My Phase I Identified RECs..... Now What?
You received your Phase I Environmental Site Assessment (Phase I) report and recognized environmental concerns (RECs) were identified. Now what do you do? Since you have already completed a Phase I, you are on the right track to satisfying your due diligence requirements for purchasing a property.
After looking at those RECs, are you thinking to yourself:
Am I drinking polluted water?
Am I breathing toxic air?
Is the ground safe to touch?
Will my intended use make it worse?
How much is this going to cost!?
If any of these questions are going through your head, you are not alone. Just because the Phase I has identified RECs, it does not necessarily mean that you cannot safely occupy the property or that you will have an expensive cleanup in order to purchase it. The next steps can help answer those questions and clarify concerns.
Typically a Phase II Site Investigation is recommended which can include soil, groundwater, and/or soil gas sampling. If the results of the sampling are below applicable cleanup criteria, you have not only satisfied your due diligence requirements, but you are able to set a closing date and move forward with the property.
If the results are above applicable cleanup criteria, then we can evaluate the site to determine if there is a relevant health or business risk associated with the impact. Some sites with impact can be considered low risk (no potentially completed exposure pathways) and just need to be properly documented so that you can proceed with your closing.
In situations where contaminated soil, groundwater, and/or soil gas pose a health or business risk, Prism can help you through a process and design a plan specifically tailored to your project. Whether you have never purchased a commercial property before or are already familiar with the due diligence process, please call Prism today to discuss your potential project to see how we can help you navigate the due diligence process and minimize confusion.