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Connecticut, Pike Fuels settle for $2 million following New Haven environmental violations

The state announced the settlement with the company formerly known as Gulf Oil on Tuesday. It committed violations at the New Haven petroleum distribution facility.

NEW HAVEN, Conn. — Connecticut has settled with Pike Fuels, formerly known as Gulf Oil, after the company committed numerous violations of the state’s environmental protection laws at its New Haven petroleum distribution facility.

Attorney General William Tong announced the $2 million settlement in a release on Tuesday.

The settlement resolves allegations that followed a Department of Energy and Environmental Protection Agency investigation dating back to 2019 that uncovered multiple environmental violations committed by Pike Fuels.

According to Tong, the violations included years of falsified records, inaccurate emissions reporting, failure to conduct required equipment inspections, failure to report changes and repairs to their storage tanks, non-permitted construction of a new tank and demolition without inspecting for asbestos-containing materials.

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The settlement includes a $1.2 million civil penalty and $800,000 to support environmental remediation. As part of the remediation funding, Pike Fuels will give $100,000 to benefit first responders in New Haven and $100,000 for environmental justice initiatives in the city.

Going back to its days as Gulf Oil, Tong said Pike Fuels ran a defective operation and falsified records to cover its tracks. He added that the facility in New Haven stores millions of gallons of petroleum products directly adjacent to Long Island Sound, which is one of Connecticut’s most valued natural resources.

“We take compliance at this facility very seriously. Today’s settlement exacts a substantial civil penalty, including direct support for environmental justice in New Haven and further environmental monitoring and enforcement statewide,” Tong said. “We expect complete compliance with all environmental laws from fossil fuel companies in Connecticut. We will not hesitate to take aggressive action if we detect any future violations.”

DEEP Commissioner Katie Dykes says that the state’s residents and businesses rely on a healthy Long Island Sound and clean air to thrive. She says that when Pike Fuels violated environmental laws at their New Haven facility, they released volatile organic compounds that threaten the public, creating risks such as increased respiratory issues, organ damage and greater chance of cancer.

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“This isn’t just a regulatory issue—it’s a direct threat to our health, livelihoods and economy,” Dykes said. “DEEP won’t tolerate illegal practices that put profit over people and harm the resources we all depend on. Our commitment is to hold violators accountable to protect the health of our families, our environment and our economy."

New Haven Mayor Justin Elicker weighed in, noting that the Port of New Haven and Long Island Sound are critical environmental and economic assets to the city and state. He said those who have the privilege of doing business locally must abide by local laws, regulations and reporting requirements.

“In New Haven and in Connecticut, we expect you to be a good corporate citizen, and if you’re not we’re going to hold you accountable. This settlement sends a clear message to Gulf Oil and other actors that if you violate our environmental laws and standards, there will be a price to pay,” Elicker said.

Elicker thanked Tong, Dykes and their teams for their hard work on the matter and their ongoing commitment to protecting New Haven’s residents, workers and natural resources.

From 1988 to 2024, Gulf Oil/Pike Fuels ran a petroleum storage and distribution facility at its New Haven terminal, Tong says. The facility transfers petroleum products from delivery trucks and pipelines to large storage tanks. Then, the products are transferred from the tanks to petroleum delivery trucks.

Pike Fuels sold its New Haven terminal to Global Partners Limited in April.

Tong adds that petroleum distribution facilities are a major source of volatile organic compounds and other hazardous air pollutants and therefore operate under multiple state and federal regulations. Gulf Oil was mandated to conduct monthly inspections of their equipment.

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However, a 21-month DEEP investigation found that there were multiple instances of fabrication and falsification pertaining to inspection dates, inspection observations and operator signatures.

“The fabricated records were designed to provide false assurance that Pike tanks and other service equipment at the New Haven Terminal did not contain leaks,” the release says. “In numerous instances, Gulf took tanks out of service for inspection, upgrades and repair of defects, but never informed DEEP as required by law.”

During its work, Gulf removed multiple storage tanks without notifying DEEP and checking for asbestos-containing materials. Gulf then constructed a new 6.4-million-gallon tank without securing necessary permits.

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Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com

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