Skiing Business
2012-05-16 14:31:57 | 95 views

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In an apparent case of first impression nationwide, Mountain Creek Resort, Inc. has sued its insurance carrier, Everest Indemnity Insurance Company, in an attempt to force the insurer to pay a claim under a weather insurance policy underwritten by the company. Although this lawsuit appears to be the first of its kind anywhere in the United States, the lack of case law is hardly surprising given the way in which weather insurance policies for ski resorts are drafted. In essence, weather insurance is business interruption insurance with a twist. It is designed to protect a ski resort against weather so bad that it would almost certainly prevent the resort from opening in time for the Christmas holiday. Unfortunately for skiers across the country, that was exactly the type of unprecedentedly warm “winter” weather that hit much of the country last December.

Ski resorts all rely on one essential ingredient – snow. Without snow (and lots of it) a resort cannot open. Many ski resorts have bought another insurance policy of sorts by investing heavily in snowmaking to produce artificial snow when Old Man Winter withholds the natural variety. Wyoming’s Grand Targhee resort may claim that their snow comes “from heaven, not hoses,” but for most North American ski resorts, snowmaking is essential to opening in advance of the lucrative Christmas holiday season. Of course, even snowmaking has its limitations. Snowmaking generally requires temperatures of below approximately 28° F.

But what is a resort to do if the weather is both snowless and warm? December 2012 was a (not so) perfect storm of both record warmth and non-existant snowfall across much of the country. Many resorts struggled to open at all because high temperatures prevented them from switching on their snowmaking systems. Enter weather insurance.

According to the Mountain’s Creek’s complaint, its policy was something that might best be described as a “catastrophic bad weather policy.” It was designed to cover only truly exceptional weather. Everest would have to pay the resort only if during 16-day period from December 12-27, 2011 (i.e. the prime snowmaking window before Christmas), the average temperature, as measured by a complex algorithm, exceeded 33° F for 11 days. For each day in excess of ten days where the average temperature exceeded the 33° F average threshold, Everest was to pay to Mountain Creek $284,970 up to a policy limit of $1,710,000.  Mountain Creek asserts that the average temperature exceeded 33° F for all 16 days, entitling it to the maximum payout. Everest disagreed and asserts that only 9 days were above the threshold, entitling Mountain Creek to nothing.

The dispute comes down to methodology.  Mountain Creek asserts that the actual temperature at the resort, averaged hourly, exceeded 33° F and that Everest has “wrongly denied Mountain Creek’s claim by relying upon hourly temperature measurements at other sites that are colder than the [s]ki [r]esort and do not represent what an actual weather station would record as the daily average of hourly temperature measurements for the exact site at Mountain Creek Ski Resort.”

Consequently, the question is which controls, the actual temperature at the resort or an approximation of that temperature designed “to represent what an actual station would record for the exact site?” Most people would assume that predicting weather is the difficult task. Recording it is supposed to be the easy part.

David Cronheim

The court’s decision will come at a time when the ski industry is seeking to adapt to the threat of climate change. In the wake of the disastrous 2011-2012 winter, resorts are more likely than ever to consider insurance to protect against periods of prolonged warmth that inhibit or preclude snowmaking. Consequently, how the court decides the case could have an impact that reverberate across the country.

On one hand, a decision in favor of Mountain Creek might well by pyrrhic for the industry as a whole as it would doubtless lead insurers to increase premiums or more narrowly define coverage. On the other, a decision in favor of the insurer might lead resorts to believe weather insurance is pointless. After all, if 2011-2012 was not bad enough to collect under such a policy, what winter would be? Regardless of the court’s decision, one thing is certain. Resorts certainly hope it cannot get worse than 2011-2012.

David B. Cronheim, Esq. is an attorney at Norris, McLaughlin & Marcus, P.A. and a Skiing Business contributor. He also writes a ski law blog, Ski, Esq. He may be reached for comment at DBCronheim@nmmlaw.com.

 
Even though it was a meager season, Eleven-12 has served up some delicious ski days. Rather than let the season fizzle with a wimper, BergBryce put out a call to rally for a trip to Mt. Shasta. Inspired by Jibmaster’s photos of Shasta’s north side, I responded and the trip was inked.

Mt. Shasta (14,179′) from Hwy. 44 view point (near intersection w/Hwy. 89)
click to enlarge all photos

We headed up Friday afternoon – from South Lake Tahoe to Truckee to Reno to Susanville to Mt. Shasta City.

