A Phase I Environmental Site Assessment (ESA) is an important action one can take to learn about a property's past use, the environmental conditions at the site and adjoining sites, and the likely presence of hazardous substances.

     As this is the standard of the industry, doing any less may increase risk to liability at a future date.  Also, armed with this knowledge, one can:

Better assess the financial risk posed by potential environmental contamination;

Take steps to avoid full or partial liability for cleaning up the property;

Demand that the current landowner clean up the property prior to the sale; or

Have the cost of the property/lease reduced commensurate with the cost or potential liability of the cleanup activities.

     Phase I ESAs involve records reviews, a site visit, and interviews with owners, occupants and local government officials. Phase I ESAs do not involve sampling or laboratory analysis.  If the Phase I ESA identifies potential hazardous substances, a Phase II ESA is usually conducted to confirm the presence or extent of contamination. Phase II ESAs involve the collection and analysis of samples and can also be performed, if required.

     If environmental contamination is discovered, the fact that a Phase I ESA was conducted helps the you establish the "innocent landowner" defense under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). CERCLA was enacted to respond to situations involving past disposal of hazardous substances, and places the liability for cleanup of hazardous substances on potentially responsible parties (PRPs), including owners of the property.

     Exercising due diligence by conducting a Phase I ESA helps ensure all recognizable environmental conditions have been identified. Recognizable environmental conditions refer to the presence or likely presence of hazardous substances covered under CERCLA, as well as petroleum products, asbestos, lead-based paint, radon, and other environmental hazards covered under other laws or industry standards. Although ASTM standards only address hazardous substances covered under CERCLA and petroleum products, asbestos and lead-based paint will usually be addressed in the Phase I ESA.

     Reports are prepared in accordance with ASTM E 1527-05, Standard Practice for Environmental Site Assessments: Phase 1 Environmental Site Assessment Process.

Bruce E. Holmes, PE

Holmes Enterprises

561 215 8435 cell

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Copyright, 2012, Bruce E. Holmes, P. A.