, most of our purchase contracts contain an environmental contingency clause, which permits us to reject a property because of any environmental hazard at such property. We receive environmental reports on all prospective properties.
 
We believe that our properties comply in all material respects with all federal and state regulations regarding hazardous or toxic substances and other environmental matters.
 
Environmental
Matters



 



Under various federal, state and local environmental laws and
regulations, a current or previous owner, operator or tenant of
real estate may be required to investigate and remediate
releases or threats of releases of hazardous or toxic substances
or petroleum products at such property, and may be held liable
for property damage, personal injury damages and investigation,
clean-up and
monitoring costs incurred in connection with the actual or
threatened contamination. Such laws typically impose
clean-up
responsibility and liability without regard to fault, or whether
the owner, operator or tenant knew of or caused the presence of
the contamination. The liability under such laws may be joint
and several for the full amount of the investigation,
clean-up and
monitoring costs incurred or to be incurred or actions to be
undertaken, although a party held jointly and severally liable
may obtain contributions from the other identified, solvent,
responsible parties of their fair share toward these costs.
These costs may be substantial, and can exceed the value of the
property. The presence of contamination, or the failure to
properly remediate contamination, on a property may adversely
affect the ability of the owner, operator or tenant to sell or
rent that property or to borrow using such property as
collateral, and may adversely impact our investment in that
property.


 



Federal asbestos regulations and certain state laws and
regulations require building owners and those exercising control
over a building’s management to identify and warn, via
signs, labels or other notices, of potential hazards posed by
the actual or potential presence of asbestos-containing
materials, or ACMs, in their





6





Table of Contents






building. The regulations also set forth employee training,
record-keeping and due diligence requirements pertaining to ACMs
and potential ACMs. Significant fines can be assessed for
violating these regulations. Building owners and those
exercising control over a building’s management may be
subject to an increased risk of personal injury lawsuits by
workers and others exposed to ACMs and potential ACMs as a
result of these regulations. The regulations may affect the
value of a building containing ACMs and potential ACMs in which
we have invested. Federal, state and local laws and regulations
also govern the removal, encapsulation, disturbance, handling
and/or
disposal of ACMs and potential ACMs when such materials are in
poor condition or in the event of construction, remodeling,
renovation or demolition of a building. Such laws may impose
liability for improper handling or a release to the environment
of ACMs and potential ACMs and may provide for fines to, and for
third parties to seek recovery from, owners or operators of real
properties for personal injury or improper work exposure
associated with ACMs and potential ACMs. See “Risk
Factors — Risks Related to the Real Estate
Industry — We could incur significant costs related to
governmental regulation and private litigation over
environmental matters involving asbestos-containing materials,
which could adversely affect our operations, the value of our
properties, and our ability to make distributions to our
stockholders” under Item 1A. below.


 



Federal, state and local environmental laws and regulations also
require removing or upgrading certain underground storage tanks
and regulate the discharge of storm water, wastewater and other
pollutants; the emission of air pollutants; the generation,
management and disposal of hazardous or toxic chemicals,
substances or wastes; and workplace health and safety. Life
science industry tenants, including certain of our tenants,
engage in various research and development activities involving
the controlled use of hazardous materials, chemicals, biological
and radioactive compounds. Although we believe that the
tenants’ activities involving such materials comply in all
material respects with applicable laws and regulations, the risk
of contamination or injury from these materials cannot be
completely eliminated. In the event of such contamination or
injury, we could be held liable for any damages that result, and
any such liability could exceed our resources and our
environmental remediation insurance coverage. Licensing
requirements governing use of radioactive materials by tenants
may also restrict the use of or ability to transfer space in
buildings we own. See “Risk Factors — Risks
Related to the Real Estate Industry — We could incur
significant costs related to government regulation and private
litigation over environmental matters involving the presence,
discharge or threat of discharge of hazardous or toxic
substances, which could adversely affect our operations, the
value of our properties, and our ability to make distributions
to our stockholders” under Item 1A. below.


 



In addition, our leases generally provide that (1) the
tenant is responsible for all environmental liabilities relating
to the tenant’s operations, (2) we are indemnified for
such liabilities and (3) the tenant must comply with all
environmental laws and regulations. Such a contractual
arrangement, however, does not eliminate our statutory liability
or preclude claims against us by governmental authorities or
persons who are not parties to such an arrangement.
Noncompliance with environmental or health and safety
requirements may also result in the need to cease or alter
operations at a property, which could affect the financial
health of a tenant and its ability to make lease payments. In
addition, if there is a violation of such a requirement in
connection with a tenant’s operations, it is possible that
we, as the owner of the property, could be held accountable by
governmental authorities (or other injured parties) for such
violation and could be required to correct the violation and pay
related fines. In certain situations, we have agreed to
indemnify tenants for conditions preceding their lease term, or
that do not result from their operations.


