Texas Federal Judge Refuses to Dismiss Pollution Coverage Action Against St. Paul

DALLAS — A federal judge has denied St. Paul Fire and Marine Insurance Co.’s bid to dismiss a pollution coverage action filed by a Texas oil and gas company, finding it adequately alleged that a saltwater spill is covered under the policy’s “bodily injury and property damage” and “pollution clean-up costs” provisions.

In a Jan. 24 order, Judge Irma C. Ramirez of the U.S. District Court for the Northern District of Texas allowed Pogo Resources LLC’s claims for breach of contract and bad faith to proceed against the insurer.

Paladin Energy Corp. owned and operated oil and gas assets in …