Are you thinking of investing in a property? Before you begin the paperwork for any potential property you wish to buy, you have to get a Phase I Environmental Site Assessment done as part of the All Appropriate Inquiries. This assessment report includes three phases to check the level of contamination and substances in detail.
The Phase I ESA report is required for general commercial property transactions for industrial operations, energy facilities, mining facilities, and post-industrial properties.
If you're wondering if you should get an environmental site assessment, you've come to the right place. Here's what you need to know:
Getting A Phase I ESA Report For Property Transactions
Based on CERCLA 1980 (The Comprehensive Environmental Response Compensation, And Liability Act), the Phase I ESA can hold lessors, lenders, and owners accountable for the hazardous environmental conditions mitigation and environmental contamination clean-ups. So, even if your property owner got the property from someone else and held the property deed under the transaction, as current owners, they'll still be liable for the contamination.
But this same law also protects them under the innocent landowner's defense. So, if the owner produces evidence that they were unaware of the contaminants on the property by doing their due diligence before buying the property with Phase I ESA reports, they won't be held liable by the State.
So, as a buyer and an owner, the Phase I ESA services can protect you and your interests. Always ensure to do your due diligence before investing in any real estate or commercial property.
It's Important For Analyzing The Property Contaminants
If you don't know the past and current use of the property, you should get Phase I Environmental Site Assessment services. This can be conducted on agricultural, commercial, industrial, vacant, and residential complexes.
It's mostly used to determine if the historical use of the property has contaminated the soil and or groundwater beneath the property and if the contaminants are detrimental to human health.
The findings of this report can help identify the risks of investing in the property. The report will include the following information:
- The current and historical use of the property by reviewing available business files and interviewing current and past owners of the property, people familiar with the site, site operators, occupants, and people living near the property.
- A report on physical surveillance of the property and the adjacent property made by an environmental professional. Usually, a person familiar with the property will accompany the environmental professional during the property survey.
- A detailed evaluation of the records and files maintained by the owner on the property, regulatory authorities, and federal, local, and State databases. This can also include information about discarded hazardous waste, a depot of dangerous chemicals, and underground and aboveground storage tanks. This step will reveal any suspected cases in which hazardous contaminants are released into the ground.
- Finally, the information is compiled in a consolidated report showing the existence or non-existence of contamination found at the site or property. The environmental professional will also recommend if Phase II Environmental Site Assessment is needed.
t'll Help Protect Your Company Interests
If you're unsure if your property has environmental damage from adjacent properties, get a Phase I ESA report. It can help you choose the best property for your operations and protect you under the Innocent Landowner's Defense. So basically can save you millions in environmental clean-ups.
You'll Need One If You Need The Bank To Back Your Investment
If you've gone to the bank or any lending institution for your property investment, they'll require a Phase I Environmental Site Assessment report before returning any investment. This is generally the case when you're a potential buyer for any industrial or commercial property that has been exposed to some pollution and contaminated elements.
The Phase I ESA report will protect the bank and lending institution protect their stake in the land and give a clear picture of the property conditions. Despite your thoughts about whether environmental site assessment is necessary or not, your lending institution or bank will require one regardless before issuing you the loan for buying the property.
When Is A Phase II Environmental Site Assessment Required?
If harmful contaminants are present on your property, the environmental consulting firm will recommend Phase II Environmental Site Assessment to test the soil and get a better understanding of the groundwater contamination and affected structures on the property. Contaminants can turn into toxic plumes and rise as vapors to contaminate the building. So, if your Phase I has revealed potential contaminants, getting a Phase II is a no-brainer.
Since every property is different, your Phase II site assessment will depend upon the contaminants discovered. Your environmental specialist will take thorough samples of groundwater, soil vapor, soil, indoor air, etc. This assessment heavily depends on laboratory analytical results, contaminant concentrations, and field information.
This step will also determine if you need to further delineate or characterize the impacts of the contaminant compounds on the property with Phase III ESA reports.
Get In Touch With One Of The Best Environmental Assessment Companies In Texas
If you're looking for environmental consultants in Texas, Projexiv Environmental can help you. They're an amazing team of professional environmental specialists who can help you with environmental site assessments, industrial hygiene services, and environmental compliance audits.
Visit their website today for more information.
About The Author
Jared. L has been working as an environmental professional In Texas for the past 10 years. He also writes for acclaimed websites and magazines to educate his readers about the latest developments in landowner rights and environmental compliances.
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