604 by wanghonghx

VIEWS: 4 PAGES: 182

									                 Welcome to the
     International Right of Way Association’s

            Course 604
    Environmental Due Diligence
           and Liability



1
                                 604-PT – Revision 1 – 04.30.08.USA
          Introductions
           Who we are…
           What we do…
          Where we do it…
    An environmental issue we are
      interested in learning more
                about...
2
                   Objectives (1)
    At the conclusion of the course, you will be able to...

       • provide an overview of the innocent
         landowner defense
       • provide an overview of the ASTM
         International’s Phase I Environmental Site
         Assessment standards
       • understand the Environmental Protection
         Agency’s “All Appropriate Inquiry” Rule
3
                  Objectives (2)
    At the conclusion of the course, you will be able to...

          • understand other environmental
            due diligence components
          • establish expectations and order
            due diligence services
          • analyze due diligence reports and weigh
             their conclusions on proposed projects

4
                  Objectives (3)
    At the conclusion of the course, you will be able to…

             • explain when an environmental
               site assessment (ESA) is needed


         The course will not qualify or enable
           you to complete a Phase I ESA.


5
    Housekeeping



6
                  Schedule (1)
    8:00 - 8:30   Introductions, Etc.
    8:30 -9:15    What Is a Phase I ESA?
    9:15 -10:15   Why Conduct a Phase I ESA
    10:30 -11:15 Regulations and Resources
    11:15 -12:00 Components of a Phase I ESA
                  (Records Review)
7
                  Schedule (2)
    1:00 -2:45    Components of a Phase I ESA
                  (Visual inspection,
                   interviews, report)
    3:00 - 3:30   Non-Scope Considerations
    3:30 - 3:45   Ordering a Phase I ESA
    3:45 - 4:00   Summary and Review
    4:00 - 5:00   Exam
8
    What is a Phase I ESA?
     (Session Objectives)
                  To understand better:
    •the various phases of environmental site assessments
    •the basic steps in a Phase I ESA and some of its
     limitations
    •when events trigger a Phase II ESA or a Phase III
     ESA
    •the expectations, outcomes and limitations of a Phase
     II ESA or a Phase III ESA
9
Environmental Site Assessments
     ESAs are structured into separate phases:
     Phase I ESA: Site Assessment
     Phase II ESA: Contamination Assessment
     Phase III ESA: Remedial investigation
                    and site remediation



10
                 Phase I ESA
         A Phase I ESA defines good commercial
         and customary practice in conducting an
      environmental site assessment of a real estate
     parcel with respect to the range of contaminants
         within the scope of the Comprehensive
        Environmental Response, Compensation
            and Liability Act (CERCLA) and
                  petroleum products.
11
            Exercise No. 1 (1)

     1. Does a Phase I ESA involve
        sampling/testing and/or
        cleanup/remediation? Why? Why not?

       No. These activities (i.e., sampling/testing
       and/or cleanup/remediation) describe tasks
       completed in Phase II and Phase III ESAs.

12
             Exercise No. 1 (2)
     2. Will the property be considered
        “contaminate free” after the completion
        of a Phase I ESA? Why? Why not?

       Not necessarily. That is completely dependent
       on the property, its history and site conditions.
       It may be necessary to proceed past a Phase III
       ESA or other actions if it is even possible to
       have a “contaminate free” property.
13
              Exercise No. 1 (3)
     3. Does a Phase I ESA conclusively identify
        all environmental issues associated
        with a property? Why? Why not?

        No. There are many types of environmental
        issues that a Phase I ESA will not detect and
        there are definite limitations to them.


14
               Exercise No. 1 (4)
     4. Will a Phase I ESA ascertain if there is
        contamination present from current or past
        underground storage tanks (USTs) on the site?
        Why? Why not?

       No. All a Phase I ESA will determine, with limitations,
       is whether or not there are indications of current or past
       USTs on a site and/or whether or not there was a
       contamination action opened on the site. These may
       or may not represent actual property conditions.
15
            Exercise No. 1 (5)
     5. Will a Phase I ESA provide remediation
        cost estimates? Why? Why not?


       No. This information cannot be
       developed with any reliability until, at
       least, the completion of a Phase II ESA.


16
             Exercise No. 1 (6)
     6. Does a Phase I ESA discuss whether
        or not permits (e.g., Corps of Engineers
        404 wetlands permits or air emissions
        permits) are needed? Why? Why not?

       No. These and other items are specifically
       excluded from a Phase I ESA scope.

17
                     Phase I ESA
                     Records Review
                     Visual Inspection
                        Interviews
                          Report

      The goal is to identify potential “red flags” associated
      with the property. In some instances, the “red flags”
     are referred to as Recognized Environmental Conditions
               and are, in layperson’s terms, simply
                  potential environmental issues.

18
     Phase I ESA - Records Review
     (to determine historical property uses)

               Database searches
              Aerial photographs
              Ownership records
          Sanborn (fire insurance) maps
           Cross-reference directories
                      Maps
19
     Phase I ESA - Visual Inspection
        (to look for signs of problems)

                Distressed vegetation
                     Stained soil
       Hazardous materials/waste storage areas
                   and containers
          Polychlorinated biphenlys (PCBs)
         Underground storage tanks (USTs)
        Disturbed soil, fill, pits, ponds, lagoons
20
                 Property perimeter
        Phase I ESA - Interviews
      (to learn more about situations not
      uncovered in the records review or
            on the visual inspection)

     Current/past owners, occupants, lessees
                   Neighbors
          Others with site knowledge



21
        Phase I ESA - Report

     Summarizes findings and “red flags”


          ASTM International has a
       recommended table of contents,
         which many preparers and
             users find helpful.

22
                Phase I ESA

     A Phase I ESA does not:
     • include sample collection of media or building
       materials
     • audit subject property regulatory compliance
     • provide a base for remediation costs
     • satisfy environmental assessment (EA) or
       environmental impact statement (EIS)
       processes as defined in the National
       Environmental Policy Act (NEPA)
23
                Phase I ESA

     A Phase I ESA is never:
     • an automatic attainment of an innocent
       landowner status
     • a guarantee that the subject property is “clean”
     • a risk elimination process




24
              Phase II ESA (1)

     • Additional investigation of “red flags”
       identified in a Phase I ESA
     • Usually involves sampling and testing
       (e.g., asbestos survey, ground water plume
       delineation, waste characteristics)
     • Cost can range from a few hundred
       dollars to tens of thousands of dollars

25
             Phase II ESA (2)

     • Time to complete can range from
       a few days to several weeks
     • Usually completed by an environmental
       consultant or environmental consulting
       firm (highly specialized and technical)




26
             Phase III ESA (1)

     • Implementation of remediation plan
       developed from the Phase II ESA
       (e.g., disposal of accumulated waste, soil and/or
       groundwater remediation, asbestos abatement)

     • Costs are highly variable
     • Time to complete is highly variable


27
              Phase III ESA (2)

     • At times, results in feasibility studies,
       risk analysis or assessments
     • Activity and use limitations (AULs) or
       other restrictions on property use are
       common outcomes




28
     Decision Table




29
             Exercise No. 2 (1)
     1. What findings from a Phase I ESA
        would trigger a Phase II ESA?

        Any recognized environmental conditions
        (RECs) discovered in a Phase I ESA which
        require additional research/investigation to
        determine if it is an actual rather than a
        potential issue.
30
               Exercise No. 2 (2)
     2. What triggers the end of a Phase II ESA?

