This 10.8-acre industrial property has operated as a wood treating facility since 1961, with unlined lagoon impoundments used from 1961 to 1984 for process wastewater — releasing pentachlorophenol (PCP) and other contaminants into soil and groundwater well before the impoundments were decommissioned between 1982 and 1987. Groundwater contamination is extensive: an 11-well pump-and-treat system installed in 1989 has extracted over 60 million gallons, and an estimated 700 cubic feet of light non-aqueous phase liquid (LNAPL) remains in the subsurface. Oregon DEQ is now advancing a comprehensive cleanup across five Areas of Interest — including adjacent residential properties where an Interim Remedial Action Measure is currently underway — with a Feasibility Study submitted in December 2024 and a Record of Decision in preparation following DEQ's August 2025 Staff Report and public comment period. 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 and unlined lagoon impoundment releases that began in 1961 and continued through the early 1980s — more than two decades before 1986. The LNAPL remediation, ongoing pump-and-treat operations, cleanup work across Oregon DEQ's five designated Areas of Interest including the Interim Remedial Action Measure now underway on adjacent residential properties, and long-term groundwater management directed by the forthcoming Record of Decision represent substantial ongoing and future costs that historical pre-1986 carriers whose policies were in effect during those operational years 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.