Environmental Site Risks – Commercial

Environmental Site Risks

What You Need to Know

Phase 1 ESAs should be performed which meet the requirements of ASTM 1527-05 to ensure CERCLA liability protection

Phase 1 ESAs consist of Records Reviews, Site Reconnaissance, Interviews, and a Report of Findings

Phase 1 ESAs not only examine the site at issue but surrounding sites/properties/business that may have impacted the site at issue

Phase 1 ESAs are environmental studies and not structural and therefore do not typically include (unless specifically requested) items such as asbestos, lead based paint, mold, indoor air quality issues, etc.

What You Need to Do

Consideration should be given to performing a Phase 1 ESA when buying or selling a commercial property and/or when financing the property or when there is a proposed change of use

Request copies of prior Phase 1s when available to bring awareness to past issues identified on the site

Carefully read the entire completed Phase 1 ESA for any potential issues identified and validate qualifications of performing parties

Myths and Misconceptions

The typical Phase 1 ESA is required to identify issues such as asbestos and lead based paint-FALSE

Phase 1 ESAs performed to ASTM standards have validity lasting at least 5 years-FALSE

Transaction Screens provide protection under CERCLA for recognized environmental conditions similar to Phase 1’s-FALSE

Most states have strict requirements with respect to the qualifications of individuals performing Phase 1’s-FALSE