Environmental Audit Standards Lender requires an acceptable Phase I Environmental Audit Report, directed to Lender and historical in nature, which is to be prepared in accordance with the standards set forth below, the Final All Appropriate Inquiries (AAI) Rule (40CFR Part 312) and ASTM 1527-13 Standard for Environmental Site Assessments. The report is to be submitted as follows: On CD ROM In duplicate Accompanied by a hard copy of the consulting firm s statement that (1) the report is for the benefit of Lender, (2) has been prepared in accordance with applicable, generally accepted consulting practices and (3) bearing the original signature of the consulting firm. Accompanied by evidence of the firm s Errors and Omissions insurance coverage acceptable to Lender in form and content and written by a Lender acceptable company. 1. Site History - A synopsis of all obvious uses of the property from the present back to the properties obvious first developed use, or back to 1940, whichever is earlier. 2. Aerial Photos - Photos to be obtained and reviewed. This review should begin with the oldest available photos of the site and sequence to the present. 3. Topographical Map - Historical and present topography of the site should be compared to ascertain the presence of any present or former ravines, fill areas, landfilling, etc. 4. Regulatory Activity - Records shall be searched and the proper governmental agencies contacted to ascertain any present or former regulatory actions or activities associated with the audit site and the surrounding properties, i.e. UST Registration, hazardous waste activities, etc. In addition, any Super-fund or NPL site within a two mile radius should be identified. 5. Local Official Inquiry - Local city/county officials such as fire department officials, County Hazardous Emergency Department Response officials, etc., are to be contacted to determine any current and past uses and if any record exists of any hazardous operation, leaks, spills, or fires on or adjacent to the property. 6. Site Reconnaissance - A physical inspection is to be made. The summary report should note any facts or set of facts which would give rise to an environmental problem including noting obvious signs of surface contamination and above ground storage of toxic or hazardous materials (vapor intrusion, radon, mold, etc.). Also, a survey of adjacent properties is to be made to determine if any off site activity may have, or is
currently having, an adverse environmental impact upon the site. Included in the site reconnaissance shall be an inspection of the improvements situated on the site. A visual inspection, record search, and, if necessary, tests are to be performed to ascertain the presence of any hazardous materials used in construction of the improvements (i.e. asbestos, lead-based paint, mold, etc.) and to ascertain the presence of any hazardous materials in use by any occupiers of the improvements. If any occupiers use or store toxic or hazardous materials on the premises, a determination is to be made that their use, storage, and disposal conforms to all governmental regulations including a determination that all required permits have been obtained and are in force. 7. Utility Services - To include reference to any electrical transformers, switch gears, capacitors, etc. on the site and an indication of ownership and any possible PCB presence. 8. Database Statement - There is to be a statement included as to which national database service was used, if any. If a service was used, there should be a statement included as to when there was last any verification activity done by the firm conducting the audit to ascertain the validity of the information obtained from said service. 9. Summary - Report - A summary report is to be prepared including all findings, pertinent conclusions and any recommendations deemed necessary. Any recommendation for additional testing (Phase II Assessments, i.e., Asbestos Containing Materials, Lead-Based Paint, mold) should clearly indicate reasons for said recommendation and associated costs. An appendix shall include relevant documentation of the work done such as letters from governmental agencies or utilities, photocopies of aerial photographs, topographical maps, etc. as well as original photographs of anything noted within the report. If, at any point in the investigation, a cause for concern is established, then, at its option, the investigative entity might wish to issue a draft report for review. The above standards are meant to set forth minimum guidelines only and should not be assumed to be a directive to do only those things included therein; however, it is recommended that the consulting firm use the Recommended Table of Contents and Report Format presented in Appendix X4 of ASTM E1527-13 Standard. Additionally, the consulting firm should follow the guidelines and provide the information outlined for all appropriate inquiries as presented in Appendix X3. User Questionnaire of ASTM E1527-13 Standard. The following is the checklist which will be used by Lender s environmental consultant to review the environmental report and is attached here for informational purposes only. 01/27/2014
