Environmental Assessments

What is a Phase I Environmental Site Assessment?
A Phase I Environmental Site Assessment (commonly referred to as a "Phase I", "ESA", or "Phase I ESA") is a standardized assessment of the environmental integrity of a parcel of commercial, rural and/or industrial real estate. Phase I's can also be performed for residential sites, although they are seldom required. The elements of a Phase I include three basic parts:

• federal, state and local database and records review
• owner and/or occupant interview
• on-site and surrounding area investigation

Phase I's are typically required by the lending institution to be included as a component of the due diligence process. Threshold limits differ between institutions, but most lending institutions require a Phase I when the loan amount is equal to or greater than $500,000 dollars. Once completed, Phase I's are valid for a period of six months, which usually allows ample time for a real estate transaction to mature. However, if extensions are required, Phase I's can typically be updated for nominal costs. Average completion time for a Phase I is 10 days to two weeks.

Why would I need a Phase I Environmental Site Assessment?
Environmental cleanups can be time consuming and very costly so why jeopardize your successful project by forgoing a Phase I ESA during the due diligence process. When it comes to cleanup, more often than not, the current owner of the property, regardless of whether he/she is responsible for the contamination, is held accountable for the cleanup. So, be informed and be prepared by having a Phase I ESA conducted on your prospective purchase before you "own the problem". In short, a Phase I reduces potential liability.

Why Newkirk Environmental, Inc.?
Newkirk Environmental, Inc. was founded in 1984 and is one of the oldest and most well respected environmental consulting firms in the Southeast. The Phase I department at NEI consist of experience and well qualified scientist. NEI staff have performed hundreds of Phase I ESAs throughout the Southeast and have earned a reputation for thorough investigation while keeping the clients' goals in mind. We have worked closely with many law firms, lending institutions and real estate brokers and we understand their requirements for a successful real property transaction. Furthermore, NEI carries 2 million dollars professional liability insurance on all Phase I's.

American Society of Testing and Materials (ASTM)
All Phase I Environmental Site Assessments are conducted according to the latest ASTM standards. For commercial property of less than 125 acres, standard E1527-00, Standard Practice for Environmental Site Assessment Process, is used. According to the standard, "this practice is intended to permit a user to satisfy one of the requirements to qualify for the Innocent landowner defense to CERCLA (comprehensive Environmental Response, Compensation and Liability Act) liability." US courts have upheld that a Phase I ESA conducted according to ASTM standards meets the requirements under CERCLA law for "all appropriate inquiry".