The owners of a Walla Walla gas station must pay millions of dollars in penalties and cleanup costs for a 2023 gasoline leak that led to the evacuation of the historic Marcus Whitman Hotel and contaminated groundwater. 

The state Department of Ecology announced the $738,000 penalty against Stillwater Holdings LLC, Wine Country Store LLC and Ben Kleban. The penalty is for spilling oil into state waters and failing to notify state officials. They have 30 days to pay the penalty or appeal to the Pollution Control Hearings Board.  

The owners also have 30 days to pay for $4.1 million in cost recovery from the state’s spill response and pollution mitigation expenses or file an application for financial relief with Ecology. 

“For nearly two years, our focus has been on protecting people, preventing fuel from migrating to Mill Creek and getting nearby businesses safely back in operation,” said Brook Beeler, Ecology’s Eastern Region director. “This was a major spill that will take years to fully clean up. This is a necessary step for the state to hold those responsible for the spill accountable and try to recover costs spent on the response.” 

The incident began in September 2023 when the Marcus Whitman Hotel in downtown Walla Walla was evacuated due to gas odors. Testing identified potentially harmful vapors and gasoline in the basement and in two nearby buildings. The buildings were ventilated to eliminate the risk of an explosion, and the buildings’ drainage systems, also known as sumps, were pumped to reduce vapor concentrations.   

Investigators estimate 2,500 gallons of gasoline was allowed to leak into groundwater and affect neighboring buildings. 

In May, Stillwater Holdings told Ecology that it could pay for little or no more work, and that the state would need to take over. By law, Stillwater Holdings is responsible for the pollution, responding to the emergency and cleaning up the contamination. 

Ecology issued an enforcement order to the owners in July 2024, requiring them to reduce harmful vapors and remove contaminated water from nearby buildings.