        When the validity of the potential issues has
        been verified or determined not to be relevant.




31
             Exercise No. 2 (3)
     3. What are some examples of Phase II
        ESA findings that would trigger a
        Phase III ESA?

       Any issue associated with contamination that
       requires action (e.g., cleanup, property use
       restrictions).

32
            Exercise No. 2 (4)
 4. What triggers the end of a Phase III ESA?

     Usually, the completion of remediation or other
     activities designed to make the property usable,
     sometimes with restrictions.




33
             Exercise No. 2 (5)
     5. After the completion of a Phase II ESA
        and/or a Phase III ESA will a property
        necessarily be “contaminate free”?
        Why? Why not?

       No. Many times, contamination and/or
       liability will still exist even after the
       completion of these tasks.
34
           Exercise No. 2 (6)
     6. Is it always necessary to proceed to a
        Phase II ESA if RECs are discovered
        in a Phase I ESA? Why? Why not?

       No. The potential purchaser may determine
       that the property contains too many potential
       liabilities and choose not to proceed.

35
             Why Conduct a Phase I ESA?
                (Session Objectives)
     To understand the reasons to conduct a Phase I ESA,
     which include:
     •potential liability implications
     •potential cost implications
     •potential project timing delay implications
     •potential offset impacts
     •determining when further investigation is warranted
     •exploring options when an issue is discovered
36   •other considerations
           Exercise No. 3 (1)
                   Light Rail and Station




               Bulk oil storage: Spills, leaks
                Warehouse: What’s stored?
     30s residences: ACM, fuel oil tanks, LP, pesticides
           Park: What’s in the former landfill?
      Service station: USTs, fuel and other products


37
            Exercise No. 3 (2)
          Above Ground Electric Transmission Line




      Agriculture: Fertilizers, herbicides, pesticides
     Railroad: herbicides, pesticides, PCBs, creosote,
     hazardous materials spills?, petroleum, fuel spills
     Oil and gas operations: Leaks in gathering lines,
             proximity of tank battery leaks



38
         Exercise No. 3 (3)
                  Runway Extension




     Dry cleaners: Solvent spills, dumping, leaks
     Auto salvage: Batteries, brake fluid, tires,
           transmission fluids, motor oil
             Warehouse: What’s stored?




39
           Exercise No. 3 (4)
                    Compressor Station




      Agriculture: Fertilizers, herbicides, pesticides
     Former Superfund site: Why a Superfund site?,
        cleanup status, activity/use restrictions?
     Former dairy: Solvents, fuel, building materials,
               mercury/PCB equipment



40
     Why a Phase I ESA? (1)




41
          Why a Phase I ESA? (2)
     • To access the innocent landowners defense
       under Comprehensive Environmental
       Response, Compensation, and Liability Act
       (CERCLA)
     • To assess environmental liability and cost
       issues
     • To quantify the extent of contamination and
       determine costs before/after purchase for use
       in negotiations
42
       Why a Phase I ESA? (3)
     • To identify existing or potential
       environmental hazards
     • To identify whether or not a neighboring
       property has the potential to impact the
       subject property
     • To determine if further investigation is
       required

43
          Why a Phase I ESA? (4)
     • Discount purchase price
     • Escrow accounts
     • Indemnifications
     • Operation and maintenance (O&M) expenses
     • Activity and use limitations (AULs)
     • Assessing suitability for planned purposes

44
           Why a Phase I ESA? (5)
     Since the mid-1980s, Phase I ESAs have been
     incorporated into the environmental policies
     of most lending organizations as a
     requirement of any loan application involving
     a parcel of commercial real estate.

     According to the Mortgage
     Bankers Association, over
     250,000 Phase I ESAs are
     performed annually.

45
     Phase I ESA Significance and Use Limitations


       • Primary purpose: To satisfy All Appropriate
         Inquiry (AAI) and to provide access to the
         innocent landowner defense
       • Not limited to CERCLA
       • Site specific - Time limitations
       • Uncertainty not eliminated, not exhaustive
       • Usage of prior assessments limited
46
     Situations that Could Trigger a Phase I ESA (1)


       • Property transaction: User may wish to
         establish innocent landowner defense under
         CERCLA
       • Initial assessment of a property when a spill
         occurred or a suspected disposal site
       • A firm’s proactive assessment of its property
         and other assets

47
     Situations that Could Trigger a Phase I ESA (2)


       • Facility closure plan development
       • User may wish to conduct an inquiry into
         non-scope considerations of another project
         or for other business risk decisions
       • When acquiring an easement (to establish
        baseline conditions, identify potential hazards and
        to identify AULs)


48
     Summary: Why a Phase I ESA?
     • Properly conducted environmental due diligence
       provides CERCLA liability relief
     • Increasingly, insurance companies require
       purchasers and lenders to obtain environmental
       insurance. Phase I ESAs (and occasionally Phase II
       ESAs) are performed to provide information to the
       underwriters with data to assess risks
     • Information collected during a Phase I ESA is vital
       to property owners, corporate managers, investors,
       borrowers and/or lenders during a property
       transaction
49
              Exercise No. 4 (1)
     1. What, if any, are the liability considerations
        of obtaining an easement versus purchasing
        a property in fee?

       Essentially, there is no difference from a
       liability standpoint. Liability exists and is
       no less in an easement, so the needs are the
       same.
50
               Exercise No. 4 (2)
     2. What, if any, are the liability considerations of
        purchasing a property with no known environmental
        concerns but with neighboring properties that might
        contain potential significant environmental issues?

       While responsibility for issues on neighboring properties
       should be rightfully assigned to them, a Phase I ESA
       and, more likely a Phase II ESA are important in this
       instance to satisfy “all appropriate inquiry” and
       establish whether or not there is any affect on the
       subject property from the neighboring properties.
51
               Exercise No. 4 (3)
     3. What, if any, are the liability considerations
        of purchasing a property where there has
        been a known cleanup completed that was
        overseen and approved by a regulatory
        agency?

