EPA Fuel Storage Rules Closing Navajo-Owned Stations Story-Date: 04:38 p.m. PST Thursday , January 28, 1999 ------------------------------------------------------------ EPA Fuel Storage Rules Closing Navajo-Owned Stations By Brenda Norrell, Indian Country Today, Rapid City, S.D. Knight Ridder/Tribune Business News Jan. 25--WINDOW ROCK, Ariz. -- Federal Environmental Protection Agency laws designed to protect the groundwater by upgrading and closing underground storage tanks, are closing the doors of money-strapped trading posts on the Navajo Nation. The Navajo Mountain Trading Post, located on an unpaved road near the Arizona and Utah border is among the most remote regions in the United States, according to the U.S. Post office. Now, the trading post has closed its doors, unable to comply with new underground storage tank regulations. "People need gas -- we're having to look for other sources for gasoline for ambulances and police vehicles," said Norma Cady, environmental specialist with Navajo EPA's Underground and Aboveground Storage Tank Program. In fact, throughout Indian country, traders are suffering because federal law failed to identify Indian tribes as sovereign nations, entitled to federal funds for the clean up of leaking and rusted product lines and storage tanks. Although states were identified, tribes were not identified as sovereigns for Leaking Underground Storage Tank dollars known as LUST/Trust funds. "Tribes have to apply for funds to the states -- which is a snub on sovereignty. It is totally against the idea of sovereignty," Cady said. There is a currently a push in Congress to recognize tribes as sovereign nations entitled to underground storage cleanup funds, but no action has been taken. "Congress is so bogged down," Cady said. As a sovereign nation, the Navajo Nation passed its own underground storage tank act. The tribal act resulted in new revenues from tank fees and a charge of a penny-a-gallon at the pumps. "The federal law wasn't designed for small traders and we had to imitate the federal law. We had to be strict or stricter than the federal regulations," Cady said. Cady said the new regulations are designed to protect groundwater and the environment, but the laws are devastating for small businesses in Indian country. Cady said marketers on the Navajo Nation have targeted small businesses strapped for cash. The result has been takeover by chain corporations. Cleanup costs range from $7,000 to $500,000 depending on the damage, size of the business and the individual consultant. Traders have the most difficulty obtaining bank loans for cleanup. "The real problem is trading posts are historic sites on leased lands and they have trouble getting collateral from banks," Cady said. Further, traders can not obtain loans on sites where storage tanks are rusted or leaking. To make matters worse, it is difficult to obtain insurance for businesses on leased lands. As for marketers and big business, she said, "They wanted to put the little guys out of business. Big businesses were able to gain a monopoly. "On tribal lands, that is not the way it is supposed to be," Cady said. Meanwhile, the U.S. Environmental Protection Agency said owners nationwide ignored the Dec. 22 deadline to upgrade or close underground storage tanks. The agency said it will enforce the regulations and reminded owners that fines can be as much as $11,000 per day for each tank that does not meet the standards. EPA Regional Administrator Gregg Cooke said contamination of the groundwater supply in the United States is a serious concern. In one city, 9,000 gallons of gas leaked from a service station to city sewers, requiring the evacuation of 55 families. On the Navajo Nation, Cady said, "The point is to keep the groundwater clean and to prevent health and environmental pollution. The point isn't to villianize small business people." The Navajo underground storage tank program includes an honor system for reporting that has been successful. Twenty-one businesses have voluntarily closed operations. Chief Conoco, a longtime business in Shiprock, N.M., and the Sweetwater Trading Post in Arizona, are closed for underground storage tank cleanup. On the Navajo Nation, there are 167 operators of gasoline facilities, selling and distributing gas. The tanks store gasoline and petroleum products sold at retail stores, and storage tanks for chemicals and waste oil tanks. There are also tribal facilities, such as the tribal fleet management, distributing gas. In all, there are 313 sites on the Navajo Nation, including those closed or undergoing cleanup as a result of new regulations. "There has been a lot of abandonments over the last 15 years because businessmen either feared the new regulations or were unable to comply with them." Compliance means leak detection, spill and overfill protection, corrosion protection and proof of financial responsibility. There was, however, some good news recently for Arizona tribes. A federal EPA Region 9 grant now allows tribes to carry out their own compliance expectations. Cady said there is a real need to protect the scarce water supply and Navajo businessmen are struggling to comply. "The people are coping. The calls I have gotten back are fabulous. I am very impressed," she said. ----- Visit Indian Country Today on the World Wide Web at http://www.indiancountry.com/ (c) 1999, Indian Country Today, Rapid City, S.D. Distributed by Knight Ridder/Tribune Business News. ------------------------------------------------------------