This former bulk petroleum storage and distribution facility operated from at least 1926 to 1999 under the Texas Company (later Texaco, then Chevron), handling fuel across a complex that included aboveground storage tanks, a loading rack, and a rail spur. Groundwater beneath the property is contaminated with petroleum hydrocarbons at concentrations up to 25,000 ug/L TPH-g and 1,900 ug/L benzene, and a 2025 EPA Phase II Environmental Site Assessment confirmed PFOS, PFOA, and PFHxS in groundwater exceeding EPA screening levels. Oregon DEQ has assigned the site for active oversight, a cost recovery lien has been recorded with Klamath County, and the responsible parties — including Chevron — have received option letters. The 2025 Phase II ESA recommends additional PFAS sampling on-site and at surrounding properties to determine the full origin and extent of contamination, and deed restrictions and hazardous building materials mitigation are also recommended. 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.
Petroleum contamination at this property originated from bulk fuel storage and distribution operations that ran from at least 1926 through 1999, with six decades of that activity predating 1986. The investigation and remediation work ahead — including additional PFAS delineation, off-site contamination assessment, deed restrictions, and hazardous building materials mitigation directed under Oregon DEQ's active oversight — represents substantial ongoing 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.