A Phase I Identified Concerns – Should I Still Buy This Property?

If you find yourself in a situation where a Phase I ESA has identified a Recognized Environmental Condition (REC), what are the next steps?  For properties located in Michigan, the Baseline Environmental Assessment (BEA) process is outlined under Part 201 (Environmental Remediation) and Part 213 (Leaking Underground Storage Tanks) of the Natural Resources and Environmental Protection Act (NREPA), which allows buyers to purchase contaminated properties without being held liable for existing contamination.

If RECs are identified in a Phase I ESA, a Phase II Limited Site Investigation (Phase II) should be conducted. A Phase II usually involves the collection of soil, groundwater, and/or soil gas samples from the property.  Samples are sent to a laboratory and if elevated concentrations of hazardous substances are present in soil, groundwater, and/or soil gas at the site above Michigan’s residential criteria, then a BEA can be prepared. In order to secure liability protection when purchasing a contaminated property, a buyer will need an environmental professional like Point Blue to conduct the BEA, which includes the Phase I ESA that was already performed. As the new owner purchases the contaminated property, they must also outline steps to prevent existing contamination from negatively impacting human health and ensure that the existing contamination is not exacerbated as a due care plan. 

Let the experienced staff at Point Blue guide you through the BEA process as you move forward with your next investment.