As winter descends on the Wasatch Mountains, a quiet neighbourhood in Park City, Utah is grappling with a messy legacy. Contractors demolishing the aging Treasure Mountain Junior High School encountered groundwater seeping into their excavation. Instead of following the project’s storm‑water plan—which mandated that any water be held on site until it evaporated—workers pumped roughly half a million gallons into a ditch that ultimately drains into Silver Creek. Silver Creek is classified as a potential drinking‑water source, and the construction site sits within a Superfund area still contaminated by historic mining waste.
What happened
A whistleblower alerted Utah’s Department of Environmental Quality (DEQ) in October that workers had bypassed onsite weir tanks and pumped excavation water straight into the creek. Records obtained through open‑records requests show the contractor, Hogan Construction, had discovered groundwater contaminated with arsenic and lead in August. Lab analyses revealed that lead concentrations were nearly twenty times the state’s discharge threshold and arsenic levels also exceeded permitted limits. Under Utah’s permit requirements, contamination at those levels should trigger water pre‑treatment and state approval before any discharge.
Emails between the school district’s environmental consultant and project managers reveal that officials knew discharge would require state review. Instead, the water was pumped into a storm‑drain system without a dewatering permit, and on 10 October hoses were diverted directly into Silver Creek for several hours. A DEQ incident report filed that afternoon documented an unpermitted discharge to a creek and noted prior detection of lead in groundwater samples. Pump logs suggest that tens of thousands of gallons entered the creek during the three‑hour bypass.
When local media broke the story in November, Park City School District officials insisted that the water was “non‑hazardous” and that pumping through a private storm drain was allowed. However, correspondence from Park City’s storm‑water coordinator contradicts that assertion. The project’s pollution‑prevention plan prohibited any dewatering, and city officials say there are no municipal drains on the site—all drains lead to Silver Creek. In other words, the groundwater discharge emptied directly into a stream that serves as a potential drinking‑water source.
Regulatory response and community concerns
DEQ has launched an investigation and is withholding records under an enforcement exemption. The agency has not yet issued findings, but state law allows civil penalties of up to US$10,000 per day for unpermitted discharges. Because the site is within a Superfund area, federal authorities could also step in if sediment contamination spreads.
Meanwhile, local residents and downstream farmers worry about cumulative impacts. Silver Creek feeds into the Weber River and provides irrigation water for alfalfa fields and habitat for sand‑hill cranes. Heavy metals such as lead and arsenic bind to sediment and persist in streams, potentially exposing wildlife and people for years. Public forums hosted by the school district have drawn heated questions about transparency, contractor oversight and long‑term monitoring.
Why it matters for business owners
For construction firms, property developers and even small business owners, the Park City incident highlights two important themes. First, pollution events happen unexpectedly—even when projects have a plan. Discovering contaminated groundwater on a demolition site should have led to updated storm‑water plans and regulatory approval. Second, the cost of cleanup and legal action can dwarf the value of any short‑term savings from cutting corners. Simple adherence to permit requirements—testing and holding groundwater on site—could have prevented exposure to lead and arsenic. The subsequent investigation, public scrutiny and possible fines will likely exceed the cost of proper dewatering equipment and permits.
Pollution liability insurance, often called contractors’ pollution liability (CPL) coverage, protects businesses from third‑party claims arising from pollutants released during their operations. Many general liability policies exclude contamination, leaving businesses exposed if a spill occurs. The Park City case underscores the need for robust CPL coverage and comprehensive environmental management plans—especially when working on or near properties with historic contamination.