Regulations Put Squeeze On Small Gas Stations Epa Fuel Tank Rules Could Further Reduce The Number Of Service Stations In Idaho, Owners Say

Owners of small gas stations facing expensive Environmental Protection Agency regulations say they could be put out of business.

According to a survey by National Petroleum News, Idaho had 261 fewer gas stations in 1997 than in 1994. That is a decline of 18 percent compared with a 7 percent decline nationwide.

The overall drop is a result of “stringent environmental regulations which have wiped out thousands of marginal, low-volume” stations, according to the publication.

EPA regulations require underground fuel tanks to be upgraded by the end of next year. The regulations were introduced about 10 years ago to ensure that tanks have spill-, rust- and over-fill protection.

About 90 percent of gas stations nationwide meet the regulations, but the other 10 percent, mostly low-volume stations, are on the verge of being phased out, National Petroleum News editor Don Smith said.

Marvin Sater, owner of Hilltop Tire & Service in Lewiston, said it would cost him at least $125,000 to upgrade five of his tanks.

That kind of money is not hard to come by for the larger stations, he said. But for Sater, who says he owns the last full-service station in Lewiston, it is money he does not have. Now he must decide if he wants to keep the business at a time when people are attracted to new and bigger stations, he said.

In addition, small businesses such as his buy through a distributor, which costs more, instead of buying gasoline directly, Sater said. In turn, it is harder on the small businesses when larger companies set the trend by lowering their prices, he said.

Albert Clemenhagen, who owns Bob’s Garage & Service in Kendrick, Idaho, is in the same situation.

Clemenhagen said he does not think he has the room to make the EPA improvements and it is possible his business will be gone by the time the EPA’s 1998 deadline arrives.

His price of $1.37 for regular unleaded gasoline is higher than the region’s average because he cannot afford to go lower, he said. His business declined by as much as 80 percent with the arrival of a minimart in Juliaetta, Idaho, a few years ago, he said.

Clemenhagen allows people to buy gasoline on credit and, he said, that keeps his business afloat.

Any time a law is passed influencing the market, someone is going to get caught, said Richard Cowan, senior vice president of marketing for Sinclair Oil Co. in Salt Lake City.

“I’m not saying it’s wrong. I’m saying the regulations have this kind of result,” Cowan said.

Consumers will see fewer stations, but they will be bigger, Cowan said. The trend is for stations to offer additional services, such as fast food.

Cities are never going to be without gas stations, but their presence is questionable when talking about small towns such as Grangeville, Idaho, Cowan said.

Sinclair is the largest gasoline company in Idaho with 228 stations. Most of them are in the southern part of the state.