Exhibit 2 - Lead Based Paint Removal.doc

LEAD BASED PAINT REMOVAL

TABLE OF CONTENTS

Part 1 - General Page #

1.01 Introduction

1.02 General Provisions

1.03 Scope of Work

1.04 Submittals

1.05 Contractor Qualifications

1.06 Record Keeping

1.07 Housekeeping

1.08 Hygiene

1.09 Personal Air Monitoring

Part 2 - Products

2.01 Materials

Part 3 - Execution

3.01 Preparation

3.02 Execution

3.03 Work Area Cleanup

3.04 Disposal-Non-Hazardous Construction & Demolition Debris

3.05 Disposal-Hazardous Waste

Attachments

PART 1-GENERAL

1.01 INTR0DUCTION

A. This document addresses environmental, administrative and engineering controls to be undertaken by the contractor when disturbing any building component coated with paint containing lead at levels greater than or equal to 1.0 mg/cm2 (Lead Based Paint).

1.02 GENERAL PROVISIONS

A. All work which disturbs surfaces that are coated with lead based paint must be performed in accordance with the Occupational Safety and Health Administration (OSHA) 29 Code of Federal Regulation (CFR) Part 1926.62, Lead Exposure in Construction; EPA 40 CFR Part 745 Lead; Requirements for Lead-Based Paint Activities in Target Housing and Child-Occupied Facilities, Final Rule; The LHMP is established under N.C. General Statute §130A-453.01-453.11 - Lead-Based Paint Hazard Management Program. Rules adopted by the North Carolina Health Commission to implement the statutes may be found under 10A NCAC 41C.0800 - Lead-Based Paint Hazard Management Program. The North Carolina LHMP Rules adopt the federal regulations relating to lead-based paint activities in child-occupied facilities and target (pre-1978) housing by reference. These regulations may be found at 40 CFR Part 745, Subpart L - Lead-Based Paint Activities and 40 CFR Part 745, Subpart D – Identification of Dangerous Levels of Lead (PDF). In addition, all other applicable federal, state and local codes, rules and regulations must be adhered to by the Contractor.

B. The Contractor shall be aware that Lead Based Paint has been identified within the proposed demolition project and must be familiar with the OSHA lead in construction standard and its requirements. In addition, all waste generated as part of the renovation project should be tested in order to determine the classification of the waste. The United States Environmental Protection Agency (USEPA) defines Hazardous Waste as waste containing the minimum concentration of a particular contaminant identified by the Toxicity Characteristic Leaching Procedure (TCLP). The USEPA regulatory level for lead (EPA Code: D008) is 5 PPM (parts per million).

C. The Contractor shall supply all equipment and materials necessary to perform the work. All electrical power (including Ground Fault Circuit Interrupters for the HEPA vacuums, temporary lighting and any other electrical needs) shall be supplied by the Contractor.

1.03 SCOPE OF WORK

The scope of work includes the removal of lead based paints from the following building components that will be disturbed by the proposed demolition/renovation activities.

Approximate Lead Paint quantity schedules are presented on the following table:

The National Forests in North Carolina is assuming all painted materials to be lead containing and should be handled accordingly. If contractor has materials tested and they are found to not contain lead these rules do not apply.

A. Respiratory Protection Program:

The Contractor shall submit for approval a written Respiratory Protection Program for employees throughout all phases of the job, including make, model and National Institute of Occupational Safety & Health (NIOSH) approval number of the respirators to be used, as 29 required by CFR 1926.62 and 29 CFR 1910.134.

B. Written Compliance Program:

The Contractor shall submit for approval a Written Compliance Program that complies with 29 CFR Part 1926.62.

C. Exposure Assessment:

The Contractor shall submit an exposure assessment plan as per OSHA 29 CFR 1926.62 and objective data demonstrating that the demolition operation(s) cannot result in employee exposure to airborne lead at or above the action level. The Contractor shall ensure that workers are not exposed to lead at concentrations greater than the Permissible Exposure Limit (PEL) of 50 micrograms per cubic meter (ug/cm) over an eight-hour (8) time weighted average (TWA).

The Contractor shall provide the name of the individual(s) or firm conducting the exposure monitoring and laboratory providing analytical services. The laboratory must be NEVLAP certified.

D. Disposal:

Contractor shall submit a letter from a permitted Hazardous Waste Facility, stating that the facility has agreed to accept the waste generated by the work; is authorized to accept the waste under the laws of the State of residence; has the required capacity to treat and dispose of the material; and will provide or ensure the ultimate disposal method indicated on Uniform Hazardous Waste Manifest.

Contractor shall submit a letter from a licensed scrap metal dealer, stating that the facility will accept coated metal containing lead, and that the dealer will recycle this material. This may be in the form of a letter from the company on their letterhead. In addition, Contractor shall submit a Bill of Lading for the recycled material.

