Pub. 15 2018 Issue 4

16 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S screened. The TSQ contains roughly 40 questions such as “is the property used for an industrial use?” and “are there currently any pits, ponds or lagoons located on the prop- erty?” which help to identify any potential environmental concerns onsite. The second component of the TSQ is done after reviewing standard environmental databases maintained by federal, state, and tribal offices. The databases contain information about the subject property and properties within a one-mile radius of the subject property. Properties that have been iden- tified as having environmental contamination will be listed in these databases, as will properties that are registered with the state (such as UST sites and hazardous waste generators) that have not reported any contamination. This helps to identify past environmental concerns offsite that might not be obvious given the present status of the site, as well as concerns related to surrounding properties. The second component of the TSQ which requires a review of databases is often split from the first component of the TSQ, and is considered a second or “higher” level of environmental due diligence. If a TSQ and/or database review indicates potential envi- ronmental concerns, the next step is generally to have a Phase I ESA conducted onsite by an environmental professional. A Phase I ESA includes a physical inspection of the site, interviews with the property owner and other appropriate individuals, a review of standard environmental databases maintained by federal, state and tribal offices within one mile of the subject property, and a history of the property back to 1940 or first developed use. A Phase I ESA includes a wealth of information on the property and usually includes a site map, site photographs, aerial photographs, historic Sanborn fire insurance maps, and a flood zone map. The typical cost of a Phase I ESA starts around $2,000 and a typical turnaround time is 2-4 weeks. Should your Phase I ESA reveal suspected environmen- tal contamination onsite, the ESA may recommend Phase II testing. A “Phase II” is a custom-tailored environmental site assessment that includes laboratory testing of samples of soil and/or groundwater taken from the property. The scope of a Phase II is determined by the findings and recommendations of a Phase I ESA. The costs of Phase II testing vary greatly, but are commonly between $1,000 and $10,000. A typical turnaround time on Phase II Soil and Groundwater testing is 2-3 weeks. Should your Phase II testing reveal environmental contam- ination above acceptable limits, “Phase III” remediation will likely be required. A Phase III is a remediation plan generally created by an environmental professional and approved by a federal or state governmental agency (depending on the type of contamination). The costs associated with Phase II remedi- ation ranges from tens of thousands to millions of dollars, and the length of time required for Phase III remediation is deter- mined by the extent of the contamination onsite. Remediation projects may range from months to years. n 1 Environmental risk polices often exempt 1-4 family residential properties from environmental screening because of the low risk. Properties that have been identified as having environmental contamination will be listed in these databases, as will properties that are registered with the state (such as UST sites and hazardous waste generators) that have not reported any contamination. n Environmental Risk continued from page 15