An XL insured operates a solid waste landfill. The landfill received several truckloads of construction debris that was classified as Type III construction and debris (C&D) waste. A subsequent investigation by the state environmental regulatory agency revealed that some of the truckloads of construction debris waste actually contained Type II hazardous waste. The insured landfill was not permitted to receive Type II hazardous waste. The state environmental regulatory agency required the removal of the Type II hazardous waste that was commingled with the Type III C&D waste. Civil fines and penalties were issued for failure to screen the waste upon acceptance.
The state environmental regulatory agency issued a consent order to have the waste removed. XL’s environmental claims counsel and a technical consultant worked with the insured to respond to the regulatory agency. Approximately 7,700 cubic yards of waste was removed. The waste was then disposed of at proper facilities.
XL paid $140,000 for waste removal and disposal, and another $30,000 in imposed penalties under our insured’s Pollution and Remediation Legal Liability Policy to resolve the claim.…