The Phase 1 ESA is a historical review of a property. Consultants check old aerial photos, fire insurance maps (Sanborn maps), and government databases to see if the site was ever a gas station, a dry cleaner, or a factory.
The Alphabet Soup of Findings
The report will conclude with one of three findings:
- REC (Recognized Environmental Condition): The smoking gun. Evidence of a past release of hazardous substances. This triggers a Phase 2.
- HREC (Historical REC): A past release that was cleaned up to the standards of the time. Usually safe, but needs verification.
- CREC (Controlled REC): Contamination remains, but it is managed with engineering controls (like a cap) and a deed notice.
The Phase 2 Investigation
If the Phase 1 finds a REC, you must go to Phase 2. This involves actual soil and groundwater sampling. Drill rigs come to the site, punch holes, and send dirt to a lab. This is where you find out if the problem is a $10,000 tank pull or a $2 million remediation.
LSRP (Licensed Site Remediation Professional)
In NJ, cleanups are overseen by private LSRPs, not the DEP directly. This privatized system has sped up the process, but it puts a lot of power (and liability) in the hands of your consultant. Choose wisely.
Conclusion
Environmental liability is "joint and several" and "strict." That means if you buy it, you own the cleanup, even if you didn't cause the spill. Never close without a clean Phase 1 (or a quantified cleanup plan).