So you think you need a Phase I?

 

Due Diligence and the Process -

Contributed by Gene Joanen, CEO & Senior Scientist, Balance Consulting, Inc.

With 38 years of hands-on experience as an environmental scientist and program manager, I’ve seen how critical environmental site assessments (ESAs) are to smart decision-making. Whether you’re buying land, redeveloping a property, or launching a construction project, an ESA isn’t just a box to check—it’s your roadmap to understanding what’s beneath the surface. At Balance Consulting, Inc. (BCI), we’ve guided clients worldwide through this process, from oilfields in Iraq to coastal ports in Senegal, and right here in New Orleans, where I served as State Commissioner for SELFPA-East.

What’s a Phase I?

An ESA is a practical investigation to uncover potential environmental risks tied to a property. It’s split into three key stages: Phase I, Phase II, and Remedial Investigation and Planning. Think of it as a tool to manage liability, not just a regulatory hoop to jump through. It’s about knowing what you’re dealing with—whether it’s contaminated soil, groundwater issues, or something else—so you can weigh the risks and move forward with confidence.

A Phase I Environmental Site Assessment (ESA) is a non-invasive investigation that identifies potential environmental risks on a property by reviewing its history, regulatory records, and current condition, while All Appropriate Inquiries (AAI) is a federal standard under CERCLA that ensures a thorough Phase I process to qualify for liability protections. These tools are invaluable for real estate transactions, audits, mergers, and insurance underwriting, helping buyers, sellers, and investors assess risks, secure financing, or negotiate terms. However, Phase I ESAs and AAI aren’t one-size-fits-all—they can be tailored to focus on specific concerns like industrial pasts or future redevelopment plans, varying in scope based on client needs. They’re a snapshot of one moment, not a full picture, and they do not include hidden or future issues. Competent reviews look beyond the report, weighing past uses, current activities, and potential future risks to provide a fuller understanding.

What it is not: 

A Phase I Environmental Site Assessment (ESA) and All Appropriate Inquiries (AAI) are distinct from National Environmental Policy Act (NEPA) studies and Property Condition Assessments (PCAs), serving different purposes in the due diligence landscape. A Phase I ESA and AAI target potential environmental contamination risks—think soil or groundwater issues tied to a site’s history—offering a tailored snapshot for transactions, audits, mergers, or insurance, though they don’t capture everything and require past, present, and future use analysis. In contrast, NEPA studies are broader, federally mandated environmental reviews for projects involving government action, assessing impacts on ecosystems, air quality, and communities to ensure sustainable decision-making. PCAs, meanwhile, zero in on a property’s physical state—evaluating structural integrity, mechanical systems, and maintenance needs—without touching environmental concerns. At Balance Consulting, Inc., we’ve got you covered across the board: with 38 years of expertise, we deliver customized Phase I ESAs, NEPA studies for regulatory compliance, and PCAs to keep your property’s condition in check, all under one roof.

Phase I: The First Look

We start with a Phase I ESA, a non-invasive deep dive into the property’s past and present. I’ve led countless Phase I projects, from abandoned industrial sites to active oil and gas facilities. Here’s what we do:

• Dig into History: We scour old records, aerial photos, and maps. Was it a gas station? A factory? That’s where risks often hide.
• Check the Paper Trail: We review environmental databases—not to appease regulators, but to spot red flags that could affect your bottom line.
• Walk the Site: I’ve personally inspected sites globally, looking for telltale signs like stained soil or odd smells.
• Talk to People: Owners, tenants, and managers often know things records don’t show.

The goal? Spot Recognized Environmental Conditions (RECs)—hints of trouble. If it’s clean, you might stop here. If not, we roll up our sleeves for Phase II.

Phase II: Getting Dirty

When Phase I raises concerns, Phase II gets specific. This is where my team at BCI—backed by my experience as a drone pilot and groundwater specialist—takes samples to confirm what’s there. We’ve tackled everything from heavy metals at old manufacturing sites to PCE from former dry cleaners. Here’s the drill:

• Soil Testing: We dig in to check for hydrocarbons, metals, or pesticides.
• Groundwater Sampling: With my Louisiana contractor’s license in groundwater monitoring, I’ve overseen wells that reveal what’s leaching below.
• Air Checks: If vapors are a risk, we test that too—especially for buildings over tainted ground.

