This 26.9-acre cold storage facility in Marion County experienced a major diesel oil spill in September 1978 when a cracked refrigeration pipe released approximately 7,000 gallons into Claggett Creek via the storm drain system, followed by a second diesel release in the summer of 1980 caused by an underfloor heating header fire. Phase II sampling conducted in 2010 confirmed diesel contamination persists in groundwater at 34 micrograms per liter. No No Further Action determination has been issued — Oregon DEQ's October 2012 correspondence explicitly stated that its low-risk assessment should not be interpreted as an NFA and that a more comprehensive review of site environmental conditions could still be required. 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 diesel contamination at this property originated from spill events in 1978 and 1980, placing the entire period of contaminating operations well before 1986. Because Oregon DEQ has expressly preserved its authority to require a more comprehensive site review, further investigation, and remediation, the potential cleanup costs this property still faces are obligations that historical pre-1986 carriers for the operators may be obligated to fund.
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.