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Car wash pit cleanup

gujm

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Hello,

I am under LOI to buy a car wash in WA. During my due diligence, I learned that the current owner has employees who empty the wash pits monthly into the city garbage bins, and the city hauls the waste to the dump. The seller has a clean phase 1 environment, but from my understanding, the pits must be emptied by licensed professionals as it is considered hazardous waste.

What would you do? I have asked the seller to go to the county to get a letter stating that the current practices have been a mistake and that they will be handled by professionals in the future. Is that enough to protect me as a new buyer? Should I walk away from the deal? What would you all do?

Thanks
 

Greg Pack

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Pit mud isn't typically considered hazardous waste in my State unless there is excess silicone (mainly from tire shine machines in conveyorized washes) It's considered proper to pump or dig out and allow the liquid to run off until it is no longer in a liquid state, then it can be disposed of at a landfill via dumpster or truck.

My pit pumper is allowed to dispose of it by taking the truck full of pit mud, and first stopping at the sewer plant to dump the liquid, then he takes the solid remnants to the landfill.

In reality, the majority of SS/IBA owners I know handle their own waste if their pits can be dug out by hand. This is a common practice and I'm not too alarmed if I see similar actions taken.

As a seller, I'm not inviting the man (government) in my life by alerting them to something I've been doing for years that may trigger an investigation. I'm not a lawyer, but as a buyer if you start with a clean environmental report prior to closing and follow best practices/law for pit disposal I'm not sure how you could be held liable for the actions of a previous owner unless you structured the sale as a business and not a real estate/property purchase deal..

Regardless , your issue is going to vary by state and jurisdiction as to what is considered acceptable practice.

We do have an attorney here who could probably better comment if he wishes.
 

gujm

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Thank You for your detailed reply. I am happy to pay a lawyer with more knowledge on this issue for their time. My lawyer has expressed concern about this, and I want to get a second opinion from someone with more knowledge of car washes. Thanks
 

Earl Weiss

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As Greg Pack says- issue varies by state. There are "Hazardous" wastes and "Special Wastes" which are different in that Special is not hazardous but may be liquidy. Here in Illinois regular waste haulers will not take Special waste. Here is a sample of information showing how complex the issue can be. Perhaps your state has similar information. https://epa.illinois.gov/topics/was...e/do-i-have.html#faq-1whatisaspecialwaste-faq.
 

gujm

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Any lawyer or suggestions for getting more information? Thanks
 

Earl Weiss

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Any lawyer or suggestions for getting more information? Thanks
Check the internet for your state's EPA information. similar to what Illinois had as posted above. You could also check your local Bar Association to see if they have a practice section of attorney's listed for environmental matters. You could also check local Pitsucker companies and see if they will provide you for proper licenses and Bills of Lading if they get your business.
 

soapy

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The EPA considers car wash pit waste as simple street sweepings as long as it is dry and it is not considered hazardous. California has done several studies and came to the same conclusion. You could Join the WCA,( Western Car Wash Assoc.) They have several articles on this as well as the ICA. If you have a spare piece of property you can haul the dirt and dup it there and let it dry then take it anywhere. Have your pit dirt tested and confirmed clean and not full of heavy metals once and then as long as the scope of operations does not change you will not have to have it retested anytime according to the EPA.
 
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