Facts

Plaintiff People of the State of California (California) filed suit against defendants Equilon Enterprises LLC, Shell Oil Company, Shell Oil Products Company LLC, and TMR Company. California claimed the companies owned and operated underground storage tank systems used to store motor vehicle fuel for retail sale at gas stations in California. California filed suit against the defendants, alleging failure to comply with California laws governing the operation of underground storage tanks and unlawful business practices.

PLAINTIFF'S CONTENTIONS:
California alleged that the companies tampered with or disabled leak detection devices, failed to maintain required permits, had no business plan, failed to update their business plan, failed to complete required chemical inventory, failed to update their chemical inventory annually, did not have material safety data sheets, failed to post emergency phone numbers, failed to store incompatible hazardous materials separately, failed to properly label containers of hazardous waste, stored hazardous waste in incompatible containers, and committed numerous other violations of California law.

Result

The parties reached a settlement whereby the defendants agreed to pay $5 million to the California State Water Resources Control Board in civil and administrative penalties; $5 million to the California Attorney General; $7.8 million to county District Attorneys and local law enforcement agencies; $400,000 to Attorney General's Office for investigative costs and attorney fees; $100,000 to the State Water Resources Control Board Underground Storage Tank Cleanup Fund; $700,000 to the County of Sacramento-Environmental Management Department; and $500,000 to the California Climate Action Registry. The defendants also agreed to implement and maintain an environmental compliance program.

Other Information

FILING DATE: Sept. 24, 2009.