This property has operated as a Puget Sound Energy propane processing station since 1965, converting liquid propane to vapor for injection into the natural gas distribution line. Site equipment includes an 8,500-gallon ethylene glycol aboveground storage tank, pumps, vaporizer units, and heat exchangers. Leaking pumps released ethylene glycol, petroleum hydrocarbons, and lead over an estimated 30 to 35 years of operation, and lead-based paint contributed additional contamination. A remedial excavation in September 2003 removed impacted soil for off-site disposal, source controls were implemented, and multi-year groundwater monitoring with natural attenuation has continued since November 2003. That history could support an insurance cost recovery claim against carriers who issued insurance policies 40+ years ago.
Pre-1986 Commercial General Liability (CGL) policies were occurrence-based and did not contain an effective pollution exclusion in Washington. If contamination occurred while those policies were active, those historical insurance carriers may still have a legal obligation to fund the cleanup costs, even if the business closed or the property changed hands.
Contamination at this facility originated from industrial equipment leaks and lead-based paint dating to the late 1960s — well within the era when occurrence-based CGL policies carried no effective pollution exclusion in Washington. Although initial source control and soil removal have been completed, the site remains in Awaiting Cleanup status, meaning the full scope of remediation work still lies ahead. The historical carriers who insured PSE's operations during the decades of pre-1986 releases may be obligated to fund the cleanup costs this property has yet to incur.
Restorical's role is to locate viable historical policies, determine whether a successful coverage claim is possible, and assist our clients and their legal counsel to obtain insurance coverage. Restorical then manages the claim, including accounting, to ensure the cleanup is funded in a timely manner.
Ready to learn more?
Contact UsThis analysis is preliminary and based on publicly available records. Restorical Research is not a law firm and does not provide legal advice.