In August 2025, the Minnesota Pollution Control Agency (MPCA) announced that a county highway reconstruction near the Goose Road Bridge resulted in construction sediment being discharged into the Blue Earth River and a nearby drainage ditch. Investigators found that project owners and a local contractor failed to stabilize drainage ditches and install proper sediment controls while working next to surface waters, causing soil from the project to wash into the river. The MPCA assessed administrative penalties of $15,036 for the county and $20,050 for the contractor. The agency noted that penalties are calculated based on the seriousness of the violation, whether it is a repeat offense and any economic benefit gained by delaying compliance.

The fines underscore the importance of erosion and sediment‑control practices on construction sites. Runoff from exposed soil not only carries suspended sediment but also transports nutrients, petroleum products and other contaminants into surface waters. Once vegetation and topsoil are removed, the subsoil can erode quickly; preventing erosion is far less costly than trying to mitigate the damage after a discharge occurs.

Best management practices for construction projects

The MPCA’s National Pollutant Discharge Elimination System/State Disposal System (NPDES/SDS) construction stormwater permit requires a range of best management practices (BMPs) to control erosion. Key requirements include:

• Phasing construction to limit the amount of soil exposed at one time and delineating areas not to be disturbed with flags or silt fences.
• Avoiding disturbance of steep slopes or using stabilization techniques such as terracing.
• Routing stormwater around exposed soil areas through conveyance channels and directing discharge to vegetated areas to promote infiltration.
• Using vegetative buffers, horizontal slope grading and maintenance to protect surface waters.
• Installing check dams, sediment traps, riprap or grouted riprap along conveyance channels to slow runoff and capture sediment.
• Stabilizing exposed soils immediately when construction activity stops for more than 14 days and within 24 hours for areas draining directly to public waters.

These BMPs are designed to minimize soil erosion and prevent off‑site discharges. In the Blue Earth County case, failure to stabilize ditches and install sediment controls allowed soil and fine particles to enter the river system. Such discharges can smother aquatic habitats, degrade water quality and violate permit conditions.

Why pollution‑liability coverage matters for contractors and project owners

Most commercial general liability policies exclude damages resulting from environmental pollution. For companies involved in earthmoving, grading or infrastructure work near water bodies, pollution‑liability insurance provides critical protection. Key considerations include:

• Regulatory fines and cleanup costs – Environmental policies can cover response expenses, legal defense and third‑party bodily injury/property damage claims. Regulatory agencies like the MPCA consider whether a violator gained an economic benefit by failing to comply, and fines can be significant.
• Contractual risk transfer – Owners should verify that contractors carry sufficient environmental coverage and include indemnification language to address pollution risks. Likewise, contractors should require their subcontractors to follow erosion‑control BMPs and carry similar insurance.
• Claims prevention – Insurers often provide risk‑management support, including site audits and guidance on erosion‑ and sediment‑control plans, which can reduce the chance of a discharge.

Action steps for business owners

1. Develop a comprehensive stormwater pollution prevention plan before construction begins. Identify sensitive waters, plan for phased clearing and specify BMPs such as silt fences, sediment basins and temporary covers.
2. Train crews and monitor compliance. Supervisors should regularly inspect ditches, slopes and barriers, especially after heavy rain.
3. Document BMP implementation. Maintain records of inspections, maintenance and corrective actions; this documentation can be invaluable during regulatory reviews.
4. Consult with insurance professionals. Review existing liability policies to ensure pollution exclusions are addressed and determine whether stand‑alone environmental liability coverage is warranted.

By incorporating strong erosion‑control measures and ensuring appropriate insurance coverage, business owners can mitigate both environmental impacts and financial exposure. The Blue Earth County fines illustrate how sediment runoff can trigger regulatory enforcement and reputational damage; proactive planning and insurance can help companies avoid similar outcomes.