When Lane County sheriff’s detectives executed a search warrant at a rural property north of the small community of Marcola on December 9, they found more than they bargained for. Instead of a quiet homestead, deputies encountered an array of clandestine labs tucked into outbuildings. According to law enforcement, the operations were used to extract butane hash oil and manufacture psilocybin products, activities that require pressurized equipment, flammable solvents and makeshift electrical work – a volatile mix that has caused numerous explosions and fires in Oregon in recent years. To protect officers and nearby residents, the Mohawk Valley Rural Fire District responded and called in Eugene‑Springfield Fire’s HAZMAT crew, which established control zones, isolated the scene and neutralized the hazardous chemicals.

From a risk‑management perspective, the case is a stark reminder that property owners can unwittingly become hosts to dangerous operations. Authorities noted that “these types of labs can be extremely hazardous when operated illegally,” underscoring the fact that the dangers aren’t limited to the occupants. Improperly wired equipment and pressurized extraction systems can ignite or explode, releasing flammable gases and toxic vapors into nearby buildings or spreading contamination through soil and groundwater. Even if the owner has no knowledge of the tenant’s activities, they may still be liable for cleanup costs, third‑party injuries or property damage. In Oregon and other states, clandestine labs are subject to state decontamination rules that require property owners to hire certified contractors to assess and remediate contaminated sites before the structure can be reoccupied.

This situation underscores why pollution liability insurance should be a core component of any real estate or business portfolio. Standard property policies often exclude contamination or hazardous releases, leaving owners exposed to potentially six‑figure cleanup bills and personal‑injury claims. A dedicated pollution policy can cover the costs of emergency response, environmental remediation and third‑party lawsuits stemming from illegal or unknown hazardous activities on the property. It can also help with legal defense and public relations expenses if an incident draws media attention. Coupling robust insurance with thorough tenant screening, periodic site inspections and clear lease clauses prohibiting unpermitted hazardous processes gives property owners the best chance of avoiding – or at least mitigating – the consequences of illicit operations.