Phase II gives you hard data and is intrusive in nature: Is there contamination? How bad is it? That’s the foundation for deciding what’s an acceptable risk—or what needs fixing.

Remedial Investigation and Planning: Fixing What’s Broken

If Phase II confirms trouble, we shift to Remedial Investigation. I’ve led these efforts on National Priority List sites and Formerly Used Defense Sites, mapping out contamination and assessing its impact. We figure out:

• How Far It Spreads: Horizontally, vertically—where’s it going?
• What Caused It: Knowing the source guides the fix.
• What’s the Risk: To people, to the environment, to your project.

Then we craft a Remediation Plan. I’ve designed solutions like soil excavation, groundwater treatment systems, and vapor barriers—practical fixes that work. We monitor the process, document it, and get you to closure. It’s not about regulatory gold stars; it’s about making the site usable and insurable.

Why ESAs Matter

Here’s the common-sense take:

• Risk You Can Handle: An ESA flags liabilities early. You can negotiate cleanup costs or walk away before you’re stuck. I’ve seen it save clients millions.
• Insurance Over Regs: Banks and investors care about risk, not just compliance certificates. My work with specialty risk insurance—like integrating drone data for disaster claims—gives them confidence.
• Practical Protection: Contamination isn’t just a legal issue—it’s a health and value issue. Fix it right, and you’re covered.
• Boosting Value: A site with a clean slate (or a managed one) sells better. I’ve seen it firsthand with port and rail projects.

A Real-World Example

Picture this: You’re eyeing an old industrial lot for a mixed-use development. A Phase I finds it housed radiation storage decades ago. Phase II—confirms a limited area of impact with radionuclides in the soil. We remediate it, document it, and now you’ve got a site that’s safe, marketable, and insurable. That’s how BCI turns risks into opportunities.

We do the remediation too.

Turnkey Expertise You Can Trust

BCI Remediation Group, part of Balance Consulting Inc., brings years of know-how to environmental cleanup. From soil and groundwater to waste and marine challenges, we handle it all—anywhere from the Gulf Coast to global sites. Licensed across multiple states and equipped for turnkey projects, we’re the partner you need to get the job done right. Contact us at contact@balanceconsultinginc.com or visit www.balanceconsultinginc.com.

Diverse Solutions, One Team
Need a remediation crew that can do it all? BCI Remediation Group excels in turnkey environmental projects—soil, water, waste, you name it. With 38 years of experience spanning oil and gas, mining, and industrial sectors, we blend cutting-edge tech with a worldwide reach. Based in Folsom, LA, we’re ready 24/7. Call 866-278-5321 or check us out at www.balanceconsultinginc.com.

Your Cleanup, Our Commitment
BCI Remediation Group turns complex cleanups into seamless solutions. With nearly four decades tackling groundwater, soil, and industrial waste across the Gulf and beyond, we’re built for turnkey success. Safety, expertise, and a global perspective—that’s what we bring to every project. Reach us at 985-327-9645 or www.balanceconsultinginc.com.

Why Trust BCI?

This isn’t textbook stuff—it’s what I’ve lived for nearly four decades. From designing mobile labs for Chevron to pioneering alligator nesting algorithms with drones, I bring real-world know-how. My team and I don’t just assess; we solve—drawing on my ASTM voting roles, Louisiana contractor licenses, and global project experience.

Let’s Talk About Your Project

If you’re facing a land deal, redevelopment, or construction, reach out to me at gene@balanceconsultinginc.com. At BCI, we tailor ESAs to your needs—Phase I through remediation—focusing on practical outcomes, not regulatory checklists. With my background in disaster response (think post-storm drone fleets) and environmental tech, we’ll help you manage risks, secure insurance, and keep banks and investors happy.

An ESA isn’t just due diligence—it’s your edge. Let’s make sure your next move is a smart one.