NEW YORK – New York Attorney General Letitia James and Department of Environmental Conservation (DEC) Interim Commissioner Sean Mahar announced a settlement securing full remediation and up to $497,000 in penalties against LSM Auto Parts & Recycling (LSM), BGN Real Estate, and two related companies for releasing dangerous automobile fluids and oil at a vehicle scrap yard in Jamaica, Queens. LSM ignored critical regulations governing the proper disposal of toxic automobile waste and was responsible for significant amounts of oil spillage in the community, contaminating the groundwater and soil in an area near low-income communities and communities of color. LSM and its affiliates will be required to clean up the property under DEC supervision and pay a penalty of $210,000. If the companies do not honor their commitment to clean up the site, the Office of the Attorney General (OAG) and DEC could obtain additional penalties totaling $287,000.

"LSM made an environmental mess, and now they are responsible for cleaning it up,” said Attorney General James. “For too long, LSM ignored basic laws and regulations about handling dangerous chemicals and exposed neighbors to toxic pollutants. Now, LSM will finally clean up their years of pollution and we’re going to make sure they do it right. Thank you to DEC and Interim Commissioner Mahar for their continued partnership in keeping our communities clean and safe for all.”

“LSM Auto Parts allowed harmful fluids from their scrap yard to contaminate groundwater and soil, impacting the environment and putting the health of Queens residents at risk,” said DEC Interim Commissioner Mahar. “DEC will oversee LSM Auto Parts’ cleanup of this facility, and this settlement sends a message to other companies — New York State aggressively prosecutes polluters who flout environmental laws and regulations. DEC worked closely with Attorney General James to secure this settlement and remains committed to holding polluters accountable.”

Attorney General James and DEC filed a lawsuit against LSM in August 2022 for repeatedly polluting the community with oil and other toxic fluids for years. Gas, oil, and antifreeze repeatedly spilled out of the scrap yard and into the street, running down sidewalks and into storm drains. In addition to multiple oil spills, various other toxic automobile fluids pooled in several areas throughout the salvage yard. LSM employees often drained vehicle fluids directly onto the ground instead of into a waste container, which allowed the chemicals to seep into the ground and contaminate the soil and groundwater.

Runoff from dangerous automobile fluids and oil at LSM’s scrapyard in Jamaica, Queens.

The DEC, the New York City Department of Environmental Protection (DEP), the New York City Police Department (NYPD), and the New York City Fire Department (FDNY) have all repeatedly observed these conditions and violations of state laws and regulations that prohibit the release of hazardous fluids from vehicle dismantling operations. DEC contacted LSM in 2019 to alert them to the violations and propose an administrative resolution to the persisting hazards. In late 2021, against the direction of DEC, LSM covered a significant portion of the property with a layer of concrete, delaying both the investigation of the contamination and remediation efforts.

As part of the agreement, LSM and its affiliates will be subject to a court injunction requiring the completion of a comprehensive investigation and cleanup of the scrap yard to be overseen by DEC. LSM will submit a report on the extent of the contamination to DEC. Once approved, LSM will also submit a work plan for the cleanup to DEC, which LSM must implement within 270 days of the plan’s approval. LSM will also pay $210,000 in penalties. If LSM fails to comply with the cleanup plan under DEC supervision, OAG and DEC could obtain additional penalties of up to $287,000.

Attorney General James thanks DEC Region 2, including Regional Attorney Antonia Pereira and Ryan Piper, P.G. of DEC Spill Response and Prevention, for their close collaboration on this matter.

This matter is being handled by OAG's Environmental Protection Bureau and is led by Senior Enforcement Counsel Andrew J. Gershon and Assistant Attorney General Max Shterngel under the supervision of Bureau Chief Lemuel M. Srolovic and Deputy Bureau Chief Monica Wagner. The Environmental Protection Bureau is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and under the oversight of First Deputy Attorney General Jennifer Levy.