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Northwest Herald

Lake in the Hills gets $334K settlement in wrong-fuel mix-up that damaged two-dozen vehicles

Lake in the Hills Public Works vehicles are shown in an undated file photo.

Lake in the Hills has approved a settlement with a former fuel vendor’s insurance carrier over a mix-up that cost the village over $320,000 in repairs.

Lake in the Hills officials approved over $320,600 in repair bills in February for two-dozen vehicles but had been trying to recoup their costs.

Lake in the Hills officials said the fuel provider accidentally filled the village’s public works diesel fuel tank with 850 gallons of unleaded gas shortly before a winter storm in November, damaging about two-dozen vehicles.

Since the initial, six-figure repair bill, local officials identified another $14,000 in costs related to the mishap “for both the staff time, equipment and labor initially provided to service the vehicles, along with the removal costs of the compromised fuel that was removed from the vehicles,” according to village records.

The village will be paid $334,600, roughly the cost of needed repairs, in the settlement, which the Village Board approved Tuesday.

Officials said all the affected vehicles have been repaired and aren’t showing signs of fuel damage, but that it’s likely some vehicles could still experience issues with the diesel particulate filter system. Any further maintenance needed on the vehicles would be on village’s dime, according to local records.

“It may be difficult to determine causation that future ... issues are a direct result of the unleaded fuel issue,” according to village records.

Lake in the Hills could try to pursue damages against the former fuel vendor in the future but would have to prove the damage was contamination-related, officials said.

Not long after the fuel snag, and while affected trucks were being repaired, the village’s fuel contract happened to be up. The former vendor, Avalon Petroleum, did not bid for the new contract, and the village went with Al Warren Oil Co.

Neither Avalon Petroleum nor Federated Mutual Insurance Company, Avalon’s insurer, with whom the village settled, were immediately available for comment Wednesday.

Claire O'Brien

Claire O'Brien is a reporter who focuses on Huntley, Lake in the Hills, Woodstock, Marengo and the McHenry County Board. Feel free to email her at cobrien@shawmedia.com.