ANR v. Timberlake Associates, LLP

CourtVermont Superior Court
DecidedOctober 12, 2017
Docket59-6-16 Vtec
StatusPublished

This text of ANR v. Timberlake Associates, LLP (ANR v. Timberlake Associates, LLP) is published on Counsel Stack Legal Research, covering Vermont Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ANR v. Timberlake Associates, LLP, (Vt. Ct. App. 2017).

Opinion

STATE OF VERMONT SUPERIOR COURT ENVIRONMENTAL DIVISION Environmental Division Unit Docket No. 59-6-16 Vtec

Agency of Natural Resources, Petitioner

v. DECISION ON THE MERITS Timberlake Associates, LLP, Premium Petroleum, Inc., Respondents

This matter arises out of the alleged release in 2012 of hazardous materials into surface water, groundwater and land of the state and the alleged failure to investigate, report or respond to a release or suspected release of hazardous material by Respondents Timberlake Associates, LLP and Premium Petroleum, Inc. (Respondents) on property at 375 North Main Street in Barre, Vermont. In a May 3, 2016 Administrative Order1 (AO), the Vermont Agency of Natural Resources (ANR) alleges violations of the Vermont Waste Management law, 10 V.S.A. § 6616, and Underground Storage Tank (UST) Rules. The AO sets out factual allegations describing Respondents’ prohibited release and failure to investigate, report or respond to the release. While the AO states that Respondents have largely remediated the release, ANR seeks administrative penalties of $85,000 for the violations. On July 1, 2016, Respondents requested a hearing on the AO with this Court. The Court conducted a merits hearing at the Vermont Superior Court, Costello courthouse in Burlington, Vermont on May 17 and 18, 2017. Appearing at the trial were Randy J. Miller, II, Esq. and John Zaikowski, Esq. representing ANR and Tristram J. Coffin, Esq. representing Respondents. Based upon the evidence presented at trial, the Court renders the following Findings of Fact and Conclusions of Law.

1 The AO was filed with the Court on June 24, 2016.

1 Findings of Fact 1. Wesco is a family-owned corporation which owns and operates 36 petroleum and mini- mart facilities in Vermont and New Hampshire. 2. Wesco is a parent corporation. Timberlake Associates, LLP and Premium Petroleum, Inc. are subsidiaries of Wesco. 3. Wesco has approximately 120 USTs in service at their facilities. 4. During November and December 2012, the Barre City Fire Department received complaints of petroleum smells in resident basements. 5. Respondents were unaware of the complaints. 6. While investigating the complaints on December 11, 2012, the Barre City Fire Department and ANR measured gas vapors in a sewer area accessed by a manhole in front of the North End Deli, one of Respondents’ facilities. 7. Vapors measured 17% of the Lower Explosive Level (LEL). The vapors represented a danger of explosion, danger of human exposure in basements, and potential adverse impact to the City’s wastewater treatment plant by killing treatment bacteria. 8. On December 11, 2012, the Barre City Fire Department and ANR informed staff at the North End Deli of this situation and the neighbor complaints for the first time and requested to see the gas station’s fuel records. 9. Respondents cooperated with ANR to investigate the situation. 10. On December 11, 2012, Respondents had a technician inspect the equipment at the North End Deli to determine if a release was occurring. Upon inspection, Respondents determined that a flex hose in the Super Unleaded pump was leaking. This part was located in the fuel dispenser. The leaking part was immediately replaced. 11. Upon discovery, Respondents alerted the Fire Department and ANR of its findings. 12. Respondents also immediately retained Environmental Compliance Services (ECS), an environmental consulting firm, to investigate and remediate the release. 13. Respondents directed ECS to contain and remediate the release in a manner to protect public safety and the environment.

2 14. In response to the vapor issue in the city sewer system, on December 12, 2012, Respondents installed vacuum fans in the sewer and air purifies in area basements. 15. Respondents also completed test borings on December 13 and 14, 2012, and developed a multiphase extraction plan. Five (5) extraction wells were installed on December 14, 2012, and a vacuum truck was brought on-line on December 15, 2012. 16. Vapor concentrations in the area dropped quickly as the remedial plan was very successful. 17. The full groundwater extraction system was in place by January 5, 2013. 18. A majority of product was recovered within a few months of discovery of the release. This compares to more common remedial response time of greater than a year. 19. Overall, Respondents’ remediation effort was very quick, resulting in minimal impact to human health and the environment. 20. Respondents also retained a plumber to work with neighboring properties to investigate odors and replace deficient plumbing in basements at properties in and around the North End Deli. This plumber replaced sewer gas traps where appropriate. This effort was paid for by Respondents with reimbursement from the Vermont Petroleum Clean-up Fund. 21. Respondents also placed air scrubbing units with blowers and vapor phase carbon filters in basements where petroleum vapors were of concern. 22. Upon remediation, the plume was very well-defined in a localized area. Almost no additional petroleum was recovered on further remediation. 23. Respondents recovered approximately 5,000 gals of extracted contaminated groundwater with the portable vacuum truck. Approximately 20 percent of this was product. Thus, 1,000 gallons of product was extracted from groundwater. 24. An additional 200 gallons of product was recovered through the remediation’s oil/water separator. 25. A rough estimate from the amount of product recovered through the vapor recovery systems is 100 gallons. 26. ANR complemented ECS for its investigation and remediation.

3 27. Additional investigation determined that deficiencies in the City’s sewage venting system contributed to the fumes detected in neighboring basements. 28. Respondents cooperated closely with the Agency, and after a substantial and costly effort at remediation, the release was found to be localized and was successfully remediated. 29. Although not required under state regulations, Respondents, or Wesco, installed containment sumps and tubs, as well as spill buckets, for secondary containment. Costs for this effort was $45,819.52. 30. The release resulted in minimal long-term impact to the environment. No product reached the city’s wastewater treatment plant. 31. It is difficult to estimate the amount of product released. 32. Review of the fuel inventory records at the time of the release event revealed missing petroleum inventory. 33. Based upon the fuel inventory records, ANR estimates the amount of gasoline released to be more than 3,000 gallons. This estimate fails to account for vapors removed by the initial removal of vapors from the sewer. 34. Respondents estimate that 1,300 gallons of product was released, based on the estimated amount of product recovered by ECS. 35. Inventory reconcile discrepancies can happen without a release. Potential causes include accounting errors, mis-calibrated dispensing meters, split loads, fuel delivered to the incorrect UST, temperature variations, or UST tilt. 36. The release that occurred was not as large as alleged by ANR. 37. ANR alleges that Respondents were deficient in reporting inventory discrepancies, and failed to properly investigate those discrepancies. 38. Under the UST rules, gas stations must report inventory discrepancies when accounting shows a loss or gain of one percent of fuel throughput plus 130 gallons for two consecutive months. 39. In September 2012, Respondents reported that for July and August regular gasoline inventory was -684 gallons and -1131 gallons, and for super gasoline inventory was +684 and +836 respectively.

4 40. The pumps at the North End Deli blend regular and super to create a mid-grade fuel. At times, the pumps may increase the level of regular and decrease the level of super, or vice versa, into the blend, which creates an inventory discrepancy.

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Bluebook (online)
ANR v. Timberlake Associates, LLP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anr-v-timberlake-associates-llp-vtsuperct-2017.