Tailored Assessments – Due Diligence

There are many different types of “custom scope” assessments that may be conducted to assess potential environmental risks associated with a property. The specific type of assessment that is needed will depend on client needs, the specific objectives of the assessment, timing, cost considerations, and the available resources.

What are examples of these reports?

Pinnacle offers several types of limited assessments and can customize a scope of work to fit your needs. Examples of these scopes include:

1. 1. Database Summary Letter (DSL): An environmental Database Summary Letter is a brief report that summarizes the results of a desktop review of environmental databases, such as state or federal databases, to identify potential environmental risks and liabilities associated with a property or site.
   2. Historical Environmental Review (HER): An environmental Historical Environmental Review is a desktop review of environmental databases, and a limited review of historical information, such as maps, photographs, and public records, to identify potential environmental risks and liabilities associated with a property or site.
   3. Records Search and Risk Assessment (RSRA): An environmental Records Search and Risk Assessment is a desktop review without a site visit often used in SBA loans for loans that fit certain dollar thresholds and uses (sorted by NAICS code). RSRAs include a review of environmental records, and a limited review of historical information, such as maps, photographs, and public records. Data is reviewed to assess relative potential environmental risks that may be associated with a property.
   4. Third Party Review: Legal and lending clients are often provided with environmental reports prepared by a private party (e.g., seller). The Pinnacle Environmental team has the experience and expertise to review and assess the data, conclusions and recommendations of those reports relative to our Client’s needs. 

What environmental concerns are being evaluated?

Database Summary Letter, Historical Environmental Review, and Records Search and Risk Assessment are typically ordered instead of a Phase I ESA or an Environmental Transaction Screen (ETS) when a more detailed assessment is not required or when the scope of the assessment is limited to desktop research only. These types of assessments do not require a site reconnaissance and are generally less expensive, and require less time than a Phase I ESA or ETS. They can provide valuable information about potential environmental risks and liabilities associated with a property or site. However, they may not be sufficient to satisfy all due diligence requirements, and additional on-site investigation may be required depending on the findings of the desktop review.

What environmental concerns are being evaluated?

Limited assessments are designed to identify potential environmental risks and liabilities associated with a property or site via targeted research and without a site visit. The specific types of risks and liabilities that are being evaluated can vary depending on the scope of the assessment. However, they may include the presence of hazardous substances use/waste generation, contaminated soil, or groundwater on or near the property, or other environmental conditions that could impact the proposed use of the property or site. The goal of these assessments is to identify potential environmental concerns based on a review of existing information, such as environmental databases, historical records, and regulatory reports, and to assess the level of risk posed by those concerns