TRENTON, N.J. -- Motiva Enterprises LLC/Shell Oil Co. has agreed to pay the state of New Jersey $2.2 million as compensation to the public for groundwater pollution at several hundred gas stations and terminals in New Jersey, said New Jersey Department of Environmental Protection (DEP) Commissioner Bradley M. Campbell.
With the payment, Motiva and Shell resolved their liability for groundwater contamination at their terminal facilities and about 400 stations statewide where underground storage tank (UST) leaks occurred. Also, Shell is providing a conservation [image-nocss] easement on 51 acres of land along the mouth of the Woodbridge River to address potential sediment and wetland contamination from its Sewaren Terminal.
DEP used a groundwater injury damage formula when negotiating the settlement voluntarily with Motiva/Shell.
DEP's preferred voluntary settlement track has resulted in the settlement of natural resource damages at more than 1,600 hazardous sites since 2002. The total preserved wildlife habitat and aquifer recharge area through a "resource-to-resource" form of compensation developed by the state now stands at more than 5,200 acres. In the resource-to-resource compensation model, settling companies must protect an area of land with a good aquifer recharge rate that is similar to the acreage of groundwater polluted. In addition, DEP and the state Attorney General's Office have recovered approximately $35 million since 2002.
The settling parties that paid the $2.22 million for natural resource injuries at the terminals and station sites include Motiva ($1,768,065), Shell ($397,245), Pennzoil-Quaker State Co. ($22,938) and Jiffy Lube International Inc. (28,550).
DEP has been working with the companies to remediate discharges of various fuel contaminants to groundwater at their sites throughout the state that were impacted by UST system leaks, some of which resulted in completed cleanups.
The proposed NRD settlement with Shell/Motiva will appear in the Feb. 6, 2006, New Jersey Register and will be subject to a 30-day public comment period.
Natural resource damage claims compensate the residents of New Jersey for the injury and lost use of natural resources due to contamination. Injuries can refer to both ecological injuries to wetlands, wildlife, groundwater or surface water and to human use injuries such as the closure of a waterway to fishing, a beach to swimming or an aquifer for use as drinking water supply. DEP uses monies recovered to restore wetlands and endangered species habitat, increase public access to natural resources and protect and manage resources injured by oil spills and hazardous waste sites. NRD claims are separate from the costs associated with cleaning up contamination. New Jersey's Spill Compensation & Control Act makes any entity that has discharged hazardous substances onto the land or into the waters of the state liable for both cleanup and for natural resource injuries.
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