Solutions by Industry
As a real estate agent or broker, you have many obligations to your clients. One of those obligations is to ensure that a recognized environmental condition (REC) is not present before your client buys and assumes responsibility for a property. That is why a Phase I environmental site assessment (ESA) is an absolute necessity when purchasing commercial property. The purpose of the Phase I ESA is to determine whether or not there is any evidence of an REC which poses the threat of an environmental liability. This is important since your clients may be paying the cost of cleanup, not just for their property but also for any other contamination that may have originated on their property.
Many times, environmental firms delegate Phase I ESAs to less experienced staff who may be freshly out of college or new to the industry. As a result, these Phase I ESAs might be grossly inadequate in both content and scope! While you may think you are doing your due diligence by having a Phase I ESA, if the assessment is not done properly, the risk and liability associated with any unfound RECs remains and may cause even bigger headaches. That won’t happen with Terra. Our Phase I studies are completed by staff members that have been doing this kind of work for decades, not months. Why pay good money for inferior work that will later be scrutinized by high-paid attorneys?
The purpose of conducting a Phase I Environmental Site Assessment (ESA) prior to the purchase of a commercial property is to identify the presence of a Recognized Environmental Condition (REC). Terra helps you manage the risk and uncertainty of being a lender on a property, taking the burden off you and making sure your interests are protected. A responsible lender should not make a commercial loan without determining that there are no indications of a REC on the property. A buyer who borrows money to purchase a property that turns out to be contaminated may not be able to repay their loan due to the costs incurred in fines or cleanup.
A Phase I ESA is the industry standard to evaluate whether a property is free of RECs. A lender needs to be sure that any business conducted on the property did not carry with it an environmental liability. If a lender has to take possession of a site with a REC due to foreclosure of a mortgage or for any other reason, they may find that the property is worth very little or that the cost of a cleanup exceeds the property’s value. The US EPA requires a Phase I ESA be conducted as part of your due diligence in order to qualify for the innocent land owner defense. Terra’s Phase I ESAs meet the requirements of ASTM E1527.
Terra Environmental Corporation’s experienced staff has addressed a variety of environmental claims and has the experience and the knowledge to assist you and your legal counsel in resolving your environmental claim. Our extensive experience and knowledge allows us to properly assess the situation and determine potential solutions, and their estimated cost and expected results. Our experience with insurance claims enables us to accurately evaluate whether you are paying too much for a site investigation or remediation. Furthermore, we can oversee an acceptable plan for obtaining the necessary No Further Action (NFA) status.
- Assisting in determining whether there is a liability
- Technical cost proposal review
- Usual and customary charges review
- Projecting expenses for loss reserves
- Subrogation support and file examinations
- Remedial contractor oversight
The experts at Terra can provide expert testimony on technical environmental issues to support coverage and defense litigation. We have conducted and participated in numerous environmental investigations related to lawsuits and litigation support. Our extensive experience in the environmental field provides us with the ability to provide expert testimony and litigation support and to conduct environmental assessments as well as peer reviews that can be important to understanding environmental issues. We are able to translate highly technical, scientific information into real and practical terms, interpret technical information to assist attorneys in providing the best legal advice, and provide direction on pursuing or settling litigation issues associated with environmental claims. Terra has assisted both plaintiffs and defendants in furthering their positions.
Terra Environmental Corporation has the professional expertise to help manage a wide variety of environmental claims facing insurance carriers. Terra provides insurance carriers the technical expertise to quickly, economically, and accurately evaluate environmental claims. Our environmental consulting experts will assist in the adjustment process and can provide information to assess the appropriate payment of related and reasonable costs. Additionally, Terra’s experts can provide expert testimony on technical environmental issues to support coverage and defense litigation.
- Coordination of Phase I, II, and III site assessments
- Site investigations
- Projecting expenses for loss reserves
- Review of remediation on site
- Environmental claims management
- Remediation cost control
- Liability estimates, including:
- Cleanup costs
- Remediation and restoration analysis
Long-term site pollution liability policies offered by some insurance companies may require ongoing loss control services to identify and address potential pollution conditions. Terra’s technical experts stand ready to investigate and advise the best course of action in situations that threaten to develop into a pollution incident or potential claim. We can train loss control personnel on how to detect Recognized Environmental Conditions (RECs), assist with developing spill control prevention or action plans, and identify what documentation needs to be completed to ensure your insured is in compliance.
Terra’s professional staff has extensive experience in conducting management, assessment, and remediation of petroleum sites.
Our staff can efficiently identify the presence, source, and extent of an existing or potential petroleum impact. We will then develop an action plan that will place you on the path to No Further Action (NFA) status. NFA status is essential to proceed with real estate transactions, redevelopment, or bank loans for a property that has petroleum or petro-chemical facilities.
Terra will be direct in our assessment of your property, making sure you know what you need to know. We will work with you to identify whether there are potential sources of funding within your state or insurance coverage that could assist with the cost of a cleanup.