Daufuskie fuel tanks holding 5,000 gallons of gas could leak at any time, council says

Two abandoned fuel tanks deemed dangerous to the environment at Daufuskie Island’s Melrose Landing have the island’s council debating what to do next.

Council sent a news release to the newspaper Friday that detailed an ongoing issue of two below-ground tanks that were declared abandoned by the S.C. Department of Health and Environmental Control in September 2016.

“The Daufuskie Island Council, the official voice of Daufuskie Island, voted at its March meeting to urge all parties to cooperate to effect prompt removal of abandoned marine fuel tanks at the Melrose Landing site on Daufuskie Island,” the release said.

The tanks were installed in the late 1980s and do not meet current anti-corrosion safety standards, are not fitted with safety equipment, are not registered with the state and are not covered by insurance, the release said. The site also serves as the dock for the Daufuskie Island Ferry.

On March 5, a DHEC investigator visited the site and noted the tanks still contain 5,000 gallons of waste gasoline and diesel fuel.

“Should the tanks fail, there would be an immediate environmental threat to the Cooper River and to two adjacent commercial oyster leases,” the release said.

“You’ve got 5,000 gallons of stale gasoline not 50 feet from the water,” Roger Pinckney, environmental concerns coordinator for council, said Friday. “It’s not a question of if they fail, it’s when they’ll fail.”

According to the release, the tanks were owned by Daufuskie Embarkment LLC. The company was ordered to pay a $35,000 fine by DHEC for failing to permanently close the tanks and pay fees associated with the tanks in 2015.

That fine remains unpaid, according to council.

Daufuskie Embarkment filed for bankruptcy in March 2017, according U.S. Bankruptcy Court records. Council now is of the understanding that Netherlands-based Lex van Hessen Holding BV is in ownership of the property.

The company is an affiliate of Odeon Singapore Limited — owner of Melrose Resort.

Attempts to reach Lex van Hessen Holding BV, were not successful.

Leanne Coulter, co-chair of the council, said Friday that she is communicating with an attorney who represents the company.

“They are aware of the situation, and they have said they are working on a plan,” Coulter said.

She added that she expects to hear back from the attorney early this week.

John Schartner, co-chair of council, said he expects to discuss the issue during council’s Tuesday meeting.

The fact that the tanks haven’t leaked yet is a miracle to Pinckney.

“We had two storm surges that put three or four feet of water on those tanks,” he said. “It’s a wonder they haven’t failed.”

The threat also extends to local business owners who rely on the waterways for their living.

“My big concern is that if those tanks start leaking, they could potentially start a closure or damage to oysters in the area,” Larry Toomer, owner of the Bluffton Oyster Company, said Friday.

Toomer has approximately 45 acres of oyster leases from the May River into portions of Bull Creek and surrounding areas. He and Pinckney believe DHEC can remove the tanks if action isn’t taken by Lex van Hessen.

DHEC said Monday that if a petroleum product is released from an underground tank, it has the potential to “adversely impact the environment and may contaminate groundwater.”

“I will push DHEC on a political level because we have rules and regulations in place that we all have to abide by,” Toomer said. “This is no different than a boat sinking in the river and leaking fuel. There’s protocol to deal with stuff like this.”

This story was originally published March 18, 2019 at 4:02 PM.