A group of chargers blows by us around 8,000′ in Avalanche Gulch.

The original plan was to retrace Jibmasters route and drive to 7,000 feet on the north side, then climb and ski the Bolam Glacier. Either that or climb Shastina and either ski Diller Canyon, or the NW face and then traverse around back to the base of Diller.

After talking to TeleWoman and Don at the Mt. Shasta Ranger station we concluded that BergBryce’s Subaru would get beat up too much for either trailhead. That left us with the standard approach up Avalanche Gulch from Bunny Flat. It did not sound that appealing since we wanted to something different, not the standard trade route.

Our route.

Brewer Creek was out, as was Clear Creek since the road’s were covered with snow more than a mile back. So we decided to ski the West Face.

The standard approach for the West Face is to camp at Hidden Valley but that meant camping overnight and this was going to be a wham-bam one-day affair. BergBryce was concerned that Bunny Flat would be a zoo, but I assured him the only real negative was following an established trail full of foot prints instead of a smooth, clean, untracked slope of snow.

bergbryce refuels at Lake Helen.

We started skinning from Bunny Flat about 6am and considered following avalanche gulch part way up, then crossing over to the west face via one of the windows in the red rocks defining Casaval Ridge. However, it looked like that would mean some mixed climbing and a sizeable traverse across the West Face to get to continuous snow. We opted to stick to the standard route up Avalanche Gulch to The Thumb, then continue above Red Banks to the plateau below Misery Hill. From there we could cross over a couple hundred yards to the top of the West Face.

bergbryce harvesting corn.

This proved to be a superb strategy, although we were certainly questioning it as we cramponed up from Lake Helen to the Red Banks. Moving past the Heart seemed to take forever and it nearly broke my resolve to keep putting one foot in front of the other. The crunchy, still frozen surface did not feel like it would soften for a good descent and it was already 11am.

Coming up to Lake Helen there was a superb staircase of well spaced steps carved into the slope. In the steep pitch next to the Heart the existing steps had zero discernable rhythm and every time I tried to take advantage of the security those steps provided, the random, inconsistent spacing only magnified my discouragement at how interminably long this pitch felt. Thankfully the snow was crunchy and easy to grip with crampons and slow, steady switchbacks eventually paid off.

Looking E from West Face entrance to Shasta’s summit and Misery Hill.

During our food break at tent city by Lake Helen I suggested that since BergBryce was climbing faster, if he wanted should move at his own pace, bag the summit, and meet me at the top of Red Banks before traversing over to the West Face. However, when I arrived at the top of Red Banks he was waiting, having run out of water and experiencing cramping in his legs. He had gone through more than two liters already and I still had two left. I give him my liter of water, and a cup of Coconut Water rich in electrolytes and we shared an orange. Then I took the lead and set a series of switchback at a tortoise pace and we made the crest of Avalanche gulch in 15 minutes.

Dostie cutting corn.

It was a short traverse across the top of Avalanche Gulch to the top of the West Face, but the snow was pretty heinous – refrozen wind blasted sastrugi with edges made of iced teeth. We were afraid our first turns down the West Face would consist of this junk. In fact, as we stood on the roll over facing south towards Casaval Ridge that is what the snow looked like. But when we looked behind us, towards Shastina, the snow had been protected from the wind and it rolled over with a smooth creamy surface of corn. The wind was gone, it was 2pm, and the slope beckoned.

What followed was nearly 4,000 vertical feet of 100% ego corn, perfectly ripened, never over done, all the way down to Hidden Valley at a pitch that varied from 35° at the top to 25° near the bottom with a nice mini-couloir connecting the ramp we were on to Hidden Valley below with a few turns in the 40° range. Ordinarily Shasta serves up a nice slice of corn in between an upper pitch of firm snow and a bottom pitch of mush. Somehow we managed to hit the magic hour and the entire West Face was excellent corn from top to bottom.

bergbryce enjoying turns beside Shastina

…and more turns…

…and more…

From the bottom at Hidden Valley we turned left and held a high traverse around the fanned out based of Casaval Ridge. In a mere 15 minutes were were back to the standard, pock marked trail up Avalanche Gulch and the snow was still in good corn condition.

Turns from the top to the bottom, every one in Shasta corn.

