Dec 07
I have been asked a lot recently about Phase 1s. I realize there is a lot of confusion about them. Let me try to clear the air a bit so to speak.In its simplest terms a Phase 1 is a site visit and document review of the surrounding area to determine if further investigation is advised from an environmental stand point.A Phase 1 inspection is a review of local governmental documents regarding the site to determine what the past usage of the site was along with extensive document review of the surrounding area. It also entails a very involved and detailed site visit by a qualified professional. In addition there is data base information that is gathered and reviewed of the surrounding vicinity to determine if there is a potential risk from an environmental stand point in the immediate area.
These potential risks can be anything from a past gas station on or near the site that might have contaminated the ground water to there having been a dry cleaner on the site that might have spilled chemicals into the ground. There could have been past dumping on the site or an auto repair that did not handle the oils properly, lead in the paint, asbestos, and on and on.
I think you get the picture. The focus of a Phase 1 inspection is environmental not the structure or any of the systems of the building. The systems are the focus of the general visual inspection. They are two separate areas of responsibility. Both are important. Many lending institutions require a Phase 1 clearance before they will lend money.
A Phase 1 inspection is an integral part to many commercial and industrial real estate transactions. One bank that I know of will not lend for any commercial or industrial transaction on real estate over 1.5 million dollars without a Phase I. We are hard pressed to buy anything in the Los Angeles area in the commercial or industrial real estate area for under that.
There are two other aspects to a Phase 1 that may come into play depending on what is found during the Phase 1 inspection and research. These are Phase 2 and Phase 3. As you might assume Phase 2 and Phase 3 are the more involved aspects of the environmental field. Phase 2 involves testing of the site such as coring into the earth and taking samples of the soil along with testing it to determine what is in the soil. The information during a Phase 2 will determine if the site warrants further investigation and/or to be remediated. If remediation is needed this is Phase 3.
Each environmental Phase whether it is Phase 1, 2 or 3, has a very involved set of industry standard requirements. Each requires highly trained professionals to do properly. This is not an area to skimp on. Have a reliable company with vast experience do your Phase 1 inspection. Getting the cheapest deal for something this important I feel could easily be fiscally irresponsible. A properly done Phase 1 inspection really is for everyones protection not just the buyer.
The current rate for a professionally done standard Phase 1 inspection is approx. $1800.00 - $2000.00. Just so you understand to obtain the above mentioned documents is hundreds of dollars by itself. The report ends up usually being hundreds of pages. This price does not usually change unless the site gets very large and very involved. Currently the price stated will usually handle over 90% of all commercial real estate transactions.
I hope this clears the air a bit on what a Phase 1 inspection is.
About the Author
Bob Pace has been a Certified Inspector since 1994 and a licensed contractor for nearly 4o years. For more information about commercial real estate inspections visit his website at http://www.commercialrealestateinspectors.com to find out how he can help with your real estate inspection.
written by Phase I Phase One Environmental Site Assessment, Due Diligence
Informative Articles
May 16
Whether your business is focused on commercial real estate, Phase I environmental site assessments, environmental remediation, environmental engineering, or other related industries, you should strongly consider joining the Green Business Alliance. The Green Business Alliance helps business leaders improve their environmental stewardship and improve their company’s image and environmental impact. In addition to improving business practices and reducing your negative impact on the environment, you will improve your company’s perception in the eyes of your clients and customers. More information can be found at GreenBusinessAlliance.com. Some reasons for joining the Green Business Alliance:
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written by Phase I Phase One Environmental Site Assessment, Due Diligence
Exclusive Articles
May 06
We have started a new page that will list definitions of environmental terms. We will keep adding to it regularly so please keep check back. Also, if you have any requests or have some more information you would like included, please contact me.
The ‘Definitions Page’ is linked to from the upper right hand side bar or you can click here to access it.
