Due Diligence

GMI provides environmental due diligence (EDD) services to both commercial and federal clients.  Our services include due diligence and risk management studies for evaluating whether there is significant potential for financing liability associated with property transactions (sales, acquisitions, leases and/or financing).  Our staff is experienced in all aspects of the EDD, from a simple Phase I or All Appropriate Inquiry (AAI) to assessments of large, complex facilities.

All Appropriate Inquires (AAI)

On 1 November 2005, the Environmental Protection Agency (EPA) published its final rule setting federal standards for the "all appropriate inquiries." AAI is the process of evaluating environmental conditions at a property and assessing potential liability for contamination; it is a key test in determining future liability for prospective purchasers of the property. The new rule, effective as of 1 November 2006, establishes regulatory requirements for conducting all appropriate inquiries into the previous ownership, uses, and environmental conditions of a property to qualify for certain landowner liability protections under CERCLA. AAI must be performed within 1 year of the date of acquisition of a property. The investigation must be updated if it was conducted more than 180 days before the acquisition date. AAI must include certain specific activities, such as:

  • Interviews with past and present owners, operators and occupants
  • Reviews of historical sources of information
  • Reviews of federal, state, tribal, and local government records
  • Visual inspections of the facility and adjoining properties
  • Searches for environmental cleanup liens
  • Assessments of any specialized knowledge or experience of the prospective landowner (or grantee)
  • An assessment of the relationship of the purchase price to the fair market value of the property, if the property was not contaminated
  • Commonly known or reasonably ascertainable information

Related Projects

Phase I Environmental Site Assessment, Stemmons Crossing, Dallas

GMI conducted a Phase I environmental site assessment, reviewing all pertinent available documents, conducting a database search, and visiting the subject property. The ESA was conducted to identify any recognized environmental conditions on the property or adjoining properties. The study was limited to surface features only. A pedestrian survey was conducted and photographs were taken. A visual search was made for signs of vegetation stress, discolored soils, the presence of aboveground or underground storage tanks, evidence of utility poles with transformers, and whether any materials such as hazardous waste containers, asbestos-containing materials, and/or lead-based paint materials were present.  

Phase I Environmental Site Assessment, 11.688 Acre Site, Plano, Texas  

GMI provided an update for a Phase I Environmental Site Assessment on an 11.6888 acre site in Denton, Texas, in accordance with ASTM E-1527-00. The letter report provided updated information in order to identify evidence of actual or possible sources of environmental contamination that would pose a liability to the owner.  

Phase II Environmental Site Assessment, Salado Creek Hike and Bike Trail, Willow Springs Golf Course south to Comanche Park  

GMI performed an environmental investigation to determine if special safety issues and waste handling procedures needed to be addressed during construction due to environmental impacts that may have resulted from suspect landfills within the Salado Creek Hike and Bike Trail.