News
22 Valley gas stations included in $33M lawsuit against BP
The state f Ohio has filed a lawsuit against a major oil company alleging that it wrongfully obtained more than $33.3 million in reimbursement to clean up leaks from BP-owned underground storage tanks in Ohio including 22 here in the Valley.
Monday, March 2nd 2015, 10:33 PM EST
Updated:
The state of Ohio has filed a lawsuit against a major oil company alleging that it wrongfully obtained more than $33.3 million in reimbursement to clean up leaks from BP-owned underground storage tanks in Ohio including at 22 locations here in the Valley.
Ohio Attorney General Mike DeWine and the Ohio Petroleum Underground Storage Tank Release Compensation Board alleges that BP knowingly "double dipped".
BP is accused of taking money both from the Petroleum Board and from insurers - to cover the cost of correcting accidental leaks from underground storage tanks at hundreds of former BP gas stations throughout Ohio, including six in Mahoning County, 13 in Trumbull County and three in Columbiana County.
In Ohio, the Petroleum Board administers a fund called the Petroleum Financial Assurance Fund to ensure that accidental leaks from underground storage tanks can be cleaned up. Money for the fund comes from fees paid by the owners of underground storage tanks, such as gas station owners.
The fund is considered a financial resource of last resort, and underground storage tank owners can only accept money from the fund if they do not have coverage or accept money from any other sources, such as their insurance companies.
According to the state's lawsuit, BP wrongfully obtained $33.3 million in reimbursements from the fund after submitting its applications to the Petroleum Board, claiming it had no insurance for the leaks when it actually had layers of insurance and often accepted insurance money for the same releases.
According to the state's complaint, filed in the Franklin County Common Pleas Court, BP has submitted 2,651 claim applications to the Petroleum Board for reimbursement from the Petroleum Financial Assurance Fund for specific releases at Ohio sites. The Petroleum Board has reimbursed BP $33,360,455.61 for corrective action costs submitted in these claim applications.
An additional 905 claim applications with a value of approximately $22,281,926.28 are pending review and settlement.
The state accuses BP of numerous violations of Ohio law. Specific counts include subrogation, indemnification, breach of contract, unjust enrichment, negligent misrepresentation, and conversion.
In the lawsuit, the state seeks a judgment against BP, restitution and disgorgement of money disbursed to BP from the Petroleum Financial Assurance Fund, and damages.
The Petroleum Financial Assurance Fund was established in 1989 to address the environmental implications associated with releases from underground storage tanks.
WFMJ.COM has obtained a list of local gas stations that BP submitted for cleanup compensation.
2069 East Midlothian Blvd Youngstown
1305 Mcguffey Rd Youngstown
3903 South Avenue Boardman
6532 Market Street Boardman
1090 Boardman-Poland Rd Poland
Trumbull County - 13 stations
4021 Parkman Road Warren
4698 North River Road Warren
3860 Elm Road Warren
1290 East Market Street Warren
2670 Robbins Avenue Niles
5373 Youngstown Road Niles
2703 Belmont Avenue Liberty
3523 Belmont Avenue Liberty
6943 Warren-Sharon Rd Brookfield
2591 North Main Street Hubbard
423 South State Street Girard
5710 Mahoning NW Champion
3640 State Route 5 NE Cortland
Columbiana County - 3 stations
1750 E State Street Salem
Third & Lisbon Wellsville
16067 State Route 170 East Liverpool
Ohio Attorney General Mike DeWine and the Ohio Petroleum Underground Storage Tank Release Compensation Board alleges that BP knowingly "double dipped".
BP is accused of taking money both from the Petroleum Board and from insurers - to cover the cost of correcting accidental leaks from underground storage tanks at hundreds of former BP gas stations throughout Ohio, including six in Mahoning County, 13 in Trumbull County and three in Columbiana County.
In Ohio, the Petroleum Board administers a fund called the Petroleum Financial Assurance Fund to ensure that accidental leaks from underground storage tanks can be cleaned up. Money for the fund comes from fees paid by the owners of underground storage tanks, such as gas station owners.
The fund is considered a financial resource of last resort, and underground storage tank owners can only accept money from the fund if they do not have coverage or accept money from any other sources, such as their insurance companies.
According to the state's lawsuit, BP wrongfully obtained $33.3 million in reimbursements from the fund after submitting its applications to the Petroleum Board, claiming it had no insurance for the leaks when it actually had layers of insurance and often accepted insurance money for the same releases.
According to the state's complaint, filed in the Franklin County Common Pleas Court, BP has submitted 2,651 claim applications to the Petroleum Board for reimbursement from the Petroleum Financial Assurance Fund for specific releases at Ohio sites. The Petroleum Board has reimbursed BP $33,360,455.61 for corrective action costs submitted in these claim applications.
An additional 905 claim applications with a value of approximately $22,281,926.28 are pending review and settlement.
The state accuses BP of numerous violations of Ohio law. Specific counts include subrogation, indemnification, breach of contract, unjust enrichment, negligent misrepresentation, and conversion.
In the lawsuit, the state seeks a judgment against BP, restitution and disgorgement of money disbursed to BP from the Petroleum Financial Assurance Fund, and damages.
The Petroleum Financial Assurance Fund was established in 1989 to address the environmental implications associated with releases from underground storage tanks.
WFMJ.COM has obtained a list of local gas stations that BP submitted for cleanup compensation.
Mahoning County - 6 stations
2732 Glenwood Avenue Youngstown2069 East Midlothian Blvd Youngstown
1305 Mcguffey Rd Youngstown
3903 South Avenue Boardman
6532 Market Street Boardman
1090 Boardman-Poland Rd Poland
Trumbull County - 13 stations
4021 Parkman Road Warren
4698 North River Road Warren
3860 Elm Road Warren
1290 East Market Street Warren
2670 Robbins Avenue Niles
5373 Youngstown Road Niles
2703 Belmont Avenue Liberty
3523 Belmont Avenue Liberty
6943 Warren-Sharon Rd Brookfield
2591 North Main Street Hubbard
423 South State Street Girard
5710 Mahoning NW Champion
3640 State Route 5 NE Cortland
Columbiana County - 3 stations
1750 E State Street Salem
Third & Lisbon Wellsville
16067 State Route 170 East Liverpool
