Underground Tanks

Jun 9, 2014, 09:06 AM
Content author:
External link:
Grouping:
Image Url:
ArticleNumber:
0

Out of Sight, Out of Mind?  

Underground storage tank owners and operators may have taken USTs for granted in the past. However, harsh and detailed EPA rules governing UST corrosion, leaks, spills, as well as the financial ability of an owner/operator to cover damages, are bringing USTs out into the open.

During the early 1980s, the Environmental Protection Agency and some environmentalists became concerned about the millions of underground tanks installed across the country that contain petroleum products or hazardous chemicals. Based on a few surveys, EPA estimated that tens of thousands of these tanks were leaking. Gasoline and other flammable substance leaks present a clear threat of fire or explosion and, equally important, leaks from USTs could contaminate nearby groundwater. Since millions of people depend on groundwater as their major source of drinking water, possible contamination of water supplies represents a potentially serious problem.

When discussions of the stringent new regulation of USTs began, many in industry objected that the potential threat of leaking underground tanks had been severely overstated. Nevertheless, Congress decided to address this issue in the RCRA reauthorization of 1984, directing EPA to develop new regulations to protect the environment from the potential threat of leaking USTS.

As a result of the RCRA amendments and following years of preparation, EPA issued the new underground tank regulations in late 1988. These rules will have a profound impact on any business that uses underground tanks to store potentially hazardous substances. In brief, the law requires registration of any UST containing a "regulated substance" and imposes new standards for constructing and installing UST systems. Existing USTs must be upgraded to meet these new technical requirements during a 10-year phase-in period. In addition, all USTs must comply with new requirements for spill prevention and leak detection, and UST operators must demonstrate financial responsibility for any leaks from an UST.

As is the case with most environmental regulations, the EPA rules establish minimum requirements that must be met by those subject to the regulations; states are free to impose more stringent requirements. This situation is especially relevant to the UST program, because EPA intentionally has strived to delegate responsibility for UST regulation to the states. For this reason, UST operators must be familiar not only with the federal requirements, but also with any specific state laws or regulations.

What's Covered by the Rules

Under the federal regulations, the term "UST" applies not only to underground tanks, but also to any underground pipes connected to the tanks. Any tank system, including attached piping, with 10 percent or more of its volume underground is subject to the rules if it contains a "regulated substance"--defined as any petroleum product (such as gasoline, diesel fuel, or used oil) or a "hazardous substance" regulated under Superfund (such as certain nonpetroleum solvents or other chemicals).

Since most recyclers use USTs for storing petroleum products only, this article discusses requirements applicable to petroleum tanks. Recyclers who store other materials, such as hazardous wastes or "hazardous" chemicals, should review the relevant regulations to ensure compliance.

The EPA rules apply to both "owners" and "operators" of USTS. Although one party can assume responsibility for compliance, EPA can take enforcement action against both parties in the event of a violation. Thus, if a tank installed on a scrap recycler's property is actually owned by another party, the recycler should verify that the UST is in compliance. The recycler should attempt to reach a voluntary agreement with the owner to ensure the owner has complied with the rules. If compliance is not verified, the recycler (as "operator" of the UST) could conceivably be held fully responsible for all compliance requirements, as well as for any possible damages from leaks.

In addition to technical requirements regarding tank construction and operation, tank owners also must meet strict rules for demonstrating financial responsibility for any damage resulting from tank leaks. For most recyclers, these financial responsibility requirements will take effect in October.

The combination of these new requirements raises many questions for tank owners and operators. The rules have now been in effect for more than a year, and some important deadlines have already passed or are impending. For these reasons, any scrap recycler who uses underground tanks should promptly develop an action plan.

The "Heating Oil" Exclusion

Despite the broad scope of the underground tank rules, some UST systems are excluded from these regulations. One potentially important exclusion applies to any "tank used for storing heating oil for consumptive use on the premises where stored." The regulations define "heating oil" as follows: "petroleum that is No. 1, No. 2, No. 4-light, No. 4-heavy, No. 5-light, No. 5-heavy, and No. 6 technical grades of fuel oil; other residual fuel oils (including Navy Special Fuel Oil and Bunker C); and other fuels when used as substitutes for one of these fuel oils." The key section of this definition is the last phrase. Interpreted broadly, this exclusion could have great importance to scrap processors.