       While there is liability that is obvious in this instance
       and that would be most likely be addressed in the sale’s
       contract, there may be other liabilities that a Phase I
       ESA would uncover. The need is the same as for any
       other situations.
52
                Exercise No. 4 (4)
     4. What, if any, are the liability considerations of
        purchasing a property that is undeveloped?
        Used solely for agricultural purposes?
        Used for a park or golf course?
       There will be liability in any of the situations and the need to
       conduct a Phase I ESA is the same as for a site with obvious
       issues, possibly more so. Just because the property is
       undeveloped/agricultural/recreational now, does not mean that
       the property always has been or that some other incident/factor
       does not affect the property environmentally. One of the may
       purposes of a Phase I ESA is to determine if there have been
       activities that affect the property even though the effects are not
53
       obvious.
             Regulations and Resources
                (Session Objectives)
     To:
     • understand the basics behind CERCLA liability,
       the AAI rule and the innocent landowner
       defense
     • understand brownfield laws and recent trends,
       including new liability defenses
     • become familiar with ASTM Standard E-1527
       and how it applies to the AAI rule
     • be aware of some of the resources available
       regarding environmental due diligence
54
                             Exercise No. 5
                       Property Type                                     Possible Outcomes
     1. Retail strip center built in the 1990s on          A. Soil and groundwater contamination from
     previously undeveloped land in a rural setting.   I   unrestricted industrial waste.
     2. Vacant land, formerly an oilfield.                 B. Brime contaminated soil unknown to the
                                                       B   builder resulting in foundation issues.
     3. Undeveloped commercial.                            C. Lead-based paint issues. $45,000
                                                       G   abatement and liability exposure.
     4. Previously developed industrial.                   D. Sold for a fraction of the appraised value
                                                       D   with the buyer responsible for $750,000 in
                                                           remediation.
     5. City park developed in the 1960s as part of        E. Radon in basement.
     a tract donated by a wealthy industrialist.       A
     6. Apartment building constructed in 1955.            F. Asbestos containing building materials
                                                       F   (ACMs). $300,000 remediation costs.
     7. Maintenance building for the State                 G. Soil and groundwater contamination from
     Department of Transportation.                     H   neighboring LUST site.
     8. Townhouses with basements.                         H. Groundwater contamination caused by
                                                       E   chemicals entering a floor drain.
     9. Fiber optic line constructed without due           I. No environmental issues.
     diligence.                                        J
     10. Former commercial building constructed            J. $40,000 fine and required cleanup due to
     in the 1950s converted to a daycare facility.         contaminated soil, that was not previously
                                                       C   characterized, being placed in a wetland.
55
                Due Diligence (1)
     • Comprehensive Environmental Response,
       Compensation, and Liability Act (CERCLA)


     • Superfund Amendments and Reauthorization
       Act (SARA)


     • Small Business Liability Relief and Brownfields
       Revitalization Act (“Brownfields Law”)
56
                 Due Diligence (2)
           Comprehensive Environmental Response,
         Compensation, and Liability Act (CERCLA)


     • Commonly known as Superfund, enacted in 1980.
     • Provided broad Federal authority to respond
       directly to releases or threatened releases of
       hazardous substances that may endanger public
       health or the environment.
       CERCLA provided for strict liability of persons
       responsible for releases of hazardous waste
57
                   Due Diligence (3)
     Superfund Amendments and Reauthorization Act (SARA)


     • SARA amended CERCLA in 1986.
     • Provided a defense for CERCLA liability.
     • To establish the defense, had no reason to know…
       the defendant must have undertaken, at the time of
       acquisition, all appropriate inquiry into the previous
       ownership and uses of the property consistent with
       good commercial or customary practice in an effort
       to minimize liability.
58
                   Due Diligence (4)
     Superfund Amendments and Reauthorization Act (SARA)

     • Neither Congress nor the Environmental Protection
       Agency (EPA) defined environmental investigations
       necessary to qualify for an innocent landowner defense.

     • In 1993, private interests developed ASTM
       Standard E-1527.

     • Never approved by Congress or the EPA
59
                  Due Diligence (5)
     • Small Business Liability Relief and Brownfields
        Revitalization Act (“Brownfields Law”)


     • “Brownfields Law” enacted in 2002.
     • Created new liability protections under CERCLA
       for prospective purchasers ultimately found to be
       contaminated by hazardous substances on or up to
       gradient of the purchased property.
     • Established funds to assess and cleanup brownfield sites.
     • New liability protection included: bone fide prospective
       purchaser contiguous property owner
60
                 Due Diligence (6)
• To qualify for these protections, prospective purchasers
  must, among other things, make “all appropriate inquiry”
  to determine whether or not the property may be
  contaminated.
• All appropriate inquiry still not defined.
• EPA and interested parties began efforts to define all
  appropriate inquiry.
•    Meanwhile, ASTM revised its Standard E-1527 Standard
     Practice for Environmental Site Assessments: Phase I
     Environmental Site Assessment Process remained the
61   unofficial “go to” document.
           All Appropriate Inquiry
     • On November 1, 2005, EPA published its Final Rule
       establishing standards and practices for “all
       appropriate inquiry” (AAI)
     • The Final Rule became effective on November 1, 2006.
     • The Final Rule established a minimum due diligence
       standard for seeking liability protection under
       CERCLA through objectives and performance
       standards.
     • ASTM revised its Standard E-1527-05 Standard
       Practice for Environmental Site Assessments: Phase I
       Environmental Site Assessment Process to satisfy the
62
       AAI rule.
     All Appropriate Inquiry Rule (1)
       Provided property owners with three avenues
              of CERCLA liability protection:

       1. Innocent landowner defense (traditional)
       2. Contiguous property owner protection
          (protects from off-site mitigation)
       3. Bone fide prospective purchaser
          (first ever protection for an owner of a site
          with known contamination at the time of
          purchase)

63
     All Appropriate Inquiry Rule (2)
     The AAI rule provides the details and broadens the
         scope of environmental inquiry compared to
                   traditional Phase I ESAs.
     • Conduct interviews with a wider range of individuals with
       knowledge of property, including former owners and operators
       of property and, in certain circumstances, owners and occupants
       of nearby properties
     • Undertake a more thorough visual inspection of properties
       adjoining the property

     • Review a broader array of governmental records

     • Draft a report that expressly acknowledges areas of uncertainty
       that may have an effect on the environmental professional’s
64
       conclusions
     All Appropriate Inquiry Rule (3)
                    Other Elements

     • Established professional qualifications
       for environmental consultants
     • Defined a shelf life (180 days)
     • Defined owner’s post-purchase obligations
       over property ownership
     • Must consider institutional controls or
       activity use limitations
65
                  (More discussion later.)
     Institutional and Engineering Controls

      Institutional controls (IC) or sometimes referred to as
      activity use limitations (AULs) are non-engineered
      instruments (e.g., administrative and legal controls to
      limit human exposure to contamination and protect
      the integrity of a remedy by limiting land or resource
      use. For example, prohibiting the drilling of wells
      into contaminated ground water.
      Engineering controls (EC) are engineered controls
      designed with the same intent as the institutional
      controls. For example, paving over contaminated soil.

