Environmental Site Assessments

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

Phase I Environmental Site Assessment?

In short, Phase I is a report prepared to identify any existing or potential environmental contamination of a real estate property. And that includes the land, water, buildings etc. ie. Anything that has to do with the property is examined. However, no physical analysis or testing of any type is performed during a Phase I environmental assessment. A Phase I is the fact phase of an environmental assessment. Basically, the whole purpose of the Phase I is to determine whether or not there is any evidence that may suggest that the site is contaminated or may become contaminated. If such evidence is uncovered, it is likely that a Phase II Environmental Assessment would then be required.

To give you an idea of some of what is typically undertaken during a Phase I Environmental Site Assessment, here is a list of some of the tasks performed:

• Chain of title review. What has the property been used for in the past? Are there red flags based on past usage?
   
• Determine surrounding land use. This can be a very important part of the assessment as the risk of contamination can increase dramatically if the surrounding properties are potentially contaminated.
   
• Historical aerial photograph review. When conducting a phase one environmental review, environmental consultants will almost always look through historical aerial photographs to determine a time-line for development of the property as well as surrounding properties.
   
• Agency contacts and related record searches. Consultants may contact several agencies such as fire departments, local health departments, petroleum tank management associations, water boards etc. in order to gather pertinent information in the form of records and/or interviews.
   
• Interviews. Interviews will be conducted with anyone who may have information that would help with the report. For example, past and present property managers and tenants would be obvious choices. As well, if there is concern over surrounding properties, interviews may be conducted with people who have been or are involved with that property.
   
• Site reconnaissance. Of course, a visual inspection of the property and improvements plays a vital role in a Phase I environmental report. The confines of the building(s) are inspected and property boundary measurements observed among other things. Photographs are taken of the property at this time as well. Again, no physical testing or sampling is conducted during a Phase I assessment.

Phase II Environmental Site Assessment is an "intrusive" investigation which collects original samples of soil, groundwater or building materials to analyze for quantitative values of various contaminants. This investigation is normally undertaken when a Phase I ESA determines a likelihood of site contamination. The most frequent substances tested are petroleum  hydrocarbons, heavy metals, pesticides, solvents, asbestos and mold.

Phase III Environmental Site Assessment is an investigation involving remediation of a site. Phase III investigations aim to delineate the physical extent of contamination based on recommendations made in Phase II assessments. Phase III investigations may involve intensive testing, sampling, and monitoring, “fate and transport” studies and other modeling, and the design of feasibility studies for remediation and remedial plans. This study normally involves assessment of alternative cleanup methods, costs and logistics. The associated report details the steps taken to perform site cleanup and the follow-up monitoring for residual contaminants.