Deadline nears for gas stations to replace underground tanks

By Cy Ryan

Monday, Dec. 14, 1998 | 11:25 a.m.

CARSON CITY -- Next week, 73-year-old Fay Day plans to close the only gas station in the tiny community of Rachel in Lincoln County and "see if we can survive on our mini-market."

In Nevada, Day is one of an estimated 100 to 150 owners of service stations or other facilities with underground petroleum tanks who have not complied with a 10-year-old federal order to upgrade or replace them to prevent soil contamination.

There are an estimated 4,000 underground tanks in Nevada and Doug Zimmerman, chief of the state Bureau of Correction Actions, estimates 80 and possibly up to 90 percent of the owners have complied.

"Nevada is doing very well," Zimmerman said, noting the federal deadline is Dec. 22. Some gas stations have closed already, he said, because they feel it's too expensive. Cost can run anywhere from $20,000 to more than $100,000, depending on the number and size of the tanks.

Rachel, with about 100 full-time residents, is famous for numerous reports of UFO sightings and for those who want to spy on the nearby secret Air Force Base of Groom Lake.

The closest other gas station is 45 miles away in Ash Springs. Fay, owner of the gas station since 1986, says there's a 175 mile stretch along highway 375 without any gas pumps. "It does make it good for tourism ... People from back East don't realize the distances out here," she said.

Fay, who leases the station to her son and daughter-in-law, estimates it would cost $25,000 to either upgrade the present gas and diesel tanks or install new ones.

"I don't want to mortgage my home where I lay my head," she said. "I don't have credit and my home is paid for. It would take us a long time to recover the investment."

In rural counties in California, some stations have closed, rather than be forced to spend the extra money. Some have already shut down in Nevada, Zimmerman said, despite the option to operate at least until the deadline of Dec. 22.

Peter Krueger, of the Western Petroleum Marketers Association, said there's been an aggressive campaign in Nevada to get the stations and others to either repair or install new tanks. And he's worried now the federal government is going to ease up on enforcement.

"I'm seeing red," Krueger said Friday. "If you turn yourself in, they (the federal government) might give you a little fine. And if it's a small, single ma and pop station or its local government, they are willing to ignore the situation for six months. They're forgetting the fact you violated the law."

Krueger is irked that some stations have not spent a penny on complying with the federal law and they will have a competitive advantage on those who followed the law. His association, which distributes fuel, is looking at the possibility of not delivering gasoline to stations that have not complied with the federal regulations.

If there was an underground leak in the tank, Krueger said the distributor could be held liable.

On Wednesday, the federal EPA said it was clear a "significant number of underground storage tanks will not be in compliance by Dec. 22," nationwide. They have two choices.

Owners can voluntarily shut down gas pumping for a year and come up with a plan of compliance. Or they can continue to operate and risk fines of up to $5,000 a day. The federal agency says it will focus its enforcement efforts in the first six months on large facilities. It will not direct its efforts against small businesses with four or less tanks or against local government.

Zimmerman, whose agency enforces the state law, says it will compile a list of the tanks that have the potential of environmental damage and efforts will be made to get them to comply. But they could be subject to state penalties.

"There are no exemptions and no extensions," Zimmerman said. "They've had 10 years to upgrade their tanks."

Zimmerman said Nellis Air Force Base, Fallon Naval Air Station and all the sites of the Federal Aviation Agency have met the deadline. And many state agencies have complied. But he said there are some state operations that have let contracts but the work has been delayed.

In a related matter, a report was presented last week to the state Board to Review Petroleum Claims that the state has spent $68.3 million since 1989 to clean up underground contamination from such things as leaks from gasoline storage tanks.

Board official Mike Leigh said these leaks are usually discovered when a tank is removed or repaired. The owners must foot most of the clean-up bill but the state matches the contribution. The money to finance the clean-up comes from a $100 a year fee on each underground tank plus three-quarters of a cent tax on each gallon of gasoline.