Desktop reviews are a screening tool to determine the likelihood that a given property has environmental issues that might put a lender or investor at risk. This is not a legal document and will not provide the legal protections obtainable from an All Appropriate Inquiry-Environmental Site Assessment, Phase I Investigation. The DTR process reviews regulatory databases and other information sources to arrive at an estimation of potential risk. A DTR consists of an Environmental Radius Map and Report with a written interpretation of that report. GES’ experienced environmental professionals can provide desktop review reports that quickly and economically provides information needed to determine the environmental risks associated with a property, thereby streamlining the environmental due diligence process.
The ETS consist of a limited scope of work, and is designed to assess the environmental condition of commercial real estate. An ETS is recommended for low risk properties with extensive historical information available. The report issued will document potential environmental conditions on the property or on the adjacent properties. An ETS is often used as an alternative to Phase I Environment Site Assessments, which are a more extensive method of environmental due diligence. An environmental transaction screen requires a limited scope of work, which includes a site visit, review of environmental databases, completion of an environmental questionnaire by the owner or occupant and consultant doing the transaction screen, and review of historical sources. Historical use must be determined back to 1940 or first development using at least one of the following sources: Sanborn maps, city directories or aerial photographs.
The ETS includes:
1. Site and facilities inspection
2. Database review of federal, state, and local regulatory agencies
3. Owner / occupant interview and questionnaire
4. Truncated historical review
5. Preparation of a report with limited findings, conclusions, and recommendations.
Phase I Environmental Site Assessments (ESA) are an integral part to the due diligence process for selling, lending, M&A, and property purchase decisions. Many banks will not approve a loan for the purchase of a property if a trained environmental professional has not reviewed the property for risk of environmental contaminants. The professional review reduces risk of the transaction and gives stakeholders a more reliable figure of the value of the property.
A Phase 1 ESA includes a site visit and a historical and regulatory review that is designed to identify environmental conditions such as current or historic environmental conditions that may affect property values, posing a financial liability to the purchaser or lender, or affect the ability of the borrower to repay the loan obligation. GES completes comprehensive Phase I Environmental Site Assessments (ESA) in accordance with the (1) United States Environmental Protection Agency (USEPA) Standards and Practices for All Appropriate Inquiries {(AAI), 40 CFR Part 312} and (2) guidelines established by the American Society for Testing and Materials (ASTM) in the Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process / Designation E 1527-21 (ASTM Standard Practice E 1527-21): Phase I Environmental Site Assessment, for real estate transactions, property development, bank financing, re-financing, and foreclosures, and other in-house proactive audit programs.
The purpose of a Phase I Environmental Site Assessment is to gather sufficient information to develop an independent professional opinion about the environmental condition of the property and to identify actual or potential environmental contamination, which may impact the property value or affect claim to an “innocent land owner” exemption or other available defenses to environmental liability under the Comprehensive Environmental Response, Compensation, and Liability act (CERCLA December 11, 1980) following acquisition.
A Phase II contaminant investigation may be implemented as a result of Recognized Environmental Conditions (RECs) listed in a Phase I Environmental Site Assessment or the investigation may start with the “Phase II” if the RECs have previously been identified or if all of the risks at the site are already known. If contamination is found at significant levels or at concentrations that exceed federal, state or human-health risk guidelines, further characterization would be required to fully delineate the vertical and lateral extent of the contaminant plume. During this stage of the assessment, it may become necessary to notify authorities if there has been an exceedance of regulatory standards or if there is a perceived risk to life, health or the environment. GES engages experienced professionals who coordinate and work with authorities on a daily basis to expedite regulatory closure of impacted properties and to obtain a “No Further Action” letter for the site.
Properties that have current or previous environmentally sensitive uses are often the subject of Phase II contaminant investigations. These properties include: gas stations, dry cleaners (on-site plant), truck stops, machine shops, automotive repair and maintenance facilities, manufacturing plants, hazardous waste storage and others. Examples of the types of Recognized Environmental Conditions (REC’s) that would warrant a Phase II include: underground or aboveground fuel storage tanks, underground or aboveground chemical/waste storage tanks, 55-gallon drums containing chemicals/waste, in-ground hydraulic lifts, oil/water separators, floor drains, septic tanks/leach fields (in an industrial setting), solvent usage (including dry cleaning solvent), etc.
Following a Phase II contaminant investigation, laboratory analytical results from soil and/or groundwater may indicate a level of contamination significant enough to require cleanup or remediation. In this case, continued coordination with regulatory officials is mandated and the remediation is ongoing until the cleanup is completed by reaching the applicable cleanup standards or regulatory closure has been achieved by means of a risk assessment or other accepted method. Although not as common, a Phase II contaminant investigation can involve sampling and investigation of materials other than soil and groundwater. These would include sampling for sediments, liquids (PCBs in transformers, chemicals in drums, surface water), solids (asbestos, lead-based paint, mold) and gases.
Site Characterization and Assessments typical in a Phase II ESA include:
• Soil Boring Installation
• Monitoring Well Installation
• Vapor Intrusion Assessments
• Sampling of Soil, Groundwater, Sediments, Surface water, and Air
• Geophysical Evaluations
• Risk Based Corrective Action (RBCA)
• Receptor Surveys
• Contaminant Pathway Evaluations
• Fate and Transport Evaluations
• Risk Assessments and Modeling
• Natural Attenuation and Biodegradation Modeling
• Quality Assurance/Quality Control
• Bulk sampling of suspect asbestos, lead, or hazmat containing materials
• Air sampling for suspect bio-aerosols ( molds, fungi’s, etc.) radon, and other Industrial hygiene concerns
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