66
     All Appropriate Inquiry Rule (4)

     If property is located in a state that maintains
     a publicly available list or registry of ICs or
     ECs, must search for these records
     CERCLA liability protection may be forfeited
     if IC or EC are not identified and adhered to
     over course of property ownership (key post-
     purchase “continuing obligation”)


67
      Conducting Phase I AAIs (1)
     Expanded Interviews
        • Current and past owners and site operators
        • Neighboring owners and operators

     Expanded Historical Period
        • Back to first development or use (former standard
          required historical research only to 1940

     Expanded Records Review
        • Use limitations, corrective actions (must conduct
          searches for environmental cleanup liens, deed
          restrictions, or restrictive covenants)
        • Federal, State, Tribal, Local

     Database Search Radii
68
              Conducting Phase I AAIs (2)
     • Identify commonly known or reasonably ascertainable
       information
     • Evaluate degree of obviousness or likely presence of property
       contamination
     • Relationship of the purchase price to fair market value of the
       property (if property was not contaminated)
     • Conducted by an environmental professional
        Individuals who are not environmental professionals qualified
        may still participate in the AAI.. They must work under the
        supervision or responsible charge of an environmental
        professional
          Environmental profession requirements
            Current professional engineer or professional geologist and 3 years experience; or
            Licensed by government and 3 years experience; or
            BS in engineering, environmental science or earth science and 5 years experience; or
69
            BS in any field and 10 years experience
              Conducting Phase I AAIs (3)
     Report Requirements
     Statements required to be attached to report:
        • Environmental professional qualifications (resumes,
          past relevant experience, proof of qualifications)
        • Prepared in accordance with federal regulation

        Opinion of releases or threatened releases
        • Identification of data gaps preventing full evaluation (For
          example, if a environmental professional is unable to locate the
          previous landowner for an interview, it must be listed
          as a data gap and explain
        • Must be conducted within 1 year of purchase date
          (6 month update)
70
                     AAI Components
      Inquiry by environmental            User or environmental professional:
      professional must include:
                                          Search for environmental cleanup
     Visual inspections                      liens
     Interviews                           Consider “specialized knowledge”
     Reviews of historical sources        Consider relationship of purchase
     Reviews of government                  price to fair market value of
       records                              property, if not contaminated




                                Shared:
               Consider “commonly known” information
               Consider “degree of obviousness of
71
                  contamination”
            All Appropriate Inquiry
     For more information about the AAI regulation
      including the rule, fact sheets and additional
      materials, visit the EPA Office of Brownfields
         Cleanup and Redevelopment Website:

       http://www.epa.gov/brownfields/regneg.htm



72
           Phase I ESA Guidance (1)
     ASTM developed the E1527-05 standard to:
     • Define good commercial and customary
       practices for conducting Phase I ESAs
     • To permit a user to satisfy the requirements to
       qualify for one of the liability protections under
       the AAI rule
     • To evaluate business risks
     • To identify Recognized Environmental
       Conditions (RECs)
     Note: The ASTM standard is a tool and is not a specific requirement to satisfy
     AAI requirements. However, it is highly recommended.
     For more information about ASTM International go to: http://www.astm.org
73
            Phase I ESA Guidance (2)
      Recognized Environmental Conditions (RECs):

 • Presence or likely presence of a hazardous substance
   or petroleum products,
 • Under conditions that indicate an existing release,
   a past release, or a material threat of a release,
   Into structures on the property or into the ground,
   groundwater, or surface water.
     Does not include de minimis conditions that do not present a risk of harm to public
     health or environment and that would not be subject of an enforcement action.


74                              de minimis ≠ REC
     Phase I ESA Components: Records Review
                (Session Objectives)
      “The purpose of the records review is to obtain and
      review records that will identify historical property
           uses which could constitute a liability.”

     The records review should provide an in-depth
     understanding of the site history, knowledge
     of a range of possibilities with respect to
     contamination, and documentable facts
     with respect to actual contamination.


75
     Phase I ESA Components

          Records Review
          Visual Inspection
             Interviews
               Report



76
               Exercise No. 6
              The area is zoned light industrial.

     The neighborhood properties include a service station
      (unknown prior uses, if any) to the north. An oilfield
   equipment manufacturer (formerly a rail yard) to the east.
     A 60-year old railroad line (unknown prior uses, if any)
        to the south. A wood treatment facility (formerly a
      galvanizing plant) to the west. Currently, the subject
    property is utilized as a warehouse. Formerly, it was an
       electroplating shop and prior to that, it was used for
77               transformer repair and assembly.
     Phase I ESA Components: Records Review
            (“Rules” for Records Review)

         Information must be reasonably ascertainable

           Research must go beyond property border

         Environmental professionals and Phase I ESA
              users of federal/state records are not
     responsible for the accuracy or completeness of records

      Required only to use standard sources of information
78
     Phase I ESA Components: Records Review
        (Reasonably Ascertainable Records)
      Must be publicly available

      Accessible in a reasonable time and at a reasonable cost
      • Standard, within 20 calendar days of information
         request
      • Cost should be only for retrieving and duplicating


      Must be practically reviewable
      • Reviewable for limited geographic area
      • Subject to large database limitation
      • Adequate address information to be located on a map
79
     Phase I ESA Components: Records Review
       (Government Environmental Records)
      Standard federal and state records: Usually, purchased from
      commercial sources for a nominal fee. Reliability/quality highly
      variable.

      Additional sources are discretionary on environmental
      professional’s judgment: Often, corridor studies require
      modification.

      Standardized search distances

      Reducing search distances are discretionary, but not
      allowed for the following records databases:
       •   NPL
       •   RCRA Treatment Storage and Disposal (TSD)
       •   TSD
80     •   Emergency Response Notification System (ERNS)
     Phase I ESA Components: Records Review
            (Standard Federal Databases)
      Database                         Search Distance
      NPL                              1.0 mile
      CERCLIS                          0.5 miles*
      CERCLIS – NFRAP                  Subject and
                                       Adjoining Property
      RCRA CORRACTS TSDs               1.0 mile
      Non-CORRACTS TSDs                0.5 miles
      RCRA Generators                  Subject and
                                       Adjoining Property*
     ERNS                              Subject Property

     * May be reduced at the discretion of environmental professional
81
     Phase I ESA Components: Records Review
             (National Priority List [NPL])
      NPL database is a subset of CERCLIS and identifies
      sites for priority cleanup under the Superfund
      program.