Contractor shall submit a Waste Transporter Permit, confining the requirements to haul to the selected Waste Disposal Facility.

Contractor shall submit a statement from the selected Waste Disposal Facility that the waste containers proposed for use are acceptable to the facility.

Contractor shall submit a copy of the Hazardous waste manifest signed by the transporter and the Treatment, Storage and Disposal (TSD) facility accepting the waste.

1.05 CONTRACTOR QUALIFICATIONS

Work shall be performed by a firm or subcontractor having not less than two (2) years successful experience in comparable projects which require OSHA 29 CFR Part 1926.62 compliance and employ personnel who have received lead hazard awareness training from either an accredited lead paint training center or recognized environmental training center specializing in lead hazard awareness training.

1.06 RECORD KEEPING

Contractor shall comply with 29 CFR Part 1926.62 for record-keeping of all exposure monitoring, medical surveillance and other data used in conducting the employee exposure assessment to be established and maintained. These records be kept for 30 years in accordance with 29 CFR 1910.20 and also provides employees access to such records.

1.07 HOUSE KEEPING

All surfaces shall be maintained free of accumulation of lead dust generated during demolition activities.

If applicable, separate and deposit all lead waste, including sealing tape, plastic sheeting, mop heads, sponges filters, and disposable clothing in double polyethylene bags of at least six (6) mils thick and seal each bag separately.

No equipment, supplies or materials (except properly containerized waste materials) shall be removed from the project work area unless such equipment, supplies and/or materials have been cleaned free of lead debris.

1.08 HYGIENE

Contractor shall provide hygiene facilities and assure employee compliance with basic hygiene practices. This provision is recognized as an industrial hygiene tool for minimizing additional sources of lead absorption from inhalation or ingestion of lead that accumulates on a worker's hand, face or body. Hand washing facilities are to be provided for all employees occupationally exposed to lead in accordance with 29 CFR 1926.62.

PART 2 - PRODUCTS

2.01 MATERIALS

Contractor shall furnish, provide and utilize all tools and equipment necessary to perform the project.

PART 3 - EXECUTION

3.01 PREPARATION

General:

Work area protection shall be maintained for the duration of the project with the intent to protect all individuals and property outside the work area from spray mist, falling debris, residue, etc.

USDA and/or their representative(s) will inspect the preparation to ensure that the requirements of this document are met.

Barriers:

Warning tape shall be placed around the work area at all access points to prevent unauthorized access to the work area. Additionally, the work areas shall be isolated in such a manner as to prevent the escape of any dust, spray mist and debris from the work area. This isolation shall include but not be limited to the removal from service all HVAC servicing the work area, erection of a dust control barrier surrounding the work area, sealing of all HVAC registers and seating of all penetrations into the work. Access to the work area shall be through a series of curtained doorways with a walk off dust collection pad.

Signs:

Warning signs shall be placed on the outside of the barriers specified in 3.0 1 (B) 4 herein and shall read as follows:

WARNING

POISON

LEAD WORK AREA

NO SMOKING OR EATING

The signs must be in English and Spanish and any other language deemed necessary by the USDA and/or their representative. These signs shall remain in place for the duration of the project.

Ground Cover:

The ground surrounding the area where active demolition is taking place shall be covered with a minimum of one layer of 6-mil polyethylene sheeting. Such sheeting shall extend, where feasible, a minimum of 10 feet from the component(s) undergoing demolition.

The Contractor shall construct a raised beam designed to capture and contain all water runoff.

Hand Washing:

Hand washing facilities shall be made available to all workers.

3.02 EXECUTION

All work must be performed in accordance with Occupational Safety and Health Administration (OSHA) 29 Code of Federal Regulation (CFR) Part 1926.62, and all applicable local, state and federal regulations.

At the end of the demolition project, have a certified inspector or risk assessor conduct a clearance examination and provide appropriate documentation or statements of lead-based paint compliance.

3.03 WORK AREA CLEAN-UP

Clean-up procedures shall utilize HEPA-filtered vacuum systems and/or wet methods, such as mopping, wet wiping, shoveling of wet debris, etc. No dry sweeping of dust, particulate matter or debris is allowed during any phase of the work affecting lead-coated surfaces

3.04 DISPOSAL: Disposal of Non-hazardous construction and demolition debris.

The Contractor shall conduct the Mass Balance TCLP Testing for lead to categorize the proposed waste strewn prior to initiation of work. If the test results indicate that the waste strewn meets the requirements for disposal as non-hazardous construction and demolition debris the contractor will be provided with the necessary documentation for disposal.

3.05 DISPOSAL: Disposal of hazardous waste.

The Contractor shall conduct TCLP testing of all waste generated during the demolition of components coated with detectable levels of lead.

