ERP - Environmental Risk Professionals

Pesticides and Fertilizers

Forest management chemicals include pesticides (insecticides, herbicides, and fungicides) and fertilizers. Pesticides and fertilizers can be toxic, and the mixing, transporting, loading, application, and container cleaning can all lead to environmental exposure. Spills, leaks, and improper application can cause forestry chemicals to enter surface waters or groundwater, polluting water sources and threatening aquatic life. Aerial application, a common method by helicopter, creates the greatest risk of contamination directly into surface waters and by drift.

Silt and Sediment

Bare slopes and decreased infiltration may lead to larger volumes of stormwater run-off contaminated with silt and sediment. Silt and sediment are fine-grained soil particles readily carried in surface run-off. The development and use of logging roads and harvesting activities reduce surface cover and compact the soil, increasing run-off and erosion. Improper erosion controls can lead to stormwater run-off of silt and sediment into water systems which can severely damage water quality, adversely affect channel stability, and cause ecological damage to streams and rivers, threatening wildlife and aquatic systems. Natural resource claims can result. Control of silts/sediments is required under the Clean Water Act, and contractors may face regulatory action such as cleanup orders or fines and penalties from federal, state, or local regulators.

Drums and Storage Tanks

Logging yards may have drums and aboveground tanks to store chemicals and automotive fluids, such as hydraulic fluid, oils, and diesel fuel used to fuel and operate the equipment. Improper maintenance, use of drains or hoses, or failure to provide secondary containment can allow spills and leaks to contaminate soil and groundwater. Drums and tanks that are not properly covered could have contents come in contact with rainwater and create contaminated stormwater run-off.

Contaminated Soil

During land clearing for roads, log landings, etc., a contractor could spread unknown contaminated soil, leading to the migration of contaminants to adjacent properties, surface waters, or groundwater. Cleanup, third-party liability, and natural resource damage claims can result.

Hazardous Waste

Spent maintenance fluids, used oil, chemicals, and pesticide wastes may be considered hazardous and require special disposal or recycling procedures. Improper disposal could lead to cleanup and environmental tort liability. Environmental issues at a disposal site can result in potential liability for all parties that manifested waste to the facility.

Loading and Unloading

Transporting fuels and waste materials by the contractor or third-party carrier to and from a jobsite or disposal site can lead to environmental liability while on the road and during loading and unloading operations. Leaks of fuels and automotive fluids from heavy equipment transported to and from jobsites can also create environmental exposure on the road.

Equipment Fuel and Fluid

Most logging companies’ equipment is powered by diesel fuel and requires petroleum-based hydraulic fluids and lubricants. Diesel exhaust contains numerous carcinogens and criteria air pollutants. Spills during refueling or maintenance and leaks during use can occur, which can contaminate soils in logging areas and equipment yards.

Particulate Matter

Tree clearing, development and use of logging roads and landings, and heavy equipment trafficking across sites can generate dust. Dust consists of tiny particles (particulate matter) that can cause respiratory issues if inhaled. Contaminated dust can cause illness to nearby third parties. Off-site migration can lead to third-party bodily injury and property damage claims.

Contractors Pollution Liability Can Provide Coverage For

Contracting operations completed “by or on behalf of” the insured

Contracting operations performed at a jobsite

Third-party claims for bodily injury and property damage

Third-party claims for cleanup

Defense of third-party claims

Natural Resource Damage Restoration

First-party emergency response costs

Sudden and accidental coverage for owned/leased locations

First and third-party transportation pollution liability

Loading and unloading

Silt and sedimentation

Non-owned disposal sites

Civil fines and penalties

Claims Scenarios & Examples

While harvesting timber, a cutting firm was found to have polluted a stream and was ordered by the state to restore two properties. The cutting contractor’s timber harvesting procedures did not meet sediment and erosion control standards, resulting in pollutants discharging into the stream and violating the Clean Water Act. A loaded skidder for the firm was also observed going back and forth across a tributary, and the contractor did not install a crossing over the stream, causing the stream to be heavily affected by siltation.

An aboveground storage tank at a logging site was overfilled during a fuel delivery. The fuel spilled and migrated into a nearby stream, leading to a river. The logging company did not have the required spill prevention, control, and countermeasure plan at the time of the spill. It was subsequently fined for violating the soil pollution prevention regulations and the Clean Water Act.

A logging company failed to properly control stormwater run-off from a clearing site, causing a creek to have high turbidity levels and harming aquatic life. This disposal violated their permit, and they faced a civil penalty of $35,100. An investigation of the company’s yard site found that they also did not properly dispose of metal debris, and turbid run-off from the location entered stormwater catch basins without any controls.

A logging company was found in violation of water quality regulations. The logger clear-cut more acres than what was allowed, and site investigations found skidder ruts and stream crossings from the logging operations had caused run-off to contaminate a brook and damage wetlands. The state filed a lawsuit against the company, and they agreed to pay $60,000 in penalties. In addition, the company was required to remediate the site and to consult a qualified forester to help create a forestry plan for the next five years.

A property owner hired a logging company to perform a project on his property. He observed a spill and reported it to the State Department of Environmental Conservation. An investigation found multiple petroleum and hydraulic fluid spill areas from heavy equipment used to perform the logging operations. The logger noted that they had issues with their log loader leaking fluid. The leaked fluids penetrated the soil, and a cleanup contractor had to be brought in to remediate the area. The investigator then looked into another site the logger was working on and found puddles of hydraulic oil on the ground and soil staining near and under the log-cutting equipment. A remediation contractor also had to be hired to clean up this site. The logging contractor was held responsible for the cleanups and was required to pay civil fines for not reporting the spills.

A forestry company was responsible for spilling over 1,000 gallons of fuel in a bay. Diesel was fed to an electrical generator on a barge when a valve failed, causing the release. Efforts were undertaken immediately to mitigate the spill’s effects and keep the plume away from river mouths and the shoreline.

A logging contractor was hired to harvest timber in a state forest. The contractor did not obtain the required National Pollutant Discharge Elimination System (NPDES) permits, and a lawsuit was brought against them for allowing contaminated stormwater to enter surrounding waterways. Stormwater run-off from two logging roads used by the contractor collected large amounts of sediments, ran through channels, culverts, and ditches, and discharged into nearby rivers and streams, harming aquatic life.

A logging company generated significant dust emissions while building a road and landing area. A resident living next to the area of the operations experienced asthma-like symptoms from the dust and sued the logging company for bodily injury.

Contractors

Logging

Environmental Exposures May Include