This industrial property served as a paper mill with wastewater lagoons from the early 1950s through 1982, first under Oregon Pulp and Paper Company and later Boise Cascade, with clay-lined lagoons holding industrial wastewaters for approximately thirty years. Groundwater monitoring in the 1980s confirmed arsenic, barium, chromium, and lead above drinking water standards, and sediment sampling has identified metals, pesticides, and dioxin/furans in on-site pond sediments — with contamination visibly leaching into the Willamette River and Slough during low-flow periods. A Consent Judgment between Oregon DEQ and the City of Salem established a Prospective Purchaser Agreement in 2013, and institutional controls including an Easement and Equitable Servitude, engineered caps, and deed restrictions remain in place, with no No Further Action determination issued and the next five-year review due in 2029. 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.
Industrial wastewater lagoon operations at this property ran from the early 1950s through 1982, placing roughly three decades of contaminating activity entirely within the pre-1986 window. With Willamette River and Slough impacts never fully evaluated, no No Further Action determination issued by Oregon DEQ, and ongoing obligations including engineered cap maintenance, deed restriction compliance, and a next five-year review due in 2029, the investigation, remediation, and monitoring costs ahead are costs that pre-1986 carriers whose policies were in effect during those operational years 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.