This industrial property served as a locomotive maintenance, service, and railcar repair facility under Southern Pacific Transportation Co. from 1887 to 1986, with a 2.3-million-gallon Bunker C fuel oil tank installed in the early 1900s and removed in the late 1940s. Decades of railyard operations left petroleum hydrocarbons, arsenic, lead, polycyclic aromatic hydrocarbons (PAHs), and non-aqueous phase liquid (NAPL) in soil and groundwater across the site. Oregon DEQ finalized a Record of Decision in March 2024 selecting excavation of contaminated soil from the 8.7-acre western area with consolidation and capping on the eastern 3-acre area, and a Voluntary Agreement for Remedial Design and Remedial Action was signed in September 2024. The remedial design reached 100% completion in October 2025 and received DEQ approval in January 2026, but construction has not yet begun — the full scope of physical cleanup lies 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.
Contamination at this property originated from nearly a century of railroad maintenance and fueling operations that began in 1887 and continued through 1986. The remedial action now directed by Oregon DEQ — large-scale soil excavation, consolidation and capping across the site, and long-term groundwater monitoring — represents substantial costs this property still faces, and pre-1986 carriers whose policies were in effect during those decades of railyard operations may be obligated to fund that cleanup work 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.