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Downieville Gas Mart Owners Settle Environmental Lawsuit for $1.16 Million

The settlement addresses past fuel tank violations and mandates stronger safeguards at three regional gas stations.

February 13, 2026

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Old underground storage tanks were replaced during settlement negotiations, allowing the Downieville Gas Station to reopen.

Old underground storage tanks were replaced during settlement negotiations, allowing the Downieville Gas Station to reopen.

SIERRA, YOLO COUNTIES — The Yolo County Superior Court has approved a $1.16 million settlement in an environmental protection lawsuit against the owners and operators of three Northern California gas stations, including the Gas Mart in Downieville. Sherali Davis LLC, Sherali Gas Company, Inc., and individuals Ali, Habiba, and Shanawas Sherali admitted to violating environmental laws related to underground storage tanks at the facilities.

Underground storage tanks, commonly known as USTs, hold petroleum products beneath gas stations. Regulations require operators to maintain monitoring systems, perform regular testing, and ensure proper containment to prevent leaks into soil and groundwater.

Even small releases pose major risks, as a single gallon of petroleum can contaminate up to one million gallons of water, according to a joint press release by the Yolo and Sierra County District Attorneys. The Downieville station had been operating with older tanks and had faced multiple violations, leading to its closure.

Violations also occurred at the 5th & L Gas Mart in Davis and the Main Street Gas in Woodland. Issues included inadequate spill containment, missing employee training, improper hazardous waste handling, and lapses in required inspections and reporting, as detailed in the lawsuit filed by the district attorneys.

During settlement negotiations, the defendants replaced the antiquated single-walled USTs at the Downieville location with modern double-walled tanks, allowing the station to reopen. Double-walled designs provide an extra layer of protection against leaks.

The settlement imposes a permanent statewide injunction requiring ongoing compliance with environmental laws. Defendants must hire an experienced compliance manager, conduct regular audits, and submit reports to prevent future violations.

Financial terms include $1,000,000 in civil penalties, with a portion stayed pending no further violations, and $160,000 to cover investigative and enforcement costs, as reported in the press release.

Yolo County District Attorney Jeff Reisig and Sierra County District Attorney Sandra A. Groven highlighted the importance of protecting water resources. “It is important to protect our fresh water resources and ensure all businesses follow the law and operate on a level playing field,” the district attorneys stated. They thanked the Environmental Health Divisions of Yolo and Sierra Counties, as well as the California State Water Resources Control Board, for their assistance.

The case benefited from the Circuit Prosecutor Project, funded by CalEPA and administered by the Placer County District Attorney’s Office. Rural counties receive grant-funded prosecutors through the project to enforce environmental laws and safeguard natural resources from harm, such as leaking USTs.

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