Environmental due diligence is a complex procedure of evaluating a property or land for potential environmental contamination risks. Groundwater and soil contamination are only a few risks evaluated during environmental due diligence.
There are three phases of environmental due diligence.
In the first phase (Phase I Environmental Site Assessment), the analysis of current and historic conditions at the property determines if any potential environmental concerns or recognized environmental conditions are present. Most banks or other financial institutions require it as part of the borrowing process and it is also one requirement for obtaining environmental liability protections.
During Phase II, if the Phase I determines there are potential concerns or recognized environmental conditions, environmental experts collect soil and groundwater samples. They then use these samples to determine if different pollutants are present at the property.
In the final phase, or Phase III environmental site assessment, if necessary, the experts use recommendations made in Phase II of evaluations to determine the magnitude and extent of the contamination.
Environmental due diligence is critical for any commercial or industrial real estate transaction. Without proper due diligence, a potential buyer could also be purchasing all of the environmental liability associated with the property’s past use, even though the buyer did not cause it. This is why most lenders require that Phase I Environmental Site Assessments are performed as a condition to the loan. Otherwise, the environmental liability costs could far exceed any equity in the property. Environmental due diligence must conform to the “All Appropriate Inquiry” standards set forth in the federal regulations to be protected from any potential liability.
Below are the most frequent types of projects that we complete every day. Please contact us to discuss your due diligence needs including baseline environmental assessments, pre-listing audits, and environmental transaction screenings, in addition to the types of projects below.
Hanis Consulting, Inc. provides a wide range of services to solve the simplest to most complex environmental business challenges. Each client is unique and has specific needs and priorities. We listen to each client and provide the best possible solution for each situation.
Below is a sample of the solutions and expertise that we provide. Call us to discuss how we can help you overcome your environmental challenges and achieve your project goals.
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Phase I Environmental Site Assessments
We have performed countless Phase I Environmental Site Assessments for clients from small businesses to large corporations and real estate investment trust (REITs). Phase I assessments must meet the standards of ASTM E1527 and our assessments meet or exceed this standard. The standard allows for some latitude and discretion by the environmental consultant and unfortunately, some consultants take too much liberty to cut corners and low ball prices. In many cases, these assessments do not meet the standards and leaves the client open to liability. At Hanis Consulting, we never cut corners and you can rest assured that you will be protected from historic liability.
Phase II Environmental Site Assessments
Once your Phase I Environmental Site Assessment is completed, a Phase II assessment may be recommended if any recognized environmental conditions were present.
The Phase II may require soil, groundwater, or air sampling depending on the conditions present. Hanis Consulting has performed numerous assessments sampling all types of media. Phase II assessments can be intrusive, especially to operating businesses, so we design our investigations to minimize these disturbances and to perform the work as quickly and efficiently as possible so there is minimal disruption.
Due Care Compliance
Once a property is purchased, there may be a continuing obligation for the new owner to maintain liability protections.
If the property was previously contaminated and received a No Further Remediation letter, there may be requirements such as maintaining an asphalt barrier or handling soil in a special way.
Hanis Consulting has helped many clients with their Due Care obligations to maintain their liability protections. Each and every site is different and there is no one-size-fits-all approach.
