Phase I Environmental Site Assessment (ESA)
A Phase I environmental site assessment (Phase I ESA) is a study of a property and its surroundings that identifies actual or potential environmental contamination before you buy, lease or lend against it. CMG Engineering Services Corporation completes Phase I ESAs across British Columbia, Alberta and Ontario, and we are registered with AESAC, the Association for Environmental Site Assessors of Canada.
Why a Phase I ESA matters
Contamination becomes the owner's problem. Soil polluted by fuel (for example BTEX compounds from gasoline), buried tanks, industrial chemicals or contamination migrating from a neighbouring site can be extremely expensive to deal with when it is time to obtain building permits, refinance or sell. Regulators can order a clean-up, and contamination that has moved off-site or into tenant areas can lead to civil liability. A Phase I ESA is the standard way to find these risks before the transaction closes.
Who needs one
- Buyers of commercial, industrial and multi-family land and buildings
- Lenders - most banks and credit unions require a Phase I ESA for commercial loans
- Tenants and landlords on industrial or commercial leases
- Business purchasers taking over a property-based operation
- Developers planning new residential or mixed-use projects on former commercial land
How we carry out a Phase I ESA
We follow the CSA Z768-01 standard for Phase I environmental site assessment in Canada. The assessment has four parts:
- Records review - historical aerial photographs, fire insurance plans, city directories, regulatory databases, spill and tank records, and any previous environmental reports for the site.
- Site visit - a walk-through of the property and observation of neighbouring land uses, looking for tanks, staining, stressed vegetation, waste storage and other signs of contamination.
- Interviews - with owners, occupants and, where useful, regulators who know the site's history.
- Report - findings, conclusions and a clear statement on whether further investigation is recommended.
No samples are taken in a Phase I. If the assessment identifies an area of potential environmental concern, the next step is a Phase II ESA with soil or groundwater sampling.
What we need to quote
Send us the site address and legal description, your billing address, and any previous ESA reports for the property. Previous reports can shorten the work and reduce the cost.
Cost and timing
A typical Phase I ESA costs $3,000 - $4,000, depending on the size of the site, its history and how many records need to be reviewed. We carry the insurance required by lending institutions. A Phase I ESA can be completed during the same site visit as a building condition assessment when you need both for a purchase or financing.
To get an estimate, contact CMG with the property address, the property type and your timeline. We normally reply within one business day.
Frequently asked questions
Does a Phase I ESA include soil testing?
No. A Phase I ESA is a records review, site visit and interviews. Soil, groundwater or soil vapour sampling is carried out in a Phase II ESA if the Phase I finds a potential concern.
Which standard do you follow for a Phase I ESA?
CSA Z768-01, the Canadian standard for Phase I environmental site assessment. We are registered with AESAC.
How much does a Phase I ESA cost?
A typical Phase I ESA costs $3,000 to $4,000, depending on the site size, history and records available.