If you own a service station, environmental compliance is not just about ticking boxes. It is directly connected to the value of your site. Failing to meet environmental protection standards can reduce your property’s market value, create barriers to finance, and lead to expensive remediation work.
The Real Risk Behind Non-Compliance
Service stations are considered high-risk locations due to underground fuel storage and the potential for long-term contamination. Lenders, buyers, and local councils are placing greater importance on environmental checks. If your site does not have updated documentation or there are signs of possible contamination, the market will treat it as a financial risk.
Common issues include missing groundwater monitoring wells, outdated Fuel System Operation Plans, or fuel tanks that have not been tested in recent years. These gaps raise concerns for buyers and lenders alike. In many cases, the cost of resolving contamination can exceed the actual value of the land, especially during a sale or refinance process.
According to NEO Consulting, signs of land contamination can lead to significant damage to a site’s value. The unfortunate truth is that many owners only discover these problems once it is too late, such as when a sale falls through or finance is denied.
The Cost of Delay
The longer a problem is left unattended, the more expensive it becomes. Even small leaks can spread into the soil or groundwater, which may attract the attention of the EPA and require urgent action. This could involve water well installation, soil removal, or full site remediation. In New South Wales, these processes are strictly regulated and can be extremely costly.
NEO Consulting often works with owners who are only made aware of contamination when they are already under pressure. By this point, timelines are tight, options are limited, and the cost of rectification is far higher.
What Devalues a Site?
Several red flags can lead to a drop in property value for petrol stations, including:
- No groundwater or vapour monitoring systems
- No recent tank or line testing records
- Outdated or missing Fuel System Operation Plans
- Unconfirmed or undocumented site contamination
- Active EPA notices or unresolved compliance issues
- No plan in place for remediation of known problems
Lenders usually require a Preliminary Site Investigation or a more detailed assessment before finance approval. If the results are negative, finance may be declined or offered on less favourable terms. Buyers may also reduce their offers or pull out of the deal altogether.
Protecting Your Asset with NEO Consulting
NEO Consulting supports petrol station owners by identifying and managing environmental risks. Their services include tank testing, monitoring well installations, site investigations, and preparing compliant Fuel System Operation Plans. They help ensure your site meets current regulations and maintains its commercial value.
As Nick Caltabiano, General Manager at NEO Consulting, explains:
“Even if well monitoring is not mandatory in your state, conducting groundwater checks every six months is a simple and cost-effective way to understand your site’s condition and avoid serious problems.”
Protect your land value and keep your service station environmentally compliant. Speak to the team at NEO Consulting today.
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