KeySpan Gas Tagged for Legacy Pollution Cleanup Costs

KeySpan Gas East Corp., not its insurer, is on the hook for clean up costs associated with century-old contamination that pre-dated the availability of environmental insurance, the New York Court of Appeals ruled March 27.

The ruling freed Century Indemnity Co. from any duty to indemnify KeySpan for groundwater contamination costs at New York gas manufacturing plants that began operation in the 1880s, pre-dating policies Century issued from 1953 to 1969.

The decision reflects the difficult task courts face in distributing liability for indivisible, long-term environmental damage that overlaps multiple insurance policies and insurance coverage gaps.

The contamination stems from ...