Actually, if you explore the area thoroughly, you will learn that the whole deal took a pretty long time, maybe some months. Legion had a mole leaking the stored waste first, then opened an attack which led the NCR to scatter or hide in the irradiated city. Under siege they had no chance but to stay, and the waste didn't actually help them.
Really? I understood it as the Fire House having been had it stored there for a while, then they opened the barrels and just let time do it's thing. But I suppose it WOULD explain the armed turrets.
Truth be told, I only stumbled close to Searchlight once, and do to my fear of zombies in any representation, I give Camp Feral a wide berth. :cryvaultboy: