Property Types

Quarries

A quarry is an open-pit mine from which many rocks and stones are excavated. There are several quarrying methods, each potentially adversely impacting the environment. Heavy equipment and processing operations at quarries present the potential for contamination of the environment through fuel loss, leakage, and emissions to the atmosphere. Drilling mud and explosives are also often used at quarries and can pollute the environment. Aboveground storage tanks (ASTs) and underground storage tanks (USTs) may be located at quarries, which have the potential to have significant releases and lead to numerous environmental contamination issues. Also, stormwater from these facilities may contain pollutants, silt, and sediments, which can be released to soil and groundwater or damage aquatic systems and drinking water sources.

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Environmental Exposures May Include

Heavy Equipment
Loading and Unloading
Explosives
Drilling Fluids
Nitrate and Fuel Oil
Illicit Abandonment
Air Emissions
Carbon Monoxide
Liner Damage
Stormwater Run-off
Equipment Washout

Heavy Equipment

Quarries use heavy-duty trucks, which can leak vehicle fluids. Fuel for equipment may be stored on-site in ASTs or USTs. Leaks or releases from equipment, storage tank systems, fuel delivery, or fueling operations can contaminate soil and groundwater. They may enter storm drains, which lead to surface waters or local sanitary sewer systems. Cleanup, third-party, or natural resource damage claims can result.

Loading and Unloading

Improper handling and storage of chemicals may lead to environmental liability or legal consequences for violating regulatory requirements. During loading and unloading, contamination breaches, leaks, or spills can release chemicals, which may migrate to the soil, groundwater, or adjacent properties. Combinations of incompatible chemicals can react violently or produce toxic byproducts/gases when stored together or mixed.

Explosives

Explosives are used in the quarry mining process to extract rock and other materials, which may cause damage to neighboring properties and subject the quarry’s owner to third-party property damage claims. The use of explosives also causes fissures that may allow contaminants to enter the groundwater in the area and adversely affect drinking water supplies.

Drilling Fluids

Drilling fluids may contain various additives to help cool and lubricate drills, aid in the rotation of drill cuttings, seal porous layers of the drilling area, and more. These compounds can be toxic, especially to aquatic systems and other natural resources. Drilling fluids could contaminate or cross-contaminate groundwater and aquifer materials. A containment breach or spill could also occur while storing and transporting additives, base fluids, and premixed fluids. Releases can migrate or be carried off-site by stormwater run-off, impacting adjacent properties, stormwater drains, and surface waters. Disposal of spent drilling fluids could result in liquid waste migration from the disposal site.

Nitrate and Fuel Oil

“Explosive residue” may be left as unexploded material after the completion of blasting operations. The explosive residue can contain hazardous materials, such as nitrate and fuel oil, which can enter groundwater and surface water, such as ponds and wetlands, through gravity flow and washing of the aggregate and can harm natural resources.

Illicit Abandonment

Illicit abandonment is the illegal dumping of pollutants on a property. It can become the property owner’s burden for cleanup and third-party bodily injury or property damage if law enforcement cannot find the originator of the waste.

Air Emissions

Non-metallic mineral processing operations at the quarry generate dust emissions. These air emissions may violate federal clean air standards and lead to regulatory actions against the quarry. Dust emissions from quarries may also impact the residents of local communities by causing respiratory damage, disease, asthma attacks, acute bronchitis, aggravating lung conditions, or an increase in the susceptibility to respiratory infections. These illnesses could result in third-party bodily injury claims against the quarry’s owners and may ultimately lead to lawsuits.

Carbon Monoxide

Quarries use vehicles and heavy equipment in their daily operations. These types of internal combustion vehicles are powered by diesel or propane fuel, which generate air emissions that contain carbon monoxide gas when burned. Breathing carbon monoxide can cause headaches, dizziness, vomiting, and nausea. When carbon monoxide levels become high enough, it can cause a person to lose consciousness or, in severe cases, cause death. Exposure to moderate and high levels of carbon monoxide over long periods has also been linked with an increased risk of heart disease.

