ENCO
Environmental Co., Inc.
ENCO
Environmental Co., Inc.
THE Environmental Authority!
PO Box 1352, Sand Springs, OK 74063
Phone: 918-398-9436 Fax: 918-339-5050
E-mail: encoenv@sbcglobal.net
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Phase I & II |
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Under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), the owner of a piece of property is jointly liable with anyone that appears in the chain of title for environmental contamination that might be found at the property. In order to protect themselves from liability, purchasers often request that a property audit be conducted. Not all property audits are the same and not all of them meet the rigorous standards of the American Society of Testing and Materials (ASTM). There are three kinds of property audits described by ASTM Standards. E-1527-05 - Phase I Property Audit, E-1903-11 Phase II Property Audit, and E-1528-06 - Environmental Site Assessments: Transaction Screen Process. Each of these reports must be prepared by and "Environmental Professional". (Many environmental companies have employees that they hold out as "environmental professionals" that don't meet the requirements of statute to be identified by that title.) ENCO's property auditor meets this definition!
Transaction Screening Report
A Transaction Screening Report is only a limited site assessment. It does not operate to for the basis for the "innocent land owner defense". Essentially, this report is a partial Phase I report where a visual inspection is conducted at the property in an effort to identify known environmental conditions present at a piece of commercial property resulting from contamination from hazardous substances identified by Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and petroleum products. This audit would include interviews with the property owner, but does not include the comprehensive records check or other interviews or reconnaissance of the surrounding property.
Phase I Property Audit
A Phase I property audit is intended to identify known environmental conditions present at a piece of commercial property resulting from contamination from hazardous substances identified by Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and petroleum products. This audit is intended to permit a user to satisfy one of the requirements to qualify for the innocent landowner, contiguous property owner, or bona fide prospective purchaser limitations on "landowner liability protections". An Audit that is properly performed under the ASTM standard constitutes "all appropriate inquiry into the previous ownership and uses of the property consistent with good commercial or customary practice" as defined at 42 U.S.C. 9601(35)(B).
This audit involves the actual visit to the property, where a visual inspection is conducted. Interviews are conducted with the present owner, as well as any former owners that can be identified to determine the current and past uses of the property. Federal, state and local records are checked for indications of past regulatory violations that could have impacted the subject property. The same inquiry is made concerning adjacent properties. Interviews are conducted with persons who have reason to be familiar with the subject property, including neighbors, employees at neighboring facilities, and local officials. based upon this information, ENCO's environmental professional formulates an opinion as to what, if any, environmental conditions exist at the property and to what degree those conditions may affect the perspective purchaser.
Phase II Property Audit
A Phase II property audit is commonly used when a Transaction Screening Report or a Phase I Property Audit identifies conditions that indicate contamination by petroleum products or a hazardous substance that is regulated by CERCLA. The purpose of this report is to quantify the degree of the contamination through analytical testing of soil and / or ground water and / or other media. Once the degree of contamination has been identified, the Phase II seeks to provide a plan for remediating that contamination as well as an estimate for the cost.