$3.8 Million Settlement For Long Island Oil Spills

Attorney General Spitzer today announced a settlement with Exxon-Mobil Corporation and Arrow Petroleum Inc. in which the state will be reimbursed $3.8 million for the cost of cleaning up fuel spills at gasoline stations in Farmingdale.

The spills occurred at two filling stations located at the intersection of Merritts Boulevard and Conklin Street in Farmingdale. One of the stations was an Exxon station and the other was an Arrow Petroleum station.

The settlement announced today resolves a 1992 state lawsuit against the two companies. Under the settlement, Exxon-Mobil will pay $3.2 million and Arrow Petroleum will pay $600,000 to reimburse the New York State Department of Environmental Conservation and the state’s Oil Spill Fund for cleaning up the site, accrued interest and future costs associated with the cleanup.

The fuel spills were first reported to the state when gasoline fumes were discovered in 1984 in the basement of a home near the two gas stations. At a trial in February 2005 the state introduced evidence of gasoline spills at the Exxon station including proof of a leaking underground gasoline storage tank in 1977; a 1991 leak from an underground pipe; the discovery of gasoline contaminated soil during the removal of underground storage tanks in 1992; and a 1997 gasoline spill. The state also introduced evidence of gasoline spills at the Arrow Station, including the discovery of gasoline contaminated soil during the removal of underground storage tanks in 1991 and 1992, and a 1996 discharge of gasoline.

The state has expended approximately $2.4 million in cleanup costs to address the gasoline contamination caused by spills at the two filling stations. Cleanup work primarily involved treating gasoline contaminated groundwater at the two filling stations and in the surrounding area.

The New York State Environmental Protection and Spill Compensation Fund, commonly known as the Oil Spill Fund, was created in order to ensure the prompt cleanup of gasoline spills in order to protect the environment, including groundwater on which many New Yorkers depend on for drinking water. The settlement of this matter will assist the DEC and the Oil Spill Fund in their efforts to protect the environment of the State of New York.

The case was handled by Assistant Attorneys General William Buss, Roger Banan and John Cremo in the Oil Spill Unit of the Civil Recoveries Bureau of the Attorney General’s Office.