EGLE nets $35 million underground storage tank settlement

Date:  September 29, 2020  
Time: All Day Event

Leaking underground storage tankReleases of petroleum products from underground storage tanks at nearly 80 former gas station sites will be cleaned up under the terms of an over $35 million settlement between EGLE and the Department of Attorney General, and the Premcor Refining Group Inc.

Under the agreement negotiated by EGLE and Attorney General Dana Nessel's office, Premcor will pay $35,246,892.14 to the State. Most of this money is earmarked specifically to address environmental contamination from 79 sites identified within the agreement where leaking underground storage tanks released petroleum products like gasoline and diesel fuel into the ground. About $1.25 million of settlement will reimburse EGLE for clean-up work it already completed at some sites.

"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 later became insolvent. Premcor has now agreed to provide these funds to address the environmental risks 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," AG 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."

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