Brandon Real Estate Board - June 19/2003 1
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ENVIRONMENTAL SITE ASSESSMENTS
Phase I
ENVIRONMENTAL SITE ASSESSMENTS
Phase I
Brandon Real Estate Board - June 19/2003 2
Presentation Objectives:
Rationale for performing Phase I ESA’s
Basic features & costs of a Phase I ESA
Professional services/team BHE provides
Examples of potential concerns
Implications for real estate industry
Questions and answers
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History of Phase I ESA’s
A Manitoba Environment / Conservation initiative – methods and protocols.
Initially required for petroleum storage sites to identify and characterize impacts – 1993.
Extended to all sites that may be potentially impacted / contaminated – 1998.
Primarily commercial property present time:– Motivated by lending institutions.
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What is a Phase I ESA?
An investigation to identify actual and potential site contaminants.
Involves the recording and assessment of what can be documented/observed.
Does not involve sampling, analytical or remediation activities – Phase II.
Does not involve policing, compliance and/or enforcement issues.
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Why commission a Phase I ESA?
Provides baseline of enviro information: – Eliminates uncertainty about potential
environmental liabilities.
– Exercises professional due diligence.
– Assists with making informed decisions regarding transactions and site usage.
– Transferable use if / when decommissioning or redeveloping property in future.
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Features of a Phase I ESA
A. Historical investigation of property: – title search, plans/permits, regulatory reports,
aerial photos, past/present/future usage, etc.
– Interviews with past/present owners, tenants, neighbors, appropriate government officials.
– Site Inspection of buildings, equipment, land, and surface water for signs of contamination and storage/handling of hazardous materials.
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Sample of an Aerial Photo
Shows geographical location (sec/twsp/range)
Shows adjacent land use, industries
Shows ground and surface water sources
Shows relevant landmarks, highways
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Features of a Phase I ESA
B. Geological / geotechnical information: – Surface and groundwater identification
– Bedrock geology and topography
– Soil classification and implications
C. Evaluative report: – Includes recommendations – usually no further
remedial action beyond identification required.
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BHE Services & Professional Team
Inclusive cost of Phase I ESA is $ 1950. + GST. Timeline – 3 to 4 weeks (pending complications) Professional services / team:
– Data collection, collation and research;– Property and building/s inspection, including
comprehensive interior and exterior photos; – Environmental engineer’s research and report;– Guaranteed confidentiality, with full professional
environmental liability insurance.
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Environmental Concerns
Hazardous Material: “A material that may, upon exposure, constitute an identifiable risk to human health or the natural environment.” Asbestos, PCB’s, lead, ozone-depleting substances, UFFI
Contaminant: “The presence in soil, air, water, groundwater or structures of a material or condition that may adversely affect human health or the natural environment.”Dioxins, furans (burning barrel/ashes),oil, solvents
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Implications for Realtors
Required for commercial properties.
Will eventually expand to personal properties.
Vendor / realtor can be proactive in obtaining – plan ahead to avoid delays.
Phase I ESA is a selling feature – eliminates uncertainties and facilitates fast sale.
Both vendor and realtor ensure due diligence and limit liability.