If a listed grade of fuel oil is used to heat the premises and is also used to power some equipment, the UST holding the fuel oil would be exempt from the regulations. The exemption also would apply to USTs holding used oil that is collected and burned onsite in space heaters as a substitute for fuel oil. In addition, the exemption apparently would apply to any fuel used for "heating" purposes. Thus, an operation using an oil-fired melting furnace could claim an exemption for the storage tank, regardless of whether the oil is on the exemption list.

This exemption would apply only narrowly to tanks containing diesel fuel. EPA considers diesel fuel to be a motor fuel, not a substitute heating oil. Thus, diesel fuel tanks would be exempt from the regulation only if the fuel is used solely for heating purposes.

The heating oil exclusion is somewhat ambiguous and could be subject to differing interpretations. Some states have moved to narrow the exemption considerably. For these reasons, scrap recyclers should be cautious in claiming the exemption. However, under appropriate circumstances, the heating oil exclusion can provide significant relief from regulatory burdens.

Rigid Specifications for New Tanks

The regulations impose stringent requirements on any new UST systems installed after the December 22, 1988, effective date. New tanks must be protected against corrosion, must incorporate means to prevent spills or overfills, and must be monitored for leaks.

Tanks are required to be constructed of fiberglass-reinforced plastic, cathodically protected steel, or a steel-and-fiberglass-reinforced plastic composite. Any other construction is permissible only if specifically approved by EPA. Similar requirements apply to any underground piping used in conjunction with a storage tank.

Any recycler considering installing a new UST should ensure that the equipment fully complies with these requirements. In addition, the tank owner must verify that in installation of the equipment is performed in compliance with designated codes. To ensure compliance and help protect against unforeseen complications, prospective tank owners should require installers to certify compliance on the tank notification form that must be submitted for all new USTs.

In addition to corrosion protection, new USTs must be designed to prevent spills and overfills. At a minimum, the system must include a catchment basin or equivalent device to collect any product released when the transfer hose is disconnected from the fill pipe. The system also must be equipped with a device to prevent overfilling, such as an automatic shutoff valve, an overfill alarm, or a flow restrictor.

Upgrading Existing USTs

By December 22, 1998, all USTs either must be upgraded to comply with the new UST requirements, or must be replaced. For tanks that already meet the requirements for corrosion protection, this requirement may not be too burdensome. The addition of spill and overfill prevention equipment may be sufficient to permit continued use of these tanks, as long as required leak detection measures are in place.

However, for old tanks constructed of bare steel, the upgrading provisions could require a significant investment. Steel tanks can be upgraded by applying an interior lining, cathodic protection, or both. Any method used must meeting rigid requirements.

In addition to upgrading the tank, any existing metal piping also must be upgraded to meet the new system criteria. Piping may be upgraded only by applying cathodic protection in compliance with recognized codes.

For old tanks, the threshold question for recyclers is whether the necessary investment can be justified. Bare metal USTs more than approximately 10 years old already may be too corroded to warrant upgrading. In such situations, the tank owner should weigh the costs of upgrading against the cost of a new system. Upgrading costs may include required tank tests and an internal inspection. In some situations the company performing the work may offer a guarantee or warranty for the upgraded tank. All these factors should be investigated before deciding whether to replace or upgrade an UST.

Look Detection

Perhaps the most significant requirement of the new UST rules is the provision for periodic leak testing. Conceptually, it makes great sense to check a tank for leaks. Rapid identification of leaking tanks can permit quick response actions and the extent of any environmental damage. However, the stringent leak detection requirements in the UST regulations carry some potential problems of their own.

The rules require that leak detection be provided on all USTs installed after December 1988. For tanks installed prior to that date, leak detection must be phased in (older tanks first) no later than December 1993. A tank owner or operator must know when a tank was installed in order to meet the deadline for compliance with the leak detection requirements.

Several methods of leak detection are discussed in the regulations. Unfortunately, problems may arise because leak detection technology is in its formative stages. Few devices on the market today can meet the stringent requirements the rules mandate for leak detection accuracy. In recognition of these technological problems, EPA prescribed "interim" leak detection methods that can be used while more advanced technology is being developed. The "interim" period ends in December 1998. Ultimately, all tanks will have to be equipped with very sensitive systems designed to detect leaks of as little as 0.2 gallon per hour with a high degree of accuracy. Such systems may consist of automatic tank gauges or may be based on out-of-tank detectors such as vapor monitors or groundwater monitors.

