Environmental Compliance 101

Environmental Site Assessments are done usually during commercial real estate transactions. An investor finds a property of interest and prior to closing the sale he or she would have a Phase One Environmental Site Assessment ordered.

A Phase 1 Site Assessment is a report that includes record reviews, interviews and physical property inspections to identify areas of potential hazardous substance contamination to the surrounding environment. A Phase I is used to identify areas from which samples would need to be collected for analysis in a Phase II Environmental Assessment.

During the Phase One Environmental Site Assessment, there are several different steps to develop the report. The property overview includes collaborating basic physical information like location, size, geologic, physiographic and environmental setting. Next, gathering historical information on subject property, adjacent properties, previous operations, products and wastes generated and removed is necessary. Finally, before the report is drafted, a physical inspection of the property is essential to verify facility records, interview knowledgeable personnel and identify potential sampling areas for a Phase II assessment if applicable.