Property Types

Pulp & Paper Mills

Pulp and paper mills are exposed to numerous environmental risks through their operations, use, and storage of chemicals and wastes generated. Various chemicals are used in the papermaking process to provide specific properties and characteristics to the paper. Material and waste storage could contaminate the environment if spilled or released. They also generate wastewater and stormwater that can contain pollutants, which may impact the environment. Furthermore, these types of facilities generate significant air emissions, which can pollute the environment and affect the health of third parties. Many facilities can have historical contamination related to the chemicals used and the by-products formed from past operations, including PCBs, dioxins, furans, PFAS, and other hazardous compounds. They can also be exposed to environmental risks from transporting raw materials, chemicals, or disposal of wastes at non-owned waste disposal facilities.

Download PDF

Environmental Exposures May Include

Storage Tanks
Stormwater Run-off
Wastewater Management
Air Emissions
Odor Health Risks
Improper Waste Disposal
Dioxins, PCBs, and PFAS
Accidental Release During Transport

Storage Tanks

Releases of chemicals, petroleum products, or wastes from aboveground or underground storage tanks, process equipment, containers, wastewater treatment systems, piping systems, drains, holding ponds, or other areas of a pulp and paper mill could impact soil or groundwater, result in toxic air releases, migrate off-site, harm municipal sanitary sewers, impact surface waters, or contaminate sediments. Cleanup claims, third-party suits, natural resource damages, and civil fines could result.

Stormwater Run-off

Stormwater run-off could come in contact with chemicals, debris, fueling areas, wastes, holding ponds, and other outside storage at pulp and paper mill facilities. Stormwater can pollute soil, groundwater, or surface water if not properly controlled, contained, or pre-treated before discharge to surface water, sanitary systems, or storm drainage systems. Contaminants can also settle out of surface waters and impact underlying sediments. Human health, wildlife, and the environment can be impacted.

Wastewater Management

Wastewater generated by pulp and paper mills can contain solvents, chlorine compounds, biocides, nutrients, solids, dissolved matter, detergents, acids, caustics, oils, and other pollutants. Wastewater treatment systems may be present at facilities, or wastewater may be discharged to sanitary sewers or transported for off-site treatment. Releases of insufficiently treated wastewater could occur, or spills could occur during the cleaning, transport, or transfer of wastewater, creating environmental risks. Improper wastewater disposal or violations of wastewater discharge permit criteria could lead to environmental liability, civil fines, or legal consequences.

Air Emissions

Pulp and paper mills produce significant air emissions, including particulates and other pollutants. They produce nitrogen oxides, sulfur oxides, and carbon dioxide, contributing to acid rain and climate change. EPA has identified metals as the hazardous air pollutants emitted in the greatest quantity from these operations. Other persistent organic pollutants emitted from these operations include dioxins and furans, hexachlorobenzene, and polycyclic aromatic hydrocarbons. Improper controls or malfunctioning equipment can exceed permit limits and cause regulatory violations. If accidentally released, chemicals used in the process may also produce a vapor cloud. Air emissions or a vapor cloud release can pose health hazards to third parties.

Odor Health Risks

Sulfides, ammonia, and other organic compounds produced from pulp and paper mill processes generate odors. Under most weather conditions, the chemicals are diluted with clean air, so health problems are not created; however, the chemicals can become concentrated, causing eye and respiratory irritation, nausea, and headaches. Odors may particularly impact those with asthma, emphysema, COPD, and other respiratory diseases. Third-party bodily injury claims can result from odors.

Improper Waste Disposal

Pulp and paper mills generate wastewater sludge. These residues may be landfilled, incinerated, or land applied as fertilizer or soil amendment products. These facilities also may generate hazardous wastes or other regulated wastes. Improper waste disposal could lead to environmental liability, civil fines, or legal consequences. Additionally, a facility can become a Potentially Responsible Party (PRP), liable for cleanup costs and third-party claims related to contamination at a non-owned disposal facility where they sent sludges or other wastes or at agricultural properties where fertilizer or soil amendments were applied.

Dioxins, PCBs, and PFAS

Historically, various toxic and persistent organic pollutants were used or generated by pulp and paper mill operations. These have included dioxins, PCBs, and PFAS-containing chemicals. Spills or releases of these pollutants may have occurred and contaminated soil or groundwater. Also, wastewater and sludge containing these constituents were allowed by regulatory agencies to be discharged or land applied in the past. Previous use or generation of these toxic chemicals presents environmental liability risks for these facilities, including claims for cleanup, bodily injury and property damage, and natural resource damage. Additionally, the paper pulp was used in products such as feminine hygiene and other personal care products, potentially exposing people to these toxins and leading to product pollution liability claims.

Accidental Release During Transport

Accidental releases while transporting products, chemicals, or wastes from a pulp and paper mill due to improper cargo securement, a loose valve, or vehicle upsets or overturns can result in environmental liability.

Environmental Pollution Liability Can Provide Coverage For

Integrated GL/site pollution and options to include excess, auto, and work comp may be available

Monoline site pollution liability

Third-party claims for bodily injury and property damage

First-party and third-party cleanup

Both sudden and gradual pollution conditions

Defense of third-party claims

Emergency response costs

Natural resource damage

First and third-party transportation pollution liability

Loading and unloading

Products pollution liability

Business interruption resulting from pollution conditions

Aboveground and underground storage tanks

Non-owned disposal sites

Civil fines and penalties

Mold, legionella, and more

Illicit abandonment

Claims Scenarios & Examples

The US EPA and state environmental agencies filed a suit against a pulp and paper mill, alleging the company violated the federal emission standard for hazardous air pollutants and state air pollution control laws for nuisance, opacity, and air pollution control equipment maintenance requirements. The mill agreed to a settlement agreement of $5 million to resolve the environmental damage allegations and $4 million to install additional pollution control devices.
Environmental advocacy groups filed a lawsuit against a pulp and paper mill for allegedly violating the federal Clean Water Act. The mill had been discharging water to a river, impacting the river’s water quality and aquatic environment. The mill paid $250,000 for habitat restoration work and pollution monitoring.
During routine repairs of an aboveground storage tank at a paper mill, it was discovered that the tank had been leaking white liquor, a strongly alkaline solution used in the pulping process, to the underlying soil and groundwater, requiring cleanup.
A pulp and paper mill received over 30,000 odor-related complaints related to its releases of hydrogen sulfide. Stack testing indicated the plant had fifty times higher small particle emissions than similar paper mills. The EPA has filed two enforcement orders against the facility, and nearby residents have filed a class action lawsuit against the company for $5 million.
A pipe carrying black liquor, a high-strength organic pollutant derived from the breakdown of pulpwood, ruptured, releasing the material to a pulp and paper mill’s wastewater treatment plant. The chemical overwhelmed the wastewater treatment system. The high organic content of the chemical released into the river caused a reduction in the dissolved oxygen level in the river water, killing numerous fish. The state filed natural resource damage claims against the company, seeking compensation to support the recovery of the fish in the river.
A pulp and paper mill discharged treated wastewater containing phosphorus to a nearby river. The state filed charges against the company, alleging the discharges triggered massive algae bloom in the river. At the height of the bloom, the public was advised to avoid swimming in the river or ingesting its water because of the potential health effects. The pulp and paper company agreed to pay $100,000 in fines for pollution prevention and detection projects.
A pulp and paper mill formerly used a kraft bleaching process. Emissions from the plant spread dioxin-contaminated indoor dust to neighboring residential homes. A class action lawsuit alleging harm from the dust was filed against the company, and the company had to pay for the cleanup of the residents’ homes and yards.

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

Download PDF