      Database source: Environmental Protection Agency

      Approximately 1,450 sites in the United States

      High level of risk if near subject property

      Search distance: 1.0 mile

82
      Some NPL sites have been delisted
     Phase I ESA Components: Records Review
      (Comprehensive Environmental Response, Compensation
          and Liability Information System [CERCLIS] list)

     Database containing potentially hazardous waste
     sites reported to EPA by states, municipalities,
     private companies and private persons.

     These sites are either proposed to or on the NPL
     (e.g., Superfund investigation sites)

     Database source: Environmental Protection Agency

     Approximately 40,000 sites in the United States

     Search distance: 0.5 miles
83
     Phase I ESA Components: Records Review
     (CERCLIS-NFRAP [No Further Remedial Action Planned])
     CERCLIS-NFRAP sites include:
      • Sites where no contamination was found from
        an initial investigation; or
      • Contamination was removed quickly without the
        need for the site to be placed on the NPL; or
      • Contamination was not serious enough to require
        Federal Superfund Action or NPL consideration
     Database source:
     Environmental Protection Agency
     Search distance:
84
     Subject and adjoining property
     Phase I ESA Components: Records Review
               (RCRA TSD Facilities)

        Resource Conservation and Recovery Act
        Treatment, Storage and Disposal facilities
        Regulated hazardous waste treatment facilities

        Database source: EPA (RCRIS database)

        Approximately 6,800 facilities in the United States

        Over half of the TSD sites are in violation of RCRA

        CORRACTS: Corrective Action Report identifies
        hazardous waste sites with RCRA corrective action

85      Search distance: 1.0 mile for CORRACTS
     Phase I ESA Components: Records Review
                 (RCRA Generator)
     Businesses that generate hazardous waste
      Large Quantity Generators (LQG):
      >1,000 kg/month = >2,200 lbs/month
      >1 kg acute hazardous waste

      Small Quantity Generators (SQG):
      >100 kg/month, but <1,000 kg/month

      Conditionally Exempt SQG (CESQG):
      <100 kg/month and <1 kg acute

     Approximately 430,000 generators in the United States
      ~20% are LQG; ~50% are SQG; ~30% are CESQG

86   Search distance: Subject and adjoining property
     Phase I ESA Components: Records Review
     (Emergency Response Notification System [ERNS])

      Accidental releases and spills database
      Collected from federal agencies
      Large and small spills alike (database does not
      differentiate)

      Weak address and location information
      Database source: National Response Center,
      United States Coast Guard
      Search distance: Subject property only
87
     Phase I ESA Components: Records Review
             (Standard State Databases)
     Database                          Search Distance

     State Priority List (SPL)         1.0 mile*
     State “CERCLIS”                   0.5 miles*
     Landfills                         0.5 miles*
     Leaking Underground
       Storage Tank (LUST)             0.5 miles*
     Underground Storage
       Tank (UST)                      Subject and Adjoining
                                       Property*

88
     * May be reduced at the discretion of environmental professional
     Phase I ESA Components: Records Review
             (State Priorities List [SPL])

        State Superfund sites

        Database source: State specific
         environmental agency that maintains
         listing

        High level of risk if near subject property

        Search distance: 1.0 mile
89
     Phase I ESA Components: Records Review
               (State “CERCLIS” List)

      State investigation sites

      Each state has different program to manage sites
       that have been reported to the state environmental
       agency
          • Voluntary Cleanup Program
          • State Brownfields Program

      Level of risk can be highly variable (e.g., a site could be
        free of contaminants, a remediated site, small or large spill, a
        highly contaminated Superfund site)


90
      Search distance: 0.5 miles
     Phase I ESA Components: Records Review
     (Registered Underground Storage Tanks [USTs])
      All states require a UST registration and publish a listing of all
        registered USTs

      Some USTs also appear on the state leaking underground
        storage tank (LUST) list

      Risk of a UST site is based on:
         Age of UST
         Type of UST
         Compliance of UST owner

      Search distance: Subject and adjoining property

      Potential problem, the UST listing address may not reflect the
91      actual location of the UST
     Phase I ESA Components: Records Review
     (Registered Leaking Underground Storage Tanks [LUSTs])

      States maintain a LUST program to remediate sites

      Some LUSTs also appear on the state cleanup list

      High level of risk for subject property if LUST is in
       vicinity

      Search distance: 0.5 miles




92
     Phase I ESA Components: Records Review
              (State Landfill Facilities)
      Solid waste disposal sites for active
      and inactive landfills

      Typically found in RCRIS database,
      but state environmental agency responsible for
      RCRA program has listing of commercial recycling
      facilities and facilities permitted or authorized
      (interim status) TSDF

      High level of risk if near subject property

93
      Search distance: 0.5 miles
     Phase I ESA Components: Records Review
         (Activity Use Limitations [AULs])
     • Restrictions on property use normally associated
       with risk assessment and justification to leave
       contamination on subject property
     • Can be in the form of institutional controls, land
       use restrictions or other
     • Sometimes recorded and filed with deed records;
       other times referenced in agreement with
       regulatory agencies
     • Inconsistent and sometimes difficult to locate,
       very important information to know
94
     Phase I ESA Components: Records Review
                     (Maps)
         Aerial photographs (show tanks, surface stains,
          lack of vegetation, drums)
         Fire insurance (Sanborn maps)
         United States Geological Survey (USGS)
          Topographic
         Soil Surveys
         Geological
         Hydrogeological
         Floodplain
95
     Phase I ESA Components: Records Review
                  (Local Records)
       Health Department
       Fire Department
       Planning, Zoning and Building Permit Department
       Pollution Control Agency
       Water Quality Agency
       Utility Companies
       Land title records (in addition, must use one other
        source)
       Street directories
96     Property tax files
     Exercise No. 7




97
     Property No. 1



                Sanborn Map Legend




98
     Property No. 1
                1911 Sanborn Map


                Subject property
                appears as a vacant
                lot near downtown
                area adjacent to a
                railroad spur.



99
      Property No. 1
                 1915 Sanborn Map


                 Subject property
                 still appears as a
                 vacant lot.
                 However, the
                 railroad spur has
                 been removed.


100
      Property No. 1
                 1939 Sanborn Map


                 Now, subject
                 property appears
                 as the “Scotch Oil
                 Company” with
                 onsite bulk oil
                 tanks.


101
      Property No. 1
                1962 Sanborn Map


                Now, subject
                property is listed as
                “Nelson Electric
                Manufacturing
                Company” and is
                bounded on the
                northeast by a
                foundry.
102
      Property No. 2
                 1950 Aerial Photo


                 Subject property
                 appears as a rural
                 residential
                 property bordered
                 on the north by an
                 orchard/nursery
                 and to the south by
                 wooded area.
103
      Property No. 2
                 1972 Aerial Photo
                 Subject property now
                 vacant. No evidence
                 of orchard/nursery.
                 Structurally improved
                 commercial property
                 north of site and
                 possible gas station
                 west of site.
                 Residential subdivision
                 south of site.
104
      Property No. 2
                 1992 Aerial Photo
                 Commercial properties
                 along northern edge of
                 site.
                 Residential
                 development south
                 and east of site.




