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V-1 Oil Agrees to Pay $1.2 Million for Failure to Clean Up Leaking Gasoline

Release Date: 5/8/2001
Contact Information: Chris Field
field.chris@epamail.epa.gov
(206) 553-1674

May 3, 2001 - - - - - - - - - - 01-013


SE Idaho Action Represents EPA’s First Penalty For Violation
of a Cleanup Order Under The Oil Pollution Act of 1990(OPA)

After several years of litigation, the U.S. Environmental Protection Agency, the U.S. Coast Guard and the U.S. Department of Justice have reached a $1.2 million settlement agreement with the V-1 Oil Company of Idaho Falls, Idaho. The proposed settlement satisfies U.S. claims stemming from the Company’s failure to comply with a federal order requiring it to cleanup gasoline that leaked from tanks at its Preston, Idaho, filling station.

The proposed settlement was lodged yesterday in federal district court. Once it is published in the Federal Register, the public will have 30 days to comment on the settlement prior to entry by the court. Federal enforcement action against V-1 followed a 1996 gasoline leak that led to local ground water contamination, dangerous fumes in home basements and potentially explosive levels in the Preston sewer line.

Working closely with the Idaho Department of Environmental Quality (IDEQ) and the City of Preston, EPA contacted V-1, identifying their tanks as a probable source of the leaking gasoline. The Company denied responsibility and refused to grant federal, state and local investigators access to their property. The Company later refused to comply with the EPA cleanup order under the 1990 Oil Pollution Act (OPA), so EPA conducted a two-phase removal at the site. During the removal, EPA removed hundreds of gallons of gasoline from the groundwater and approximately 2,000 cubic yards of contaminated soil.

According to Chuck Findley, Acting Regional Administrator in Seattle, the Company’s refusal to cooperate increased the cleanup cost dramatically.

“By failing to cooperate on the cleanup, V-1 forced EPA to obtain a warrant, temporary restraining order, and preliminary injunction in order to gain access for investigation and cleanup,” said Findley. “As a result, you’re looking at cleanup that took longer and cost more to complete. The environment and the community suffered more than necessary and that’s really a shame.”

After these early difficulties, management changed and the Company “stepped up to the plate” to resolve its responsibilities in the case.

The $1.2 million settlement with V-1 includes a $478,000 penalty for V-1's refusal to comply with EPA’s cleanup order and $722,000 to reimburse the government for the cost of EPA’s cleanup. This is the first time EPA has assessed a penalty for the violation of an oil spill cleanup order.

The V-1 company owns 35 gasoline filling stations across ID, WY, MT, UT, and CO. By signing the agreement, the Company neither admits nor denies liability in connection with the gasoline contamination.

Persons wishing to obtain a copy of the proposed consent decree, or wishing to comment on the settlement, should forward their request or comments to the following address:

The Comment Period on the proposed Consent Decree will run for 30 days following publication of the settlement in the Federal Register.