Connecticut AG Reaches $2M Settlement With Pike Fuels Over Environmental Protection Claims

Troutman Pepper

[co-author: Stephanie Kozol]*

Connecticut Attorney General (AG) William Tong announced a $2 million settlement with Pike Fuels to resolve allegations that the company violated Connecticut environmental protection laws by, among other things, falsifying monthly leak inspection records for a New Haven petroleum distribution facility.

Filed with the Connecticut Superior Court on November 14 and captioned as a Stipulation for Judgment, the settlement requires Pike Fuels to pay Connecticut $1.2 million in civil penalties, as well as $700,000 for various environmental remediation initiatives, and $100,000 for the Connecticut AG’s Consumer Fund.

According to Tong’s statement, the matter stems from an investigation by the Connecticut Department of Energy and Environmental Protection dating back to 2019 that “found a series of environmental violations, including years of falsified records, inaccurate emissions reporting, failure to conduct required equipment inspections, failure to report changes and repairs to their storage tanks, non-permitted construction of a new tank, and demolition without inspecting for asbestos-containing materials, among other violations.” The complaint alleges that these violations were discovered during “a full compliance evaluation” of the terminal by the Department in September and October 2021.

The settlement judgment also incorporates a permanent injunction prohibiting Pike Fuels “from violating the provisions of Conn. Gen. Stat. Chapter 446c governing air pollution control in connection with the New Haven Terminal.”

Why It Matters

The Connecticut AG’s enforcement role in the Department of Energy and Environmental Protection’s dispute with Pike Fuels is yet another example of a state AG’s fundamental responsibility to enforce state environmental laws and regulations and prosecute actions on behalf of state agencies. It is also a reminder to businesses to ensure that all required permits are obtained and that the company is in compliance with applicable regulations.

*Senior Government Relations Manager

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Troutman Pepper Locke

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