Know what you're
buying into.

A Phase I ESA is the standard starting point for environmental due diligence. It's a non-intrusive investigation — meaning no sampling of soil, groundwater, or other environmental media — that evaluates the historical and current use of a property to identify Recognized Environmental Conditions (RECs).

The Scope of Work includes a site visit, interviews with current and former owners and occupants, and a thorough desktop review of historical resources and regulatory databases. Each potential environmental concern is evaluated to determine whether past or present activities may have impacted the site or surrounding area.

All Phase I ESAs are prepared by an Environmental Professional in accordance with ASTM E1527-21 — the current standard for All Appropriate Inquiries (AAI) under CERCLA. This is the standard required by most lenders, federal funding sources, and regulatory agencies.

When a Phase I ESA identifies Recognized Environmental Conditions, a Phase II ESA may be recommended to evaluate whether contamination is present. Unlike a Phase I, a Phase II is an intrusive investigation — soil, groundwater, or in some cases soil gas samples are collected and submitted to a laboratory for analysis.

The Scope of Work for a Phase II is variable and is structured around the specific REC or RECs identified in the Phase I. Depending on site conditions, ground penetrating radar, utility clearance, or subsurface drilling may be required. Laboratory results are compared against applicable Michigan NREPA Part 201 and Part 213 criteria to help evaluate whether additional action or documentation is needed.

Phase II ESAs are conducted in general accordance with ASTM E1903-19. Findings are summarized in a clear, defensible report that can be used by your project team, lender, counsel, or regulatory stakeholders to evaluate next steps.

Under Michigan law, it is possible to purchase, lease, or foreclose on a contaminated property and remain protected from cleanup responsibility for existing contamination — provided you take the right steps at the right time.

A Baseline Environmental Assessment (BEA) summarizes the results of your All Appropriate Inquiry into the property — including the Phase I ESA and, where applicable, the Phase II ESA. A BEA is time-sensitive: in Michigan, it generally must be completed within 45 days after becoming the owner or operator and disclosed to the Michigan Department of Environment, Great Lakes, and Energy (EGLE) within six months to support liability protection.

Skipping or delaying a BEA can eliminate the liability protection that makes an otherwise difficult transaction viable. We scope BEAs early and move quickly when closing timelines are compressed.

A BEA can help protect against liability for existing contamination — but it does not end the story. Owners and operators of contaminated properties have ongoing "Due Care" obligations under Michigan law. These obligations relate to the safe operation and use of the property and include:

• Prevent exacerbation (worsening) of existing contamination
• Take reasonable precautions against foreseeable third-party acts or omissions
• Prevent unacceptable human exposure and mitigate fire or explosion hazards
• Provide required notifications to EGLE and affected parties
• Cooperate with authorized response activity personnel
• Comply with applicable land use and resource use restrictions

Documentation of Due Care Compliance summarizes the Due Care evaluation and documents response actions or exposure controls, where needed. It provides a practical record for regulators, future purchasers, lenders, and counsel.

Scope and timeline vary by site. We work with property owners and operators to develop practical, cost-effective strategies for evaluating and maintaining Due Care compliance over time.