For the third and final part of VMG’s three part blog on environmental assessments, Dana Spotts, our guest expert, will discuss Phase II Environmental Site Assessments (ESA).
PHASE II SITE INVESTIGATION (ASTM E 1903)
“Phase II Environmental Site Assessments (ESA) are sometimes required when a Recognized Environmental Condition (REC) is found during the Phase I ESA process. Phase II Assessments consist of collecting soil, groundwater, surface water, and/or building materials in order to screen for chemical and/or metal contamination (including asbestos). This sampling is generally performed by method of drill rig, hydraulic push, hand auger or backhoe, depending on site-specific conditions. This testing is recommended when there is a significant potential for the existence of an environmental liability that can affect the value of a property. Environmental liabilities are costs associated with regulatory-mandated cleanup, disposal of regulated-waste and civil liability. Civil liability occurs when the contamination has migrated offsite or tenants sue over exposure to hazardous materials.
“Once contamination is found to be significant and/or to exceed federal, state or local cleanup or human-health risk standards, a further site characterization is sometimes required, in order to help establish the vertical and lateral extent of a contamination plume. In these situations, agency consultation is required in order to pursue closure from an oversight agency. A “no further action” (NFA) letter is pursued for a site, in order to make the property “sellable.” In some cases, among sophisticated buyers, a liability transfer is negotiated and executed contractually. For regulatory-mandated cleanup and/or monitoring, the client can apply to available cleanup funds in order to recover money spent.” – Dana Spots, Contour Environmental, LLC
Valuation Management Group is a national, full service appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions. We take the process from ordinary to extraordinary.