This industrial property operated as an iron foundry from at least the 1930s, with Sanborn maps documenting Big Lake Iron & Steel Company in 1931 and Klamath Iron Works by 1949. The most recent operations handled materials from military bases including fuel products, paints, and chemicals. A 2014 site screening assessment confirmed widespread diesel- and oil-range hydrocarbons in soil at the groundwater table and in groundwater itself, with gasoline-associated volatile organic compounds detected along the southern property boundary. The site has been listed on Oregon DEQ's Confirmed Release List since 2011 with no remediation performed, and Klamath County foreclosed on the property in 2013. 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 petroleum hydrocarbon and VOC contamination at this property traces to foundry and industrial operations dating back to at least the 1930s, with decades of activity before 1986 that handled fuel products, paints, and chemicals from military bases. With the site listed on Oregon DEQ's Confirmed Release List since 2011 and no remediation performed to date, the full scope of investigation, cleanup, and long-term monitoring costs still lies ahead — future costs that pre-1986 carriers insuring operators during the foundry's long operational history 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.