CASE STUDY
MOUNTAIN DRUM SALES INC.
48 SLUSE RD.
(HOLLAND LANDING)
TOWN OF
EAST GWILLIMBURY
INTRODUCTION
This case study illustrates the enforcement steps, and costs to do work at the buildings and premises where flammable and combustible liquids and hazardous liquids were stored in abandoned and poorly secured buildings in proximity to a sizable community and important vegetable growing region for the province.
The buildings and premises consisted of a group of five separated
buildings and surrounding grounds that had originally supported a vegetable
storage and packaging operation. The produce was obtained from neighboring
marsh gardens spreading several miles in a generally westerly direction.
These operations ceased and the buildings became filled with various
industrial and commercial operations.
One building (known as building #5) was occupied for the purposes of a
drum cleaning operation by a tenant that was eventually known as Mountain
Drum Sales Inc. The tenant received a Certificate of Approval to operate a
waste disposal site (processing) on May 4, 1994. The Certificate of Approval
from the Ministry of Environment allowed for the cleaning and restoration of
drums in building #5 with the regular withdrawal of waste chemical from the
site for treatment.
The tenant stopped operations on December 11, 1995 after being evicted by
a bailiff. Empty drums and containers of waste products remained in building
#5 and on adjacent grounds to the building.
During July, 1996, citizens in the neighborhood complained of a strong
natural gas smell coming from the property. Subsequent investigation by MOE
and the fire department revealed leaking cylinders containing mercaptan (a
powerful odorant added to natural gas to provide warning of its presence).
These cylinders were moved into building #5 for protection from the weather
and from children that had ready access to the yards. At this time, a
considerable number of containers were discovered in nearby building #3. It
was believed that these cylinders contained only the caustic cleaning
solution and residue left over from the cleaning operation in building #5.
The by-law enforcement officer for the Town of East Gwillimbury was called
in to lock the doors of building #3 to ensure that children could not get in
and that additional unwanted drums would not be deposited there. On March,
1997, another mercaptan release occurred within building #5 from unknown
causes and the fire department sought the assistance of the Fire Marshals
Office to determine the risk to public safety and the natural environment
posed by the contents of buildings #3 & 5 if a fire should occur there.
Due to the lack of security for the buildings and premises, the
quantities of hazardous, and flammable and combustible liquids in proximity
to people and the natural environment, the Fire Department issued Fire
Marshal's Orders against the tenant and property owner.
In the final tally after the cleanup, there were 3,808 drums, 2,300 of
which were empty and 1,508 that were filled with solvents and oils. There
were 116 totes, of which 86 contained pesticides. Clearly, a fire in the
partially combustible buildings that involved the contents of the drums
would have had a significant impact on the neighboring environment and
public safety.
ENFORCEMENT EFFORTS BY THE TOWN OF EAST GWILLIMBURY
On April 11th and April 15th, 1997, similarly worded Fire Marshal's Orders were served by the Fire Department against the tenant (Mountain Drum Sales Inc.) and the property owner (Willbeck Corporation). These orders required the following items to be complied with by April 25, 1997:
The owner responded verbally to the Fire Department that he would not be
appealing the order nor would he bring the property into compliance with the
order. Apparently the bank which held the mortgage on the property had given
notice to the owner that they intended foreclose on the property on April
29, 1997. Additionally the property was several hundred thousand dollars in
arrears on property taxes.
The order sent to the tenant by registered mail was returned to the Town
by the postal service as undeliverable.
The Town of East Gwillimbury Fire Department requested on May 1, 1997 a
hearing before the Fire Safety Commission to obtain authorization to do work
at the site. The hearing was held on June 3, 1997 where evidence from the
Town of East Gwillimbury, MOE and staff from the Fire Marshal's Office was
presented before the Commission while the owner failed to make an
appearance.
The Fire Safety Commission stated: "It is unacceptable for a property
owner or tenant to subject nearby residents and firefighters to an undue
fire hazard. The evidence has shown, it is unlikely that the owner or tenant
will control access to the building, and considering the resources of the
fire department, the conditions at the subject property could result in a
fire which would endanger the safety of residents of the community and
firefighters. Furthermore, a fire could impair the quality of the natural
environment. Therefore, the conditions shall be corrected in a timely
manner."
The commission decision was the following:
WORK DONE AND COST
The Town of East Gwillimbury proceeded to obtain tenders for removal of
stored chemicals and their containers. The removal of containers and product
commenced the last week of August, 1997 and continued for two weeks under a
"warrant to enter" granted by a local justice of the peace. The cylinders
contaminated with mercaptan created unusual disposal problems and were
returned to the property from an Ontario waste transfer station when an
accidental odor release occurred. The cylinders were eventually shipped to a
waste handling facility in Wisconsin, USA.
Costing analysis that was performed by the Town of East Gwillimbury was
based on estimates of the number of containers present at the facilities and
information that was provided to them on the contents of the containers.
The drums and large capacity totes were stored up to three drums high
without aisles in 1/3 of building #3 floor area which Mountain Drum Sales
Inc. had occupied. Two additional mercaptan cylinders and numerous
additional totes filled with pesticides had been stored inconspicuously
beneath drums at the rear of the storage area.
Information provided by the tenant to MOE concerning its drum cleaning
operations indicated that the waste residue from the plant operation was
caustic cleaning solution and the residue from "empty drums". From these
estimates, the Town of East Gwillimbury anticipated costs in the range of
$100,000 to $150,000. The Fire Chief stated that the cost to cleanup the
site at 48 Sluse Rd was $344,585.00 and that instead of caustic wash which
would have been relatively less expensive to dispose of, the drums and totes
contained solvents, oils and pesticides.
COST RECOVERY
The municipality will attempt to recover its costs in having the tanks,
totes and drums and their contents removed from the property. The property
is presently in tax arrears to the amount of $445,000.00 and the owner of
record has abandoned claim to the property. The affected financial
institution had been willing to pay $50,000.00 toward the costs for cleanup
after the property had been sold but has since backed out from that offer.
This financial institution estimated their loss on the property was nearly
$1,000,000.00 in consideration of failure to repay the mortgage by the
owner, ground environmental auditing costs and lost of interest on their
money.
The Town of East Gwillimbury under powers provided by the Fire
Protection and Prevention Act, 1997 placed a lien on the property for
cleanup costs. The town is currently in the process of taking possession of
the property for the purpose of selling it to pay for outstanding back taxes
and cleanup. Town officials have also met with the MOE officials for the
purpose of obtaining their assistance. This request is currently under
consideration.
CONCLUSIONS
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