$5M in fines and cleanup for gas leak that shut down historic WA hotel

The owners of a Walla Walla gas station are on the hook for nearly $5 million in fines and cleanup response costs for an underground gas leak that shut down a historic hotel in 2023.

Stillwater Holdings LLC, Wine Country Store LLC and Ben Kleban were ordered to pay a $738,000 penalty for the Sept. 2023 gasoline spill at a Chevron in Walla Walla.

They’re also responsible for paying $4.1 million in recovery costs for the spill response and pollution mitigation expenses.

The leak caused the Marcus Whitman Hotel in downtown Walla Walla to be evacuated after gasoline odors were detected on Sept. 14, 2023. The historic landmark was shut down for more than a month.

Nearly 2,500 gallons of fuel contaminated groundwater and led to an emergency evacuation for part of Walla Walla’s downtown business district.

The penalty is for spilling oil into the groundwater and failing to immediately notify the Washington Emergency Management Division of the spill, according to a news release from the Washington Department of Ecology.

They have 30 days to pay the penalty or appeal to the Pollution Control Hearings Board. There is also a 30-day timeframe to pay the state’s cost recovery or apply for financial relief.

“For nearly two years, our focus has been on protecting people, preventing fuel from migrating to Mill Creek, and getting nearby businesses safely back in operation,” said Brook Beeler, Ecology’s eastern region director. “This was a major spill that will take years to fully clean up. This is a necessary step for the state to hold those responsible for the spill accountable and try to recover costs spent on the response.”

Air quality testing found potentially harmful vapors and gasoline in the basement of the hotel, and in two nearby buildings, according to the news release.

Due to the vapors and risk of explosion, the area was evacuated, nearby businesses were shut down, and roads were closed in the vicinity.

An investigation found that the gasoline pooling under the buildings matched the fuel from the Chevron’s underground storage tank.

Under Washington law, the owners of the gas station are responsible for stopping a release, cleaning up any contamination and covering the state’s related costs.

The state took over the cleanup after insurance was exhausted, leaving Ecology to continue with the cleanup. The state spent more than $4.1 million removing contaminated water from basement sumps and operating vapor mitigation systems to ensure the area was safe.

Before the discovery of the leak, the gas station’s regular inventory checks showed fuel shortages.

Because leak detection alarms did not trigger and follow-up testing over the next 2 1/2 months did not confirm a release, the spill was not identified until gasoline was discovered in nearby buildings, according to Ecology officials.