105
      Property No. 2
                 2005 Aerial Photo
                 Subject property
                 now appears to be
                 a commercial
                 building in an
                 apparent business
                 park.
                 Gasoline station
                 west of site.
106
                      Property No. 3




  Subject property history indicates drilling, oil production, chemical and
              other manufacturing. FDIC, why? City, why?
107
      Phase I ESA Components: Visual Inspection
                 (Session Objectives)
            “The purpose of the visual site inspection is to
         observe situations which could constitute a liability
           in connection with the subject and/or adjoining
                             properties.”

         A thorough investigation of the grounds and
         buildings to observe conditions and activities
         which may have resulted in contamination.

         Gather information on the surrounding properties
         and how they may affect the environmental
108
         conditions.
      Phase I ESA Components

           Records Review
           Visual Inspection
              Interviews
                Report



109
      Exercise No. 8




110
      What do you see?



                 Unmarked
                 containers, poor
                 condition, staining
                 on ground.




111
                 What do you see?




      Overall poor housekeeping. Staining on wall from
      unknown source. Muriatic acid tank over half full with
      poor containment. Drums not in containment
      (unknown contents). Unknown material on surface
112   with staining.
                What do you see?


      What is this?
      Underground tank?
      Monitor well?
      Product pipeline?
      Is it capped?




113
      What do you see?



                    Batteries, in
                      various
                     condition.




114
                  What do you see?
      Large area
      of distressed
      vegetation from
      pipeline (?) release.
      Distressed
      vegetation in a
      straight line,
      indicating
      unnatural cause.
      (Actually, it is a
      track for irrigation
      system.)
115
                What do you see?
                           Seemingly innocent
                           shed, correct?




      The shed houses
      remediation system
      controls.
116
      What do you see?


                 Old transformers
                 possibly containing
                 PCBs.
                 Unlabeled, bulging
                 drums.




117
         What do you see?




      Electric transmission line. Concerns?
      Human-made “berm”. Why is it there?
             What’s beneath it?

118
      What do you see?




      Odd colored liquid in drain.

119
           What do you see?
      Underground storage tank (USTs) fill caps.
               Former gasoline station.




120
                What do you see?



      Fuel dispensing
      operation.




121
               What do you see?




      Suspect friable asbestos


122
      What do you see?




      Non Scope Consideration

123
      What do you see?




       Non Scope Consideration
124
      Phase I ESA Components: Visual Inspection
                 (Obtain Permission)

       Must gain legal access to the property

       Normally provided by seller

       Many times coordinated with other service providers

       Can be sensitive, especially with unwilling seller or
       when transaction is confidential

       In corridor situations, may involve many landowners

125
      Phase I ESA Components: Visual Inspection
        (Environmental Professional’s Tasks) (1)
        Observe visual signs of contamination and uncover evidence of
        potential liabilities and/or contamination from past and current
        operations and/or from offsite activities.

            Visual observation: Identify conditions onsite
            conditions and on adjacent property. Take photographs
            and note physical locations (Global Positioning System
            [GPS] or document on a site map)

            Olfactory observation: Use sense of smell to identify
            foul/noxious odors and note physical location

            Remember REC definition under ASTM
126
      Phase I ESA Components: Visual Inspection
        (Environmental Professional’s Tasks) (2)

       • An attempt to inspect the entire subject property should be
          made (the ASTM’s design is to visit the property only once)
       • All buildings should be inspected externally and internally
          (if possible)
       • When not feasible to investigate the entire property, minimum
          coverage should include:
            the perimeter
            all surface water routes (including dry creek beds)
            all roads (paved and unpaved)
            external and internal of structures and buildings
            all areas that are reasonably accessible
         • When assessing adjoining properties and where access is not
            granted consider aerial photographs or surveillance (e.g.,
            public roads, elevated vantage points and along the
127
            perimeter.
      Phase I ESA Components: Visual Inspection
                  (Items of Concern)
        • Potable water sources
        • Chemical storage areas, maintenance or shop areas
        • Sumps or storm drains
        • Oil/gas tanks, disposal tanks, drums and/or transformers
        • Water bodies and presence of discharges (e.g., discoloration or
           sheen)
        • Areas of stressed or dead vegetation, stained soil or pavement
        • Indications of liquid or solid waste dumping or disposal
        • Indications of above and underground storage tanks
        • Evidence of wells or septic tanks
        • Abnormal odors
        • Presence of unnatural fill material or soil grading
        • Presence of special resources on or near the property
128
        • Indications of environmental and/or hazardous conditions
      Phase I ESA Components: Visual Inspection
                 (Items to Remember)

        • Camera
        • Field book or Personal Data Assistant (PDA)
         • Phase I ESA checklist
        • Clipboard
        • Global positioning system (GPS)
        • Maps and site drawings
        • Cell phone
        • Appropriate attire (e.g., boots, jeans, long-sleeved shirt)
        • Water bottle, insect repellent, machete
        • Sampling supplies (be prepared from a
129        health and safety standpoint)
      Phase I ESA Components: Interviews
              (Session Objectives)
      “The purpose of interviews is to obtain information
        indicating potential environmental problems in
                 connection with the property.”

      Interviews are important to obtain unrecorded
      information concerning the historical land use and
      activities associated with the subject property. To
      collect information about hazardous substances
      used at the site or past releases/spills that were
      never reported.

130
      Phase I ESA Components

           Records Review
           Visual Inspection
              Interviews
                Report



131
            Exercise No. 10

      Develop a list of questions to ask past and present
      owners/occupants/neighbors that will help you
      determine the site’s history and/or possible
      environmental issues. Be as specific as possible.




132
         Phase I ESA Components: Interviews
                   (Questionnaire)

      Although considered by some to be a part of records
      review, the current owner should be provided with a
      questionnaire as a part of the interview process.

      The questionnaire asks for information such as:
       • Past/current operation/practices
       • Data that could be a potential environmental liability

      Usually, the questionnaire becomes part of the report to
      document and supplement information related to the
      condition and history of the property.
133
           Phase I ESA Components: Interviews
                    (Who to interview?)
  ASTM’s Phase I standard requires an environmental professional to
  conduct the interviews with the current owner and/or occupants of the
  subject property and a staff member from at least one of the following
  local governmental agencies:
       • Fire department
       • Health agency
       • Other agency having jurisdiction over hazardous
         waste disposal or other environmental matters

       If locatable, past owners and neighbors should be interviewed as well

      Commercial occupants create complications (e.g., scheduling with
      multiple parties, etc.)
134
      Exercise No. 11




135
         Phase I ESA Components: Report
               (Session Objectives)

       “To summarize the findings of the records review,
       historical use research, visual site inspection and
        interviews associated with the subject property.”


