EPA v. MONARCH OIL AND SUPPLY COMPANY

Case summary

AT SIX SEPARATE PETROLEUM UNDERGROUND STORAGE TANK LOCATIONS (GAS STATIONS OR FORMER GAS STATIONS ), MONARCH OIL AND ROBERT BAILEY, OWNER, VIOLATED VARIOUS OF THE UST REGULATIONS AN FACILITY OPERATION, INCLUDING REGULATIONS ON MONITORING AND RELEASE DETECTION (40 CFR 280.41), RECORDKEEPING (40 CFR 280.45), TEMPORARY CLOSURE (40 CFR 280.72), PERMANENT CLOSURE (280.70), AND ABATEMENT MEASURES AFTER DISCOVERY OF A RELEASE (40 CFR 280.61), AND 280.63), AS WELL FINANCIAL RESPONSIBILITY REGULATIONS (40 CFR 280.93). AS PART OF A NORTHWEST INDIANA INITIATIVE, REGION 5 AND IDEM UNDERTOOK JOINT ON-SITE INVESTIGATIONS OF SOME OF MONARCH OIL'S 6 GASOLINE STATIONS LOCATED IN NORTHWEST INDIANA. SUBSEQUENTLY, REGION 5 SUBMITTED INFORMATION REQUESTS REGARDING COMPLIANCE WITH UST REGULATIONS BY ALL 6 STATIONS. ON DECEMBER 16, 1994, REGION 5 FILED AN ADMINISTRATIVE COMPLAINT THAT ALLEGED VIOLATIONS OF UST REGULATIONS GOVERNING RELEASE DETECTION MONITORING OF THE UST SYSTEMS, RECORDKEEPING, AND IMPROPER TEMPORARY AND PERMANENT CLOSURE OF CERTAIN UST'S AT VARIOUS OF THE STATIONS, AS WELL AS FINANCIAL ASSURANCE. THE COMPLAINT SOUGHT A PENALTY OF $209,135. FOLLOWING ISSUANCE OF COMPLAINT, REGION 5 LEARNED THAT A CONTRACTOR HIRED BY MONARCH OIL TO CLOSE UST'S AT ONE STATION HAD ACTED IMPROPERLY, AND THAT THIS SAME CONTRACTOR WAS KNOWN BY IDEM TO HAVE PERFORMED INADEQUATE CLOSURES OF OTHER UST'S IN INDIANA, AND TO HAVE FAILED TO KEEP PROPER RECORDS IN THEIR OWN FILES AS WELL AS SUPPLY THEIR CLIENTS WITH RECORDS OF UST CLOSURES. WHILE THE CONTRACTOR'S BEHAVIOR DID NOT EXCUSE MONARCH'S FAILURE TO PROPERLY CLOSE UST'S AT ONE STATION, SUCH BEHAVIOR DID SUPPORT SOME PENALTY MITIGATION. FURTHER, SINCE THE COMPLAINT WAS FILED MONARCH OIL HAS CLOSED, OR IS IN THE PROCESS OF CLOSING, UST'S AT 5 OF ITS 6 STATIONS, AND HAS SUBMITTED CLOSURE REPORTS TO IDEM. ANOTHER FACTOR THAT REGION 5 CONSIDERED SHOWED SOME GOOD FAITH BY MONARCH OIL (AND MAY WELL HAVE AFFECTED ANY PENALTY ASSESSMENT THAT WOULD BE PERFORMED BY AN ALJ) WAS MONARCH OIL'S REMEDIATION OF DIESEL CONTAMINATION AT ONE STATION; BECAUSE REGIN 5 HAS NO EVIDENCE THAT MONARCH OIL EVER OWNER OR OPERATED A DIESEL UST, UNDER 40 CFR 280.12 MONARCH OIL MAY NOT BE LIABLE FOR PERFORMING THAT REMEDIATION.

Defendants (1)

• MONARCH OIL AND SUPPLY COMPANYNamed in complaintNamed in settlement

Facilities (1)

• MONARCH STATION G 2

  1719 BROADWAY, EAST CHICAGO, IN, 46312

  Registry ID: 110003112836

Statutes cited

• RCRA 9006 — Federal Enforcement: Compliance Orders, Procedure, contents, Civil Penalties

Enforcement conclusions (1)

• MONARCH OIL AND SUPPLY COMPANYentered 1996-11-13

  Primary law: RCRA

  Federal penalty: $81,000

Timeline (4 milestones)

• 1994-12-19Complaint Filed/Proposed Order
• 1994-12-22Enforcement Action Data Entered
• 1996-11-13Final Order Issued
• 1997-02-11Enforcement Action Closed