This former lumber mill property was part of the Modoc Lumber complex, which operated in Klamath County from approximately 1947 to 1994. Hazardous substances have been confirmed in both soil and groundwater at the site. Oregon DEQ approved a Contaminated Media Management Plan in February 2019 requiring ongoing management of contaminated soil and groundwater, and a Notice of Environmental Contamination institutional control has been active since June 2019 — but no No Further Action determination has been issued, and contamination persists under continued 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.
The contamination at this property originated from lumber mill operations that began in approximately 1947 and ran for nearly four decades before 1986, resulting in confirmed hazardous substances in both soil and groundwater. The ongoing soil and groundwater management required under Oregon DEQ's approved Contaminated Media Management Plan — along with the investigation and remediation work still needed to reach site closure — represent substantial costs this property still faces, and pre-1986 carriers whose policies were in effect during those operational years may be obligated to fund that work 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.