If the Phase 1 Environmental Site Assessment (ESA) for a single-tenant build to suit identifies any likelihood of contamination in the soil, groundwater, or a vapor intrusion condition, then ordering a Phase 2 ESA is the smart next step to investigate further.
ESAs in Phase 2 (Sub-Surface Environmental Testing)
Phase 2 ESA’s goal is to establish whether dangerous contaminants are present or absent beneath a property.Here is a list of some of the more complicated sampling and analysis techniques to be aware of before conducting Phase 2, depending on the results of the Phase 1 ESA.
1. What Is the Best Option for the Sit
A Phase 2 ESA typically includes sampling for contaminants or metals in one or more media, such as indoor air, soil, soil vapor, and groundwater. The media and contaminants sampled and analyzed as part of a Phase 2 ESA are heavily influenced by the site’s previous use. For example, soil, groundwater, and soil vapor sampling at active or former dry cleaners will almost always include the contaminant tetrachloroethylene (PERC).
A sampling at gas stations would typically focus on contaminants in the gasoline and diesel ranges and possibly heavier oil range contaminants if automobile service also performs onsite. Metals in soil and groundwater may be the primary focus of the investigation at other sites, such as shooting ranges or industrial sites.
Soil type, depth to groundwater, and location of historical features that may have contributed to contamination are all important factors to consider when designing the scope of Phase 2.
2. Quality trumps quantity
A robust Phase 2 ESA scope will provide a large amount of sampling; however, depending on the investigated problem, a minimal scope may be sufficient to identify any contamination. This information is usually sufficient for you or your lender to determine whether the site is an acceptable risk. Keep in mind that some lenders have their requirements for Phase 2 that follows.
To help you make a risk decision in a reasonable amount of time for a reasonable cost, a good Phase 2 ESA will investigate the issues found in Phase 1 using conventional scientific investigative methods.
3. Conduct your research
A Phase 2 ESA does not include environmental records; however, a Phase 1 ESA thoroughly searches historical and regulatory records and always considers the most recent environmental regulation. Remember that property deemed uncontaminated a decade ago may not pass the test today.
Vapor intrusion regulations are an example of this. In the last decade, these regulations have become more stringent. A property closed more than a decade ago may not have had vapor intrusion investigated as part of the closure, and the vapor pathway may need to be reinvestigated.
4. A possible environmental safeguard
Whether or not a Phase 2 ESA identified contamination, you may want to consider environmental insurance. It may provide adequate protection if there is a possibility that your operations will cause contamination after they begin. It may also be beneficial if there is a possibility of previously unknown environmental issues, such as an underground storage tank.
Numerous well-documented toxic tort lawsuits have resulted in significant losses for owners and operators. These types of cases can be mitigated by environmental insurance; however, it is critical to ensure that ongoing operations comply with applicable environmental regulations.
When your lender requests a Phase 2 ESA to determine whether your property poses an acceptable level of risk, consider all of the items listed above before ordering it. Following through on the key elements in your scope, with the help of a developer and an environmental consultant, will help to prevent future property devaluation and risk.
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