Oil Company Settles With Feds Over Environmental Racism Charges

NEW YORK — A Texas-based oil company has reached an agreement to resolve charges that a failure to adequately detect leaks of petroleum product from underground storage tanks and to implement other safety measures at gas stations in New York impacted primarily low-income and minority communities.

The federal government has agreed to Consent Judgment settling a civil lawsuit against Genesis Petroleum and 20 of its associated companies, for violating the Resource Conservation and Recovery Act (RCRA) in connection with their ownership or operation of underground storage tanks (UST) at 13 gas stations in New York and New Jersey, U.S. Attorney for the Eastern District of New York Breon Peace said. The Consent Judgment requires the company to fix environmental safeguards and follow monitoring standards. The settlement also requires defendants to pay a civil penalty of $250,000.

In a statement announcing the agreement, Peace said the claims address stations located in low-income areas and communities of color that suffer disproportionately from environmental burdens.

"Genesis Petroleum flagrantly disregarded measures required by law that are designed to protect the health and safety of the communities in which it operates its gas stations," Peace said. "Leaks from underground storage tanks can contaminate drinking water supplies, pollute surrounding soil and surface waters as well as groundwater, and impact indoor airspaces."

Westchester County gas stations in New Rochelle and Larchmont were specifically identified in the agreement. The deal also named 13 Long Island gas stations, while 14 gas stations in New Jersey were cited in the judgement as well.

"This settlement protects communities across New York and New Jersey by significantly improving how these businesses manage underground storage tanks," EPA Regional Administrator Lisa Garcia said, lauding the deal. "If underground storage tanks leak, they can pose a serious problem because they can contaminate groundwater, and the risk can be heightened when owners and operators of USTs fail to comply with EPA’s regulatory requirements. Underground storage tanks are important business infrastructure and are essential for fueling vehicles but when these tanks are not properly maintained or repaired, communities and the environment can be at risk from leaks of hazardous substances."

The Consent Judgment, which is still subject to public comment and approval by the district court, resolves a lawsuit filed by the United States in June 2019, which alleges that the companies repeatedly violated RCRA regulations between 2012 and 2016 with respect to their operation of underground storage tanks at 13 gas stations. Twelve of the facilities covered by the consent judgment are located in low-income areas and communities of color that are exposed to disproportionate environmental burdens, according to the Department of Justice.

Genesis and its affiliates will now be required to comply with the regulations applicable to USTs for all tanks at 29 facilities with underground storage tanks in New York and New Jersey. The consent judgment requires significant measures to ensure such compliance, including undertaking inspections, maintaining and operating federally approved release detection methods at all underground storage tanks at the facilities, maintaining properly functioning and operational overfill prevention system for new tanks and providing semi-annual reports to the EPA.

Gas stations in the initial complaint:

• 2664 Route 112, Medford, New York
• 607 Station Road, Bellport, New York
• 87 North Country Road, Miller Place, New York
• 616 Route 110, Amityville, New York
• 6077 Jericho Turnpike, Commack, New York
• 199 E. Sunrise Highway, Freeport, New York
• 131 West Merrick, Freeport, New York
• 465 Nassau Road, Roosevelt, New York
• 261 East Merrick Road, Freeport, New York
• 507 Bayway Avenue, Elizabeth, New Jersey
• 163 Fayette Street, Perth Amboy, New Jersey
• 66-80 Bloomfield Avenue, Newark, New Jersey
• 8012 Tonnelle Avenue, North Bergen, New Jersey

Gas stations subject to the consent judgment:

• 2664 Route 112, Medford, New York
• 607 Station Road, Bellport, New York
• 87 North Country Road, Miller Place, New York
• 616 Route 110 (Broadway Road), Amityville, New York
• 199 East Sunrise Highway, Freeport, New York
• 131 West Merrick Road, Freeport, New York
• 465 Nassau Road, Roosevelt, New York
• 11 Station Road, Bellport, New York
• 315 Route 112, Port Jefferson, New York
• 1575 Route 112, Port Jefferson, New York
• 4290 Austin Blvd., Island Park, New York
• 303 Maple Avenue in Smithtown, New York
• 2394 Boston Post Road, Larchmont, New York
• 2149 Boston Post Road, Larchmont, New York
• 747 Main Street, New Rochelle, New York
• 8012 Tonnelle Avenue, North Bergen, New Jersey
• 2 Marlton Pike W, Cherry Hill, New Jersey
• 4915 Route 130 & Browning Road, Pennsauken, New Jersey
• 1422 W. Landis Avenue, Vineland, New Jersey
• 520 E. Commerce Street, Bridgeton, New Jersey
• 3731 Bay Shore Road, Lower Township, New Jersey
• 515 S. Pennsville-Auburn Road, Carneys Point, New Jersey
• 632 2nd Avenue, Long Branch, New Jersey
• 379 Quaker Church Road, Randolph, New Jersey
• 1839 Admiral Wilson Blvd., Camden, New Jersey
• 509 Route 47S, Cape May, New Jersey
• 1651 Route 38 & 464 Pine Street, Mount Holly, New Jersey
• 615 Pearl Street N., Bridgeton, New Jersey
• 3422 S. Delsea Drive, Vineland, New Jersey