Long-term use of airport tank farm leads to soil and groundwater contamination
A small airport serving as a regional transportation/shipping hub was owned by a local municipality and operated by a single FBO. They used a tank farm from the 1940s through 2013, which led to discovery of significant soil and groundwater contamination during replacement of aboveground fuel tanks and underground piping. The release was reported to the state regulatory agency and soil remediation was deemed necessary prior to installation of new fuel tanks. The extent of groundwater contamination was unknown.
AXA XL’s claims team retained a consultant to respond to the regulatory agency and prepare a remediation work plan, which allowed the new tank erection to proceed without further delay. Soil excavation and confirmation sampling was completed around old tank and piping areas. The regulatory agency also
required additional groundwater monitoring wells to assess the extent of contamination. Because the airport was in a more remote region, this resulted in higher remediation costs due to increased professional time and materials fees. The extent of VOC groundwater contamination was defined and found to be
localized. Cost of the remediation was capped to just slightly under $1 million, but just as importantly, responsive claim handling allowed the airport to continue operations and avoid any business interruption expenses.