Arsenic Groundwater Contamination at Ethanol Plant

Acknowledgement to XL Environmental

A potential XL insured, an alternative energy company, was developing a site for an ethanol production facility. The owners had concerns regarding known arsenic contamination in groundwater from an adjacent Superfund site and desired full Pollution and Remediation Legal Liability coverage from XL. The facility had a need to dispose of untreated groundwater from on-site dewatering wells in the shallow aquifer in an onsite storm water pond; however, the owners recognized that low concentrations of contaminated groundwater could result in a perceived ongoing release from their property and future liability from federal and state environmental agencies.

XL’s environmental risk control group conducted a proactive on-site risk engineering survey during the underwriting process. A review of available environmental site assessments and groundwater monitoring reports was also conducted, along with a review of information available through the public domain. The data review indicated the arsenic levels found in the storm water pond and adjacent stream receiving storm water effluent were within state risk based standards.

With the positive analysis concerning on-site impact of arsenic groundwater contamination and overall management of operational risks at the site, XL was able to create a policy to meet our insured’s needs offering full coverage terms at the $15,000,000 policy limit required by the company.

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