Contractors

Fixed-Base Operator

CPL

Many services performed by fixed-base operators (FBOs) involve using hazardous substances that can expose them to environmental liability. Hazardous substances include handling and storing aircraft fuels and lubricants, de-icing fluids, chemicals, and solvents used in aircraft cleaning, maintenance, and repairs. Accidental releases can contaminate soil and groundwater, collect in stormwater run-off, and discharge into sewage and water systems. FBOs can also face environmental exposure from handling and disposing of biohazard wastes collected from lavatory services, grease waste from restaurant operations, and wastewater generated from cleaning activities.

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Environmental Exposures May Include:

Aircraft Fueling Spills
Storage Tanks
De-icing Chemicals
Fuel Transport Accidents
Equipment Fluid Leaks
Stormwater Run-off
Wastewater
Grease Waste
Chemical Storage
Lavatory Waste
Waste Management

Aircraft Fueling Spills

Aircraft fueling operations can discharge fuel into the environment through evaporation or releases from accidents or equipment malfunction. Leaks or spills can emanate during aircraft fueling, transport, loading, and unloading.

Storage Tanks

Accidental releases from underground or aboveground storage tanks (UST/AST) used to hold jet fuel, AVGAS (aviation gasoline used in spark ignition piston engines), and other aircraft fluids can contaminate soil and groundwater and lead to costly investigations and cleanups. Fumes or vapors from leaking ASTs/USTs can lead to bodily injury claims from third parties. Releases can occur from many different circumstances, including leaking pipes or hoses from tanks and fueling dispensers or during fuel loading from the transport to the fuel tank.

De-icing Chemicals

Aircraft de-icing fluid (ADF), aircraft anti-icing fluid, and airfield pavement de-icer formulations consist of chemicals and, in many formulations, various additives. De-icing chemicals commonly used include urea, sodium formate, propylene glycol, and ethylene glycol. De-icing effluent is highly toxic to humans, wildlife, and aquatic populations. Without proper discharge controls, de-icing agents can contaminate stormwater run-off, accumulate on unpaved areas, and infiltrate soil and groundwater during snow melt.

Fuel Transport Accidents

Fueling vehicles are subject to accidents, upset, and overturns, which could result in a release of cargo, including jet fuel, AVGAS, or aircraft lubricants. FBOs may have transportation exposure on and off the airport location.

Equipment Fluid Leaks

Vehicles and powered equipment, such as fuel trucks, service trucks, ground power units, lifts, aircraft pushback tractors, and cargo loaders, can leak fuel, oil, and other fluids during use or while parked at the site, which can infiltrate into soil and groundwater.

Stormwater Run-off

The exposure of airport property to weather elements creates a significant risk for stormwater run-off to collect fuels, chemicals, and spilled or leaked wastes. Contaminated run-off can discharge into water systems and lead to human health hazards and natural resource damage.

Wastewater

Cleaning, maintenance, and repair activities involve using and storing various materials that contain hazardous chemicals and solvents, such as oils and hydraulic fluids, additives, cleaners, paints, and paint strippers. Improper handling and storage can result in an accidental release. Wastewater generated from cleaning activities may contain hazardous substances and must be properly handled.

Grease Waste

FBOs that operate restaurant services have exposure to generated grease waste. Improper maintenance of grease traps or containment of grease waste can result in a release that contaminates soil or groundwater, clogs drain or sewer lines causes natural resource damage, and exposes bacteria and infectious diseases to third parties that come in contact with it. Storm drains and sewer pipes may directly lead to local water systems without treatment. Grease that enters sewer and storm drains can also cause a clog and result in a buildup of poisonous hydrogen sulfide gas or a sewage backup spill.

Chemical Storage

Restaurant operations can carry additional environmental liability from using and storing dry chemical fire suppression systems, cleaning chemicals such as ammonia, bleach, degreasers, and pesticides and rodenticides.

Lavatory Waste

Mishandling of lavatory waste or failures in hoses, valves, and equipment can result in a release contaminated with biohazards and disinfecting chemicals. Improper spill response can pose significant risks to human health and natural resources. Lavatory trucks and equipment should only be cleaned in approved areas with appropriate wastewater containment.