 



Prior to closing any property acquisition, we obtain
environmental assessments in a manner we believe prudent in
order to attempt to identify potential environmental concerns at
such properties. These assessments are carried out in accordance
with an appropriate level of due diligence and generally include
a physical site inspection, a review of relevant federal, state
and local environmental and health agency database records, one
or more interviews with appropriate site-related personnel,
review of the property’s chain of title and review of
historic aerial photographs and other information on past uses
of the property. We may also conduct limited subsurface
investigations and test for substances of concern where the
results of the first phase of the environmental assessments or
other information indicate possible contamination or where our
consultants recommend such procedures.





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Table of Contents






While we may purchase our properties on an “as is”
basis, most of our purchase contracts contain an environmental
contingency clause, which permits us to reject a property
because of any environmental hazard at such property. We receive
environmental reports on all prospective properties.


 



We believe that our properties comply in all material respects
with all federal and state regulations regarding hazardous or
toxic substances and other environmental matters.


 




Environmental Matters
 
The Company follows a policy of monitoring its properties for the presence of hazardous or toxic substances. The Company is not aware of any environmental liability with respect to the properties that would have a material adverse effect on the Company’s business, assets or results of operations. There can be no assurance that such a material environmental liability does not exist. The existence of any such material environmental liability could have an adverse effect on the Company’s results of operations and cash flow. The Company carries environmental remediation insurance for its properties. This insurance, subject to certain exclusions and deductibles, covers the cost to remediate environmental damage caused by future spills or the historic presence of previously undiscovered hazardous substances, as well as third-party bodily injury and property damage claims related to the release of hazardous substances.
 
Environmental
Matters



 



The Company follows a policy of monitoring its properties for
the presence of hazardous or toxic substances. The Company is
not aware of any environmental liability with respect to the
properties that would have a material adverse effect on the
Company’s business, assets or results of operations. There
can be no assurance that such a material environmental liability
does not exist. The existence of any such material environmental
liability could have an adverse effect on the Company’s
results of operations and cash flow. The Company carries
environmental remediation insurance for its properties. This
insurance, subject to certain exclusions and deductibles, covers
the cost to remediate environmental damage caused by future
spills or the historic presence of previously undiscovered
hazardous substances, as well as third-party bodily injury and
property damage claims related to the release of hazardous
substances.


 




These excerpts taken from the BMR 10-K filed Feb 29, 2008.
Environmental Matters
 
The Company follows a policy of monitoring its properties for the presence of hazardous or toxic substances. The Company is not aware of any environmental liability with respect to the properties that would have a material adverse effect on the Company’s business, assets or results of operations. There can be no assurance that such a material environmental liability does not exist. The existence of any such material environmental liability could have an adverse effect on the Company’s results of operations and cash flow. The Company carries environmental remediation insurance for its properties. This insurance, subject to certain exclusions and deductibles, covers the cost to remediate environmental damage caused by future spills or the historic presence of previously undiscovered hazardous substances, as well as third-party bodily injury and property damage claims related to the release of hazardous substances.
 
Environmental
Matters



 



The Company follows a policy of monitoring its properties for
the presence of hazardous or toxic substances. The Company is
not aware of any environmental liability with respect to the
properties that would have a material adverse effect on the
Company’s business, assets or results of operations. There
can be no assurance that such a material environmental liability
does not exist. The existence of any such material environmental
liability could have an adverse effect on the Company’s
results of operations and cash flow. The Company carries
environmental remediation insurance for its properties. This
insurance, subject to certain exclusions and deductibles, covers
the cost to remediate environmental damage caused by future
spills or the historic presence of previously undiscovered
hazardous substances, as well as third-party bodily injury and
property damage claims related to the release of hazardous
substances.


 




This excerpt taken from the BMR 10-K filed Feb 28, 2007.
Environmental Matters
 
The Company follows a policy of monitoring its properties for the presence of hazardous or toxic substances. The Company is not aware of any environmental liability with respect to the properties that would have a material adverse effect on the Company’s business, assets or results of operations. There can be no assurance that such a material environmental liability does not exist. The existence of any such material environmental liability could have an adverse effect on the Company’s results of operations and cash flow. The Company carries environmental remediation insurance for some of its properties. This insurance, subject to certain exclusions and deductibles, covers the cost to remediate environmental damage caused by future spills or the historic presence of previously undiscovered hazardous substances, as well as third-party bodily injury and property damage claims related to the release of hazardous substances.
 
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