RETURN TO USE INITIATIVE 2010 Demonstration Project FLORIDA STEEL CORPORATION Iridiantown, Florida The Site: The Florida Steel Corporation Site covers 152 acres just northwest of Indiantown, Florida, From 1970 until 1982, site operations included recycling cars and scrap metal to produce steel reinforcement bars for concrete. In 1982, EPA detected heavy metals from emission control dust in the soil and added the Site to the Superfund National Priorities List. The following year, EPA found polychlorinated biphenyls (PCBs) in the soil. Initial cleanup efforts involved removing emission control dust piles and incinerating PCB- contaminated soil. EPA issued a remedy decision in 1994, which initiated activities to excavate, chemically stabilize and dispose of the contaminated soil on site in a secure RCRATSCA compliant vault. To address ground water and wetland contamination, Florida Steel engaged environmental remediation contractors to treat impacted ground water and to excavate wetland sediments. The excavated wetland area has been replanted and reestablished to its original condition and the ground water treatment system has been placed into monitoring and natural attenuation mode. he Opportunity: The Site is bordered by main line rail service and a state road, allowing for easy access to transportation routes. Floridian Natural Gas Storage Company (FGS) owns an exclusive option to purchase the property, as the Site is in close proximity to two natural gas pipelines that are essential to company operations. he Barriers: Ongoing long-term liability concerns and a lack of clear information pertaining to the redevelopment process posed challenges to the prospective purchaser. In addition, prospective purchasers were aware that potential lenders were PICTURED: View from top of vault on site (Source: EPA) BARRIERS: Liability arid lending concerns; need for clear site information SOLUTION: EPA issued a Status Letter and facilitated the land reuse process; proactive prospective purchaser collaborated with a team of experts experienced in dealing with Superfund sites to gather and review data PICTURED: FGS perspective drawing of eight billion cubic foot capacity gas storage facilities (Source: Floridian Natural Gas Storage Company) BEFORE: Cleanup underway, vacant land with easy access to transportation infrastructure AFTER: Fully permitted natural gas storage facility United States Environmental Protection Superfund Redevelopment Initiative 1—J § m Agency kAgency Updated: June 2010 1 ------- concerned about risk mitigation. As a result, gathering and comprehending a wide variety of site information was imperative to potential purchasers and lenders. The Solution: FGS proactively engaged local experts and experienced advisors to address liability issues. "You really want to have good advisors, and to use EPA's website and resources. Having a team of people who had worked with Superfund sites before was key to our whole process. We have lawyers and environmentalists who have hands-on experience working with Superfund sites and that really has made all the difference," explained Bradley Williams, Principal at FGS. FGS used EPA's Superfund website to gain information about the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and corresponded with regional EPA staff to address questions as they arose. Through its prospective purchaser inquiry process, EPA Region 4 discussed the bona fide prospective purchaser (BFPP) process with the prospective purchaser. A bona fide prospective purchaser is protected from owner or operator liability under the Superfund law so long as the new purchaser meets the BFPP definition. Lending concerns about risk mitigation were largely addressed by FGS's team of experts and documentation about the Site provided by EPA and the original site owner. EPA Region 4 issued a Status Letter aimed at relieving lender concerns. The Status Letter contained background information on the Superfund program, the history of the Site, and remedial goals and actions taken to clean up the Site. They also provided a Ready for Reuse fact sheet. The Site Now: The Company has obtained all necessary Federal Energy Regulatory Commission (FERC), county, and state permits and plans to build two large steel natural gas storage tanks on the Site as soon as long-term customer contracts can be negotiated. Construction is expected to take approximately three years to complete. A socioeconomic study by Florida Atlantic University concluded significant benefits to the local community and Martin County including an increased tax base paying over $2.5 million annually by FNG once the facility is fully operational. The study also estimated that during the facility's three-year construction phase, 350 jobs will be created at the Indiantown site and that the total number of direct and indirect jobs created in Martin County during the construction phase is projected to be 991 in the first year, 1060 in the second year and 538 in the final year. Once in operation, the facility will employ approximately 30 people. FGS plans to hire and train local people for a significant portion of the operations and construction positions. FOR MORE INFORMATION, PLEASE CONTACT: Bill Denman, Remedial Project Manager and Region 4 Superfund Redevelopment Coordinator, at (404) 562-8939 or denman.bill@epa.gov: or visit www.floridianaasstoraae.com. United States Environmental Protection i Agency Superfund Redevelopment Initiative Updated: June 2010 2 ------- |