During the "interim" period, tank owners can use a combination of monthly inventory controls and periodic tank tightness tests to comply with the leak detection requirements. Inventory control programs require precise measurements of product inputs and withdrawals on a daily basis, as well as compliance with other procedural techniques.

In conjunction with the inventory control method, tank owners must have their USTs tested periodically for leaks during the "interim" period. These tests are required every year for tanks that have not been upgraded, and every five years for tanks that meet the requirements for corrosion protection and spill/overfill prevention.

The tightness test used must be capable of detecting a leak of 0.1 gallon per hour from any portion of the tank. After December 1990, any method used must meet this criterion with a high degree of accuracy. Unfortunately, evaluations conducted by EPA Indicate that few methods available today can meet this rigid criterion. The accuracy of tightness tests can be affected by several factors, such as temperature changes or vapor pockets within the tank.

Owners of older tanks could be severely affected by the shortcomings of these tightness tests. Since older tanks must be tested before December 1990, initial tests are subject to the inherent inaccuracies of the testing technology selected. Because the tests do not yet have to meet stringent criteria for accuracy, a failed test does not necessarily prove that a tank is leaking. However, a "possible" leak discovered by a tank tightness test requires the owner to report the situation and undertake a potentially expensive investigation. In addition, a test indicating leaks could lead some to consider unnecessary tank replacement.

Tank owners should be aware of these potential problems with leak detection technology and should be sure results are verified before any significant steps are taken based on test results. False alarms may remain a problem with leak detection technology for some time to come.

Less stringent leak detection requirements apply to certain small tanks. For tanks with capacities of 550 gallons or less, a system of manual tank gauging may be used as the sole leak detection method. For tanks with capacities between 550 and 2,000 gallons, manual tank gauging is an acceptable interim leak detection method when used in conjunction with periodic tightness tests.

Serious Consequences for Leaks

The UST regulations specify situations in which a tank owner/operator must assume a tank is leaking. They include unusual operating conditions (such as erratic behavior of dispensing equipment, loss of product, or unexplained presence of water in the tank), discovery of the stored product on- or off-site (such as in a basement or sewer), or a failed leak detection test. In any of these situations, the tank owner or operator must notify the appropriate government agency within 24 hours.

Upon discovery of a potential leak, the owner/operator is required to undertake a comprehensive investigation to verify whether the tank is leaking. If there is no evidence of environmental contamination, the investigation can consist of a tightness test. However, as noted previously, the problems associated with these tests may not provide an accurate assessment of a potential leak. Regardless, if the tightness test indicates a tank is leaking, the UST must immediately be repaired or removed. In addition, the owner/operator must commence specified corrective actions.

If a leak is suspected based on apparent contamination of the surrounding site, the owner/operator is required to perform a detailed site investigation to identify the scope of the contamination. Most likely, the services of an experienced environmental consultant will be required in such a situation.

Corrective measures required as a result of a leak may include complete removal of product from the tank, removal of contaminated soil from the premises, and other engineering controls. The owner/operator may also be required to develop a detailed, long-term action plan to correct any contamination of the soil or groundwater. The ramifications of a leaking underground tank can be serious and long lasting.

Removing Tanks From Service

Previously, little control was exercised by government agencies over the removal or abandonment of underground With the new regulations enacted in 1988, however, EPA has imposed stringent new controls on UST system closure. Before a tank can be taken out of operation, the appropriate government agency must be notified at least 30 days in advance.

In order to close a tank, the owner/operator must first empty the tank completely and clean it by removing all liquids and sludges. Once emptied and cleaned, the tank can be taken out of the ground and discarded or can be filled with an inert material and abandoned in place. In either situation, a site assessment must be performed to determine whether the tank has leaked. If evidence of leakage exists, the owner/operator must perform additional tests, such as soil sampling, to evaluate the scope of the leak.

Financial Responsibility Rules: A Serious Hurdle

A key component of the new UST regulations is the requirement that owners or operators of tanks demonstrate adequate financial capability to pay for any damage caused by leaks.

The typical tank owner must demonstrate minimum financial responsibility in the amount of $500,000 per occurrence and $1 million annual aggregate. However, these amounts do not limit the potential liability of an owner or operator. If cleanup costs or injury or property damage claims exceed these prescribed levels, an injured party (including EPA) can seek to collect additional amounts from the owner or operator.

