District Attorneys Settle Environmental Protection Lawsuit Against Sherali Gas Corp.

Press Release | Complaint | Judgment

Woodland and Downieville, CA - January 14, 2026 - On January 7, 2026, Yolo County Superior Court, Judge Samuel McAdam, approved a settlement imposing $1.16 million in civil penalties and investigative costs on defendants in an environmental protection action. Sherali Davis LLC; Sherali Gas Company, Inc.; and Ali, Habiba, and Shanawas Sherali admitted violating environmental laws at three retail gas stations: 5th & L Gas Mart (Davis); Main Street Gas (Woodland); and the Gas Mart in Downieville, the town's only fuel station, which sits adjacent to the North Fork of the Yuba River.

Defendants, like all underground storage tank (UST) operators, are subject to fair yet stringent environmental requirements, reflecting the danger of a release of the petroleum products stored in USTs: even a one-gallon release from a UST can quickly contaminate up to one million gallons of water. A pin-prick-sized hole in a tank can leak up to 400 gallons of fuel a year.

As a result of this settlement, defendants are subject to a permanent statewide injunction. They must retain an experienced compliance manager to help prevent future environmental violations. They are subject to $1,000,000 in civil penalties, a portion of which will become due only if they violate laws in the future, and they agree to pay $160,000.00 in investigative and enforcement costs. During negotiations with the People, defendants re-opened the Downieville Gas Mart, having replaced antiquated single-walled USTs with double-walled tanks that better protect the environment.

Yolo County District Attorney Jeff Reisig and Sierra County District Attorney Sandra A. Groven praised the collaborative effort on this case. "It is important to protect our fresh water resources and ensure all businesses follow the law and operate on a level playing field. We thank the Environmental Health Divisions of Yolo and Sierra Counties and the California State Water Resources Control Board for investigative efforts and assistance with this case."

This civil action was made possible in part by the Circuit Prosecutor Project, which provides a grant-funded prosecutor to help enforce environmental laws in rural counties. The Project, which is funded by CalEPA and administered by the Placer County DA, seeks to protect state natural resources and rural county residents from environmental harm, including those caused by leaking USTs.

The Sherali defendants cooperated with the People's investigation and committed to lawfully operating in the future.

[Link]
###