Phase I - Due Diligence - Environmental Site Assessments
WHO NEEDS An Environmental Site Assessment: Phase I
Owner/Operators that intend to apply liability defenses must complete the Phase I or Due Diligence is completed to satisfy one of the requirements to qualify for the liability defense:
- Innocent Landowners (Owner/Operator)
- Contiguous Property Owner
- Bona Fide Prospectus Purchaser
- Application for EPA Brownfield's Grants
PURPOSE OF PHASE I
The Phase I uses requirements of ASTM E1527-05 and 40 CFR 312 is required to find:
- Recognized environmental conditions means presence or likely presence of any hazardous substances and/or petroleum products.
- All appropriate inquiry for other state, local laws and federal laws.
- Brownfield’s grants, you must also look for controlled substances that could be at the property.
WHAT WILL YOU GET WITH THE PHASE I
Four Components that must be included:
- Records Review, historical sources and records from federal, state, and local government records, UST records, and Hazardous Waste handling, treatment, storage, disposal and spill records.
- Site Reconnaissance, visual inspection of the facility and adjoining property. Includes geological concerns, general description of property, storage tanks, pools of liquids.
- Interviews, past and present owners, operators, and occupants of facility.
- If Brownfield’s Grants, then research on history of controlled substances must be reviewed.
- No bulk sampling of materials, this could be recommended for the Phase II.
WHY YOU MIGHT WANT TO HAVE A PHASE I
This is something you want before your purchase the property. Financing companies will want this before approving the financial agreement.
- Obtaining a new commercial or industrial property
- Expanding your current facility by obtaining adjoining property.
- Expanding your current operations by leasing additional property.
- Leasing your facility property to another industrial/commercial enterprise.
- Refinancing your operations budget.
- A government agency may condemn property for local government buildings.
- Recovering a property for delinquent obligations (back taxes).
- Obtaining a Brownfield’s grants for assistance in a hazardous substance clean-up.
ADDITIONAL ITEMS ON PHASE I that may be requested:
||Lead in Paint and Drinking Water
|Regulatory Compliance Status
||Mold and other Indoor Air Quality Issues