The regulations prescribe nine methods, which can be used singly or in combination, to meet the financial responsibility obligations. Unfortunately, for typical recyclers none of these methods is likely to be feasible. Few of the self-funding mechanisms are likely to be available to small businesses. In addition, the potential insurance markets thus far are inadequate to handle the demand for coverage. As a practical matter, the most likely sources of coverage are the state funded "insurance" programs that have been initiated since the regulations were released. However, the typical state fund may not provide all the required protection and serious questions exist about the adequacy of some state funds to cover anticipated leaks.

For all these reasons, tank owners or operators seeking coverage for their USTs should begin investigating available options well in advance of the October 1990 deadline.

Detailed Records Required

Anyone installing a new UST system must register the system with the appropriate state government using its required notification form. The person installing the UST must certify that the installation was performed correctly. Existing tanks were to be registered by May 1986.

In addition to the notification requirement, tank owners/operators must show evidence of financial responsibility and must maintain detailed records of leak detection results, operation of corrosion protection equipment, any repairs to the UST system, and any site investigations performed.

An Unjustifiable Luxury?

Considering the potentially burdensome impact of the new UST regulations, scrap recyclers should seriously consider whether underground tanks are an operational necessity or simply a convenience. Before the bulk of the new requirements become effective, individual tank owners should perform at least a cursory cost-benefit analysis to determine whether continued use of underground tanks is warranted. If removal of USTs would not pose insurmountable operational problems, it may be wise to close the tanks now. If, on the other hand, use of underground tanks is a necessity, begin planning now to meet the impending deadlines for compliance.

[SIDEBAR]

Exclusions From UST Requirements

Several types of tank systems are excluded from EPA’s UST regulations. The following exclusions may be relevant for scrap recyclers:

Tanks with capacities of 110 gallons or less,

Tanks storing heating oil for use on the premises,

Tanks situated in basements (that is, underground, but above the floor), and

Equipment and machinery containing regulated substances for operational purposes, such as hydraulic lifts and electrical equipment.

[SIDEBAR]

Prescribed Financial Responsibility Mechanisms

Tank owners and operators must demonstrate adequate financial responsibility, no later than October 1990, by using the following methods, singly or in combination:

Self-insurance,

Liability insurance,

Guarantees,

Surety bonds,

Letters of credit,

State-required financial responsibility program,

State fund or other state assurance system,

Trust fund, and

Standby trust fund.

Specific criteria for each of these methods are included in the financial responsibility regulations.

[SIDEBAR]

Inventory Control Programs

To comply with “interim” requirements for leak detection, an inventory control program must include the following:

Measures of inputs, withdrawals, and product remaining in the tank on a daily basis;

Measurement accuracy to the nearest 1/8 inch (that is, the dipstick used to measure tank contents must be scaled in 1/8-inch intervals);

Measured of product in the tank before and after delivery of additional product, and reconciliation with delivery receipts;

Delivery of product through a drop tube extending to within 1 foot of the tank bottom; and

Metering of product when dispensed.

Details of these and other requirements are included in the publication, Recommended Practice for Bulk Liquid Stock Control at Retail Outlets, available from the American Petroleum Institute, 1220 L St. NW, Washington, DC 20005.

[SIDEBAR]

Manual Tank Gauging Acceptable for Certain Tanks

Qualifying tanks can meet the leak detection requirements by following this program:

Tank contents must be measured at least weekly.

Each test must include beginning and ending measurements take at least 36 hours apart. No product can be added or removed during the 36-hour period.

Beginning and ending measurements must be based on the average of two consecutive stick readings.

The dipstick must be calibrated in 1/8-inch intervals.

A leak must be assumed if discrepancies between readings exceed standards specified in the regulations.

Out of Sight, Out of Mind?  

Underground storage tank owners and operators may have taken USTs for granted in the past. However, harsh and detailed EPA rules governing UST corrosion, leaks, spills, as well as the financial ability of an owner/operator to cover damages, are bringing USTs out into the open.

During the early 1980s, the Environmental Protection Agency and some environmentalists became concerned about the millions of underground tanks installed across the country that contain petroleum products or hazardous chemicals. Based on a few surveys, EPA estimated that tens of thousands of these tanks were leaking. Gasoline and other flammable substance leaks present a clear threat of fire or explosion and, equally important, leaks from USTs could contaminate nearby groundwater. Since millions of people depend on groundwater as their major source of drinking water, possible contamination of water supplies represents a potentially serious problem.

