VERTEX was retained by an international property and casualty insurance carrier to assist them in their review and investigation of two separate claims made by an Insured, pertaining to two separate oil & gas related incidents (releases of produced water from pipelines) in southeastern New Mexico. The two releases occurred in close proximity to one another and the situation was further complicated by a third release of produced water in the same area, which was not covered by the Insured’s policy with the client.
The three produced water releases resulted in commingled chloride impacts to soil that partially overlapped with one another and were being remediated together, concurrently. VERTEX analyzed the areas and volumes of impacted soil for each release, and areas with commingled impacts, and developed a recommended cost allocation for remediation expenses associated with each of the three releases. Based on our analysis, the client was able to determine appropriate payments to be made for each of the two covered spills, and technically supported deductions for invoiced supported deductions for invoiced submitted costs associated with the third spill that was not covered.