HAZCLEAN ENVIRONMENTAL CONSULTANTS, INC. 160 Upton Drive P. O. Box 16485 Jackson, Mississippi 39236-6485 Phone: (601) 922-0766 Fax: (601) 922-7927 Web Site: http://www.hazclean.com E-Mail: info@hazclean.com Phase I Environmental Site Assessment Review Summary Study Site: Location: Consultant: Telephone: Email: Report Reference No.: Report Reviewer: Facsimile: Website: Based on the ASTM Standard E 1527-13, for conducting a Phase I Environmental Site Assessment this report is: Accepted Rejected Environmental Concerns MAJOR MINOR NONE Business Concerns Report Concerns MAJOR MAJOR MINOR NONE MINOR NONE Definitions for the concerns can be found on Page 8. Hazclean Environmental Consultants, Inc. Page 1
FINDINGS: HAZCLEAN discussion to be inserted here. The following checklist indicates information located in the ASTM Standard E 1527-13 format for conducting a Phase I ESA. HAZCLEAN concurs with the findings of the report, but reserves the right to modify our opinion based on additional information that may be presented at a later date. Hazclean Environmental Consultants, Inc. Page 2
HAZCLEAN ENVIRONMENTAL CONSULTANTS, INC. REPORT REVIEW INSPECTION CHECKLIST Study Site: Report Ref No.: Location: 1 INTRODUCTION Purpose Scope of Services Significant Assumptions REPORT REVIEW CHECKLIST ITEMS Limitations and Exceptions Special Terms and Conditions User Reliance 2 SITE DESCRIPTION Location and Legal Description Site and Vicinity General Characteristics Current Use of Property Structures, Roads, Other Improvements Use of Adjoining Properties 3 USER PROVIDED INFORMATION Title Records Environmental Liens or Activity and Use Limitations Specialized Knowledge Report Reviewer: Commonly Known or Reasonable Ascertainable Information Valuation Reduction Owner, Property Manager, Occupant Information Reason for Phase I Note 1: Yes indicates that the specified ASTM Standard E 1527-13 topic has been performed or reviewed in the Phase 1 Environmental Site Assessment Report. No indicates that the specified ASTM Standard E 1527-13 topic has not been performed or reviewed in the Phase 1 Environmental Site Assessment Report. Reference: ASTM Standard E 1527-13 Tasks Performed or Reviewed 1. Yes No Hazclean Environmental Consultants, Inc. Page 3
4 RECORDS REVIEW REPORT REVIEW CHECKLIST ITEMS 4.1 Standard Environmental Record Sources F E D E R A L S T A T E L O C A L Federal NPL Site List Federal CERCLIS List Federal RCRA TSD Facilities List Federal RCRA Generators List Federal ERNS List Additional Regulatory File and Records Review 2 State List of Hazardous Waste Sites State Landfill and/or Solid Waste Disposal Site List State Leaking UST Lists State Registered UST Lists Additional Regulatory File and Records Review 2 Department of Health/Environmental Division Fire Department Planning Department Building Permit/Inspection Department Local/Regional Pollution Control Agency Local/Regional Water Quality Agency Local Electric Utility Companies (PCB Records) Additional Regulatory File and Records Review 2 Tasks Performed or Reviewed 1. Yes No Note 2: Additional Regulatory File and Records Review ASTM 1527-13 Section 8.2.2 If the target property or any adjoining property is identified in government records search, pertinent regulatory files and/or records associated with the listing should be reviewed. If, in the Environmental Professional s opinion, such a review is not warranted, the EP must provide justification in the Phase I report. EPs may review files/records from alternative sources such as on-site records, user-provided records, records from local government agencies, interviews with regulatory officials, etc. A summary of information obtained from the file review shall be included in the Phase I report. Hazclean Environmental Consultants, Inc. Page 4
