This industrial property in Lane County has been in use since 1951, when Snellstrum Lumber operated a sawmill and plywood plant on the site, with underground storage tanks for gasoline and diesel installed in the mid-1970s. Groundwater beneath the property is heavily contaminated with chlorinated solvents — tetrachloroethylene (PCE) at concentrations up to 29,500 ppb and trichloroethylene (TCE) up to 13,500 ppb — along with vinyl chloride, dichloroethylene (DCE), dichloroethane (DCA), and trichloroethane (TCA), with the adjacent former Great Western Chemical Company identified as the likely source. While Oregon DEQ issued a No Further Action determination for the petroleum UST cleanup in 1991, no such closure exists for the chlorinated solvent contamination, and the project remains unassigned with five monitoring wells in place. 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 chlorinated solvent contamination affecting this property originated from industrial operations — including on-site sawmill and plywood manufacturing since 1951 and chemical operations on the adjacent parcel — that were well established decades before 1986. Because Oregon DEQ has never issued a No Further Action determination for the solvent contamination and the project remains unassigned, the costs this property still faces — further investigation, plume delineation, ongoing monitoring of the five existing wells, and any required remediation of the contaminated groundwater — are obligations that historical pre-1986 carriers may be required 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.