Refinery

August 17, 2010

Florida Developer Sues Halliburton Over Oil Spill

Florida real estate developer St. Joe Co. is suing Halliburton Co. over its role in the rig explosion that led to the massive oil spill in the Gulf of Mexico.

St. Joe states that Halliburton, which was responsible for encasing BP PLC’s subsea well in cement, ignored safety procedures and didn’t properly manage the cementing process. In deepwater drilling, cementing is a critical element in preventing oil and gas from escaping from the well.

“As a result, the cementing failed, allowing oil and gas to escape the well which caused the catastrophic blowout,” St. Joe said. The cause of the blowout has not yet determined. Multiple investigations are ongoing.…

August 11, 2010

Pipeline Explosion

Acknowledgement to XL Environmental

THE CLAIM
An XL-insured petrochemical pipeline, carrying highly flammable liquefied gases, occupied the same right of way pipeline corridor as another major chemical firm (Company B). Company B’s pipeline ruptured and the ensuing explosion damaged the insured’s pipeline, creating soil contamination and airborne exposures. Resulting third-party bodily injury and property damage lawsuits were filed against our insured in excess of $20,000,000.

THE RESPONSE
XL’s environmental claims counsel and a technical consultant handled the claim for our insured. Local defense counsel was retained to represent and defend our insured’s interests. A collaborative defense investigation revealed the root cause of the failure was solely due to corrosion damage to Company B’s pipeline.

THE SOLUTION
Our insured’s Pollution and Remediation Legal Liability Policy responded to resolve the pollution release claims made against our insured. XL also helped our insured recover its first-party remediation costs from Company B.…

August 11, 2010

Hydrogen Fluoride Release at Petroleum Refinery

Acknowledgement to XL Environmental

THE CLAIM
An XL-insured petroleum refinery experienced an explosion while activating an alkylation unit at the refinery. Approximately 4,900 pounds of hydrogen fluoride were released and 90,000 pounds of hydrofluoric acid were generated. The local fire department responded, using water to extinguish the fire and suppress the acid from
migrating off-site.

THE RESPONSE
XL’s environmental claims counsel and a technical consultant handled the claim for our insured. The USEPA conducted air monitoring and did not detect a release of hazardous substances off-site. Thus, remediation costs were limited to on-site. Property damage alone was estimated at $5,000,000.

THE SOLUTION
The insured’s Pollution and Remediation Legal Liability Policy responded to the claim. XL’s claims counsel worked closely with our insured in managing the remediation activities.…

July 23, 2010

Texas Sues BP for Refinery Pollution

Texas’ Attorney General has filed a lawsuit against BP for violating the state’s pollution laws. The civil lawsuit cites 46 releases of pollution at the refinery, including those associated with a 2005 explosion that killed 15 employees and injured 180 others. Unspecified monetary damages are sought for each day each violation occurred, in addition to legal fees for the cost of the lawsuit and civil penalties. BP has already invested over $1 billion in people and processes to decrease pollution at the facility.…