Phase I/II ESAs

An Environmental Site Assessment is a report prepared for a property which identifies potential or existing environmental contamination liabilities. The report, often called an ESA, typically addresses both the underlying land as well as physical improvements to the property.

Actual sampling of soil, air, groundwater and/or building materials is typically not conducted during a Phase I ESA. The Phase I ESA is generally considered the first step in the process of environmental due diligence. Standards for performing a Phase I site assessment have been promulgated by the US EPA and are based in part on ASTM in Standard E1527-05.

If a site is considered contaminated, a Phase II Environmental Site Assessment may be conducted, ASTM test E1903, a more detailed investigation involving chemical analysis for hazardous substances and/or petroleum hydrocarbons.

Various triggers to perform a Phase I ESA:
Purchase of property by a person or entity not previously on the title.
Consideration by a new lender to provide a loan on the subject real estate.
Partnership buyout or principal redistribution of ownership.
Divestiture of properties.
Depending upon precise protocols utilized, there are a number of variations in the scope of a Phase I study. The tasks which are common to almost all Phase I ESAs include:
Evaluation of risks of neighboring properties upon the subject property.
Interview of persons knowledgeable regarding the property history (past owners, present owner, key site manager, present tenants, neighbors).
Performance of an on-site visit to view present conditions (chemical spill residue, die-back of vegetation, etc.); hazardous substances or petroleum products usage (presence of above ground or underground storage tanks, storage of acids, etc.); and evaluate any likely environmentally hazardous site history.
Examine municipal or county planning files to check prior land usage and permits granted.
Conduct file searches with public agencies (PADEP or other state environmental agency, local fire department, county health department, etc) having oversight relative to water quality and soil contamination issues.
Examine historic aerial photography of the vicinity.
Examine current USGS maps to scrutinize drainage patterns and topography.
Examine chain-of-title for Environmental Liens and/or Activity and Land Use Limitations.