This former Shell service station in Klamath County operated underground storage tanks that were discovered during a 2005 decommissioning, with leaded gasoline contamination confirming tank operations dating back to at least the mid-1980s. Soil and groundwater have been impacted by leaded gasoline, unleaded gasoline, and diesel motor fuel, and Oregon DEQ has maintained the site in Assigned status under a Cost Recovery Agreement since 2005. Despite a 2017 narrative indicating the site was moving toward closure, no No Further Action determination has been issued, and the site remains under active DEQ oversight with activity as recent as February 2026. 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 originates from underground storage tank operations confirmed by the 2005 decommissioning to date back to at least the mid-1980s, with the presence of leaded gasoline in soil and groundwater further placing the pollution's origin before 1986. With no No Further Action determination yet issued and the site remaining under active Oregon DEQ oversight as recently as February 2026, the ongoing investigation, remediation, and monitoring required to reach closure represent substantial current and future costs that historical 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.