Waste Management

FBOs may generate hazardous wastes that require special disposal procedures. Spent solvents, waste oil, antifreeze, de-icing chemicals, wastewater, and restaurant grease may all fall under hazardous waste. The waste generator must determine whether a waste is hazardous and follow proper storage, labeling, and disposal procedures. Improper disposal could lead to cleanup and third-party liability, and there may be legal consequences for violating RCRA hazardous waste requirements.

Environmental Liability Can Provide Coverage For

On-site cleanup of new and pre-existing pollution conditions

Off-site cleanup of new and pre-existing pollution conditions

Third-party claims for bodily injury and property damage

Both sudden and gradual pollution conditions

Off-site services pollution liability

Aboveground and underground storage tanks

Non-owned disposal sites

Mold, bacteria, viruses, legionella, and more

Business interruption resulting from pollution conditions

First and third-party transportation pollution liability

Emergency response costs

Loading and unloading

Defense of third-party claims

Natural resource damage

Illicit abandonment

Civil fines and penalties

Claims Scenarios & Examples

A ruptured fuel hose spilled a few thousand gallons of jet fuel onto the ground at a regional airport. The fuel eventually flowed into an adjacent river. The contractor responsible for fueling operations failed to adequately maintain the fueling equipment and, as a result, paid significant cleanup costs for soil and groundwater. Remediation of the site included excavating contaminated soil and cleaning groundwater and surface water. The contractor was also fined for natural resource damages due to the impact on the river habitat.
An FBO fuel truck was transporting 4,800 gallons of Jet A fuel from the airport’s fuel farm to the main terminal when it slid off the road and crashed into a chain-link fence. Approximately 2,000 gallons spilled from the truck before it could be controlled, and an unknown amount seeped into the airport’s stormwater sewer system. Transportation authorities took remedial actions to clean up the contaminated soil.
Approximately 9,000 gallons of jet fuel leaked during refueling operations at an international airport. The leaked jet fuel seeped into a drainage channel and storm sewer and migrated into a nearby creek.
An FBO hired a waste hauler to transport used aircraft engine oil. While on the road, the vehicle got into an accident and overturned. The waste oil spilled from the truck into a nearby storm sewer that emptied into a stream. As the waste generator, the FBO was held responsible for the cleanup.
A fixed-base operator leased property from an airport. One of the supply lines of an aboveground storage tank on-site broke, spilling 1,000 gallons of fuel. Approximately 500 gallons leaked into a river, and dredging had to be done to remediate the river. A river sediment monitoring plan also had to be implemented. Also, 150 tons of soil at the site had to be excavated. The insurance carrier paid $1 million in remediation expenses related to the spill.
An FBO employee transferred ethylene glycol, a highly toxic chemical, from the hangar to the airfield for de-icing operations. Approximately 200 gallons of the chemical were spilled in the transportation process, exposing airport workers, passengers, the airport property, and neighboring lands to the hazardous chemical.
While refueling an aircraft at an international airport, an employee of an FBO overrode the safety mechanism on the refueling hose, went into the fueling truck, and fell asleep, resulting in the release of jet fuel that migrated into a nearby harbor. The aquatic life in the harbor was harmed and impacted the business of the area’s clammers. The company was fined by the EPA for not taking adequate precautions to contain oil spills and paid a $90,000 penalty.
An FBO employee was refueling an aircraft when a faulty connection released Jet A fuel. More than 500 gallons of fuel spilled onto the airport property.

Final Consideration

Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are at fault or not. Having the proper insurance coverage in place will help fund the expenses incurred to investigate or defend against a claim or suit and provide you with environmental claims handling expertise.

This environmental risk overview offers a general understanding of potential risks and may not reflect all risks associated with your business. Environmental Risk Professionals has compiled this overview for informational purposes only. This overview does not constitute legal opinion or advice, nor does it establish a consultant-client relationship. This overview is not intended to guide project parties in interpreting specific contracts or resolving disputes; such decisions may require consultation with counsel and depend on various factors. © 2025 Environmental Risk Professionals, LLC

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