This railroad maintenance yard has been in continuous industrial use since the 1920s, with an engine maintenance building constructed in the 1940s and a former used oil underground storage tank on the property. Chlorinated solvents (PCE up to 132 ug/L, TCE up to 8.32 ug/L) and naphthalene (up to 1,580 ug/L) exceed risk-based concentrations in groundwater at multiple monitoring wells, and free-phase diesel product has been found in three additional wells. A 2017 removal action excavated 166 tons of contaminated soil and removed 3,000 gallons of hydrocarbon-impacted groundwater, but residual solvent contamination persists, and Oregon DEQ has not granted the No Further Action determination requested in December 2018 — the site remains an assigned cleanup project under active DEQ oversight. 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.
Railroad maintenance operations and solvent use at this property date to the 1920s and 1940s, placing the origin of contamination well before 1986. With residual chlorinated solvent and petroleum contamination still exceeding risk-based concentrations in groundwater and Oregon DEQ declining to grant site closure, the ongoing and future investigation, remediation, and long-term groundwater management costs this property still faces may fall to historical pre-1986 carriers whose policies were in effect during those operational years.
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.