Environmental Site Assessments

AN ENVIRONMENTAL SITE ASSESSMENT SHOULD BE PERFORMED ANY TIME COMMERCIAL OR INDUSTRIAL PROPERTY CHANGES OWNERSHIP, IS REFINANCED, OR REORGANIZED.

With the passing of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund) in 1980, the Federal Government was given authority to order potentially responsible parties to clean up hazardous waste sites.  Property owners may be held as the responsible party, especially in cases where the polluter is no longer solvent or in existence.  As a result, ownership of property, especially industrial or commercial properties, can involve significant liabilities.  All parties associated with ownership of such properties (including lenders and owner-lessors) may be considered responsible parties to finance remedial activities. By undertaking a reasonable effort to learn about a property's environmental risks, owners may better defend themselves from being considered a responsible party for the pollution in question.  By performing an Environmental Site Assessment, the owner can accomplish many things: Show that the owner has taken a good faith effort to assess the environmental risks associated with a property. Allow a potential buyer to better understand the potential risks involved in acquiring a specific property. Aid owners, lenders, and purchasers in assessing a property's worth and potential risks.

Types of Environmental Site Assessments Environmental Site Assessments are divided into three main types.  These are known as the Phase I, Phase II, and Phase III Environmental Assessments.  The type of assessment needed depends on a number of factors including: client's needs, desired format, focus, and knowledge of the site.  Often, a lender may be the driving force behind the type of assessment required.

Phase I Environmental Site Assessment A Phase I is usually the primary assessment performed.  The Phase I provides information covering a wide range of investigative parameters.  The basic components of a Phase I include a site visit for visual observation and walk-through of the entire property.  The site visit addresses such areas as site structures, soils, vegetation, surface waters, and building materials for signs of hazards or contamination.  Records from the site, historical archives, and government environmental agency databases are also reviewed.  If necessary, minor field sampling may be conducted during the site visit.  The data is complied and evaluated and a general assessment of potential environmental risk associated with the site is issued.

Phase II Environmental Site Assessment A Phase II is usually a more detailed study of a specific parameter or parameters that were indicated by the Phase I as a possible environmental risk.  In cases where known environmental hazards or contaminants are suspected or discovered, a Phase II is conducted to determine the type and possibly the quantity of contamination present.  Site specific sampling and analytical analysis is conducted to develop a risk assessment for the site.

Phase III Environmental Site Assessment A Phase III is usually the remediation phase of a known contaminant identified and quantified during a Phase II assessment.  The Phase III constitutes an in-depth environmental investigation where quality, quantity, extent, and effect of contamination are determined.  Additional sampling, waste characterization, analytical analysis, and feasible remediation plans are developed and implemented, if necessary.

Parts of an Environmental Site Assessment Report The following list of items can be included in an Environmental Site Assessment report.  Clients may tailor the scope and format of the report according to their needs. Environmental Database Search (Federal and State):  A listing of a variety of facilities and events approximately one mile radius from the site which impact environmental liability. Historical Records Review:  Aerial photographs, Sanborn Fire Insurance Maps, deeds of ownership, or other relevant accessible documents which can provide 50 years of prior property use. Location Maps:  USGS 7.5 minute quadrangle topographical, USGS and/or State Geological Survey Groundwater and Geology Maps. Site Survey:  Land and buildings inspection, utilities, hazardous or regulated substances, storage tanks, waste streams, drainage, natural resources, and other environmental concerns. Interviews:  Site owner, neighboring property owners, local fire and utility personnel, State and Federal Agencies. Sampling:  When requested, sites may be sampled for substances of concern.  Asbestos inspection and sample collection by Licensed inspectors, lead-based paint, soils analysis for petroleum hydrocarbons, lead, PCB's, etc., water analysis for drinking water standards or other contaminants. Report:  Documentation of findings, summary of environmental concerns, recommendations for further study or remediation. ESA's may also include safety assessments, title searches, terrestrial and aquatic ecological surveys, archeological surveys, and a certain amount of environmental impact analysis.

 

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