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CLEANUP OF CLOSED RETAIL OUTLETS TO BE COSTLY IN CANADA

March 30, 1992

Cleanup costs for closing service stations will cost Canadian majors more than $1 billion, an industry spokesman predicts. Brendan Hawley of the Canadian Petroleum Products Institute (CPPI) estimates the cost at $1-2 billion (Canadian), depending on how many stations are involved. CPPI says the cost of removing underground tanks and cleaning up contaminated soil, with a separate tank for each pump, will be $25,000/tank. Costs will be borne by companies or their agents.

Cleanup costs for closing service stations will cost Canadian majors more than $1 billion, an industry spokesman predicts.

Brendan Hawley of the Canadian Petroleum Products Institute (CPPI) estimates the cost at $1-2 billion (Canadian), depending on how many stations are involved.

CPPI says the cost of removing underground tanks and cleaning up contaminated soil, with a separate tank for each pump, will be $25,000/tank. Costs will be borne by companies or their agents.

Imperial Oil Ltd., Shell Canada Ltd. and Petro-Canada plan to reduce their number of retail outlets because of losses in marketing

Petro-Canada will close or sell 1,000 stations, and Imperial will close about 1,000 stations.

Shell plans to get rid of about 600 stations by 1996 but will add a number of new stations in a rationalization program that is under way.

There are about 19,000 service stations in Canada, about three times the number in the U.S. on a per capita basis.

The industry also faces substantial costs for refinery upgrading to meet planned new federal standards for gasoline and diesel fuel and emission standards.