The Problem: A company insured by XL Environmental operated a self-contained water treatment facility for a small town. Residents of the town reported tasting "diesel" in the water supply.

The Response: XL Environmental immediately responded and went to the site to investigate the source of the potential contamination. The investigation revealed that an aboveground storage tank inside the facility had released diesel fuel, which seeped through the liner below the tank, was absorbed into the cement sub-floor, and leaked through the ceiling of the 400,000 gallon underground purified water well that services the town’s drinking water supply.

Immediate measures were taken to provide a temporary water supply. XL Environmental retained outside consultants, engineers, and contractors. While efforts could have been made to attempt to recover the lost diesel that remained in the sub-floor, it was ultimately determined that demolition of that portion of the building was the only safe way to ensure the integrity of the water supply. A significant portion of the building was demolished and reconstructed, a new tank was installed with a seamless liner, and the 400,000 gallon water tank was sterilized. XL Environmental oversaw the entire operation and ensured that the building was completely restored while minimizing costs.

The water treatment facility’s Pollution and Remediation Legal Liability (PARLL) policy will cover the significant costs of retention of outside consultants, engineers and contractors, demolition and reconstruction of the building, as well as installation of the new diesel tank and the sterilization of the purified water well.

The Benefits: There was no interruption to the town’s water supply during the entire operation. The insured, the town and the governmental agencies were all pleased with the outcome of the remedial effort. The decision to demolish and reconstruct helped alleviate the Town's concerns regarding integrity of the water supply and also served to prevent the potential for future claims and remedial costs.