Mesa Oil, Inc. v. Insurance Co. of North America

EBEL, Circuit Judge.

This is a diversity case involving a dispute over insurance coverage. Mesa Oil, Inc. (“Mesa”), a New Mexico oil recycler, purchased Comprehensive General Liability (“CGL”) policies from Insurance Company of North America (“INA”) 1 for two one-year terms during the early 1980’s. The policies contained general pollution exclusions as well as specific endorsements excluding from coverage liability resulting from the discharge of oil into bodies of water.

While it was insured by INA, Mesa sold used oil to Ekotek, a Utah oil recycler. Ekotek’s facility in Utah was subsequently…