Eisenbach & Ruhnke - Phase I Environmental Site Assessment

4.0 Phase I Environmental Site Assessment (Phase I ESA)

4.1 Purpose

The Phase I ESA is a study that reviews the current and past uses to determine the potential presence of contaminants. This study is typically the first in the due diligence process.

The findings of a Phase I ESA assists parties in determining the following:

¨ No contamination is likely and no further environmental evaluation is necessary, or;

¨Contamination and environmental degradation is likely and additional
investigation is necessary, such as a Phase II ESA.

This must include evaluation of past and present uses of target properties, adjacent properties and nearby properties within a specified distance. The study must include the following four major elements:

¨ A records review;
¨ A site reconnaissance;
¨ Interviews with owners or occupants and government officials;
¨ Preparation of the report and development of recommendations.

ASTM requirements for each of these elements is discussed detail in the following sections.

4.2 Records Review

This process involves obtaining records including a site description with location, legal descriptions, regulatory records for the site and surrounding properties, and historical uses of the site.

4.2.1 Ownership and Location of Site

Identify the current owner by name and address, and identify the tax map parcel number. Include tax maps, property surveys or available plans identifying property boundaries in the report.

4.2.2 Current Use of the Site

The study should include a discussion of the current uses of the site. Each use or site activity should be reviewed to determine if activity may have resulted in contamination of the site. (For example; chemicals were used on site and disposed of through the site sewer system. This sewer system is discovered to consist of an on-site leach field that disposes septic waste by way of a subsurface disposal system (leach field). This would be a suspect activity and could trigger a Phase II SI.

4.2.3 Regulatory Agency Information Sources

Federal, state and local information sources must be searched during the Phase I ESA process. The ASTM Standard lists the federal and state environmental sources that must be reviewed, as well as the search distances for each source. Below is a list of the federal, state and local databases with search distances included in the standard:

¨ Federal National Priorities list (NPL) – 1-mile radius
¨ Federal Comprehensive Environmental Response Compensation and Liability Information System (CERCLIS) list – 1-mile radius
¨ Federal RCRA Transportation, Storage and Disposal (TSD) Facilities list – 1-mile radius
¨ Federal Emergency Response Notification System (ERNS) list – 1-mile radius
¨ State list of hazardous waste sites CERCLIS and NPL equivalents – 1mile radius
¨ State Landfill or Solid Waste Disposal Site list- ½ mile radius
¨ State Leaking Underground Storage Tanks (LUST) list –1/2-mile radius
¨ State registered Underground Storage Tank (UST) list- property and adjacent properties
¨ Local records on landfills/solid waste disposal facilities, hazardous waste/ contaminated sites, registered underground tanks, record of emergency release reports (SARA 304), and records of contaminated public wells.

4.3 Site Reconnaissance

The purpose of a site reconnaissance is to obtain information indicating the likelihood of environmental contamination being present, from current or past operations. The following areas should be reviewed and addressed during the reconnaissance of Phase I ESA.

4.3.1 Physical Setting of Site

The physical setting of the Site must be inspected and documented, including acreage of the property with identification of the legal property boundaries. This can be determined from the tax assessor’s records or by a Site Plan provided by the owner. The ASTM Standard requires, as a minimum, a USGS topographic map be reviewed as a source of information on the physical setting of the property.

The layout of buildings, foundations, abandoned structures, and surface improvements should be documented in a site plan. The percentage of the Site occupied by buildings and pavement should be estimated and documented by the consultant. The general condition of floors (stains, oil, bulk chemicals) inside the buildings and outdoor areas should be noted.

The geology, topography and hydraulic features (ponds, rivers) on site should be reviewed to estimate the direction of ground water flow and surface runoff patterns. This information is interpreted by the environmental professional to assess the extent to which off-site migration of contaminants may impact the Site.

Naturally-occurring surface waters including stream, ponds lakes, rivers or wetlands located on site may be significant because they are a potential waste discharge points and may provide a conduit for contaminant migration to or from the Site. These features should be reviewed and evaluated for contaminant migration.

4.3.2 Site Features

The following natural and man-made features should be reviewed to determine how they were used, and the potential for discharge of contaminants via these features to the soil and water of the Site.

Water Sources- The facility’s drinking water or process water source(s) should be identified, including information on abandoned or active wells on site.

Water and Waste Management – Water and waste management units such as septic systems, lagoons, pits, catch basins, drywells, floor drains, sumps or surface impoundments should be identified and evaluated to determine if contaminants have been released to the site via these features.

Underground Storage Tanks (USTs) and Aboveground Storage Tanks (ASTs) – All USTs and ASTs should be located and described, including gasoline tanks, heating oil tanks, waste oil tanks, emergency generators tanks, oil-water separators and other product tanks. Information on the tanks should include location, product stored, registration status, volume, contents stored over the life of the tank, the age, construction material, corrosion protection, inventory control, results of testing, and past malfunctions with the tank. In addition, these tanks should be inspected for signs of leaks or failures.

Evidence of removed or abandoned tanks should be searched for including patched pavement, vent pipes and fill ports.

Leaking USTs and ASTs may be significant source of contamination and this feature should be thoroughly assessed.

Electric Transformers – The presence of electric transformers and capacitors should be determined during the site inspection. These transformers should be inspected for leaks and determine if they contain Polychlorinated Phynols (PCBs).

Monitoring Wells – If present on site the purpose of the wells should be determined and all test data should be obtained and included in the report.

4.4 Interviews

4.4.1 Interviews with Key Site Personnel

Interviewing site personnel or individuals knowledgeable with the current and historic uses of the Site is of key importance. Interviews with key personnel must be attempted, and a record of interviews should be included in the report.

4.4.2 Interviewing Government Officials

Government officials should be reviewed to obtain information about the recognized environmental condition of the Site. Interviews can be conducted in person or by phone and a record of the interview should be included in the report.

4.5 Research Specifically for Stock Purchase Transactions

Research for stock purchase transactions will not be covered in this course.

4.6 Report

The purpose of the Phase I ESA report is to document the recognized environmental conditions discovered during the course of the assessment. The report must describe the methods, information sources used, and the standards to which the work was performed, present the findings, and support the conclusion and recommendations.

The following is a typical outline of a Phase I ESA Report:

I. Introduction
II. Site Location and Description
III. Description of Current and Prior Site Use
IV. Summary of Findings and Conclusions
V. Recommendations
VI. Limitations
Attachments
Site Location Map
Site Map
Aerial Photographs
Sanborn Fire Insurance Maps
Chain-of-Title Documentation
Photographs

4.6.1 Summary of Findings and Conclusions

The environmental professional provides an opinion on the probability of the Site being impacted with environmental contaminants from past or current use. When developing these opinions the consultant should consider the following aspects of the assessment:

¨ The nature of evidence and whether it is conclusive;
¨ The quality of information collected, including whether the information is corroborated by other sources;
¨ The potential environmental liabilities resulting from the environmental conditions;
¨ The possible actions the lead regulatory agency will take regarding each environmental condition.

The ASTM standard recommends that reports include in the findings and conclusion section, a statement that the ESA has been performed in accordance with the standard, the address of the Site, and any exceptions to or exclusions from the standard.

4.6.2 Recommendations

Phase I ESA Reports may conclude with a discussion of recommendations. These recommendations typically provide a rationale for additional investigation, if recommended.

4.6.3 Limitations

Limitations should be included to remind parties of the limits of the study. Typical limitations are exclusion of asbestos and lead, and use of the report by third parties. The report should also identify the party who is intended to rely on the report. Attorneys may wish to label the reports attorney-client privilege to avoid having to produce the document in the event of a subpoena.