Environmental

In New Mexico, a 'recognized environmental condition' (REC) identified in a Phase I ESA means:

AThe property is clean and free of contamination
BThe presence or potential presence of hazardous substances or petroleum products that may affect the property✓ Correct
CA permit has been issued for environmental work
DThe property passed all environmental tests

Explanation

A REC is the standard conclusion in a Phase I ESA indicating actual or possible contamination. RECs typically require further investigation (Phase II) to determine whether contamination actually exists and its extent.

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