§ 23.1-10-08 — Responsible parties

1. If the department determines a release has occurred, the department shall identify the
responsible party.

2. If no other viable responsible party can be located after the department's reasonable
investigation, the department shall consider a person that became an owner of the
property after the release to be a responsible party, subject to the limitations in this
section.
a. Notwithstanding any other provision of law and except as expressly provided by
federal law, a person that acquires property is not liable for an existing regulated
substance on the property if the person:
(1) Acquired the property after the disposal or placement of the regulated
substance on, in, or at the property; and at the time the property was
acquired did not know and had no reason to know a regulated substance
was disposed of on, in, or at the property;
(2) Is a governmental entity that acquired the property by escheat, by tax sale,
by foreclosure, through any other involuntary transfer or acquisition, or
through the exercise of eminent domain authority by purchase or
condemnation; or
(3) Acquired the property by inheritance or bequest, and did not know a
regulated substance was disposed of on, in, or at the property; or is the
owner of the surface estate and the regulated substance was released as a
result of oil or gas drilling and production operations, or other operation
authorized by chapter 38-08, and the owner of the surface estate is not and
has never been an operator of oil and gas wells permitted under chapter
38-08.
b. To establish the person had no reason to know a regulated substance was
disposed of on, in, or at the property, the person must have undertaken, at the
time of acquisition, all appropriate inquiries into the previous ownership and uses
of the property consistent with good commercial or customary practice in an effort
to minimize liability. For purposes of this requirement, the department shall take
into account any specialized knowledge or experience on the part of the person,
the relationship of the purchase price to the value of the property as
uncontaminated, commonly known or reasonably ascertainable information about
the property, the obviousness of the presence or likely presence of regulated
substances at the property, and the ability to detect the regulated substances by
appropriate inspection.
c. A person that has acquired real property may establish a rebuttable presumption
the person has made all appropriate inquiries if the person establishes the person
performed an investigation of the property, conducted by an environmental
professional immediately before or at the time of acquisition, to determine or
discover the obviousness of the presence or likely presence of a release or
threatened release of regulated substances on the property.
d. The presumption does not arise unless the person has maintained a compilation
of the information reviewed during the investigation.
e. This section does not diminish the liability of a previous owner or operator of the
property which otherwise would be liable under this chapter, and nothing in this
section affects the liability under this chapter of a person that, by any act or
omission, caused or contributed to the release or threatened release of a
regulated substance that is the subject of the action relating to the property.
f. As used in this section, "environmental professional" means an individual, or
entity managed or controlled by an individual, such as an engineer, environmental
consultant, and attorney, who, through academic training, occupational
experience, and reputation, can objectively conduct one or more aspects of an
environmental investigation.
3. A lender-owner is liable for a release or threatened release of a regulated substance
only as provided in chapter 32-40.1.