Mercedes dealer fined in permit snafu

Sue Doyle

NEWPORT BEACH -- A popular local car dealer is discovering that not

following county permit procedures on environmental laws can have a hefty

price tag -- in this case, probably half the sticker price on a new

Mercedes-Benz.

Fletcher Jones Motor Cars, Inc. will likely pay a $17,500 civil

penalty for not following the Orange County Health Care Agency’s

procedure when the dealership moved to a new location and left behind 10

underground storage tanks.

The Orange County District Attorney’s Office, as part of an aggressive

new enforcement on maintenance of underground tanks and environmental

laws, filed the lawsuit July 18 at Santa Ana’s Central Justice Center,

asking Fletcher Jones to reimburse the $15,000 investigation into the

incident and then slapping the company with a $2,500 penalty.

The dealership will pay the penalty instead of fighting it in court

because of the huge potential for liability, said Howard Miller, general

counsel for Fletcher Jones Motor Cars, Inc.

“The downside risk is gargantuan,” Miller said. “Millions and millions

of dollars. And this as a resolution we could live with and the district

attorney could live with.”

The matter must now be approved by Superior Court Judge Thomas

Thrasher.

The complaint alleges Fletcher Jones Motor Cars improperly closed 10

underground storage tanks when the car company moved from its old

location because it didn’t obtain a required closure permit from the

Orange County Health Care Agency’s environmental health division.

The underground tanks were used for storing gasoline and waste oil,

and by law must be monitored for contamination or leakage into soil and

water.

The permit requires underground storage tanks be neutralized, sealed

and locked. It’s been a matter of law since Dec. 22, 1998, said Nicholas

S. Thompson, deputy district attorney in the environmental protection

unit.

Fletcher Jones officials say they did close the underground tanks

before they moved and said the lawsuit stems from a technicality --

because they did not get the proper permit.

Thompson said it is not uncommon for companies to empty the

underground storage tanks without following all the procedures. But just

closing the tanks is no assurance against contamination. The tanks need

to be neutralized to remove fuel and oil, and then checked for leaks and

the pumps sealed.

Fletcher Jones is just one of many companies in Orange County that may

face closer scrutiny from the District Attorney’s Office, which has

stepped up its support of agencies that protect ground water, soil and

air.