Source: http://www.courant.com, November 13, 2015
By: Peter Marteka
The town will keep its pollution liability insurance policy on the old tank farm for another five years, but will lower it to $3 million.
The farm – more than a dozen huge, rusting oil tanks – was once located where the Riverfront Community Center and fairgrounds now sits. The tanks were removed and the soil cleaned up in 2003. At that time, the town took out a 10-year, $5 million insurance policy to cover potential lawsuits due to possible spreading of the petroleum remaining in the ground.
Earlier in the week, the town council voted 7-1 to keep the insurance at the lower amount which includes $100,000 deductible. The town originally had the $5 million policy in place for 10 years, but extended it two years to cover phase two of the Riverfront Park, which was finished last year. No lawsuits have ever been field against the town.
“Rather than coming back every year, the town can have a very cost-effective policy and not have to come back and renew every November,” Town Manager Richard J. Johnson said.
“The money is well invested to make sure we are covered for any significant issues that could arise in the future on this,” Councilman Lawrence J. Byar said.
The policy has been in place since 2003, when the town purchased the former Field-Holstein property – once known as the tank farm. The oil tanks dated to the 1950s, when Ultramar Petroleum Inc. used the property for oil and coal.
The town monitors a collection system located between the western edge of the fairgrounds and the Connecticut River where petroleum seeps toward the river. The town has the system pumped out and tested a few times per year.
“We have not had much in terms of collection quite frankly over the years,” Johnson said. “We’ve cleaned up the site and what wasn’t cleaned up is capped under four feet of soil. There’s not an abundance seeping into the system.”
Council vice-chairman Whit C. Osgood, the lone “no” vote, said it is time to drop the policy.
“Our experience on the site indicated there was very little risk given the fact we aren’t taking contaminates out in the direction the water flows. I would rather save the town the money each year.”
Councilman Thomas P. Gullotta said the town should continue the insurance because a neighboring property known as the Nap Brothers industrial complex to the north of the property is for sale.
“That money can be eaten up in lawyers fees if the purchasers come up with contaminates. The fact that there is any pollutants collected suggests pollution is still in the area. This is the kind of insurance I’d be willing to pay for.”