By Steven J. Smith, AVP Underwriting
Given the wide variety of meats, processed foods and produce distributed across the United States, cooling and preserving these consumables at the point of origin and shipping is paramount for businesses. While cold storage facilities are becoming more common, the environmental exposures related to these facilities are not. Cold storage facilities can use large amounts of regulated hazardous substances, petroleum products and various chemical agents in the day to day operation and maintenance of equipment. This risk is further compounded by the development of residential and other sensitive use receptors near facilities and the toxicity of certain chemicals used on a large scale. While these facilities are crucial to many business interests for the distribution of temperature sensitive products, there are risks involved to both human health and the environment.
The most common compound utilized by cold storage warehousing is anhydrous ammonia (NH3). Anhydrous ammonia is listed by OSHA as a “Colorless gas/liquid with a pungent odor that is an irritant and corrosive to skin, eye, respiratory tract and mucous membrane and may also cause severe burns, eye and lung injuries.” Cold storage facilities use anhydrous ammonia in self contained cooling systems ranging from less than 250 pounds of NH3 to systems that contain well over 10,000 pounds. NH3 used in cold storage also presents additional issues during a release or fire. Breathing apparatus and additional protective gear are required at low exposures due to toxicity and water cannot be directly applied to the spill without further risking chemical reaction. In addition, anhydrous ammonia is of similar weight to air and therefore does not rise or sink rapidly, but tends to follow the wind patterns which may increase the exposure to adjacent and nearby properties. Should a release occur from one of these facilities, the largest and most likely liabilities would be bodily injury and potential business interruption expenses experienced by neighboring properties up to and including necessary evacuations.
Cold storage facilities may also store bulk quantities of petroleum based fuels and lubes along with cleaning solvents. These materials may be stored in aboveground storage tanks (ASTs), underground storage tanks (USTs) or in smaller drums/totes. Proper segregation and storage of these materials is essential for safety. Improper handling may result in a release along with associated fines and penalties levied by the local regulatory agency.
Additional exposures at cold storage warehousing locations may not just be limited to the storage and use of hazardous materials. HVAC, plumbing and other trade contractors routinely work at these facilities and may inadvertently disturb asbestos, release fumes from glues, paints, etc. or impact a 3rd party via a pollution event from other operations.