Phase 1 Environmental Site Assessment in Colorado
Compare quotes from environmental professionals who write ASTM E1527-21 Phase 1 ESA reports in Colorado. Most reports are delivered in two to three weeks, and rush options are available.
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What Is a Phase 1 Environmental Site Assessment?
A Phase 1 Environmental Site Assessment, written as Phase I ESA in most reports, is a records review and site inspection that looks for signs a property has been contaminated by hazardous substances or petroleum. The consultant follows ASTM Standard E1527-21. Nobody drills or samples anything during a Phase 1.
The work covers historical aerial photos, fire insurance maps, city directories, regulatory database searches, a walk of the property, and interviews with the owner, the occupants, and anyone else who knows the site's history. The report ends with a finding of whether any Recognized Environmental Conditions exist.
Lenders ask for a Phase 1 before they fund a commercial purchase or refinance. SBA 7(a) and 504 loans require environmental due diligence on most real estate collateral. Buyers order one on their own because a Phase 1 completed before closing is what qualifies them for the innocent landowner and bona fide prospective purchaser defenses under CERCLA.
What a Phase 1 ESA Reviews in Colorado
The state records for a Colorado Phase 1 come from Colorado Department of Public Health and Environment, searched alongside the federal databases every Phase 1 covers.
Colorado spreads its records across several agencies. The Department of Public Health and Environment handles hazardous waste and voluntary cleanups. The Division of Oil and Public Safety, which sits in the Department of Labor and Employment, handles storage tanks and petroleum releases. The Energy and Carbon Management Commission holds oil and gas well records, and the Division of Reclamation, Mining and Safety keeps the inventory of historic hardrock mines. A Phase 1 on the Front Range checks all four, and one in the mountains adds mine maps and mill tailings records.
The Colorado lists a consultant checks for a property in Colorado:
- Hazardous Materials and Waste Management Division records. Hazardous waste sites, corrective action cases, and Superfund sites managed by CDPHE.
- Voluntary Cleanup and Redevelopment Act records. Applications and No Action Determinations issued under the state's voluntary cleanup law.
- Division of Oil and Public Safety tank and release database. Registered underground and aboveground tanks and petroleum release events.
- Energy and Carbon Management Commission well records. Active, plugged, and orphaned oil and gas wells, many of which sit under Front Range subdivisions.
- Environmental covenant registry. Recorded use restrictions required after cleanup under Colorado's environmental covenant statute.
- Historic mine inventory. Abandoned mine features and mill sites tracked by the Division of Reclamation, Mining and Safety.
Common Sources of Contamination on Colorado Properties
Denver's north side had smelters, and the Globeville and Vasquez Boulevard neighborhoods became Superfund sites for lead and arsenic. Radium processing in Denver in the early 1900s left radioactive soil at dozens of locations that were cleaned up under a separate Superfund program. The Denver- Julesburg Basin has thousands of oil and gas wells, and Weld County and the northern suburbs have homes and shopping centers built around plugged wells. Leadville, Idaho Springs, and the mountain towns carry a mining legacy with tailings and mine drainage. Agriculture covers the eastern plains, and gas stations and dry cleaners are the routine metro findings.
Who Orders a Phase 1 ESA in Colorado
- Buyers of commercial and industrial property doing due diligence before closing
- Borrowers on SBA 504 and SBA 7(a) loans secured by real estate
- Banks and credit unions underwriting commercial mortgages
- Developers acquiring land or buildings for redevelopment
- Attorneys handling purchase agreements and lease negotiations
- Owners refinancing a commercial building
- Investors buying retail, warehouse, office, or multifamily sites
Colorado Cleanup Programs and Buyer Liability Protection
The Voluntary Cleanup and Redevelopment Act lets an owner or buyer submit a cleanup plan or a no action petition to CDPHE and receive a No Action Determination within a set review period. That determination is the document lenders in Colorado want. Environmental covenants get recorded when cleanup relies on restricting use, and the Brownfields Revolving Loan Fund and CDPHE's targeted brownfield assessments help pay for the work on eligible sites.
How Much Does a Phase 1 ESA Cost in Colorado?
