Environmental

In South Dakota, the term 'recognized environmental condition' (REC) in a Phase I ESA report indicates:

AThe property has been confirmed contaminated
BThe presence or likely presence of hazardous substances due to a release, threatened release, or material threat✓ Correct
CThe property has passed all environmental tests
DDENR has approved the property for development

Explanation

A recognized environmental condition (REC) in a Phase I ESA report indicates that conditions represent a material threat of a past, current, or future release of hazardous substances that could affect the property. It does not confirm contamination but identifies the need for further investigation.

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