"Why Just treat the symptoms, when we need to eliminate the sources."

Phase I Environmental Assessment

The purpose of a Phase I Environmental Assessment (ESA) is to determine if Real Estate is or has been contaminated by solid or hazardous waste. The ESA involves a review of records, a site inspection, and interviews with owners, occupants, neighbors and local government officials.

One of the initial stages of buying or developing commercial real estate (CRE) is having a Phase I Environmental Site Assessment (ESA or Phase I ESA) conducted. This environmental study assesses any potential environmental issues at the site in order to reduce liability and risk exposure against environmental claims.

 Contamination can result from activities that took place on the site or come from activities at a nearby property. The records and interviews, at this stage, provide the best available information to determine that the site or properties surrounding the site have been classified as contaminated according to federal or state regulations. During this phase no intrusive data are collected from the site or surrounding properties. All information and records collected will be presented in a Report for your review.

Database Search

City Directories

Fire Insurance Maps

Historic Aerials

Survey & FOIA

Site Visit

Report

The final step is a report generated under the industry standard that is accepted by banks and the Small Business Administration (SBA). Most Phase 1 ESAs come back fine, while others will identify what are called Recognized Environmental Conditions (RECs) which may need further investigation. That deeper dive to understand the RECs is called a Phase 2 ESA.

Since the goal of a phase I study is to conduct environmental due diligence, it is ideally conducted before a property transfers ownership to help eliminate future liability claims for environmental contamination.









Phase II Environmental Assessment 

A Phase III Site Assessment is called for only when contamination has been identified. A Phase III Assessment determines the extent of the contamination, both horizontally and vertically, and forms the basis for preparing a remediation plan, and estimation of the cost for remediation. Buyers and lenders use the Phase III Assessment as a negotiating tool with the sellers to ensure the property they purchase yields the benefit they expect.



If a Phase I ESA identifies potential contamination of the site by hazardous materials, a Phase II ESA may

be conducted. The Phase II ESA includes sampling and laboratory analysis to confirm the presence of

hazardous materials. Some of the tests that may be performed include:

• surface soil and water samples
• subsurface soil borings
• groundwater monitoring well installation, sampling, and analysis (may be appropriate on

              neighboring properties as well to determine the presence of contamination)

• drum sampling (if any were let on the property)
• sampling of dry wells, floor drains and catch basins
• transformer/capacitor sampling for Polychlorinated Biphenyls (PCBs)
• geophysical testing for buried tanks and drums
• testing of underground storage tanks

 All information, data and laboratory analysis collected, will be presented in a Report for your review.

Drilling methods used most often by scientists and geologists during Phase II Environmental Testing projects include:

When Do I Need a Limited Phase II ESA?

There are circumstances in the due diligence process when a potential property owner does not want to invest in a full Phase II ESA. They may instead opt for a limited Phase II sampling, which is conducted to confirm the presence of a pollutant and may be limited by locations sampled, number of samples, media sampled or a combination. A buyer may conduct a limited Phase II ESA to evaluate the following scenarios to inform their transaction decisions:

●The identified REC from a Phase I ESA is minor or limited in scope
●To confirm a REC that presents more of a risk than the buyer is willing to accept
●To identify a REC that requires more discovery (a full-scale Phase II ESA) to confirm the extent of contamination

All information, data and laboratory analysis collected, will be presented in a Report for your review.



Qualifications Click on PDF Below

Senior Geologist