Storage Tanks
Refineries often store large volumes of chemicals, crude oil, and petroleum products in aboveground storage tanks (ASTs). Catastrophic failure of an AST caused by an accident or rupture of the tank could cause its contents to enter and breach the secondary containment or exceed the capacity of the secondary containment structure. These catastrophic failures can cause severe on-site environmental damage or migrate off-site, impacting third-party properties or surface waters.
Secondary Containment Failures
Tank bottoms may also leak from corrosion or other causes, and if the secondary containment for ASTs has become damaged or cracked, leaks and spills could be released from the containment structure. These releases could result in environmental impacts on-site or off-site.
Stormwater Run-off
Stormwater run-off captured in secondary containment structures and from other areas of the refineries could come in contact with chemicals, debris, waste, and other outside storage. Contaminated stormwater could impact soil, groundwater, or surface water if not properly monitored or contained.
Subsurface Leak Hazards
Underground storage tanks, oil water separators, underground piping systems, and wastewater collection systems can also be present at refineries. They can be subject to leaks or spills if they become damaged or cracked if not adequately monitored or properly maintained. Spills or releases to the subsurface can migrate to groundwater and impact drinking water sources, such as public water supply wells, private potable wells, or surface waters. Releases to soil and groundwater can also produce toxic vapors that can migrate upward and into buildings causing indoor air issues.
Wastewater Management
On-site wastewater treatment plants often treat wastewater generated at refineries and stormwater that has come in contact with chemicals. Refineries generate wastewater from processes, cooling water, condensate blowdown, raw water treatment, laboratories, and equipment cleaning. Wastewater holding or treatment tanks, piping systems, treatment chemical storage areas, or waste storage areas can have leaks or spills, creating environmental risks. Sludge may be generated that could be classified as hazardous waste. These waste materials would need to be taken to a non-owned disposal facility approved to take such wastes. Improper waste disposal could lead to environmental liability or legal consequences for violating regulatory requirements.
Accidental Releases During Transport
Accidental releases during the transportation of chemicals, fuels, or wastes due to vehicle accidents, improper cargo securement, or a broken or loose valve can result in a release on the roadway. Depending on the extent of a release and where it migrates, it could trigger emergency response costs, cleanup costs, third-party claims, and natural resource damage claims.
Air Emissions
Air emissions emanate from refining processes, storage tanks, loading/unloading racks, and other sources within refineries. Permit violations and improper control of emissions can result in civil fines, third-party bodily injury, and property damage claims.
Non-Owned Disposal Sites
Solid, regulated, and hazardous wastes are generated in petroleum refineries. Releases or spills can occur during waste handling, storage, or transport, creating environmental risks. Additionally, these wastes may be taken to non-owned disposal facilities. Improper waste disposal could lead to environmental liability or legal consequences for violating regulatory requirements. As a waste generator, the refinery can be responsible for pollution incidents at non-owned disposal facilities where their waste was sent.
Historical Waste
Past disposal of wastes could have occurred on the refinery property in surface impoundments, land treatment units, waste piles, etc. These units may not have undergone clean closure, and environmental liabilities may remain from past on-site disposal practices.
Flammables
Due to the flammability of the chemicals handled at petroleum refineries, fires, and explosions can occur at these facilities. Firefighting foam containing per-and polyfluoroalkyl substances (PFAS) may be used on fires, past or present. Fires and explosions can release toxic chemicals into the air, soil, groundwater, or surface water. Third parties can be impacted by exposure to toxic chemicals in the air, shock waves from explosions, or migration of contaminants in groundwater or stormwater. Drinking water sources can be impacted, and chemicals can be released into surface waters, damaging natural resources.
Natural Resource Damage
Refineries are often located next to water bodies, and large volumes of crude oil are delivered by ship to the refinery. Leaks or spills can occur over water or land from piping systems, tank overfills, pump failures, etc. Releases can result in many environmental liabilities on-site and off-site, including natural resource damage claims.
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, property damage, and cleanup costs arising from on-site or off-site pollution conditions
Defense of third-party claims
Both sudden and gradual pollution conditions
Aboveground and underground storage tanks
Loading and unloading
Emergency response costs
Civil fines and penalties
Business interruption resulting from pollution conditions
First and third-party transportation pollution liability
Crisis/reputation management
Non-owned disposal sites
Natural resource damage claims