Liner Damage

Quarries utilize stockpiles, storage ponds, and moats lined with clay or geomembrane materials. Damage to the liner could release contaminants into the subsurface and migrate into the underlying soil and groundwater, resulting in contamination at the site and potentially adjacent properties.

Stormwater Run-off

Stormwater run-off from a quarry may come in contact with outside storage of chemicals, debris, waste, or sludge and mobilize contaminants. Additionally, earthwork operations are associated with quarries. Disturbance of surface cover and exposure of bare soils leads to the generation of silt and sediment, which are fine-grained soil particles readily transported in surface run-off. Improper erosion control or stormwater handling can lead to regulatory violations, impairment to stormwater drainage systems and catch basins, impacts on surface water quality, or damage to aquatic systems or drinking water sources.

Equipment Washout

Equipment washout and decontamination water can contain toxic materials and be caustic and corrosive. Improper washouts from cleaning mobile equipment, pumps, hoses, and drill rods can leach into soil and groundwater or run off-site and into storm drains that discharge into surface waters and significantly damage natural resources and aquatic life.

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 bodily injury and property damage

Third-party claims for cleanup  

Defense of third-party claims

Both sudden and gradual pollution conditions

Emergency response costs

Non-owned disposal sites

Business interruption resulting from pollution conditions

First and third-party transportation pollution liability

Loading and unloading

Aboveground and underground storage tanks

Illicit abandonment

Civil fines and penalties

Silt and sedimentation

Natural resource damage

Claims Scenarios & Examples

A rock quarry was found to be violating clean air standards due to its non-metallic mineral processing operations. The violations included excessive dust emissions and incorrect record keeping. The EPA ordered the quarry to correct the violations and fined them $80,000.
A quarry owner was sued by 28 families that lived near the quarry. The residents claimed that their groundwater wells were muddy and full of turbid water, and in some instances, they had no water at all. The residents alleged that these well problems were because of the quarry blasting. One resident didn’t have water for several days and had a giant mud puddle around their well cover. Once the residents got water running again from the well, tests were completed, and results came back showing that the water contained coliform bacteria and E. coli. The resident had to use bottled water for drinking and cooking. The quarry settled the lawsuit by paying $1 million to help set up a fund to provide an alternative water source for the community.
Two quarry operators were sued for deep drilling operations at their facilities that caused numerous sinkholes and a major loss of spring water in the area. The lawsuit argued that the drilling damaged neighbors’ health and property. The quarries settled and agreed to pay $1.1 million and install a 5,000-foot, 8-inch water line for the community. They also agreed to repair existing and future sinkholes and sinkhole-related damages that affected properties, easements, and rights-of-way owned by the city. They also agreed to indemnify the city from future claims or liability from sinkhole-related damages.
A mining company was found to violate the Clean Water Act after years of discharging dirt, silt, and other pollutants into tributaries that led to local rivers. Pollutants that were discharged included nitrates, oil, and grease. The waste was initially discharged into an infiltration pond; however, the pond often overflowed and migrated into the river system. As a result, the fish in the rivers were affected. Additionally, the lawsuit claimed pollutants were discharged down a haul road, impacting local wells and presenting safety hazards. The lawsuit requested that the company remediate past and future environmental harm. It also requested fines be imposed on the quarry and payment for economic and non-economic damages.
A quarry stored diesel fuel for their generators in a 12,000-gallon aboveground storage tank, which they used to fill a 100-gallon day tank. One night while the day tank was being filled, the system malfunctioned, and the tank overfilled, spilling 5,500 gallons of diesel onto the ground. The quarry was responsible for the costs of cleaning up the site, excavating the contaminated soil, and ongoing monitoring of the groundwater and wells.
A lawsuit was filed against a stone quarry for violating its water pollution control permit. According to the complaint, the quarry operator illegally discharged wastewater containing excessive amounts of pollutants into the stream that deposited on the stream bottom, preventing the growth of aquatic vegetation and seriously degrading the stream as a habitat for fish. The quarry operator agreed to pay $35,000 in forfeitures, penalties, and costs for violating state laws that regulate discharges of pollutants into state waters and to take remedial action to restore the damaged portions of a nearby stream.

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 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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