Phase I Site Assessment: What It Is and Why You Need One

  

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When a commercial developer is considering purchasing land for development, a Phase I Environmental Site Assessment is essential. These assessments — which are performed by environmental consultants to determine possible contamination — provide developers with protection against liability. Lenders, recognizing the potentially financial ramifications of contamination, also typically require Phase I assessments before financing land purchase and development.

The federal government requires purchasers of land to adhere to the “all appropriate inquiry” standard, and Phase I Environmental Site Assessments are the way commercial developers and financiers can meet that standard and thereby qualify for an innocent landowner defense under the CERCA law if contamination is later revealed.

WHAT AN ASSESSMENT INVOLVES

The standard that environmental assessors use in conducting Phase I Environmental Site Assessments is published by ASTM International (formerly the American Society for Testing and Materials). Requirements typically include:

• Research of available records concerning environmental conditions on the site
• Research on the history of the land’s use, with particular attention to the presence of environmental risks such as hazardous-substance storage or underground petroleum storage tanks
• An on-site inspection to look for signs of contamination such as chemical spill residue or dead areas of vegetation
• Interviews with the current property owner, current users of the land, and possibly neighboring property owners
• Aerial photographs of the property and surrounding land
• A description of geologic characteristic of the property, such as drainage patterns and topography
• A report outlining all findings.

Phase I Environmental Site Assessments do not provide conclusive evidence of contamination. If the Phase I assessment finds a recognized environmental condition, the environmental consultant will recommend a Phase II assessment, which involves invasive soil and groundwater testing.

PLAY IT SAFE

A contaminated site means more than loss of asset value.  It can mean tremendous liability. Smart developers welcome the due diligence of a Phase I Environmental Site Assessment.  We recommend that developers discuss their specific development plans and some details of the transaction with their environmental professional so that they may evaluate more fully the risks associated with both the property and the project.

To speak with one of Norfolk Ram's environmental engineering experts about your Phase I Site Assessment needs or to answer any related questions, please contact us at (508) 747-7900

Learn more about Norfolk Ram's Environmental Site Assessment and related services.