Phase I

A Phase I Environmental Site Assessment (ESA) is a non-intrusive (usually no soil or groundwater samples are collected) assessment of the existing conditions, the historical use of the subject property, and the known sites of environmental concern in the vicinity of the subject property. The Phase I ESA generally includes a walkover to assess the current conditions, a review of various historical sources, a search of government databases of sites of known environmental concern, and interviews with various local and state government agency personnel. If sites of known environmental concern are identified in the vicinity of the subject property, a review of available environmental records for the identified sites may be appropriate.

Generally under the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), purchasers and lessees of environmentally contaminated properties were historically jointly and severely liable for the contamination associated with the property unless they performed “all appropriate inquiry into the previous ownership and uses of the property consistent with good commercial or customary practice” and had no reason to suspect the property was contaminated. The purpose of the Phase I ESA was to meet the “all appropriate inquiry” requirement of the CERCLA “innocent landowner” defense. Over time Phase I ESA’s have become a tool for the assessment of business risks associated with environmental contamination, as well as a tool for addressing potential CERCLA liability. BlackRock performs Phase I ESAs in accordance with the requirements of the ASTM Standard E1527-00 entitled “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process”.