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Whittier Properties, Inc. v. Alaska Nat'l Ins. Co.

ELR Citation: 38 ELR 20145
Nos. No. S-12538, (Alaska, 06/13/2008)

The Alaska Supreme Court held that gasoline leaked from the broken fill pipe of an underground storage tank (UST) is a "pollutant" under the absolute pollution exclusion contained in the tank owner's commercial liability insurance policy. The policy's pollution exclusion unambiguously excluded property damage arising out of the escape of gasoline. Even though gasoline that is in the UST is a "product" for purposes of other parts of the insurance policy, when the gasoline escapes or reaches a location where it is no longer a useful product it is fairly considered a pollutant. And other policy provisions do not restore or otherwise provide coverage in this case.