N.J. Admin. Code § 7:26B-5.7

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:26B-5.7 - Limited conveyance

(a) The owner of an industrial establishment may, upon submittal of the notice required pursuant to 7:26B-3.2(a), apply to the Department for a certificate of limited conveyance in accordance with (c) below.

(b) The Department's approval of a certificate of limited conveyance shall be valid for three years from the date of issuance and authorizes the owner of an industrial establishment to transfer up to one third the total appraised value of the real property of the industrial establishment upon the licensed site remediation professional's issuance of a response action outcome or certification of a remedial action workplan or remediation certification for the subject portion of the industrial establishment to be conveyed without the owner or operator conducting a remediation of the entire industrial establishment.

(c) To apply for a certificate of limited conveyance, the owner or operator shall submit a completed limited conveyance application available on the Department's website at www.nj.gov/dep/srp/srra/forms, certified in accordance with 7:26B-1.6, to the Department at the address provided at 7:26B-1.5, which includes the following:

1. The name and location of the site, including street address, city or town, municipality, county, zip code, tax block and lot numbers of the site and the ISRA case number;

2. A site map of the industrial establishment that identifies the real property on which the industrial establishment is situated, and the portion of the real property subject to the proposed transfer and any areas conveyed pursuant to a prior certificate of limited conveyance;

3. A description of the real property to be transferred;

4. An appraisal of the entire industrial establishment, an appraisal of the real property to be transferred and an appraisal of the remaining real property if the certificate of limited conveyance were issued. The appraisals required by this section shall not be made more than one year prior to the submission of the application for a certificate of limited conveyance and shall be conducted by a designated Member, Appraisal Institute (American Institute of Real Estate Appraisers), Senior Real Estate Analyst (Society of Real Estate Appraisers), or Senior Member (American Society of Appraisers);

5. The sale price or fair market value of the real property to be transferred;

6. Any additional information the Department requests from a specific owner or operator;

7. Copies of all prior certificate(s) of limited conveyance if any, issued for the subject industrial establishment;

8. A copy of the sales agreement specifying the agreed upon price for the real property presently proposed for conveyance or, in the case of an acquisition by a condemning authority where no agreement has been reached, an affidavit from the owner specifying the compensation, including any damages, sought by the owner and the current appraised value; and

9. Payment of a fee of $ 600.00.

(d) The Department shall review the information submitted pursuant to (c) above and shall issue a certificate of limited conveyance for the real property on which an industrial establishment is situated after the Department deems the following criteria to be satisfied:

1. The sale price or fair market value of the real property to be conveyed, together with any additional diminution in value of the remaining property as a result of this transfer, is not more than one-third of the total appraised value of the real property of the industrial establishment prior to the transfer;

2. The remaining real property is an industrial establishment subject to the provisions of this chapter; and

3. Transfers or conveyances made pursuant to this section shall not exceed one-third of the value of the industrial establishment during the period of ownership of the applicant.

(e) Upon the Department's issuance of the certificate of limited conveyance, the owner or operator shall remediate the portion of the real property certified for transfer or conveyance prior to the transfer or conveyance. The remediation of the real property subject to the certificate of limited conveyance shall include any discharges from the remaining portion of the industrial establishment that have migrated or are migrating to the real property certified for conveyance.

(f) For the conveyance to occur upon the Department's disapproval of the limited conveyance application, the owner or operator shall remediate the entire industrial establishment in accordance with this chapter and the Administrative Requirements for the Remediation of Contaminated Sites, N.J.A.C. 7:26C.

(g) The owner or operator shall remediate the remaining portion of the industrial establishment, or otherwise comply with this chapter, upon the subsequent closing of operations or transferring of ownership or operations of the industrial establishment.

(h) An owner may, concurrent with or subsequent to a transfer or conveyance executed pursuant to this section, transfer additional portions of the industrial establishment in excess of the permissible conveyance limitation provided at (d)3 above, if the proposed transfer does not constitute a closing of operations or transfer of ownership or operations of an industrial establishment as defined at 7:26B-1.4.

(i) An owner who transfers additional portions pursuant to (h) above shall use the funds paid for those additional portions exclusively for remediating the additional portion(s) transferred pursuant to (h) above. The owner shall deposit any portion of the amount paid that remains unexpended for remediation in a remediation trust fund that shall be established pursuant to N.J.A.C. 7:26C-5 and 13:1K-11.8(g).

(j) Nothing in this section shall be construed to allow an owner to transfer any of the real property of an industrial establishment without complying with ISRA and this chapter for those portions subject to the transfer.

N.J. Admin. Code § 7:26B-5.7

Amended by R.2012 d.095, effective 5/7/2012.
See: 43 N.J.R. 1935(a), 44 N.J.R. 1339(b).
Rewrote (b), (c)9 and (f); in the introductory paragraph of (c), inserted "available on the Department's website at www.nj.gov/dep/srp/srra/forms" and substituted a comma for a semicolon following "7:26B-1.6"; in the introductory paragraph of (d), deleted "in accordance with N.J.A.C. 7:26B-1.7" following "above"; and in (i), inserted "for remediation" and updated the N.J.A.C. reference.