Connecticut Retailers Fear Shutdown This Fall

With the state revising leak clean-up procedures, many small gasoline stations could be without insurance, leading to closure.

June 29, 2012

HARTFORD, Conn. - Many of Connecticut€™s independent gasoline stations are growing concerned that the state€™s revision of its Connecticut Commercial Tank Fund (CCTF) will leave them out in the cold €" and unable to stay open for business, the Stamford Advocate reports. Recently, the state announced how it would parcel out the remaining funds to stations.

Larry Ancker of Norwalk, who owns two stations, said he might not get insurance coverage because of the changes, and will need to increase prices or shut down Oct. 1. "This is what we've been dreading," he said. "We're all being screwed by the Legislature and the DEEP (Department of Energy and Environmental Protection) because they cannot control their spending."

Adding to their concerns is an announcement yesterday by the Independent Connecticut Petroleum Association that a major tank insurer will be exiting the state in the wake of the CCTF€™s $100 million in unpaid cleanup expenses.

"If gas stations cannot buy insurance €" then under federal law they cannot legally operate and will need to close," said Gene Guilford, president of the association. "We warned Connecticut DEEP and the General Assembly of this, and the temporary repair enacted during the special session will now have to be regarded as a down payment on what is clearly a far larger problem with UST (Underground Storage Tanks) to be revisited in January with the new General Assembly."

DEEP spokesman Dennis Schain countered that Zurich American Insurance€™s departure shouldn€™t impact state dealers. "There is a competitive and robust market for UST coverage with several active players," he said. "We have talked to several companies who provide this type of coverage and we are confident that station owners in Connecticut will be able to secure it."

Michael J. Fox, president of the Gasoline and Automotive Services Dealers of America Inc., predicted that insurance would be "impossible" for small stations once the tank program closes Sept. 30. Unless the state legislature changes the law in its next session in January, several hundred stations could close.

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