Insurance to cover $17,000 in damages from Line Mountain oil spill

Source: http://www.dailyitem.com, December 4, 2014
By: Justin Strawser

The Line Mountain School Board will receive more than $17,000 from its insurance provider to cover damages related to a heating oil leak inside a former district property, but Liberty Mutual will not be covering the costs of cleaning up the Lower Mahanoy Township Municipal Authority wastewater treatment plant.
Board President Troy Laudenslager said the school board members voted 8-0 Wednesday night to accept a sworn statement from Netherlands Insurance Company, a subsidiary of the district’s insurance provider Liberty Mutual. The insurance company will provide $17,367.90 to cover the damages at the former Dalmatia Elementary School and the district is responsible for a $2,500 deductible.

A matter of a $143,453 bill from the authority to clean up their property is still in limbo, placed in escrow until a lawsuit filed by the authority is settled.

The authority is suing the district in Northumberland County Court for failure to pay a bill to clean up spilled heating oil in the sewer system. On Feb. 10, a leak from a broken pressure gauge at the school building dumped 1,250 gallons of heating oil into the authority’s wastewater treatment plant.
The insurance company cited a “pollution exception” for not covering the authority’s portion of the bill, Laudenslager said.
The elementary school in Dalmatia was closed before the 2013-14 school year as a result of elementary school realignment.
It was sold to Jeremy A. and Sara L. Stohecker, of Klingerstown. Their main goal is to transform the gymnasium/auditorium into a reception hall for weddings, birthday parties and other events. The classrooms will be transformed into rooms for any event-related businesses that want to rent or storage units.
At Wednesday night’s meeting, the school board also voted to keep their officers the same: Laudenslager will remain president and Dennis Erdman, who was absent from the meeting, will remain vice president.
 

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