

Archuleta County owns a former transportation maintenance facility in Pagosa Springs-- CBF is
helping the county to position the property for uses which may include visitor (tourist) parking for
downtown and possibly a commercial building pad for a bank or other business. Environmental
assessments will inform land use decisions and further cooperation between the county and city.
Why a Phase I Assessment?
Often, the first step in conducting environmental due diligence on a property is to perform a
Phase I Environmental Site Assessment (simply, a “Phase I”). A Phase I is a “non-intrusive,”
initial evaluation to determine the likelihood that a property may, or may not be, impacted by
environmental hazards. A property may be contaminated by activities that were conducted
on the property in the past (e.g., accidental spills or underground tank leaks) or by migration
of chemicals onto the property from nearby properties (e.g., groundwater plumes).
Phase I’s are typically done by qualified environmental consultants on behalf of buyers and
sellers to identify potential liabilities or lenders to help in their decision-making on whether to
loan money on the property. Environmental problems may impact the ability to finance,
develop, or sell the property, thus, it is important to conduct a Phase I prior to transferring a
property. Recent changes to law establish Phase I’s as vital in the defense against potential
regulatory liability and are essential to eliminating those liabilities in any transaction to buy
and sell.
Phase I’s are performed in accordance with accepted industry-wide guidance (currently,
ASTM Standard E1527, and soon U.S. EPA’s Guidance for All Appropriate Inquiry). Tasks
commonly associated with a Phase I include: 1) a review of publicly available historical land
use records for the property (e.g., title records, historical maps, or photographs), 2) a review
of public records for the property, 3) a walk-through of the property, and 4) interviews with
persons knowledgeable of current and past land uses (e.g., property owners and/or
tenants). Phase I’s do not include any invasive testing on the property such as soil drilling or
collection of samples. A written report is prepared that presents the findings of the Phase I,
and sometimes presents recommendations for further studies, if warranted. Phase I reports
typically are used only by parties involved with a property transaction, and are not usually
provided to environmental regulatory agencies.
(Article contributed by Paul Hoffey, Erler & Kalinowski, Inc. (720) 200-3150 or phoffey@ekiconsult.
com)