What Exactly is a Phase II Environmental Site Assessment and When Might You Need to Do One?

What Exactly is a Phase II Environmental Site Assessment and When Might You Need to Do One?

10.24.17 | Dawn M. Coleman

We’ve previously talked about why a client would want to invest time and resources into conducting a Phase I Environmental Site Assessment (ESA), but is there a next step? The answer depends on the findings of the Phase I ESA.  If no “recognized environmental conditions” (RECs) were identified as part of the Phase I ESA process, then you’ve done your due diligence and can move on with your project.  However, if the Phase I ESA identified the possibility for the subject property to be contaminated, what should you do?  You may decide that the possibility of contamination is more risk than you are prepared to accept.  In this case, you may choose to walk away from the deal.  However, if the risk of potential contamination is acceptable, a well-designed Phase II ESA can help you assess whether contamination is actually present, or not.

The scope of work for a Phase II ESA is directly dependent upon and tailored to the findings of the Phase I ESA.  Therefore, the approaches taken to further investigate the site may vary depending on the type of REC identified in the initial environmental study.  More often than not, a Phase II ESA will include some type of soil or water testing.  For example, the sampling and analysis of both surface and subsurface soils may be conducted.  If indicated by the Phase I ESA, groundwater may need to be sampled and analyzed, which could involve the installation of groundwater monitoring wells.  Other approaches may include sampling the contents of a leaking drum or discharge from an unknown pipe, using ground-penetrating radar to locate underground storage tanks, conducting a soil gas survey, to name just a few.

It’s worth keeping in mind that, depending on the types and number of RECs identified during the Phase I ESA process, the Phase II ESA study can be significantly more costly than the Phase I ESA.  In addition, the process will likely take longer to complete than the initial environmental study given the time needed to conduct field work and laboratory analysis of samples. 

The entire Phase II ESA process can be a little daunting, but, in the long run, it could save you the real headache of acquiring a property that is an environmental catastrophe.  In addition, based upon the outcome of the study and your level of risk, the Phase II ESA may also serve as a bargaining tool in negotiating the purchase price of the property.  Regardless, the Phase II ESA is a useful way to get a good perspective on the condition of the site and to confirm if the property has been adversely impacted by releases or other environmental hazards before you buy it.

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