Environmental Site Assessments - Phase II - The Burden of Proof

In the last blog we discovered that a Phase I Environmental Site Assessment (ESA) is an investigation performed by a Qualified Person (QP), to determine if it is “likely” that a property is contaminated.

If it is determined that contamination is "likely" then the QP will recommend performing a Phase II ESA to find the “location and concentration” of the suspected pollutants.

To use a CSI analogy, there is a body but lab tests must be run to determine if a crime was committed.  Similarly a Phase II ESA will test the soil, water and air on or under a property to see if contamination exists.

The investigative procedures used in CSI and an ESA are remarkably similar. The QP does the following in preparing a Phase II report:

1. Review Phase 1 and plan the site investigation. 
2. Conduct drilling, sampling and lab testing.
3. Evaluate the lab results.

If contamination is found and it is above the guidelines, then the Phase II report will recommend performing a Phase 3 ESA, or “Site Remediation” to clean-up the property.  

If you would like to see how soil and groundwater samples are collected then watch the videos on our blog,  go to our Facebook page, or go to YouTube and search "Fisher Environmental"

  

Next Blog: Environmental Site Assessments - Phase III – 'The Site Clean-Up'

Environmental Site Assessments - Phase 1 - The Investigation

In the last post we learned that an Environmental Site Assessment (ESA) is an industry-recognized tool that seeks to answer two questions:

1. What is the "likelihood" of contamination on, in or under the property?
2. If it is likely, then what is the “location and concentration” of the contamination?

To answer these questions we use different types of ESA’s.  A Phase I ESA answers the first question, while a Phase II ESA answers the second question.

So how does a Phase I determine that a property is “likely” to be contaminated?

Every ESA is performed by a “Qualified Person” or “QP” (usually with training in a science or engineering).  You can think of a QP as a kind of CSI detective. But instead of examining a body, a QP examines a property.  And instead of looking for evidence of a crime, a QP looks for evidence of environmental contamination.  

The investigative procedures used in CSI and an ESA are remarkably similar. The QP does the following to prepare the Phase I.

1. Review Records (surveys, deeds, aerial photos, reports of spills)
2. Conduct Interviews (owners, neighbours, employees, tenants)
3. Do Site Reconnaissance (look for physical evidence of contamination).

The QP evaluates all the evidence and then writes the Phase I report.  If the QP suspects that contamination exists on the property, then the Phase 1 ESA will recommend performing a Phase II ESA,  to validate those suspicions.  

Next Blog: Environmental Site Assessments - Phase II - 'The Burden of Proof'

Environmental Site Assessments - What are they? - Toronto, Ontario

What is an Environmental Site Assessment (ESA)?  Not sure?

For many real estate professionals environmental site assessments, or ESA’s, are just another condition on the deal.

Like many conditions we don’t pay much attention to them unless there is an issue. However environmental issues are often "deal killers".

Can deals with environmental issues be saved? Sometimes “yes”, sometimes “no”, however having some basic knowledge could help you to salvage a deal, or even decide that a deal is not worth your time.

Over the next few posts I will explain the Environmental Site Assessment process, so when you face an environmental issue on a property, you will be prepared to make the right decision.

Let’s begin.

What’s an Environmental Site Assessment or ESA?

An ESA is an assessment of real property done in accordance to recognized standards, and performed by a “Qualified Person” (usually with a scientific or engineering background).

The ESA seeks to answer two questions:

1. What is the "likelihood" of environmental contamination on, in, or under the property?
2. If contamination is likely, what is the “location and concentration” of the contamination?

Why order an ESA?

An ESA is an industry recognized and standardized due diligence tool that is required by most lenders and purchasers of all commercial and some residential properties.  An ESA helps protect the parties in a transaction against Environmental and Legal Liability. In some ways an ESA is analogous to having insurance.  A few thousand dollars spent to ensure a site is clean can save you hundreds of thousands or even millions in remediation costs.

Next Blog: Environmental Site Assessments - Phase 1 - 'The Investigation'