Officials say 336,000 gallons of diesel fuel spilled into the waters between Staten Island and New Jersey after a storage tank was lifted and ruptured from the surge from Sandy.
All of the spilled fuel is believed to be contained by booms put in the Arthur Kill waterway, the Coast Guard says.
The liquid leaked at the Motiva oil tank facility in Woodbridge, N.J., according to authorities.
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Coast Guard spokesman Les Tippets says a secondary tank caught most of the fuel and that the liquid that escaped moved into the Arthur Kill.
About 200 responders were on scene to contain the spill.
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New Jersey Department of Environmental Protection spokesman Larry Ragonese says the company reported the spill and hired contractors to clean it up.
Air samples collected by the Coast Guard at Arthur Kill showed levels within acceptable thresholds Wednesday.
