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Varies depending on the site, sometimes it's gasoline, or solvents, or heavy metals or PFAS. As for how it happens, accidental or deliberate releases. I've found military documents from the 50s that say the official place to dispose of used motor oil was a pit they'd dug in the ground.
Yep, the regulation is now a 5ft cubed hole dug around the soil in any spill. It's resulted in folks being more careful but also hiding where things are spilled. I've not once seen a hole dug. Corporations are roughly similar. Small organizations don't care at all.