      If an issue is identified, ASTM and AAI do not
      require that recommendations be made for a
      Phase II. However, many times, users of the
      report need them.


136
      Phase I ESA Components

           Records Review
           Visual Inspection
              Interviews
                Report



137
      Exercise No. 12




138
            Phase I ESA Components: Report
                (Report Requirements)
      List and document all findings discovered from the records review,
      historical property use research, visual site inspection and
      interviews
      For any issue identified, address the “potential impact or risk of
      hazardous substance or petroleum product contamination on and/or
      around the subject property”
      Describe deviations from ASTM standard or from AAI guidance
      ASTM has a recommended report format.
      Data gaps are a significant part and change in requirements
      by AAI. Data gaps must be identified in the report. However,
      analysis of data gaps is left to the user.
      Recommendations are not required but often preferred.
139   Can be included in a cover letter.
      Phase I ESA Components: Report
           (ASTM Report Format)




140
      Exercise No. 13




141
                             Issue No. 1
      Is the Phase I ESA report issue adequately addressed? If yes, why? If
      no, what do you think the author should have included?

                            Site Observation Detail
                         Electrical Transformers/PCBs
             Pad or Pole Mounted Transformers and/or Capacitors

      Seven (7) pad-mounted transformers were observed at the assessment
      site. Transformers of this type frequently contain dielectric fluid that
       may contain PCBs. They are sometimes owned by the public utility
             serving the area (Southwest Electrical Power Company).
             Contamination resulting from leaking transformers is the
       responsibility of the transformer owner. Evidence of minor leakage
            or stains was observed in the vicinity of these transformers.
142
                           Issue No. 2
      Is the Phase I ESA report issue adequately addressed? If yes, why? If
      no, what do you think the author should have included?

                   Historical Use Information on the Property

      Limited aerial photographs were available for the assessment site.
      Seven (7) historical aerial photographs of the site and surrounding
      area were reviewed. The photographs were reviewed for indications of
      past use, to assess the environmental condition of the property, if
      possible, and to chronicle the development of the property and
      surrounding area. The photographs were reviewed at the County
      Natural Resource Conservation Service. The dates of the aerial
      photographs were 1941, 1951, 1963, 1970, 1979, 1991 and 2002.
      …..
143
                              Issue No. 3
      Is the Phase I ESA report issue adequately addressed? If yes, why?
      If no, what do you think the author should have included?

                Leaking Underground Storage Tanks (LUST) List

      The State UST Regulatory Body (SURB) maintains an inventory of
      known leaking underground storage tank (LUST) sites located within
      the state. A list of all LUST cases reported within a one half (½) mile
      of the site is provided in Exhibit C.

      The assessment site was not listed as LUST site. .....



144
                           Issue No. 4
      Is the Phase I ESA report issue adequately addressed? If yes, why? If
      no, what do you think the author should have included?

                                   . ERNS List

      The EPA Emergency Response Notification System (ERNS) is the
      national database used to collect information on reported CERCLA
      hazardous substance releases or spills of oil or hazardous substances
      beyond the acceptable limits, as maintained by the National Response
      Center. A search of the database records as of July 15, 2002, revealed
      that one ERNS incident occurred on the subject property. According
      to the EDR report a fuel tanker truck overturned in the facility
      parking area releasing approximately 300 gallons of diesel fuel into
      the unpaved areas along the eastern border of the site. No additional
      ERNS incidents were reported within a one half (½) mile radius of the
145   assessment site.
      Phase I ESA Components

           Records Review
           Visual Inspection
              Interviews
                Report



146
      Non-Scope Considerations




147
          Exercise No. 14
      
          
      
          
      
          
          
      
      
      
          
      
          
      
      
          
148
          Non-Scope Considerations
 (Issues not addressed by ASTM 1527 and AAI)
            The following are commonly requested
         assessments that are not covered in either the
           ASTM standards not under the AAI rule.

         Mold inspections          Lead in drinking water
        Endangered species           Radon air sampling
      Wetlands determinations      Regulatory compliance
                                           issues
      Health and safety surveys      In-door air quality
              Asbestos               Cultural-historical
      High voltage powerlines            resources
         Lead-based paint            Industrial hygiene
149
          Non-Scope Considerations
 (Issues not addressed by ASTM 1527 and AAI)
                     Mold
  Approximately 70,000 species
  of fungi (molds, yeasts and
  mildews) have been identified.

      Nearly all fungi can cause
      allergies. Approximately 100
      species are considered to be
      pathogenic.
      Molds grow in indoor and
      outdoor environments. Given
      the right conditions, molds
150
      can grow exponentially.
          Non-Scope Considerations
 (Issues not addressed by ASTM 1527 and AAI)
                   Wetlands
      Wetlands are particularly sensitive
      to releases of contaminants.

      Significant regulatory constraints for
      property owners who propose to
      construct near or through
      jurisdictional wetlands.

      Wetlands include swamps, marches,
      bogs, peatlands, wet meadows, seasonal
      basins and prairie potholes. BUT some
      areas can be classified as wetlands and
      not exhibit some of the visible signs of
151   typical wetlands.
          Non-Scope Considerations
 (Issues not addressed by ASTM 1527 and AAI)
                  Asbestos (1)
      When requested, asbestos-containing
      materials (ACMs) should be evaluated
      for all buildings constructed prior to
      1987.
      Requires a certified professional for
      investigation and abatement.
      Health effects include asbestosis (lung
      tissue scarring), mesothelioma and
      lung cancer.
      Occupational Safety and Health
      Administration (OSHA) Permissible
      Exposure Level (PEL) =
      0.1 fibers/cubic cm.
152
          Non-Scope Considerations
 (Issues not addressed by ASTM 1527 and AAI)
                  Asbestos (2)




      Pipe insulation    Tile backing      Old gasket




153
      Plaster ceiling   Roof insulation   Roofing/siding
          Non-Scope Considerations
 (Issues not addressed by ASTM 1527 and AAI)
               Lead-based Paint
      Over 80% of homes in the U.S. built before
      1978 contain lead-based paint. Residential,
      public, commercial and industrial
      structures can all contain lead-based paint.

      Lead exposure can result in serious health
      effects, especially in young children,
      including brain/organ damage, abnormal
      fetal development and reduced intelligence
      and behavioral problems.

