Nelson Petroleum on Thursday, Dec. 22, 2022 in Everett, Washington. (Olivia Vanni / The Herald)

Nelson Petroleum on Thursday, Dec. 22, 2022 in Everett, Washington. (Olivia Vanni / The Herald)

‘Egregious:’ Everett fuel company repeatedly broke water standards

Nelson Petroleum faces a lawsuit from an Everett Mall Way strip mall over discharges into a nearby wetland.

EVERETT — An Everett fuel company has continuously contaminated a local wetland and violated related state law, according to a new lawsuit.

An inspection of Nelson Petroleum’s property on 7th Avenue SE in February found an “egregious amount of contaminates” inside the stormwater drainage system, according to city documents obtained by The Daily Herald. Nearly all of the stormwater infrastructure on the property was reportedly full of a pink liquid smelling of petroleum, and all of the oil-water separators on the property off Everett Mall Way were in need of maintenance.

Over the years, the company had also exceeded state limits on allowable zinc discharges by nearly 500%, according to federal reports.

For more than half a century, Nelson Petroleum has served Snohomish County, providing fuel in bulk to various industries. In the 1960s and 1970s, it began distributing Chevron products in north county communities, according to the company website. In 1982, the company, started by Jim Nelson, bought a plant in Everett. Soon after, his son, Mark Nelson, got on board.

In the 1990s, the company expanded into Skagit County. And in 2000, it reportedly bought Dennis Petroleum in Everett, doubling the size of the company and moving its headquarters to 80th Street SW in south Everett, according to the company website.

State permits require oil discharges to not exceed certain limits for copper, zinc and turbidity, among other things, noted the lawsuit filed last week in Snohomish County Superior Court, on behalf of the owner of an Everett Mall Way strip mall.

“The benchmarks were written into the permit to avoid water quality violations,” said Evan Dobrowski, maritime and industrial stormwater compliance and enforcement specialist at the state Department of Ecology. “We have a requirement to protect waters of the state.”

In the lawsuit, the owner of the strip mall, JKL Real Estate Investment, noted it couldn’t refinance its mortgage because of the contamination, leading to over $76,000 in additional costs.

Mark Nelson, now president of the company, declined to comment on the lawsuit. He directed a Herald reporter to the company’s attorney, but declined to share their contact information.

In 2014, Nelson Petroleum exceeded the cap for copper and zinc, according to a state inspection. Three years later, inspectors from Ecology followed up. They found the company’s Stormwater Pollution Prevention Plan, untouched since 2010, was inadequate. And Nelson violated several conditions of its state permit, including failing to immediately clean up oil leaks and failing to implement corrective actions in response to the issues, the investigators found.

Nelson’s problems didn’t cease there, however, according to the lawsuit.

In the years since, the oil company reported continued failures to meet the state-required limits annual filings show. The company exceeded allowable zinc discharges by 227% in the first quarter of 2020, according to federal data. Later that year, that was up to almost 500%.

From late 2019 to summer 2021, Nelson Petroleum didn’t submit reports to the Environmental Protection Agency about its federal Clean Water Act compliance. Since then, it has been reporting discharges. Violations have been identified each time, according to the EPA.

In 2021, an environmental consulting firm found “soil staining” and “petroleum-like odor” in what is called a bioswale at the Twin Creeks Center strip mall at 500 SE Everett Mall Way, the recent lawsuit claims. The bioswale is a freshwater wetland.

Parts of the wetland contained petroleum hydrocarbons exceeding cleanup levels laid out in the state Model Toxic Controls Act, according to the complaint. Lab testing reportedly showed samples taken from the bioswale in January of this year resembled fresh diesel fuel.

Researchers have found the “introduction of petroleum hydrocarbons into a pristine environment immediately changes the nature of that environment.” They can “kill or inhibit” species, affecting an ecosystem.

“We have regulations that say the only thing that should be going down the drain is stormwater,” Dobrowski said.

In February, a City of Everett water inspector reached out to Nelson Petroleum about its issues complying with city stormwater regulations at its facility on 7th Avenue SE, just off Everett Mall Way. City staff got word that month about the reported heavy oil contamination to vegetation between 500 SE Everett Mall Way and 620 SE Everett Mall Way, according to the letter.

