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Raceway Faces $220,000 in EPA Penalties for Violations at Six New Jersey Gas Stations; Parlin and Highland Park Raceways Had Petroleum Releases

Release Date: 10/17/2000
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(#00187) New York, N.Y. – Raceway Petroleum, Inc., four other companies related to Raceway and their president, Nicholas Kambitsis, have been charged by the U.S. Environmental Protection Agency (EPA) with mismanaging underground storage tanks (USTs) for petroleum and waste oil at six "Raceway" gas stations in New Jersey. The agency is seeking $220,871 in total penalties for the violations. Two of the six gas stations have had known petroleum leaks associated with them, and the agency believes that more releases from these Raceway stations may be discovered in the near future. "Unfortunately, what we observed in this case is a pattern of tank mismanagement by a number of corporate entities, most of which appear to be under the direction of Mr. Kambitsis," said Jeanne M. Fox, EPA Regional Administrator. "Those who own or operate underground storage tanks - whether they are at gas stations, government facilities, or large industrial plants – cannot simply fill them with fuel and forget about them. The threat of petroleum leaks from these tanks is very real, and the only way to insure that they don’t occur is to follow federal and state regulations to the letter." EPA began its investigation of Raceway facilities in May 1999 to determine whether they complied with federal regulations regarding proper UST management. Improperly managed tanks have historically been the nation’s number-one source of groundwater contamination, with more than 30,000 leaks and spills from tanks reported annually. Inspections and information supplied by the company at EPA’s request led the agency to file two separate complaints against Raceway Petroleum, Inc., Ellada Petroleum, Inc., Atlantis Petroleum, Inc., Hilltop Service, Inc., Poseidon Petroleum, Inc. and Nicholas Kambitsis, for violations of tank regulations at the following gas stations: Raceway, 231 State Highway 130, Bordentown - owned by Raceway Petroleum, Inc. Raceway, 233 Route 22, Green Brook - owned by Ellada Petroleum, Inc. Raceway, 1300 Route 9, Old Bridge - owned by Atlantis Petroleum Raceway (a.k.a. Hilltop Service Center) at Ernston Road and Bordentown Avenue, Parlin - owned by Nicholas Kambitsis Raceway, 60 Raritan Avenue, Highland Park - owned by Hilltop Service, Inc. Raceway, 195 Route 37 East, Toms River - owned by Poseidon Petroleum, Inc. EPA charged the corporations and Mr. Kambitsis with a total of nine counts of tank mismanagement including: failing to provide a reliable and acceptable method of detecting leaks from tanks at four of the six stations; failing to properly close down unused underground storage tanks at two stations; failing to do an assessment of the soil around the two unused waste oil tanks to determine whether they ever released their product into the environment; and failing to do annual "tank tightness tests" to determine whether the tanks and piping have openings that could result in a release of their contents. Both the Parlin and Highland Park Raceway stations have had releases of petroleum from their tanks in the past, which were investigated and addressed under the oversight of New Jersey Department of Environmental Protection. In the Highland Park case, petroleum from tanks at the gas station seeped into an electrical conduit on the street owned by PSE&G. Raceway and the other corporations have 30 days to respond to EPA’s complaints. In addition to monetary penalties, EPA has ordered the corporations and Mr. Kambitsis to: immediately bring all their underground storage tanks into compliance with federal requirements, sample the soil around the waste oil tank at the Old Bridge facility, which EPA believes may have leaked; provide EPA with a complete list of all USTs that may be substandard and any UST closures or new installations; and submit a copy of all site assessments done for tanks that have been closed. Raceway has the right to contest the charges and the order. Underground storage tanks range in capacity from a few hundred to 50,000 or more gallons, and are used to store gasoline, heating oil and other fuels, waste oil and hazardous substances at gas stations, marinas, government facilities and large industrial sites. Leaks from tanks often contaminate the soil around them, and can cause unhealthy gasoline vapors to settle into the basements of private homes and apartment buildings. EPA and states’ underground storage tank regulations were put in place to prevent releases of petroleum, and, if a release does occur, to insure that it is addressed immediately.