Gas station owner files suit agains former supplier

Minden Beacon owner Dave Mills has filed suit against his former gasoline supplier, accusing the company of installing faulty equipment which started a chain of events that led to a leak and expensive cleanup of a controversial fuel additive.

The suit asks for reimbursement for Mills and his wife Kathy of approximately $400,000 in out-of-pocket expenses. The suit also seeks damages in excess of $300,000.

The suit also names Apex Envirotech, Inc., an environmental cleanup company Mills hired after the methyl tertiary butyl ether leak was discovered. The Millses claim that Apex didn't disclose past associations with the gasoline supplier, Toms Sierra Nevada of Colfax, Calif., and made the leak appear worse than it was.

Mills contracted with Toms Sierra to install a used gasoline blender that would enable the Minden Beacon station to double storage of unleaded gasoline to 19,000 gallons by converting an extra tank to unleaded. The valve was installed in December 1996.

According to a 28-page complaint filed by Gardnerville attorney Noel Manoukian, the blender contained faulty and defective equipment which led to the leak that has threatened the Minden water supply. No trace of the additive has been detected. Minden's oldest town well was shut off three years ago and is being tested this week to determine if any contamination reached the water, or if the well can be put back in service.

The Millses' expenses have totaled $289,728 so far, with an estimated cost of $150,000 to monitor the ongoing cleanup. If the Millses were forced to replace the town's well, that cost is estimated at $2.5 million, according to the suit.

The Millses also claim that Apex had a conflict of interest by not disclosing past associations with Toms Sierra Nevada and engaged in racketeering by improper and deceptive billing practices, erroneous cost projections and improper cleanup methods.

The Millses were further damaged by loss of business, sales, profits, damaged reputation and medical problems and emotional distress, they contend.


Use the comment form below to begin a discussion about this content.

Sign in to comment