Lake Tahoe gas station owners pay $1M fine, face other sanctions

SOUTH LAKE TAHOE, Calif. - After a multi-year investigation into conditions at their Lake Tahoe gas stations, one local businessman is now banned from owning or operating gas stations with underground tanks in California while another faces sanctions.

Azad Amiri and Sarbjit S. Kang were accused of violating multiple underground storage tank (UST) requirements at five Lake Tahoe area gas stations: 1140 Emerald Bay Road, 913 Emerald Bay Road, and 2304 Lake Tahoe Blvd. in South Lake Tahoe, 3208 Highway 50 in Meyers, and 8070 North Lake Blvd., Kings Beach.

Along with the local locations, six gas stations in Yolo, Sacramento, and San Joaquin Counties were included in the judgment.

In a settlement with the Attorney General’s office, Amiri and Kang, along with 13 other defendants, paid a combined $1 million fine to the State Water Pollution Cleanup and Abatement account. An additional $3.25 million penalty will be suspended if the defendants comply with UST laws for five years.

Amiri cannot own or operate storage tanks in California as an individual, or as an officer, agent or employee of a company or entity that owns tanks. But, he is allowed to serve as a consultant to Stars Holding LLC, where he can consult on purchasing and accounting components of gas stations, but cannot participate on the environmental compliance side.

Kang’s ban is conditional. He can own or operate one facility if it adheres to all UST laws and has a designated Environmental Coordinator to oversee compliance. If he fulfills the requirements for five years, he can own and operate additional facilities under the same conditions. However, if any of his facilities violate UST requirements, he will be permanently prohibited from owning or operating any gas stations in the state.

The agreement comes following an investigation by the Lahontan Regional Water Quality Control Board that began in 2006 and led to the 2014 civil complaint that listed a litany of egregious violations, among them: Operating facilities without permits; failing to conduct required testing and maintenance; failing to monitor for leaks; and unlawfully abandoning tanks.

Further, the defendants were alleged to have engaged in business practices designed to avoid liability, such as creating shell companies and abusing the discovery process. The State Water Board filed 19 motions and was awarded $16,600 in monetary sanctions because of the defendants’ efforts to impede the gathering of evidence.

"This group has thumbed its nose at the State and their requirements to maintain their tanks," Assistant Chief Counsel of State Waterboard Enforcement David Boyers told South Tahoe Now.

The UST’s regulations are designed to protect groundwater from contamination by ensuring that underground storage tanks are properly constructed, maintained, tested and monitored to prevent and detect leaks as soon as possible.

“Tank owners and operators need to know that we will aggressively pursue individuals who violate the UST’s leak prevention requirements,” said Yvonne West, director of the State Water Board’s Office of Enforcement.

Boyer said while the facilities involved don't have to be sold, they do have to maintain compliance with the required prevention requirements. They also have to hire an environmental coordinator that will guide them on how to stay in compliance.

Each of the nine open stations affiliated with Amiri and Kang (two have closed in Yolo County since the investigation began) must stay in compliance with all regulations for five years. Each one carries a $250,000 fine should rules not be followed. Should any receive a violation the fine is due to the courts immediately. El Dorado County's Environmental Heath Department could also red tag the property and impose new penalties.

Should Amiri fail to comply with the permanent ban the State Waterboard can go back to court and charge him $500,000.

If Kang fails to comply he would be charged an additional $250,000.

They also must remove the old tanks at what was once the Beacon station in Meyers by August.

Boyer said that there were 13 people identified in court as being affiliated with the stations, they were trying to get the two main participants (Amiri and Kang) that were leading the company.

"We wanted to get them out of the picture in hopes there is some compliance," said Boyer.

The State Waterboard will be closely following the involved people and their companies in California and promise to suspend operations and impose additional charges should further wrongdoing be identified. They will monitor ownerships and operation information obtained from the Secretary of State and Accessor.

They are also investigating other uncovered violations that may be affiliated with Kang an Amiri in South Lake Tahoe. The agency has long been after the owners of Tahoe Toms at the corner of Park Avenue and Lake Tahoe Blvd, South Lake Tahoe for leaking tanks. That station was not included in the recent settlement.

The different company names involved in the settlement are Stars Holding Co., LLC, Tahoe Blue Property, Inc., and Meyers Holding Co., LLC. all with the same Pleasant Hill address; Sacramento/Dunnigan Holding, Inc. and Tahoe Station Inc. with the same South Lake Tahoe address; and 5 River FUels., Inc with a Redding, Calif. address.