An airport and their FBO used a hydrant system (underground fuel delivery pipeline) for many years. During maintenance of the system, it was discovered that a valve leaked in the fuel hydrant system. Over a long-period of time, jet fuel leaked from this valve at a rate that went undetected by the leak detection system. Over time, significant contamination of the aquifer underlying the airport occurred, resulting in a remediation order from the local/county environmental authority.
Although, the airport had initially installed and operated the hydrant system, the current FBO’s contract made it responsible for preventing and responding to spills/releases and overall environmental compliance. AXA XL’s claims counsel and consultants worked with the FBO and airport to reach a settlement and develop a remediation work plan. A risk assessment was performed to ensure that there was no harm to airport users or employees from volatile organic compounds (VOCs) in groundwater. A long-term remediation project involving monitored natural attenuation for 20 years was implemented. Costs are
expected to exceed $400,000, but are still significantly less expensive than an active groundwater treatment system.