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AG Nessel, EGLE Reach $35M Settlement with Premcor to Resolve Disputes Over Environmental Cleanup of Underground Storage Tank Sites

LANSING – Attorney General Dana Nessel’s office and the Michigan Department of Environment, Great Lakes, and Energy (EGLE) today entered into a $35 million settlement with The Premcor Refining Group Inc. (Premcor), resolving disputed claims for environmental cleanup of 79 sites in the state where leaks from underground storage tanks were discovered.

Under the agreement, Premcor will pay $35,246,892.14 to the State. Most of this money is earmarked specifically to clean up the 79 sites identified within the agreement where leaking underground storage tanks released petroleum products into the ground. About $1.25 million of that payment will go to reimburse EGLE for remedial work it already completed at four sites and to support EGLE’s mission to protect Michigan’s environment and public health by managing air, water, land, and energy resources.

“This settlement agreement resolves claims between The Premcor Refining Group Inc. and the State of Michigan,” EGLE Director Liesl Clark said. “This significant influx of funding from Premcor will be used to protect the public health, safety, and the environment at former Premcor sites and other sites throughout the State of Michigan. The settlement will provide important funding at a time when resources for State programs are scarce.” 

Premcor previously owned the 79 sites prior to transferring them to a company that subsequently went insolvent. Premcor has now agreed to provide these funds to close out the  environmental cleanup at the sites. EGLE will receive payments from Premcor over the next year and will use the money to benefit and protect the public health and environment for the people of Michigan and those who visit the state.

“This settlement ensures compliance with our laws and resolves outstanding environmental compliance concerns at numerous identified sites throughout Michigan, as well as providing additional funding for the State to use in its ecological programs,” Nessel said. “Michigan’s natural resources are valuable assets to the state and its residents, and we must ensure that those assets are not compromised by contamination. This agreement is a positive step forward for the environmental health of our state.” 

The agreement, with respect to clean up activities, addresses the release of regulated substances from underground storage tank systems that occurred either prior to or during Premcor’s period of operation in many Lower Peninsula counties.

For a list of the 79 sites where funds are earmarked for cleanup, see Attachment A in the agreement.

Click here to view a copy of the settlement.