The stormwater system servicing Nelson’s 7th Avenue property discharges there, the inspector reported. The letter noted the previous owner of the property, Dennis Petroleum, also had issues with oil contamination there dating back to the early 1990s.

The February inspection noted the “egregious” contamination and pink oil-smelling liquid.

Everett city code states: “No person shall throw, drain, or otherwise discharge, cause or allow others under its control to throw, drain or otherwise discharge into the storm drainage system or any receiving waters any materials other than stormwater.”

The inspector’s letter noted several steps the facility needed to take to comply with that code, including scheduling maintenance of the stormwater system, on-site spill response materials and training, and connecting catch basins to the sanitary sewer system to contain pollutants. These steps needed to be taken within 30 days, the city warned.

In March, Nelson’s emergency coordinator responded, claiming it was already following some of the steps the city requested. The manager also noted compliance with state Ecology guidelines, so “we are not clear on the need for a sanitary sewer hookup.”

The next day, the city inspector emailed the manager. There had been another leak, the email said. In a follow-up, the inspector wrote that the city of Everett’s more stringent regulations supersede state requirements.

The catch basins remained disconnected from the sewer system, the lawsuit claims.

In late April, a city inspector reportedly found that a manual shut-off valve to close the stormwater line in case of a spill was not connected properly, and “therefore closing the valve will not contain a spill or other catastrophic event.”

Jake Goldstein-Street: 425-339-3439; jake.goldstein-street@heraldnet.com; Twitter: @GoldsteinStreet.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

Washington Gov. Jay Inslee proposed his final state budget on Tuesday. It calls for a new wealth tax, an increase in business taxes, along with some programs and a closure of a women’s prison. The plan will be a starting point for state lawmakers in the 2025 legislative session. (Jerry Cornfield / Washington State Standard)
Inslee proposes taxing the wealthy and businesses to close budget gap

His final spending plan calls for raising about $13 billion over four years from additional taxes. Republicans decry the approach.

Devani Padron, left, Daisy Ramos perform during dance class at Mari's Place Monday afternoon in Everett on July 13, 2016. (Kevin Clark / The Herald)
Mari’s Place helps children build confidence and design a better future

The Everett-based nonprofit offers free and low-cost classes in art, music, theater and dance for children ages 5 to 14.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

Everett
Police believe Ebey Island murder suspect fled to Arizona

In April, prosecutors allege, Lucas Cartwright hit Clayton Perry with his car, killing him on the island near Everett.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

Bothell
Speed limit drops on stretch of Bothell Everett Highway

The Bothell City Council approved the change over the summer. Now it’s in effect.

Amtrak Cascades train 517 to Portland departs from Everett Station on Saturday, Sep. 2, 2023, in Everett, Washington. (Ryan Berry / The Herald)
Federal money moves Pacific Northwest high-speed rail forward

The $50 million will fund route planning, community outreach and more. It could have a stop in Everett.

Cars drive along West Marine View Drive past a derelict barge visible off of the shoreline on Wednesday, Dec. 18, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Port of Everett to remove derelict barge early next year

State funding will support the port’s progress on environmental restoration at Bay Wood.

Students run past older portable classrooms at Glenwood Elementary on Monday, Sept. 9, 2024 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
‘We need more buildings’: Lake Stevens to try same $314M school bond

The bond would build new schools and update others. An attempt in November narrowly failed.

Crescent Roll, 1, plays with cat toy inside his enclosure at PAWS on Thursday, Dec. 5, 2024 in Lynnwood, Washington. Crescent Roll came to paws as a stray and his history is unknown but he loves pets and to play. (Olivia Vanni / The Herald)
PAWS’ Companion Animal Shelter offers dogs, cats and a new leash on life

Since 1967, the Progressive Animal Welfare Society has found homes for 150,000 dogs and cats.

A person walks into the Lynnwood location of Party City hours after it was announced the company would be closing all of it’s stores on Friday, Dec. 20, 2024 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Party City to close all locations, including in Everett and Lynnwood

Two of the retailer’s 700 stores in North America are in Snohomish County. On Friday, shoppers mourned the coming closure.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.