GENERAL SECTION

Standard Practice For
Environmental Site Assessments:
Transaction Screen Process

INTRODUCTION
The American Society for Testing and Materials (ASTM) Designation: E 1528-00 (transaction screen process) provides a method for conducting an environmental assessment other than the Phase I Environmental Site Assessment Process (ASTM E: 1527-00). Although the method is not as thorough as the more frequently used ASTM E: 1527-00, it still permits the user to satisfy one of the requirements of the innocent landowner defense to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in that it may provide “all appropriate inquiry into the previous ownership and uses of the property consistent with good commercial or customary practice” as defined in 42 USC 9601 (35) (B). The following types of parcels of real estate may be most appropriately assessed using this transaction screen process:

• Undeveloped woodland or grassland;
• Agricultural land with no outbuildings (i.e., pesticide/herbicide storage);
• Residential properties;
• Office or executive developments; and
• Newly developed properties with one of the above historical uses.

However, this process may be used on any transaction where deemed appropriate.

THE METHODS
The transaction screen process is similar to the more thorough Phase I Environmental Site Assessment Process in several ways. Both of the methods require a government agency database review of the property, a site reconnaissance, an interview of the property owner, and a report of findings to summarize any potential recognized environmental conditions, or lack thereof, associated with the property. However, the scope of historical assessment required for the transaction screen process is less than for a standard Phase I. The transaction screen process allows the user and the environmental professional to conclude that no further inquiry is needed to assess potential recognized environmental conditions without being obligated to research the property back to 1940, or the time at which the property was first developed. In general, the scope of work/tasks required for transaction screen are slightly less than the Phase I ESA. If concerns are identified, however, the transaction screen process also allows the user and the environmental professional to conclude that additional inquiry is needed at the Phase I Environmental Site Assessment Level, or Phase II (investigation).

SUMMARY
If a parcel of real estate is suspected to be free of recognized environmental conditions as defined in ASTM E: 1527-00 and ASTM E: 1528-00 the costs and level of scrutiny that are typically associated with the Phase I Environmental Site Assessment process may not be necessary to define potential risks and liabilities associated with environmental matters.

If you are involved in property transactions that may not need the level of scrutiny that a Phase I Environmental Site Assessment would require, and wish to discuss this method further, please contact Adam Edrington or Don Fay at
(513) 489-2255 or toll free at (800) 229-1443 or by e-mail at ace@paynefirm.com or daf@paynefirm.com, respectively.