Across the country a Phase 1 ESA runs from $1,500 to $6,000, and a plain commercial building on a single parcel lands near the low end of that range. Colorado pricing sits in the middle of the national range. Mountain properties and parcels with oil and gas history cost more because of the extra agency research.
What moves the price on a given property:
| Factor | Effect on price |
|---|---|
| Acreage and number of parcels | More ground to walk and more addresses to research |
| Current use | Industrial, automotive, and dry cleaning sites take longer to document |
| Historical use | A former gas station or manufacturing plant means more agency files to pull |
| Turnaround | A rush report in five to ten business days adds a premium |
| Age of the property | Older sites have more historical sources to review |
| Lender scope | Some banks and the SBA add deliverables beyond the ASTM standard |
A quote tied to the actual address is the only way to know the number for your property. Read the Phase 1 ESA cost guide for a closer look at pricing.
Phase 2 Environmental Site Assessment in Colorado
When a Phase 1 finds a Recognized Environmental Condition, the next step is a Phase 2 ESA. A Phase 2 puts soil borings, groundwater monitoring wells, or soil vapor probes in the ground and sends the samples to a lab. The scope depends on what the Phase 1 found, so a Phase 2 in Colorado can cost anywhere from a few thousand dollars for a handful of borings to well above $30,000 for a site with a plume.
The consultants in our network handle both phases. Ask for a Phase 2 quote when you submit your details, or read the Phase 2 ESA guide and the Phase 2 cost guide first.
Phase 1 ESA Questions From Colorado Buyers
How long does a Phase 1 ESA take in Colorado?
A standard Phase 1 ESA typically takes 2-4 weeks from start to delivery of the final report. Rush turnaround options are available, often within 5-10 business days, for an additional fee.
Who needs a Phase 1 Environmental Site Assessment?
Buyers, lenders, developers, and investors involved in commercial real estate transactions. SBA 7(a) and 504 loans typically require environmental due diligence, including a Phase 1 ESA. Banks and lenders typically require one for commercial property financing. It's also recommended when purchasing former industrial or commercial properties.
Do SBA loans require a Phase 1 ESA in Colorado?
SBA 7(a) and 504 loans typically require environmental due diligence for commercial property purchases, which usually includes a Phase 1 ESA. The report must comply with ASTM E1527-21 and be completed by a qualified environmental professional. Requirements can vary based on the property type, historical use, and lender policy.
What ASTM standard governs Phase 1 ESAs?
ASTM E1527-21 is the current standard for Phase 1 Environmental Site Assessments. It replaced E1527-13 and defines the scope, methodology, and reporting requirements. Compliance with this standard is necessary to qualify for the CERCLA innocent landowner defense.
Does a Phase 1 ESA include soil or groundwater testing?
No. A Phase 1 ESA is a non-invasive review of records, regulatory databases, historical sources, and a visual site inspection. It does not include physical sampling. If potential contamination is identified, a Phase 2 ESA with soil borings or groundwater monitoring may be recommended.
What happens if the report finds a Recognized Environmental Condition?
If the Phase 1 ESA identifies recognized environmental conditions (RECs), the next step is typically a Phase 2 ESA, which involves actual sampling and laboratory analysis of soil, groundwater, or air to confirm the presence and extent of contamination.
Can a Phase 1 ESA protect buyers from environmental liability?
Yes. A Phase 1 ESA conducted under ASTM E1527-21 helps establish the "innocent landowner" defense under CERCLA. This can protect buyers from liability for pre-existing contamination they were not aware of at the time of purchase.
What's the difference between Phase 1 and Phase 2 ESAs?
A Phase 1 ESA is a non-invasive investigation that reviews records and inspects the site visually. A Phase 2 ESA involves physical sampling (soil borings, groundwater monitoring wells, etc.) and laboratory analysis. Phase 2 is only needed when Phase 1 identifies potential contamination concerns.
Is a Phase 1 ESA required before buying commercial property in Colorado?
While not legally mandated for all purchases, most lenders, banks, and SBA lenders typically require a Phase 1 ESA before financing commercial real estate in Colorado. It is strongly recommended for any commercial, industrial, or redevelopment transaction to identify potential environmental liabilities.
Guides to Environmental Site Assessments
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