When discussions of the stringent new regulation of USTs began, many in industry objected that the potential threat of leaking underground tanks had been severely overstated. Nevertheless, Congress decided to address this issue in the RCRA reauthorization of 1984, directing EPA to develop new regulations to protect the environment from the potential threat of leaking USTS.

As a result of the RCRA amendments and following years of preparation, EPA issued the new underground tank regulations in late 1988. These rules will have a profound impact on any business that uses underground tanks to store potentially hazardous substances. In brief, the law requires registration of any UST containing a "regulated substance" and imposes new standards for constructing and installing UST systems. Existing USTs must be upgraded to meet these new technical requirements during a 10-year phase-in period. In addition, all USTs must comply with new requirements for spill prevention and leak detection, and UST operators must demonstrate financial responsibility for any leaks from an UST.

As is the case with most environmental regulations, the EPA rules establish minimum requirements that must be met by those subject to the regulations; states are free to impose more stringent requirements. This situation is especially relevant to the UST program, because EPA intentionally has strived to delegate responsibility for UST regulation to the states. For this reason, UST operators must be familiar not only with the federal requirements, but also with any specific state laws or regulations.

What's Covered by the Rules

Under the federal regulations, the term "UST" applies not only to underground tanks, but also to any underground pipes connected to the tanks. Any tank system, including attached piping, with 10 percent or more of its volume underground is subject to the rules if it contains a "regulated substance"--defined as any petroleum product (such as gasoline, diesel fuel, or used oil) or a "hazardous substance" regulated under Superfund (such as certain nonpetroleum solvents or other chemicals).

Since most recyclers use USTs for storing petroleum products only, this article discusses requirements applicable to petroleum tanks. Recyclers who store other materials, such as hazardous wastes or "hazardous" chemicals, should review the relevant regulations to ensure compliance.

The EPA rules apply to both "owners" and "operators" of USTS. Although one party can assume responsibility for compliance, EPA can take enforcement action against both parties in the event of a violation. Thus, if a tank installed on a scrap recycler's property is actually owned by another party, the recycler should verify that the UST is in compliance. The recycler should attempt to reach a voluntary agreement with the owner to ensure the owner has complied with the rules. If compliance is not verified, the recycler (as "operator" of the UST) could conceivably be held fully responsible for all compliance requirements, as well as for any possible damages from leaks.

In addition to technical requirements regarding tank construction and operation, tank owners also must meet strict rules for demonstrating financial responsibility for any damage resulting from tank leaks. For most recyclers, these financial responsibility requirements will take effect in October.

The combination of these new requirements raises many questions for tank owners and operators. The rules have now been in effect for more than a year, and some important deadlines have already passed or are impending. For these reasons, any scrap recycler who uses underground tanks should promptly develop an action plan.

The "Heating Oil" Exclusion

Despite the broad scope of the underground tank rules, some UST systems are excluded from these regulations. One potentially important exclusion applies to any "tank used for storing heating oil for consumptive use on the premises where stored." The regulations define "heating oil" as follows: "petroleum that is No. 1, No. 2, No. 4-light, No. 4-heavy, No. 5-light, No. 5-heavy, and No. 6 technical grades of fuel oil; other residual fuel oils (including Navy Special Fuel Oil and Bunker C); and other fuels when used as substitutes for one of these fuel oils." The key section of this definition is the last phrase. Interpreted broadly, this exclusion could have great importance to scrap processors.

If a listed grade of fuel oil is used to heat the premises and is also used to power some equipment, the UST holding the fuel oil would be exempt from the regulations. The exemption also would apply to USTs holding used oil that is collected and burned onsite in space heaters as a substitute for fuel oil. In addition, the exemption apparently would apply to any fuel used for "heating" purposes. Thus, an operation using an oil-fired melting furnace could claim an exemption for the storage tank, regardless of whether the oil is on the exemption list.

This exemption would apply only narrowly to tanks containing diesel fuel. EPA considers diesel fuel to be a motor fuel, not a substitute heating oil. Thus, diesel fuel tanks would be exempt from the regulation only if the fuel is used solely for heating purposes.

The heating oil exclusion is somewhat ambiguous and could be subject to differing interpretations. Some states have moved to narrow the exemption considerably. For these reasons, scrap recyclers should be cautious in claiming the exemption. However, under appropriate circumstances, the heating oil exclusion can provide significant relief from regulatory burdens.

