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For Release: Friday, October 17, 2008

DEC Enters Agreement with Motiva Enterprises to Inspect and Clean up 88 Shell Gasoline Facilities

Includes $350,000 Penalty and Requires Upgrades to Protect Communities

Motiva Enterprises LLC, a joint venture of Shell Oil Company and Saudi Refining Inc., will address petroleum storage violations at various Shell-branded gas stations and service centers in New York City, Long Island and the lower Hudson Valley, under a comprehensive enforcement agreement announced today by New York State Department of Environmental Conservation (DEC) Commissioner Pete Grannis. The "Order on Consent" also requires the company to pay a $350,000 penalty and set aside $200,000 for an Environmental Benefit Project. The company will also be held responsible for implementing actions needed to bring up to 88 Motiva facilities into compliance with state standards.

"Our inspections uncovered non-compliance issues at certain Shell gas stations that needed to be addressed not only to correct problems but also to prevent potential future ones," Commissioner Grannis said. "With this agreement, Motiva has recognized the importance of ensuring that their facilities comply with New York's stringent regulations that help protect our communities and the environment from oil spills."

The Order on Consent with Motiva stemmed from inspections conducted by DEC at numerous facilities in the downstate area. It also follows-up on a prior order in which Motiva agreed to remove and, in some cases, replace old, single-walled tank systems with new state-of-the-art double-walled tanks at two dozen sites. Motiva is in the process of completing that work.

As part of the penalty, DEC will receive $281,000, with the remaining $69,000 divided between Nassau, Suffolk, Westchester, and Rockland counties to assist in the counties' ongoing petroleum storage compliance reviews. An Environmental Benefit Project has also been required. Over the next six months, DEC and Motiva will develop a plan for the $200,000 included for the project that will have a positive environmental impact in the communities with the non-compliant facilities. This may include additional education on petroleum storage practices to help further prevent against spills or other violations that could damage natural resources and affect public health.

The agreement also requires Motiva to hire an independent consultant to inspect the 88 facilities listed in the order and to fully address any issues identified by the auditor. Under DEC oversight, each audit will be reviewed and every facility will be brought into compliance with state and federal environmental laws and regulations. In addition to regulatory requirements, if any new spills are discovered, Motiva will be required to perform a cleanup.

A copy of the order (PDF, 1.06 Mb) can be downloaded. A list of the facilities to be audited (PDF, 33 Kb) can be found below and is also available for download.

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