Common use of Environmental Defect Clause in Contracts

Environmental Defect. An Asset shall be deemed to have an “Environmental Defect” if Buyer discovers that such Asset is subject to (a) a condition existing on or before the expiration of the Environmental Examination Period with respect to air, soil, subsurface, surface waters, ground waters and/or sediments that causes such Asset not to be in compliance with Environmental Law or any provision of any Lease addressing environmental issues, or the existence on or before the expiration of the Environmental Examination Period of any environmental pollution, contamination, degradation, damage or injury with respect to any Asset for which remedial or corrective action is required (or upon the passage of time will be required) under Environmental Laws or any provision of any Lease addressing environmental issues; and (b) with respect to which the Lowest Cost Response therefor is reasonably estimated to require an expenditure in excess of $50,000 in the aggregate; provided that (A) an Environmental Defect shall not be deemed to exist with respect to NORM in connection with in- use equipment and (B) an Asset for which an SPCC is required, but is not in place, will, for the avoidance of doubt, constitute the basis of an Environmental Defect for purposes hereof.