All waste shall be kept drummed, secured, labeled and stored in a designated secured storage space on site until test results categorize all waste to be hazardous or non-hazardous.

The lead based waste media or other debris must be stored in a manner that will not allow entry of any hazardous material into the environment. Leak-proof drums or portable bins, such as gondolas, are generally acceptable. The lids of the drums, or the covers of the bins, must be firmly secured. The containers must be kept out of flood plains or areas where run-off may occur. Weather resistant labels using indelible ink warning of the potential hazards associated with the material must be place on the containers. The containers should be marked with the contents, tare weights of the containers, and the origin and date of collection of the material. The containers must be keyed to the samples taken.

All waste, after being evaluated in accordance with the Toxicity Characteristic Leaching Procedure (TCLP) test, shall be disposed of in accordance with all applicable Local, Federal, State and/or County Regulations.

Refer to Part 4 of this document for all-applicable testing and disposal standards and regulations. All laboratory analysis shall be conducted in an expeditious manner, with results not to exceed 48 hours turnaround.

The following is an example of the proper placard and labeling requirements:

FORM-E : HAZARDOUS WASTE

FEDERAL LAW PROHIBITS IMPROPER DISPOSAL

IF FOUND, CONTACT THE NEAREST POLICE OR PUBLIC SAFETY

U.S. ENVIRONMENTAL PROTECTION AGENCY

PROPER D.O.T. SHIPPING NAME HAZARDOUS WASTE SOLID N.O.S. D008/NA 9189

MANIFEST DOCUMENT

GENERATOR

ADDRESS

CITY STATE ZIP

EPA ID NO.

MANIFEST NO.

DATE OF ACCUMULATION

EPA WASTE NO.

CONTAINS HAZARDOUS OR TOXIC WASTE

HANDLE WITH CARE

The Contractor shall represent that the entity, providing waste transportation services shall possess a valid Waste Hailer’s permit issued pursuant to the state regulations.

In addition, if the waste is to be transported and disposed of out of North Carolina State, permits from those states through which the waste will be transported and for where it will be disposed may be required. It is the responsibility of the Contractor to determine which permits are required and to provide such permits for review and approval of USDA.

The site where waste is stored must be secure. Storage sites must be on well drained ground that is not subject to flooding (40 CFR Part 264.18). The containers must be arranged so that the labels are visible at all times. The site must be adequately protected from vandalism or unauthorized access by the public (40 CFR Part 264.14).

Additional Disposal Requirements:

The Contractor shall warrant and represent that all entities and/or individuals involved in the work shall possess all permits and/or licenses required under the Resource Conservation and Recovery Act (RCRA) as well as any other federal, state or local permits or licenses required for removal, packaging, transportation and disposal of hazardous waste.

All hazardous waste materials removed hereunder must be lawfully treated and disposed by the Contractor at an Environmental Protection Agency (EPA) permitted Treatment, Storage and Disposal Facility (TSD).

All wastes, drums, and other items removed hereunder must be lawfully treated and disposed of by Contractor within sixty (60) days after removal from the site. The Contractor shall provide completed shipping documents for all hazardous waste removed, which contain the information required under 40 CFR Part 262 Subpart B (hereinafter the "Manifest Form") as well as all Certificates of Disposal, which specify where each component of all wastes removed from the sites is ultimately treated or disposed. Such Certificates shall include references to the Manifest Form for the shipment as well as address and EPA identification numbers for the generator facility.

The USDA prior to any delivery of waste shall approve all TSD facilities or transporters that the Contractor intends to use to treat and/or dispose of hazardous waste picked up hereunder for use by Contractor to such TSD facility. The Masterworks Development Corp and its Consultant reserve the right to inspect the Contractors transporters, equipment, equipment storage facility and TSD facility at any time. Should any problems arise regarding the TSD facility chosen to accept the waste for treatment and disposal that would require the return of waste to building owner’s property, or should such TSD facility have violated any environmental law or regulation which would result in any regulatory enforcement action, the Contractor shall immediately notify USDA in writing of such situation, identify an alternative TSD and obtain written approval from the USDA disposal at such TSD.

The Contractor shall provide completed shipping documents, hereinafter referred to as "Bills of Lading", for all non-hazardous "industrial" waste removed from USDA sites. A Bill of Lading must accompany each waste shipment and must include information regarding the quantity and type of waste being removed, the destination and disposal firm accepting the waste, the waste transporter name, and the date of removal from USDA property.

LIST OF SUBMITTAL

SUBMITTAL DATE:

SUBMITTED DATE APPROVED:

Project Submittal:

1. Compliance Program

2. OSHA Exposure Assessment Plan

3. Proof that a landfill site has been located.

4. Proof of Waste Transporter

5. Proof of Acceptable Waste Containers

6. MSDS of chemicals to be used on this project.

7. Lead Removal and Disposal Work Plan

8. Contractor Qualifications