The Minnesota Pollution Control Agency fined Zippel Bay Resort $37,800 for a number of violations stemming from the operation of an unregistered gas tank that leaked gasoline into Lake of the Woods.
On Sept. 23, 2025, Department of Natural Resources (DNR) staff reported a petroleum sheen on the waters of Zippel Bay to the MPCA after tracing it back to the resort. MPCA staff conducted an inspection and found an unregistered aboveground gasoline storage tank on the property.
The unregistered tank had faulty piping and lacked safety features required to prevent leaks and other contamination. The resort lacked proper documentation for the tank like monthly monitoring and leak inspection records. Additionally, the owners failed to report the leak as required by law.
Zippel Bay Resort owners removed the aboveground storage tank and contaminated soil in October 2025 after receiving notice from the MPCA. In addition to the fine, the MPCA required the resort to resolve violations caused by the leaking tank. The resort addressed those by removing the tank from their property.
The MPCA remains committed to protecting human health and the environment by enforcing rules and regulations and limiting pollution and discharges from facilities. When facilities do not fully comply with regulatory requirements, the resulting pollution can be harmful to people and the environment.
When calculating penalties, the MPCA considers how seriously the violations affected or could have affected the environment, and whether they were first-time or repeat violations. The agency also attempts to recover the economic benefit the company gained by failing to comply with environmental laws in a timely manner.