VERTEX was retained by an insurance provider to conduct a claim investigation and review invoicing associated with the release of approximately 44,694 barrels (approximately 1,932,000 gallons) of refined petroleum product to an earthen secondary containment unit when lightning struck a 213,000-barrel aboveground storage tank (AST) at a petroleum refinery in Louisiana. The site maintained 21 ASTs of various sizes to store crude oil, refined petroleum products, and waste. The destroyed AST was located within an earthen secondary containment unit approximately 10 acres in size and an estimated 10 feet deep. Over the next six months, the site operator was required to collect the released petroleum and stormwater from the secondary containment, treat the wastewater on-site, and transport the wastewater for off-site disposal. After recovery activities, a total volume of approximately 10,270,000 gallons of wastewater and petroleum product had been collected and required treatment.
Following our investigation, VERTEX evaluated the presented costs for reasonableness and necessity for remediation. VERTEX reviewed 650 invoices totaling nearly $36,000,000. Other claim management activities included regular meetings with policyholder representatives, evaluation and application of allocations among various policies, and negotiations with the insured’s representatives regarding disputed and reasonable costs. Of the total invoiced amounts, VERTEX identified nearly $1,000,000 in disputed costs and recommended a total allocated amount of approximately $25,000,000.
To learn more about VERTEX’s Forensic services or to speak with an Expert, call 888.298.5162 or submit an inquiry.
