Why Yolo, Sierra prosecutors sued gas station owners over fuel storage at 3 sites
Two Northern California district attorneys have secured a $1.16 million civil settlement against the owners of three gas stations after prosecutors found repeated environmental compliance failures involving underground fuel storage tanks.
The judgment, entered Jan. 7 by Judge Samuel McAdam, resolves a civil enforcement action brought by the Yolo County and Sierra County district attorneys against companies owned by members of the Sherali family, who operated stations in Davis, Woodland and Downieville.
The prosecutors announced the environmental protection settlement on Tuesday.
Court records showed the violations occurred at 5th & L Gas Mart in Davis, Main Street Gas in Woodland and the Downieville Gas Mart, the only fuel station in the Sierra County town.
Prosecutors alleged the defendants failed to properly monitor and maintain underground storage tanks, including the use of outdated single-walled tanks at the Downieville station — buried beneath the gas station next to the North Fork of the Yuba River — that posed a risk of fuel leakage. In Yolo County, authorities cited failures to maintain containment and leak-detection systems at the other stations.
Under the settlement, the defendants agreed to pay $1 million in civil penalties — some of which will be triggered only by future violations — along with $160,000 in investigative and enforcement costs. The judgment also imposed a permanent injunction against the businesses — including Sherali Davis LLC and Sherali Gas Co. — requiring strict compliance with environmental laws and the retention of an experienced compliance manager.
“It is important to protect our fresh water resources and ensure all businesses follow the law and operate on a level playing field,” said a joint statement by Yolo DA Jeff Reisig and Sierra DA Sandra Groven. “We thank the Environmental Health Divisions of Yolo and Sierra counties and the California State Water Resources Control Board for investigative efforts and assistance with this case.”
During settlement negotiations, the defendants reopened the Downieville station after replacing the older tanks with modern double-walled systems, according to prosecutors.