VERTEX was retained to conduct a claim investigation and review invoicing associated with the surface release of 16,000-gallons of diesel fuel at a facility in Tennessee Colony, Texas. An on-site frac tank storing diesel fuel being utilized for the development of a natural gas storage cavern failed, releasing approximately 16,000 gallons of diesel fuel, which exceeded the capacity of secondary containment and flowed to the unpaved surrounding surface. The release eventually reached a drainage channel and outfall into an unnamed tributary. An approximate 1.6-acre area of land and 3- to 4 miles of tributary were impacted. The Insured retained various remedial contractors to perform the following activities: installation of maintenance booms in the tributary to prevent further fuel migration, fuel recovery, groundwater, surface, and stormwater recovery and disposal, soil excavation and disposal, vegetative rinsing, and restoration activities.
VERTEX was asked to review approximately $9.7M in remedial costs associated with the subject loss. Of the $9.7M in costs, VERTEX identified $1.5M in disputed costs. Disputed costs were associated with the following categories, which were unrelated to the remediation of the subject loss: excessive contractor markups, excessive overtime fees, excessive surcharges, administrative costs, and costs associated with facility security.
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