REPORT REVIEW CHECKLIST ITEMS 4 RECORDS REVIEW (Continued) 4.2 Physical Settings USGS Current 7.5 Minute Topographic Map (Mandatory) USGS and/or State Geological Survey - Groundwater Maps USGS and/or State Geological Survey - Bedrock Geology Maps USGS and/or State Geological Survey - Surficial Geology Maps Soil Conservation Service - Soil Maps Other Physical Settings 4.3 Historical Property Use Historical Uses of the Property Historical Uses of Properties in Surrounding Areas Zoning Building Department Records Sanborn Maps Property Tax Files City Directories Fire Insurance Maps Historical Topographic Maps Aerial Photographs Other: FEMA Flood Insurance Maps Tasks Performed or Reviewed 1. Yes No 5 SITE RECONNAISSANCE 5.1 Exterior Property Observations Discolored or Disturbed Soil Areas Areas of Sparse or Dead Vegetation Discolored or Polluted Surface Water Stained Concrete or Asphalt Unusual or Noxious Odors Seeps or Springs Stormwater Discharge/Outfalls Hazclean Environmental Consultants, Inc. Page 5
REPORT REVIEW CHECKLIST ITEMS 5 SITE RECONNAISSANCE (Continued) Tasks Performed or Reviewed 1. Yes No 5.1 Exterior Property Observations (Continued) Wastewater Discharge/Outfalls Surface Impoundments, Ponds or Pits Sumps/Septic Systems Manholes or Drains Groundwater Monitoring Wells Water Wells Aboveground Storage Tanks Underground Storage Tanks Pipes or Vents Sticking Out of Ground Oil or Gas Wells Drums or Drum Storage Areas or Other Suspected Containers Mines, Quarries, or Sand/Gravel Pits Fresh Fill Dirt New Cement or Asphalt Patches 5.2 Interior Property Observations Maintenance Repair Shop Boiler Room Chemical Storage 6 INTERVIEWS Current or Past Property Owners Site Manager or Property Representative Occupants Local Government Officials Others (i.e. Adjacent Property Owners) Hazclean Environmental Consultants, Inc. Page 6
REPORT REVIEW CHECKLIST ITEMS 7 NON-SCOPE ISSUES Asbestos Radon Lead-Based Paint Wetlands Mold 8 EVALUATION AND FINAL REPORT Findings Opinion Conclusions Deviations Data Gap References Environmental Professional Qualifications 9 APPENDICES Site Map Photographs Historical Research Documents Regulatory Records Tasks Performed or Reviewed 1. Yes No Hazclean Environmental Consultants, Inc. Page 7
Definitions Environmental Concerns are defined by the ASTM1527-13 as: Recognized Environmental Conditions (RECs) - the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate an existing release, past release, or a material threat of a release of any hazardous substances or petroleum products into structures on the property or into the ground, ground water, or surface water on the property. Historic Recognized Environmental Concerns (HRECs) a past release of any hazardous substances or petroleum products that has occurred in connection with the property and has been addressed to the satisfaction of the applicable regulatory authority or meeting unrestricted use criteria established by a regulatory authority, without subjecting the property to any required controls (e.g. property use restrictions, AULs, institutional controls, or engineering controls). Before calling the past release an HREC, the EP must determine whether the past release is a REC at the time the Phase I ESA is conducted (e.g., if there has been a change in the regulatory criteria). Controlled Recognized Environmental Condition (CREC) a REC resulting from a past release of hazardous substances or petroleum products that has been addressed to the satisfaction of the applicable regulatory authority (e.g., as evidenced by the issuance of a NFA letter or equivalent, or meeting risk-based criteria established by regulatory authority), with hazardous substances or petroleum products allowed to remain in place subject to the implementation of required controls (e.g., property use restriction, AULs, institutional controls, or engineering controls) a CREC shall be listed in the Findings Section of the Phase I ESA report, and as a REC in the Conclusions Section of the report. Business Concerns are defined by ASTM-13 Subsection 3.2.11: business environmental risk - a risk which can have material environmental or environmentally-driven impact on the business associated with the current or planned use of a parcel or commercial real estate, not necessarily limited to those environmental issues required to be investigated in this practice. Consideration of business environmental risk issues may involve addressing one or more non-scope considerations Report Concerns are report format deviations or content omissions from the ASTM Standard E 1527-13. Hazclean Environmental Consultants, Inc. Page 8