ERP - Environmental Risk Professionals

Air Emissions

Foundries generate dust, particulate matter, and hazardous air pollutants during production. Fugitive dust may be generated while handling sand, fly ash, limestone, baghouse dust, and other raw materials and wastes, and particulate matter may be emitted during the melting process. Hazardous air pollutants include nitrogen and sulfur oxides, carbon monoxide, chlorides, fluorides, volatile organic compounds, dioxins, furans, and metals. Crystalline silica is a mineral in sand. Many foundry facilities use sand for molds, and silica can become respirable in particulate matter generated at many stages of the foundry process. Inadequate controls or accidental releases of dust, particulate matter, and hazardous air pollutants can contaminate the environment or harm third parties. Civil fines and penalties can also result from air emissions permit violations.

Gas Emissions

Foundries are major sources of greenhouse gas emissions due to their significant energy use, including coal, coke, natural gas, and electricity. In recent years, litigants have been suing private companies for alleged environmental and public health injuries caused by climate change. Although cases have generally been unsuccessful thus far, significant defense costs could be incurred in fighting these suits.

Waste Management

Wastes generated from foundries may include sand, baghouse dust, slag, waste chemicals, pattern shop waste, etc. Some wastes may be hazardous and require particular storage, handling, and disposal procedures. Improper waste characterization or disposal could lead to environmental liability and legal consequences for violating regulatory requirements. A foundry can become a Potentially Responsible Party (PRP), liable for cleanup costs in the environmental cleanup of a non-owned disposal site (NODS) facility where they sent wastes.

Stormwater

Stormwater may come into contact with coke, scrap metal, chemicals, wastes, debris, and other outside storage. Pollutants from these materials may migrate in stormwater to non-paved areas of the facility site, neighboring properties, storm drains, or surface waters, contaminating the environment or potentially harming third parties or natural resources.

Chemical Releases

Chemicals used in foundry operations may include solvents, additives, chemical binders, fluxes, and coatings. Spills or leaks of these chemicals can occur from tanks, containers, process equipment, wastewater treatment systems, piping systems, or other areas of these facilities. Releases can impact soil, groundwater, or surface water, resulting in cleanup claims, third-party lawsuits, or natural resource damage.

Petroleum Products

Petroleum products, including mineral oils, gasoline, and diesel fuel, may be used at foundries for lubrication, insulation, hydraulic equipment, vehicle fuels, heat treatment, or building heating. These may be stored in tanks or containers. Releases can occur from storage or during loading or unloading, impacting the environment or harming third parties.

Flammables

Flammable liquids may be stored and used in operations, creating a fire hazard. Additionally, explosion risks are associated with melting furnace operations. A fire can spread throughout a facility and generate toxic fumes, debris, and smoke from the burning materials. Firefighting solutions such as water and foam could create contaminated run-off that spreads to nearby storm drains or properties, resulting in environmental cleanup and tort liability.

Accidental Releases During Transport

Accidental releases during the transportation of chemicals or wastes to or from a foundry due to improper cargo securement, a loose valve, or vehicle upsets or overturns can result in environmental liability. Your company could be directly responsible if your fleet is transporting these materials. Third-party transporters can also be involved in accidental releases of materials transported by or on behalf of your company. As the generator, your company has cradle-to-grave liability related to your wastes; therefore, you could become responsible for cleanup, third-party claims, or natural resource damages related to a release from a third-party transporter.

Nuisance Odor

Foundries can emit foul odors from releasing amines and aromatic odorants during mold and core making, casting, sand shakeout, and other operations. These foul odors can result in complaints from neighbors, regulatory violations, and fines.

Environmental Pollution 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 cleanup costs

Third-party claims for bodily injury and property damage

Both sudden and gradual pollution conditions

Defense costs for third-party claims

First-party and third-party transportation pollution liability

Business interruption expenses resulting from pollution conditions

Mold, bacteria, legionella, and more

Natural resource damage

Emergency response expenses

Illicit abandonment

Non-owned disposal sites

Loading and unloading

Civil fines and punitive damages, where allowed by state law

Aboveground and underground storage tanks

Claims Scenarios & Examples

An explosion and fire occurred at a foundry facility, spreading lead-laden debris to the surrounding area. Soil samples from nearby residential properties contained lead at ten times the regulatory screening levels. A class action lawsuit was filed against the foundry for the cleanup of the properties impacted by lead contamination.

A foundry stored their baghouse dust, which contained toxic concentrations of lead and cadmium, in an on-site pile. Some dust releases occurred in the surrounding environment. The company believed they were exempt from hazardous waste regulations under an exemption for certain fossil fuel combustion wastes. However, the Environmental Protection Agency’s Environmental Appeals Board ruled that the foundry’s baghouse dust was subject to hazardous waste regulations. The foundry negotiated a settlement of $25,000 with the EPA; however, they also incurred substantial defense costs.

A foundry was operating in California, which has a law requiring businesses to warn people about significant exposures to harmful chemicals. Two class action lawsuits were filed against the foundry for failing to warn the community about hexavalent chromium emissions from the plant and the risks associated with exposure. The facility faced a sizable settlement, defense costs, and civil penalties.

A foundry’s air pollution control system, responsible for filtering and reducing emissions from industrial processes, experienced a malfunction. The malfunction resulted in the unintended release of pollutants into the air, impacting the surrounding environment and nearby residential areas. The release went unnoticed for several hours until residents began experiencing health issues such as respiratory distress and irritation.

A significant storm event occurred in the area of a foundry, resulting in the discharge of contaminated stormwater from the facility. The stormwater run-off carried pollutants from the foundry site, including heavy metals, oils, and chemicals, into the nearby water bodies, including a river that was a critical water source for the local community. Testing indicated the presence of elevated heavy metals, raising concerns about long-term ecological damage and potential human exposure.

A potential buyer was performing due diligence on a property adjacent to a foundry. Soil sampling identified elevated levels of metals. Investigations discovered that air emissions control equipment was not installed on the furnaces during early foundry operations. Ash particles emitted from the furnaces contained elevated levels of heavy metals. Additional sampling discovered that elevated lead and arsenic had impacted 150 properties near the foundry. The foundry was liable for investigating, remedying, and restoring the impacted properties and faced bodily injury claims from the nearby residents.

A foundry sent its slag to a hazardous waste landfill for approximately ten years. The landfill became a Superfund site due to groundwater contamination with volatile organic compounds and metals. The foundry was named a Potentially Responsible Party in the cleanup of the Superfund site.

Neighbors of a foundry complained of foul odors coming from the facility numerous times over several years. An environmental group filed a class action suit against the facility, alleging that the foundry’s metal melting and casting processes put nearby residents at risk of illness, cancer, and other health conditions, creating a public nuisance.

Property Types

Foundries

Environmental Exposures May Include