The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Cable Bahamas is suing Rubis and the operator of its Robinson Road gas station for up to $15 million in damages, alleging that their “negligence” resulted in its property being contaminated by a 20,000-30,000 gallon-strong gasoline leak.

The BISX-listed communications operator, in its statement of claim filed with the Supreme Court on July 3, 2014, is also seeking an injunction to close the just reopened gas station on the grounds that “is not fit for purpose or unsafe”.

In a potentially costly development for Rubis, and the gas station operator, Fiorente Management and Investments, the lawsuit states: “Cable seeks an injunction to prevent Rubis and Fiorente reopening and/or operating the station until the station is no longer a threat to the health and safety of Cable’s staff, customers and other persons lawfully visiting Cable’s property, and/or the properties and residents in the area.”

Cable Bahamas alleged that the hazardous vapours from the leak had forced 43 staff to seek medical treatment before its customer service building was closed in late January 2013.

Pointing out that it had now been denied use of this building for more than 17 months, Cable Bahamas alleged it would cost at least $8.6 million to either clean up the water table pollution or build a new customer service centre elsewhere.

And it is claiming $4.432 million in ‘special damages” to recover the costs, and revenue loss, associated with having to move its customer service operations and marketing arms to the Mall at Marathon and East Street, respectively, as a result of the gas leak.

Employees at the Robinson Road gas station yesterday declined to comment on the Cable Bahamas legal action, directing Tribune Business to contact Rubis (Bahamas) head office.

This newspaper had been trying to contact Rubis for several days over the environmental situation, having noticed that the gas station had re-opened. But, again, no one at Rubis (Bahamas) was available for comment.

Detailing the particulars of its case, Cable Bahamas alleged at one point that it feared for the building that housed the data centre providing 75 per cent of the Bahamas’ Internet Protocol (IP) traffic.

“In late 2013, dissolved gasoline was detected in well MW-28 situated at the southern corner of Cable’s property, indicating that the Head End Building was at risk of contamination,” the BISX-listed provider alleged.

“The facility cannot be relocated, and if compromised will result in over 80,000 customers losing communications services.”

Ultimately, data and testing showed there was no risk to the Head-End Building, but Cable Bahamas alleged that Rubis had also failed to share the results of its environmental tests and results, as it promised to do in a February 7, 2013, agreement.

“The cost of remedial work is estimated to be in the region of $8.6 million,” Cable Bahamas alleged.

“It is not possible to provide particulars of the remedial strategy or an exact cost since this can only be determined once critical information has been provided by Rubis and Fiorente.

“Rubis has failed to provide such information in breach of its obligations under the Access and Environmental Activities Agreement.”

Tracing the gas leak’s origins, Cable Bahamas alleged that it had suffered from the “intermittent emission of gasoline fumes” from the Rubis station for five years.

This forced the first evacuation of the Cable Bahamas’ customer service building, where 178 staff worked and received an average 44,000 client visits per month, on October 2, 2012.

Fiorente representatives were said to have visited Cable Bahamas on that date, and knew of the problem, but two more evacuations occurred on December 7, 2012, and December 10, 2012, for three and fours respectively.

“Fiorente intimated to Cable that the fumes were caused by a venting issue experienced by the station any time it refuelled or replenished its tanks,” Cable Bahamas said, when the gas station operator was contacted about these incidents.

Cable Bahamas called for “a more permanent plan” to stop the emission of fumes, with the gas station operator responding by promising to “explore options”.

Yet three further evacuations of Cable Bahamas’ customer service building occurred between January 10-12, 2013, with another shut down taking place on January 23.

Cable Bahamas reconfigured the air conditioning system in the customer service building and “sealed” the property, only to be forced into another evacuation on January 25, 2013, over “the prevalent smell of gasoline fumes”.

The final evacuation, and now 17-month closure of the building, took place on January 26, 2013. “As a result of inhalation of a hazardous concentration of hydrocarbon vapours (containing toxic compounds Benzene, Toulene, Ethyl and Xylenes), approximately 43 members of Cable’s staff and one member of the public received medical treatment at clinics and hospitals over the period of October 2, 2012, through to January 27, 2013,” Cable Bahamas alleged.

“One member of staff has not fully recovered and remains away from work. The individual continues to be seen by physicians due to serious health issues.”

Tests by Bahamian environmental firm, ERC, showed the customer service centre had hydrocarbon readings of between 30 and 1,321 parts per million. And one test pit dug close to Cable Bahamas’ building uncovered a “two foot deep reservoir of pure gasoline”.

Rubis allegedly confirmed a gas leak at the station on January 28, 2013, adding that repairs to the fuel pipe responsible had been made. It advised Cable Bahamas to switch to Water & Sewerage Corporation water supply, due to the water table contamination.

“As a result of the gasoline leak, the private water supply on Cable’s property now contains excessive levels of petroleum hydrocarbons and the said property now requires significant acts of remediation to remove the contaminants,” Cable Bahamas alleged.

“The escape of gasoline and hydrocarbon vapours into Cable’s property was caused by a gasoline leak at dispenser five. The gasoline leak was caused by corrosion in the pipework at dispenser five,

“It is estimated that approximately 20,000 to 30,000 gallons of gasoline has been discharged as a result of the gasoline leak.”

Breaking down the alleged costs incurred from the pollution, Cable Bahamas said moving its customer service operations to the Mall at Marathon had resulted in a $1.133 million expense. And a further $641,000 came from the temporary relocation of its marketing and archiving departments to the Independence Business Park.

Sales revenues lost were estimated at $446,800, with Cable Bahamas pegging its displacement costs at $421,710. The installation of a slurry wall between its property and the Robinson Road gas station had cost $1.2 million.

More than $400,000 had been spent by Cable Bahamas on its own environmental consultants, with another $70,000 incurred on extra utility bills.

Cable Bahamas said it had already received $820,000 from Rubis to cover its expenses, for which it had given a credit.