At first glance, a small fuel leak might not seem like a major concern. It may not affect your daily operations or sales, and it is easy to assume the issue will resolve itself or stay contained. However, when it comes to environmental compliance, minor fuel leaks are often the start of a much bigger problem, one that can cost tens or even hundreds of thousands of dollars if left untreated.
Nick Caltabiano, General Manager at environmental consulting firm NEO Consulting, has extensive experience providing testing and remediation services to service stations across Greater Sydney and NSW. Nick shares his advice for service station owners on the risks of fuel leaks and how to best avoid land contamination.
Why Small Leaks Matter
Every fuel system carries some level of risk. Over time, fittings degrade, underground pipes shift, and tanks corrode. Even the smallest leak can begin to release fuel into the surrounding soil or groundwater. These early signs are usually invisible and can go unnoticed for months or even years.
Unfortunately, the longer a leak continues, the wider the contamination spreads. Once fuel reaches groundwater or travels beneath surrounding properties, you may be liable not only for environmental damage but also for the remediation of areas outside your own site.
According to NEO Consulting, many service station owners only become aware of contamination when applying for finance, planning to sell, or receiving an EPA notice. By that point, the cost of clean-up is significantly higher than if the issue had been caught early.
The Financial Impact
A single unnoticed leak can result in:
- Full excavation and replacement of contaminated soil
- Groundwater testing and ongoing monitoring
- Installation of recovery wells or vapour systems
- Preparation of detailed environmental management and remediation plans
- Delays in finance approvals or outright rejection
- Major drops in property valuation
In some severe cases, these costs have exceeded the value of the land itself. This is why early detection is not just a safety measure; it is a financial safeguard.
Early Detection is Cheaper
The good news is that minor leaks are easy and affordable to catch when the right systems are in place. NEO Consulting recommends service station owners conduct six-monthly groundwater and surface water well monitoring, even in states where it is not mandatory.
For complete peace of mind, NEO suggests installing at least two monitoring wells on site. This allows for consistent tracking of site health and the early detection of changes in fuel levels or water quality.
They also recommend pairing this with other routine environmental checks, including:
- Tank and line integrity testing
- Soil testing in key areas
- Vapour detection
- Regular review of your Fuel System Operation Plan
As Nick Caltabiano, General Manager of NEO Consulting, puts it, “Well monitoring shows more than just groundwater contamination. It offers a window into the broader health of your site. If fuel makes its way into the water table, that is often a signal of a larger system failure.”
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