Printer Friendly

Gas additive may raise cleanup costs of spills.

A chemical added to gas may lead to increased costs to clean up spills from underground storage tanks, according to Liberty Mutual.

The additive, methyl tertiary-butyl ether or MTBE, is one of a group of chemicals commonly known as "oxygenates" because they raise the oxygen content of gasoline.

While the chemical helps gasoline burn cleaner and has grown more popular since Congress passed the Clean Air Act Amendments in 1990, it dissolves easily in water so when gas is spilled, it spreads faster than gas without the additive, said William McElroy, vice president, environmental, for Liberty Mutual.

"Our principal concern is if it spreads faster, it will be more difficult to clean up," McElroy said during an interview at the recent Risk and Insurance Management Society Inc.'s conference in Philadelphia. That will lead to an increased severity of claims stemming from underground gasoline storage tanks, which could, in turn, lead to an increase in premiums for policies to cover the tanks, McElroy said.
COPYRIGHT 2005 A.M. Best Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Property/Casualty
Author:Green, Meg
Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 1, 2005
Words:164
Previous Article:Rewards and risk: simple criteria can identify a corporate culture that focuses on risk as well as return.
Next Article:Adjusters group to write E&O coverage for members.
Topics:


Related Articles
Burning issues: is torching the most benign way to clear oil spilled at sea?
Alaska Sport Fishing Association v. Exxon Corporation highlights the need to take a hard look at the doctrine of parens patriae when applied in...
MTBE: tonic that's hard to swallow.
Gasoline additive's going, but far from gone.
Fuel contaminates 13 feet under.
Court decision shows no good deed goes unpunished.
Elemental mercury spills.
Gas thievery more costly than just the pump price.
Rubber recycler finds solutions for waste rubber.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters