During an inspection in 2018, the US Environmental Protection Agency (EPA) found that the company had failed to review and evaluate its Spill Prevention, Control, and Countermeasure plan at least once every five years, as it is required to do by the Clean Water Act.
The company had also failed to conduct integrity testing of the above-ground storage tanks, and to permanently close out-of-service above-ground storage tanks, according to the EPA.
As a result, the Lanai Oil Company Inc. has agreed to pay a penalty of $71,166 as part of a settlement for Clean Water Act violations at its bulk oil storage facility on the island.
EPA officials said the penalty will reduce the risk of future oil spills from the company’s storage facility, which is about 200 feet from Kaumalapau Harbour, into the Pacific Ocean.
EPA Pacific Southwest regional administrator John Busterud said: “It is critical that companies operating near our waterways develop and follow a spill prevention plan. Our action will help prevent oil spills to Hawaii’s harbours and coastal waters.”
Lanai Oil Company, which is owned by Maui Oil Company, has operated the bulk fuel storage and distribution terminal near Kaumalapau Harbour since 1986.
Due to COVID-19 challenges, the company has agreed to pay the penalty in instalments, within about a year of the settlement.
For more information visit www.epa.gov