The definitions page will contain or currently contains definitions related to all appropriate inquiry, astm 1527, brownsfield sites, due diligence, cercla, phase i, phase ii, phase ii, phase one, environmental site assessment, environmental remediation, epa standards, contamination, groundwater, UST, underground storage tanks, vapor, hydrocarbons, superfund, and more.
written by Phase I Phase One Environmental Site Assessment, Due Diligence
Definitions, Exclusive Articles
May 06
I have published a new sitemap for our website. This should make it easier to get around and find relevant articles and pages. You can view the sitemap by clicking here or by clicking on the “Phase I ESA Sitemap” link in the right hand sidebar.
Our sitemap will show pages, articles, and news on various items relating to Phase I (one) Environmental Site Assessments (ESA’s), Brownsfield Sites, CERCLA Liability, All Appropriate Inquiry, AAI, Due Diligence, Environmental Remediation, DEQ News, EPA News, Commercial Real Estate Risk Assessment, ASTM 1527 Standards, and much more.
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Exclusive Articles, News, Bulletins, & Press Releases
May 06
Environmental Data Resources (EDR) is a company that provides a multitude of services related to environmental site assessments and research. They provide database searches which identify UST sites, groundwater contamination, contaminated soils, superfund sites brownsfield sites, etc. In fact, almost every Phase I Environmental Site Assessment in the industry is going to have some information that was provided by EDR. They also own the country’s largest collection of Sanborn maps (aka fire insurance maps).
In 2005, the rules for Phase I ESA’s and due diligence changed. ASTM responded by publishing a new set of standards, ASTM-1527. EDR has been instrumental in getting the word out about the new changes. Amazingly though, many companies and environmental technicians or engineers are not fully up to speed on the new changes and are not performing adequate due diligence (all appropriate inquiry). Below is a portion of a report release by EDR:
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PROPOSED FEDERAL RULE IS DRIVING CHANGE IN ENVIRONMENTAL DUE DILIGENCE, ACCORDING TO EDR’S 2005 ENVIRONMENTAL INDUSTRY BENCHMARK REPORT
Milford, Conn., February 3, 2005—Purchasers of commercial real estate who seek environmental liability protection under CERCLA will, for the first time, be required to follow federal guidelines for property screening or risk losing liability protection—perhaps as early as year-end 2005. EPA’s impending “All Appropriate Inquires” rule not only specifies how a Phase I environmental site assessment (ESA) must be conducted, but who is qualified to conduct one. With implications for every commercial real estate transaction, the proposed AAI rule has environmental professionals who conduct ESAs gearing up for change. According to Environmental Data Resources’ 2005 Environmental Site Assessment Industry Benchmark Report, three out of four environmental consultants predict that the AAI rule will require a greater level of effort compared to current Phase I ESA practices. One in seven consultants, according to the report, falls short of EPA’s definition of “environmental professional.” By shrinking the pool of qualified consultants and adding new research and documentation requirements, the AAI rule, if finalized in its draft form, will drive up prices for Phase I ESAs…
Report Also Reveals:
• One in seven consultants is unqualified to perform site assessments under proposed AAI rule
• Requests for add-on assessment services are on the rise
• Environmental consultants are embracing new technologies to meet growing demands
• SOX casts environmental due diligence in new light, creating opportunity for environmental consultants
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written by Phase I Phase One Environmental Site Assessment, Due Diligence
Changes to Regs, Exclusive Articles, News, Bulletins, & Press Releases
May 02
(Dallas, Texas – May 1, 2008) The Environmental Protection Agency has awarded $29,480 to the Oklahoma Corporation Commission (OCC) to protect underground sources of drinking water. The federal Safe Drinking Water Act regulates the underground disposal of hazardous wastes through deep injection wells. OCC will use the funds to issue permits, monitor the construction and operation of injection wells throughout the state and conduct field surveillance, inspections, investigations and enforcement activities.
Additional information on EPA grants: http://www.epa.gov/region6/gandf/index.htm
More about activities in EPA Region 6: http://www.epa.gov/region6
EPA audio file is available at http://www.epa.gov/region6/6xa/audio.htm#audio050108_occ
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Note: If a link above doesn’t work, please copy and paste the URL into a browser.
For more information contact Dave Bary or Tressa Tillman at 214-665-2200 or r6press@epa.gov
View all Region 6 News Releases
written by Phase I Phase One Environmental Site Assessment, Due Diligence
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