By 4:30pm we were back at the car, and headed for Mexican food in Mt. Shasta city. Round trip time on the mountain – about 10 hours.

© 2012
 

Title says it all.

For the first time in at least 38 years, there was no Eastern US ski area open in May. Mont St-Sauveur in the lower Laurentians saved the honour of May lift-served skiing. There is still skiing 40 minutes away North of Montreal (or 2:15 from Ottawa).

MadPat was still in a MadDash as I had number of tasks on my plate in Montreal. Tasks that involved managing people and building. I was hoping to go skiing on Saturday then head to Montreal, but wasn’t going happen. too many things to be done before I could leave Ottawa. Ended up driving to Montreal and taking care of stuff that night and the next morning. I couldn’t leave from Montreal before 11am…not very happy, but getting these things done have been the priority lately.

This music is like how I’ve been feeling these days; racing around left and right dealing with things…being stressed out. I was listening to the first ExCubus CD while driving to Montreal. Group from an old friend from my University days.

Exited 2km before in Piedmont and drove by Mont Avila, never noticed that the sign now mentioned to exit here for MSS instead of the St-Sauveur-des-Monts exit. An immense hill of hay (which is probably covering snow for the planned annual AKAMP jib camp in July).

Parking lot at noon and getting ready. Not seeing many skiers on Hill 70. Maybe all the young jibbing folks are still in bed? Skiing in short Tee weather and corn, this is what I call “Spring Skiing”. Get out the sun glasses and sunscreen. As I’m getting reading, I see fellow Masters and Ottawa skiers saying ‘Hi Pat’. Skiing was $20 for all ages. I, of course, had my Edelweiss pass (MSSI group) which is good when Edelweiss isn’t open. It feels like Edelweiss’ season ended 3 months ago, whatever.

I had to figure out a place to put the RTIF card as I didn’t have any pockets, ended up transforming with pants into shorts and hearing them under my Summer weather ski pants. Problem solved; I could also have skied in shorts, but I’m not a short type of guys even when I’m not skiing. Some people had shorts, some had really tight shorts, some were topless, but it was generally fat guys who you would want to say “Put on Shirt On” and not the girl with tight shorts. Ouf!!!

Starting to ski at noon-ish solo and ended up skiing more of the afternoon with someone from “not’ the ‘Yo’ generation. Talked about his trips to India, Gulmarg (which didn’t exist that then), home renovations and building management (which was my main concern these days), South America and skiing. Eventually found out that he’s a lucker on AlpineZone. Rode the chair a few times with fellow Ottawa skier also and he asked me about Termas de Chillan and other low altitude places in the Andes. Also finding out that health issues were concern too many this season. Teens and “yos” finally started getting at the hill late afternoon, some of them hitting the two boxes features on the trail.

Sweet corn, salted down. What was smooth at noon, became varied mounds, bumps, firmness. I was happy I had my slalom skis with the firm stuff on thin ice between the random bumps in the final pitch.
The top of the final pitch was getting pretty thin, but if they really want to re-open they could push the snow from the upper 1/4. It’s pretty thick on top.

Didn’t think it was possible, but I skied 5 hours on Hill 70. The non-break expect for the camera at 4:30pm. So I brought the camera, but forgot the watch. I’m estimating about 35 runs and 7500 meters based on my last trip at MSS last November. Wow…skiing until the last chair. This is why I love real “Spring Skiing”, you don’t get tired of it.

The official word around the mountain (staff and patrol) is that they were hoping to re-opening one last time this weekend (May 12-13), but the news came down on Thursday, MSS called it a year…Waterpark opens June 4th.

So this is for lift-served in the East, from the opening of the East October 29th at Sunday River (and Killington) to MSS on May 6…MadPat couldn’t have had a longer Eastern LS season in 2011-12. 191 days and I only got 31 days out of it so far. Now if I want to see some more, I’ll have to take a hike or a plane.

Final Pitch of 70 at noon

Closed Nordique and waterpark

Top of Hill 70 West

Top of Hill 70 West

Start of the middle of 70 with less than 30 minutes to the season

Prior to the final pitch

Picture by Manuel P…that’s it for lift-served

Still warm after 5pm

The Old Tram is closed

Again, the longest ski season

No waves: this place is going to be busy in least than one month

Mont Habitant in St-Sauveur-des-Monts not part of MSSI ski area

MadPat’s Gallery:
Mont St-Sauveur – 6 mai 2012