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Largest Penalty in Five-State Region Assessed for Storage Tank Violations

Release Date: 6/3/1998
Contact Information: For more information contact the Office of External Affairs at (214) 665-2200.

     Petroleum Wholesale, Inc. of Houston has been assessed the largest penalty to date in Region 6 for violations of federal rules governing underground storage tanks, the U.S. Environmental Protection Agency (EPA) announced today.

     "The $274,000 penalty levied against this firm is justified by the number and history of violations. Inspectors checked 7 locations of this firm in Houston and Texas City and found 80 violations of existing underground storage regulations. All 27 tanks were out of compliance with the regulations written to protect our country’s water supply," EPA Regional Administrator Gregg Cooke said.

     These national regulations are designed to protect groundwater from contamination caused by leaks from buried tanks. Groundwater is the only source of drinking water for nearly half of all Americans.

     The regulations apply to underground tanks such as those used for gas and other petroleum products at service stations and fleet refueling facilities and those used to store certain hazardous chemicals, normally at industrial sites.

     Petroleum Wholesale’s lack of adequate leak detection systems is particularly disturbing in light of the approaching deadline for additional safeguards on underground storage tanks. Regulations requiring spill/overfill prevention devices and corrosion protection were adopted a decade ago, on Dec. 22, 1988. Owners and operators were given ten years to upgrade existing tanks to meet the new rules or to properly close older tanks.

     Owners of tanks which were installed before Dec. 22, 1998, can expect stiff penalties if they have not upgraded, replaced or properly closed tanks before the deadline runs out this December.

     The Agency has been encouraging owners to proceed with upgrading, removing or replacing their underground tanks to avoid anticipated contractor shortages and higher costs as the Dec. 22, 1998, deadline nears. State environmental agencies and EPA are stepping up inspections and enforcement activities to increase awareness of the requirements.

     EPA has a free booklet, "Don’t Wait Until 1998," that explains the requirements. Some states have established financial assistance programs that can provide grants or low-interest loans to help owners upgrade or replace their tanks. Information is available in another booklet titled, "Financing Underground Storage Tank Work: Federal and State Assistance Programs." To order these booklets, call the EPA Hotline at 1-800-424-9346.

     "The public should not tolerate any person or corporation that intentionally contaminates our air, water or land. The penalty against Petroleum Wholesale is just one example of how EPA will continue to vigorously enforce underground storage tanks regulations," Cooke said.