Paper Mill Landfill Closure

Acknowledgement to XL Environmental

THE CLAIM
A paper mill insured by XL maintained a landfill on site for the disposal of milling process sludge. The insured facility subsequently went bankrupt. The state environmental regulatory agency issued a letter to the insured requiring closure of the landfill.

THE RESPONSE
XL’s environmental claims counsel and a technical consultant worked with the insured in response to the regulatory agency’s closure requirement. As the landfill belonged to the insured, the insured was liable for the closure and long-term associated monitoring costs. The state’s permit required a 40-year long term monitoring plan.

XL’s environmental claims counsel retained an environmental consultant to propose plans and cost estimates for closure and long term monitoring. Costs were ultimately estimated to be $1,500,000 for closure and $3,300,000 for long term monitoring.

THE SOLUTION
The XL claims counsel worked with the insured, environmental consultant and state regulatory agency to achieve plan approval. XL paid approximately $4,800,000 under our insured’s Pollution and Remediation Legal Liability Policy to resolve this claim.

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