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Lanai Oil agrees to pay $71,166 penalty for multiple EPA violations

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The Maui News

Lanai Oil Co. and the Environmental Protection Agency reached a settlement over violations of the Clean Water Act at Kaumalapau Harbor that resulted in a $71,166 penalty.

In announcing the settlement Tuesday, the EPA said it believes the penalty will reduce the risk of oil spills at the Lanai terminal.

"It is critical that companies operating near our waterways develop and follow a spill prevention plan," said EPA Pacific Southwest Regional Administrator John Busterud. "Our action will help prevent oil spills to Hawaii's harbors and coastal waters."

The Lanai facility is located on the leeward side about 200 feet from Kaumalapau Harbor. An EPA inspection in November 2018 found that Lanai Oil had violated the Clean Water Act's oil pollution prevention regulations by failing to:

• Review and evaluate the Spill Prevention, Control and Countermeasure plan at least once every five years.

• Conduct integrity testing of the aboveground storage tanks.

• Permanently close out-of-service aboveground storage tanks.

The EPA said that its oil pollution prevention regulations aim to prevent oil from reaching navigable waters and adjoining shorelines and to ensure containment of oil discharges in the event of a spill. Specific prevention measures include developing and implementing spill prevention plans, training staff and installing physical controls to contain and clean up oil spills.

Paul Oliveira, chief operations officer for Lanai Oil Co., said Friday that "Lanai Oil Co. is pleased to reach this resolution with our EPA."

"We appreciate the Environment Protection Agency's support in helping Lanai Oil make our Lanai Oil terminal safer for the environment," he said. "Lanai Oil Co. stands in full support in the federal, state and local requirements that protect our community and our environment."

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