Broken Supply Line from AST Caused Oil Release

Acknowledgement to XL Environmental

THE CLAIM
A carbon black manufacturing plant, insured by XL, experienced an oil spill on their property. The spill was the result of a broken supply line in an aboveground storage tank located on the property. Seven hundred barrels of oil were released into ditches on both sides of a roadway adjacent to the property, as well as a neighboring river. The storm water ditches also discharged into the river. In all, approximately 100 barrels entered the river.

Various local agencies and federal regulatory agencies were notified, including the U.S. Fish and Wildlife Service. The insured was charged with the remediation efforts.

THE RESPONSE
XL’s environmental claims counsel and a technical consultant handled the claim on the insured’s behalf. A local remediation consultant was retained to work with the insured, interact with the various agencies on the insured’s behalf and develop an approved remediation plan. The local water authority closed its intake due to the spill and the main concern was a vulnerable local mussel population.

THE SOLUTION
The insured’s Pollution and Remediation Legal Liability Policy paid $2,300,000 for remediation associated with the oil spill. Approximately 200 tons of soil was excavated and 600 barrels of product were removed through the land remediation activities. With respect to remediation of the river, clamshell bucket dredging occurred and a river sediment monitoring plan was implemented.

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