Fratzke owns Pronto Market convenience stores, with locations in Sumner and Fairbank and other sites. The blended fuel was sold predominantly as unleaded regular at the Fairbank [image-nocss] site.
At that time, gasoline retailers could buy E85 blended fuel at substantially lower bulk prices than regular unleaded or 10% ethanol blend fuel (often 30 to 45 cents lower per gallon) because of tax breaks and other incentives to promote E85.
The suit was based on investigation by the Iowa Department of Agriculture & Land Stewardship (IDALS). The lawsuit was resolved by the Consent Judgment agreement and order that was approved Thursday by Judge Lingreen.
The lawsuit stated that Ivan Hankins, Bureau Chief of the Weights & Measures Bureau of IDALS, was informed on or about June 17, 2008, that documents indicated Pronto Market was receiving shipments of E85 blended ethanol fuel from Consolidated Energy Co., a bulk fuel distributor in Jesup. The fuel was being diluted in tankers and dumped into underground storage tanks (USTs) that served primarily unleaded regular gasoline pumps.
The suit alleged that the Pronto Markets bought at least 2,500 gallons of E85 blended ethanol fuel from March 10 to June 6, 2008, and then sold that fuel diluted into either unleaded regular gasoline or 10% ethanol-enhanced fuel.
Consumers who purchased what was labeled as unleaded regular gasoline at the Fairbanks Pronto Market may be eligible for restitution of excess amounts paid during a period of Oct. 1, 2007, to June 17, 2008. Consumers need a receipt or record of purchase. Claims must be made by Feb. 13, 2009.
Meanwhile, Flying J Travel Plazas has been ordered to pay $140,000 for water pollution violations at two giant Flying J truckstops located at Davenport and Clive, Miller said. He filed a lawsuit Monday stemming from a diesel fuel spill at the Clive site near Des Moines in March 2007 that polluted Walnut Creek for about two miles downstream from the Flying J Plaza, and also from what Miller called "scores of environmental violations over several years" at the Davenport Flying J.
"The Court ordered a $140,000 civil penalty, permanently prohibited further violations, and ordered Flying J to take long-term and interim measures to prevent any pollution in the future," Miller said.
The Clive diesel fuel spill in March 2007 resulted in "an oily sheen on Walnut Creek" below the Flying J, according to the Attorney General's lawsuit. The spill resulted in major cleanup efforts, and contractors hired by Flying J removed petroleum contamination from the Creek and polluted soils for several weeks after the petroleum release, the lawsuit said.
The Davenport Flying J has been the subject of numerous administrative environmental enforcement actions by the Iowa Dept. of Natural Resources (DNR) since at least 2002. The DNR issued several notices of violations over the years relating to reported storm water releases and failure to comply with various environmental sampling, monitoring, and reporting requirements. In several instances, Flying J failed to meet deadlines it had agreed to, and Flying J "repeatedly discharged pollutants into a water of the state" at levels exceeding its permit limits, DNR regulations, and Iowa law, the lawsuit alleged.
"The DNR and Environmental Protection Commission may refer matters to the Attorney General for legal action and judicial enforcement, particularly when DNR administrative enforcement efforts are ignored or evaded," Miller said. "Now Flying J is subject to the Court's order. Willful failure to comply could subject them to contempt of court and other penalties provided by law."
"This was an action to protect the quality of Iowa water, water we use for drinking, recreation, and so many purposes," Miller said.
Flying J is reported to be the largest retailer of diesel fuel in North America, with approximately 220 locations in the United States and Canada.
The Iowa Attorney General's Office filed (click here) the lawsuit in Polk County District Court last week, alleging the violations, and simultaneously presented a Consent Judgment (click here) resolving the lawsuit. The Consent Judgment was approved by District Court Judge Artis Reis.
Defendants named in the lawsuit are CFJ Plaza Company II LLC, CFJ Properties, and Flying J Inc., doing business as Flying J Travel Plaza.
The Clive Flying J Travel Plaza, just west of I-35/80, has seven USTs that can hold a total of 108,000 gallons of diesel fuel or gasoline. The Davenport Flying J has nine UST tanks that can hold a total of 96,000 gallons of diesel fuel or gasoline.
The Clive Flying J, which has storm water drainage from a paved area of about 4.5 acres, will be doing construction in 2009 to ensure compliance with a new National Pollution Discharge Elimination System permit (NPDES) to be issued by the DNR. Meanwhile, the court ordered specific interim measures to prevent pollution, including installation of absorbent material booms, daily inspections, and regular maintenance procedures.
The Court also ordered a construction schedule for permanent measures at the Davenport Flying J under its existing NPDES permit, and interim measures to prevent potential violations prior to completion of the permanent project.
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