This industrial property has operated as a wood-treating facility since 1953, with a major spill of 10,000 to 30,000 gallons of pentachlorophenol (PCP) treating oil occurring in the 1960s from full-length treatment vats. Soils, groundwater, and surface water are contaminated with PCP, polycyclic aromatic hydrocarbons (PAHs), volatile aromatic compounds (BTEX), and dioxins, with a non-aqueous phase liquid (NAPL) pool present on groundwater and a dissolved contaminant plume that has migrated off-site. Oregon DEQ entered a Consent Decree with the operator in 2002 directing ongoing remedial action, and active groundwater extraction/treatment (IRAM) and vacuum-enhanced recovery (VER) systems are currently operating under that decree. Soil investigation and cleanup have been deferred until the facility closes, leaving a substantial phase of remediation work still ahead. That history could support an insurance coverage claim against the carriers who issued policies more than 40 years ago — coverage that could help fund the cleanup ahead.
Pre-1986 Commercial General Liability (CGL) policies were occurrence-based and did not contain an effective pollution exclusion in Oregon — and those policies may provide coverage that remains enforceable today. 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.
The contamination at this property originated from wood-treating operations that began in 1953 and included a massive spill of PCP treating oil in the 1960s — decades before 1986. The ongoing groundwater extraction and vacuum-enhanced recovery systems operating under Oregon DEQ's 2002 Consent Decree, the soil investigation and remediation that remain deferred until facility closure, and the long-term monitoring obligations ahead represent substantial future costs that pre-1986 carriers may be obligated to fund going forward.
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.
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Contact UsThis analysis is preliminary and based on publicly available records. Restorical Research is not a law firm and does not provide legal advice.