Chemical Manufacturer - Spill

Facility Type: Commercial & Industrial Facility
Cause of Loss: Soil and Ground Pollution 
Dollar Value of Loss: $99000
Product Solutions:  
Environmental and General Liability Exposures (EAGLE) Program®

Details of Loss:

200,000 Gallons of Water Contaminated at Wastewater Treatment Facility

A Midwestern chemical company received an order for 1,100 gallons of ferric chloride to be delivered to a municipal wastewater sewage treatment facility.  The company ordered the ferric chloride through a third-party supplier and arranged for its transport via a trucking company.  The supplier loaded the truck with approximately 5,500 gallons of ferric chloride, five times more than ordered.

The ferric chloride was transported to the sewage treatment facility and all 5,500 gallons were unloaded into the municipality’s tank. The tank did not have the appropriate overflow protection or alarms and the excess product overflowed secondary containment.  Personnel hosed off the spilled product into the water treatment basins which was then discharged into a lagoon resulting in a higher than normal concentration of ferric chloride.  State EPA officials required approximately 200,000 gallons of water with high ferric chloride levels in the lagoon be pumped out and transported to an appropriate landfill.

The chemical company was named as a third-party defendant in a suit and was required to pay $19,000 for its part in the release with another $80,000 held in reserve.