Phase 3 Environmental

Phase 3 is a general term used for describing the site characterization and cleanup or remediation phase. This phase is typically conducted under the supervision of the Local Oversight Agency (LOA). Since most lenders require a closure or no further action letter from the LOA, this phase usually takes longer to complete. However, in some simpler cases, the cleanup can be conducted on a "self-directed" basis.

Often on industrial and commercial properties where a contamination problem exists, the contamination is left in place, if the source is removed and it can be scientifically-proven that it is not creating a human health hazard and the appropriate containment and monitoring is conducted. This sometimes includes a deed restriction, which states that if the property is to be redeveloped, the contamination would have to be cleaned up.