Your first step in risk management and reduction

IMAGINE PURCHASING A SITE FOR $500,000, only to learn later, during construction, that hazardous materials have been discovered. That you are legally required to remove them before work may continue. And that the unanticipated cost will be $5 million. Or more.

These risks are real. There is no way of eliminating them, but the risks can be managed, by relying on a qualifi ed firm to perform an environmental site assessment, or Phase I assessment.

The American Society for Testing and Materials (ASTM) has developed a recommended method for performing Phase I assessments. ASTM Standard 1527-05 is an updated version of the original Phase I standard that incorporates new E.P.A. rules (All Appropriate Inquiry - AAI) into a broad-based performance standard that has gained widespread acceptance in the United States.

Rely on a qualified firm. The cost of cleaning up a polluted site can be immense and you may have to bear it all yourself. Conventional insurance will not ordinarily pay for cleanup because most policies exclude pollution coverage. Even with costly litigation, you may be unable to force prior owners to pay unless they have previously assumed the obligation in writing. Even the option of abandoning the site may be unavailable to you. The consultant serves as your professional advisor, to provide guidance and opinions based on analysis and judgment.

The technical aspects of a Phase I are usually pursued in stages with each step based on information obtained from the previous one. The initial stage of a Phase I usually comprises a historical review of the site.

Typical tasks associated with a historical review might include, among others:

• reviewing public documents to chronicle site ownership and land use for the past 30, 40 or more years;
• looking into the site's regulatory history regarding permits granted, citations issued, and reported incidents;
• determining prior uses of the site and those adjacent to it;
• reviewing available topographic and real estate maps, historic aerial photos, geologic information, and hydrologic data;
• reviewing readily available published information about surface and subsurface conditions; and
• interviewing public officials with respect to environmental concerns associated with the site.

Following the historical review, or in conjunction with it, your consultant will probably perform a site reconnaissance. This means "walking" the site, using any current maps, aerial photos, or development plans available. Particular concerns include ground stains, trash, landfills, depressions, and evidence of any below- grade tanks or other potential contaminant sources. Discussions with site personnel, former employees, and adjacent property owners can also be of value, particularly with respect to any chemical use, storage, treatment, or disposal practices, past or present. In cases where buildings, piping, or transformers exist on the site, site reconnaissance often is expanded at the client's request to consider the potential for asbestos or PCB contamination.

These risks are real. There is no way of eliminating them, but the risks can be managed, by relying on a qualified firm to perform an environmental site assessment,
or Phase I assessment.

Some clients direct their consultants to terminate a Phase I without Phase II sampling when histori cal review and site reconnaissance alone suggest that hazardous materials probably are not present. Other clients prefer additional review, as a general risk re- duction measure or when prior findings or professional judgment suggest the site may be "dirty."

Additional review can take a variety of forms. Many consultants proceed by collecting samples of subsurface materials for visual evaluation and laboratory analysis, steps that can be taken only after the client obtains the site owner's permission. If sampling or analysis indicate the presence of hazardous substances, the client is informed. Follow-up activity then might include additional subsurface sampling to help determine the source of contamination or contaminant migration paths. Qualitative and/or quantitative chemical testing also may be appropriate to evaluate the composition of the contaminants.

In those instances where the client believes some type of contaminant is present, the consultant usually is engaged to provide a comprehensive survey, including ground water analysis. This would be followed by a report of findings. In some of these cases, notification of public officials may be required. All parties affected by such disclosures should discuss the potential ramifications before deciding to engage in sampling or prior to selecting a particular sampling methodology. For this reason, among others, the best scope of service is the one that you and your consultant design together to satisfy your risk management objectives. Do not forgo involvement in development of the scope of service. You are the party who bears the risk.

Select a consultant with care. If you already are dealing with a good firm, stick with it. Otherwise, obtain referrals and ask firms to submit information about themselves, their experience and the programs they use internally to prevent losses and elevate quality. Contact people these firms have served to determine their satisfaction with the service they received. After meeting with several firms, identify the one with which you feel most comfortable and begin discussion of the work involved, the risks, and the services available. In that way you can formulate a contract and workscope that make your understandings clear, and help establish a client-consultant relationship based upon mutual understanding, respect, and trust.

Do not forgo involvement in development of the scope of services. You are the party who bears the risk.

To reduce your risks, incorporate a process into your selection/retention method that allows you and your consultant to develop the scope of service together and engage in a comprehensive discussion of the project. A selection/retention method that discourages shortcuts and other forms of cheap engineering can also reduce your risks.

For more information about our Phase I ESA services and how Pyramid Environmental can help you manage and reduce your risks, contact us at (866) 545-9507 or info@pyramidenvironmental.com.