      The most common pathways for human
      exposure are breathing/swallowing lead
      dust or ingestion of paint chips.
154
          Non-Scope Considerations
 (Issues not addressed by ASTM 1527 and AAI)
                    Radon
      Colorless, odorless radioactive gas
      that occurs naturally. It is a product
      of the natural radioactive decay of
      uranium found as a trace element in
      most rocks, soil and water.

      Long-term exposure to radon can
      cause lung cancer and according to
      EPA, radon is the number one cause
      of lung cancer among non-smokers.

      EPA Action Level = 4 picocuries per liter (pCi/L)
      Average Indoor Radon Level = 1.3 pCi/L
                 Average Outdoor Radon Level = 0.4
155   pCi/L
           Non-Scope Considerations
 (Issues not addressed by ASTM 1527 and AAI)
          Cultural-historical Resources

      • Pre-historical
      • Historical
      • Tribal/Native American
      • Federal, state, tribal
        and local requirements


156
          Non-Scope Considerations
      (National Environmental Policy Act)
      Requires the consideration of environmental impacts for
      any proposed construction project falling under federal
      jurisdiction.

      Projects crossing state lines (e.g., interstate pipelines),
      projects receiving federal funds or projects that require a
      federal license.

      Environmental issues include wetlands, wilderness areas,
      flood plains, threatened and endangered species, cultural
      resources, historical sites, noise and aesthetic issues and
      others.

      A project halted due to a NEPA issue could result in a
      financial and public relations problem for the borrower
157   and possibly the lender.
      Exercise No. 15




158
                  Scenario No. 1
  What items would you recommend for inclusion in the Phase
  I ESA scope.

  A proposed thirty-six mile long highway extends through
  undeveloped and rurally developed property twelve bridges
  required approximately eight miles of deforestation required
  (100’ right of way width) plug and abandon ten electric
  powered oil/gas wells remove four existing structures
  structure nos. 1 and 2: 1970s era, structure no. 3: 1920s era,
  structure no. 4: 1890s era.

  Scope addition recommendations.
159
                  Scenario No. 2
  What items would you recommend for inclusion in the
  Phase I ESA scope.

  An existing office-warehouse building built in 2002 on
  previously undeveloped 2.5 acre site entire site is
  improved with building or parking lot.

  Scope addition recommendations.




160
                         Scenario No. 3
      What items would you recommend for inclusion in the Phase I ESA
      scope.

      An existing commercial building built in the early 1900s in a
      manufacturing district two story structure (first story partially below
      grade) sump located in southeast corner of first story north half of the
      site contains the building and an asphalt parking lot south half of the
      site is gravel covered historical property uses included:
                dry cleaners
                printing
                photograph development
                bottle cap Manufacturer
                floor tile/mastic manufacturer

161   Scope addition recommendations.
                    Scenario No. 4
      What items would you recommend for inclusion in the
      Phase I ESA scope.

      A 15-acre vacant site. Historical property uses included:
            livestock grazing
            shooting range
            used oilfield pipe storage

      Scope addition recommendations.



162
      Ordering a Phase I ESA




163
               Ordering a Phase I ESA
            (Who Requests a Phase I ESA?)

      Banks
      Insurance companies
      Real estate financing companies
      Industrial companies
      Law firms
      Public institutions (e.g., municipalities, schools, universities)
      Government agencies
      Landowners
      Perspective purchasers
       Purchasers want to ensure that property they acquire is either
           free of contamination, or that the contamination can be
        identified to determine the cost of remediation, and that cost
164                    be factored into the selling price.
              Ordering a Phase I ESA
        (Who Can Perform a Phase I ESA?) (1)

      Environmental professionals must have sufficient
      training and experience; possess the ability to develop
      conclusions and opinions concerning RECs

      Non-environmental professionals may gather records

      Credentials of the environmental professional should
      be provided in Phase I ESA report

      With the passage of the 2002 “Brownfields Law”,
      new education, certification and experience
      requirements are required with All Appropriate
165
      Inquiry legislation.
            Ordering a Phase I ESA
      (Who Can Perform a Phase I ESA?) (2)




166
               Ordering a Phase I ESA
    (Considerations When Ordering a Phase I ESA)

 Non-scope issues (e.g., NEPA, ACM, Lead-based paint, etc.

 Whether or not to include recommendations in the report

 Should the Phase I ESA’s satisfy AAI requirements or is the
 Phase I ESA for another purpose (e.g., collecting
 information to make an informed business decision)?

 Specify report format/content to minimize data gaps.

  Shop around for consultants. All consultants are not created
  equally. Seek references. Ask for table of contents or work
  samples.
167
      Exercise No. 16 (1)
                  The class is the new proud
                  owner of the site shown on
                  the left. Formerly, it was
                  used for random
                  neighborhood dumping,
                  one “dumper” operated a
                  metal stamping plant.
                  USTs were removed in the
                  1970s.
                  We plan to demolish the
                  existing building and build
                  a new 2 story building with
                  below grade parking.
168
      Exercise No. 16 (2)


                  We are about to order a
                  Phase I ESA. What issues
                  and concerns do we want
                  the environmental
                  professional to address?




169
      Exercise No. 17 (1)


                    Unmarked
                    container of
                    concentrated
                    herbicide. Note
                    leakage.




170
      Exercise No. 17 (2)



                  Is this drum half full
                  or half empty?




171
      Exercise No. 17 (3)

                  Poor housekeeping.
                  Note historic leakage
                  and dirt floor.




172
      Exercise No. 17 (4)

                  Partially buried drum
                  used to dip fence posts.
                  Contains wood
                  preservatives.




173
      Exercise No. 17 (5)


                  Above ground tanks
                  with no containment.
                  Note fuel dispenser for
                  UST.




174
      Exercise No. 17 (6)


                  This is a footprint of a
                  former underground
                  storage tank in which
                  contaminated soil may
                  exist.




175
      Exercise No. 17 (7)


                  Remote dumping
                  areas. Note the drum.




176
      Exercise No. 17 (8)


                  Does your shop look
                  like this? Who knows
                  what evil lurks in the
                  hearts of men?




177
      Exercise No. 17 (9)

                    Who knows what
                    lies below the snow.
                    Always a challenge
                    during winter
                    conditions.




178
             Objectives (1)
             Now, you are able to...

  • provide an overview of the innocent
    landowner defense
  • provide an overview of the ASTM
    International’s Phase I Environmental
    Site Assessment standards
  • understand the Environmental Protection
    Agency’s “All Appropriate Inquiry” Rule
179
             Objectives (2)
              Now, you are able to...

  • understand other environmental due
    diligence components
  • establish expectations and order due
     diligence services
  • analyze due diligence reports and weigh
     their conclusions on proposed projects

180
            Objectives (3)
             Now, you are able to...

      • explain when an environmental
       site assessment (ESA) is needed




181
      Thank you!

182          604-PT – Revision 1 – 04.30.08.USA

								
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