Phase I

A Phase I Environmental Site Assessment, otherwise known as an ESA, or Phase I ESA, is a process done in which to research the current and historical uses of a particular property as part of a commercial real estate transaction.  The purpose of this report is to determine if current or historical property uses have affected the soil or groundwater beneath the property and could pose a threat to the environment and/or public health. If any of these issues are found, it presents a potential liability for the lender and/or owner, as well as affecting the total value of the property.
Phase I Environmental Site Assessment reports can be completed on many types of properties such as vacant land, agricultural, multi-family residential, commercial, and industrial uses.

A Phase I ESA typically includes the following:

• A site visit to observe current and past conditions and uses of the property as well as surrounding properties;

• A review of federal, state, tribal, and local regulatory databases including, but not limited to, underground storage tanks, aboveground storage tanks, known or suspected release cases, the storage of hazardous materials and disposal of hazardous wastes including petroleum products, and institutional and engineering controls; 

• A review of historical records, such as historical aerial photographs, fire insurance maps, historical city directories, and historical topographic maps; 

• A review of state and local agency records, including state environmental agencies, Building Departments, Fire Departments, and Health Departments and more.  

• Interviews with current and past property owners, operators, and occupants, or others familiar with the property’s history.

• Interviews with the Report User for title or judicial records for environmental liens and activity and use limitations; specialized knowledge or experience; actual knowledge; commonly known or reasonably ascertainable information; the reason for a possible significantly lower purchase price; and the reason for the preparation of the Phase I ESA.

All information obtained in the Phase I ESA  is evaluated by an Environmental Proffto identify any potential environmental risks to the property such as current or historic operations that are known or suspected to have used hazardous materials during onsite operations.  Some very common areas of concern are former/current: dry cleaners, gas stations, auto/vehicle repair, printing operations, and manufacturing.

Once a Phase I ESA is complete, the Environmental Professional will summarize what concerns were identified on the property and make recommendations about what actions, if any are needed to address these concerns.

Phase II

The purpose of aPhase II Environmental Assessment is to investigate the findings of the Phase I ESA and to evaluate the presence, or absence of, petroleum products or hazardous materials in the subsurface of the site. A team of trained, licensed, experienced staff of geologists and engineers that possesses expertise in Phase II Environmental project design performs these assessments. 

The American Society for Testing and Materials provides the parameters for Phase II Environmental Assessments, but there is a degree of professional assessment that goes into the final report. There is far more that goes into the scope of work than just the number of samples taken (i.e. what type of drilling and sample collection is appropriate for the site and the kinds of contaminants you are assessing the property for). Therefore it is important to engage an informed, experienced and thorough consultant who understands what can be involved in the assessment and the level of certainty your institution requires.

When designing a Phase II ESA scope, the environmental professional accounts for any areas of concern, chemicals of concern, local geology and/or site access issues as well as local, state and federal regulations. An accurate, helpful Phase II ESA delivers local knowledge of geologic and regulatory environments, and then interpreting geological and chemical data to the client so that they are fully informed of their business risk.

Phase III - Site Remediation

The information found in the Phase I and Phase II investigations will guide the environmental remediation specialists’ decision-making when building the Remediation Action Report. Depending on the type of contamination found will require different processes and technologies to remediate. Environmental remediation teams will also take into account the applicable standards and regulations when deciding which technologies to use. They will also use the information found in the original assessment to identify the necessary safety measures they must take to protect all workers involved in the actual remediation.

Groundwater Remediation

Groundwater remediation is the process of treating polluted water below the earth. There is water underground in many different parts of the country, and some of it is contaminated. Some pollutants can be removed directly, while others can be converted into harmless products.

Surface Water Remediation

Surface water remediation is very similar to groundwater remediation, except it is far easier to access water above the soil. Surface water is exposed to many different elements. Still water is a natural breeding ground for insects, bacteria, and other things which are generally harmful to humans.

Soil Remediation

Soil remediation is the process of removing contaminants from soil. Hydrocarbons, heavy metals, and creosote all present problems for property owners. There are a few different methods of fixing soil but the most immediate type of remediation is removal of the contaminated soil and replacement with clean fill.