Everything to Know About Environmental Site Assessments
By: John Garcia | Date Posted: February 13, 2022
Table of Contents
When purchasing a commercial property, obtaining an environmental assessment (ESA) is a crucial part of due diligence before closing.
Crown Inc. explains an ESA can determine the presence and extent of groundwater or soil contamination (e.g. the presence of heavy metals, petroleum, pesticides, or herbicides) and building contamination from asbestos, paint, lead, or mold.
An ESA will identify contamination issues before your purchase and ensure you don’t face expensive and unexpected costs.
This article will help you understand everything about environmental site assessments.
Take a look.
Understanding Environmental Site Assessments (ESAs)
An ESA is an analysis of the past & present activities on a site to understand the possibility of contamination. It also involves determining the consequences of contamination on the environment and humans.
A qualified environmental consultant performs it. The process can last from some weeks to a couple of years. It depends on the number of phases and the duration of each phase.
Contamination can include groundwater contamination, dangerous chemicals, surface water quality, and soil quality & contamination.
Need for ESAs
ESAs are generally performed at sites with an industrial or commercial history. As stated above, they are conducted by an Environmental Expert following the American Society for Testing and Materials (ASTM) standards.
CERCLA’s “all appropriate inquiries” procedure demands that landowners assess the property’s environmental conditions and evaluate the possibility of any contamination.
An ESA fulfills this provision by assessing the physical and land improvements made to the property. A new property buyer generally orders these reports, a landowner wants to comprehend the environmental condition of their property, a lender contemplating extending a property loan, or a regulatory body expects on-site contamination.
Businesses and sites that would need a site examination may include:
- Manufacturing facilities
- Industrial sites
- Commercial properties
- Shopping centers and strip malls
- Properties being bought or sold as part of a real estate deal
- Many others
Phases of Assessment
First Phase
Phase I analysis involves an in-depth review of the area’s past use and neighboring properties. Generally, there is no physical test performed on the soil or water at this time. The main elements of the review are:
- An examination of the site, including any possible pollutants
- A brief review of the neighboring properties and their historical use
- Interviews with past property owners and others aware of the site’s use
- A look at various local, state, and federal applications to understand how it was used in the past
- A look at its topography area to determine any drainage issues that may have brought contamination to the site.
If the initial Phase detects possible contaminants, an additional Phase II may be advised to investigate further.
Second Phase
This phase is a more extensive investigation and includes a sampling of water, soil, construction materials, and other possible sources of contamination on the property. The Phase II ESA will provide a thorough analysis of any known environmental issues identified in the Phase I study.
The most prevalent pollutants discovered in this phase include mold, asbestos, lead, pesticides, petroleum hydrocarbons, heavy metals, and industrial solvents. The assessment will examine the extent of contamination and determine if these are considered “actionable” and need to be remedied according to CERCLA.
Third Phase
The last phase of an ESA comprises site remediation based on the proof obtained in the previous two phases. A phase three site examination may include additional testing, sampling & monitoring.
This is done to understand:
- Logistics and remediation costs,
- Feasibility studies for remediation,
- The types of remediation required,
- An assessment of the available clean-up methods.
The remediation procedure can take between a day and to years. It depends on the problem’s severity. Some advanced issues demand solutions like bioremediation or chemical oxidation.
On the other hand, other issues may require a simple excavation. More complicated problems may take longer to settle. However, it’s still a more suitable choice than jeopardizing your workers’ health and safety by permitting them to work in a contaminated site.
Timing and Costs
The time to conduct due diligence must be included in the offer to purchase. A period of two months is generally enough to conduct an exhaustive environmental assessment.
The price of an assessment in Phase 1 ranges between $3000 to $5,000. In contrast, Phase 2 assessments could be as high as $7,000-$60,000 depending on the environmental concern.
You can stop and terminate the deal at any given point in time.
Rules
Rules that govern the operation are under federal and provincial authorities and vary between regions. The regulations regarding determining liability for contamination can be complicated and lengthy.
Employing a Consultant for ESA
Take into consideration the experience required for your specific site assessment. Environmental Consulting Firms typically conduct assessments for various contaminants, whereas occupational hygiene specialists specialize in asbestos.
Decide whether an accredited auditor needs to be appointed to supervise the site assessment and any subsequent remediation work. Site auditors may be legally required if the work is regulated by the Contaminated Land Management Act 1997 or Environmental Planning and Assessment Act 1979.
Moreover, they could be valuable when there are complex contamination issues or when the property is part of high-value transactions.
You should research if the company conducting the assessment is certified. This would include formal certification through an EPA-approved scheme.
Insurance Details
Once you purchase a property, you should consider insuring your property with insurance if you suspect a possibility of environmental contamination through your business operations. For example, you work with fuel tanks or a paint shop on a property.
Either way, the best approach is controlling contamination is by operating your business in a way that doesn’t impact the environment much. This involves ensuring safe storage and leak prevention, safe management of dangerous substances & proper waste disposal.
Why Hire Soar For ESA?
Hire Soar For ESA
The professional environmental consultants in the Soar Environmental team are competent in performing different environmental assessment phases. The extremely talented and passionate consultants have undertaken various environmental services like asbestos testing and management and groundwater control.
Final Word
Conducting an Environmental Site Assessment is a wise business decision that can help safeguard your assets as well as save you time and money.
If you would like to ask any questions regarding the environmental site assessments, please ask us in the comments. We’d be happy to help!
Thank you for reading!