Rigid Specifications for New Tanks

The regulations impose stringent requirements on any new UST systems installed after the December 22, 1988, effective date. New tanks must be protected against corrosion, must incorporate means to prevent spills or overfills, and must be monitored for leaks.

Tanks are required to be constructed of fiberglass-reinforced plastic, cathodically protected steel, or a steel-and-fiberglass-reinforced plastic composite. Any other construction is permissible only if specifically approved by EPA. Similar requirements apply to any underground piping used in conjunction with a storage tank.

Any recycler considering installing a new UST should ensure that the equipment fully complies with these requirements. In addition, the tank owner must verify that in installation of the equipment is performed in compliance with designated codes. To ensure compliance and help protect against unforeseen complications, prospective tank owners should require installers to certify compliance on the tank notification form that must be submitted for all new USTs.

In addition to corrosion protection, new USTs must be designed to prevent spills and overfills. At a minimum, the system must include a catchment basin or equivalent device to collect any product released when the transfer hose is disconnected from the fill pipe. The system also must be equipped with a device to prevent overfilling, such as an automatic shutoff valve, an overfill alarm, or a flow restrictor.

Upgrading Existing USTs

By December 22, 1998, all USTs either must be upgraded to comply with the new UST requirements, or must be replaced. For tanks that already meet the requirements for corrosion protection, this requirement may not be too burdensome. The addition of spill and overfill prevention equipment may be sufficient to permit continued use of these tanks, as long as required leak detection measures are in place.

However, for old tanks constructed of bare steel, the upgrading provisions could require a significant investment. Steel tanks can be upgraded by applying an interior lining, cathodic protection, or both. Any method used must meeting rigid requirements.

In addition to upgrading the tank, any existing metal piping also must be upgraded to meet the new system criteria. Piping may be upgraded only by applying cathodic protection in compliance with recognized codes.

For old tanks, the threshold question for recyclers is whether the necessary investment can be justified. Bare metal USTs more than approximately 10 years old already may be too corroded to warrant upgrading. In such situations, the tank owner should weigh the costs of upgrading against the cost of a new system. Upgrading costs may include required tank tests and an internal inspection. In some situations the company performing the work may offer a guarantee or warranty for the upgraded tank. All these factors should be investigated before deciding whether to replace or upgrade an UST.

Look Detection

Perhaps the most significant requirement of the new UST rules is the provision for periodic leak testing. Conceptually, it makes great sense to check a tank for leaks. Rapid identification of leaking tanks can permit quick response actions and the extent of any environmental damage. However, the stringent leak detection requirements in the UST regulations carry some potential problems of their own.

The rules require that leak detection be provided on all USTs installed after December 1988. For tanks installed prior to that date, leak detection must be phased in (older tanks first) no later than December 1993. A tank owner or operator must know when a tank was installed in order to meet the deadline for compliance with the leak detection requirements.

Several methods of leak detection are discussed in the regulations. Unfortunately, problems may arise because leak detection technology is in its formative stages. Few devices on the market today can meet the stringent requirements the rules mandate for leak detection accuracy. In recognition of these technological problems, EPA prescribed "interim" leak detection methods that can be used while more advanced technology is being developed. The "interim" period ends in December 1998. Ultimately, all tanks will have to be equipped with very sensitive systems designed to detect leaks of as little as 0.2 gallon per hour with a high degree of accuracy. Such systems may consist of automatic tank gauges or may be based on out-of-tank detectors such as vapor monitors or groundwater monitors.

During the "interim" period, tank owners can use a combination of monthly inventory controls and periodic tank tightness tests to comply with the leak detection requirements. Inventory control programs require precise measurements of product inputs and withdrawals on a daily basis, as well as compliance with other procedural techniques.

In conjunction with the inventory control method, tank owners must have their USTs tested periodically for leaks during the "interim" period. These tests are required every year for tanks that have not been upgraded, and every five years for tanks that meet the requirements for corrosion protection and spill/overfill prevention.

The tightness test used must be capable of detecting a leak of 0.1 gallon per hour from any portion of the tank. After December 1990, any method used must meet this criterion with a high degree of accuracy. Unfortunately, evaluations conducted by EPA Indicate that few methods available today can meet this rigid criterion. The accuracy of tightness tests can be affected by several factors, such as temperature changes or vapor pockets within the tank.

Owners of older tanks could be severely affected by the shortcomings of these tightness tests. Since older tanks must be tested before December 1990, initial tests are subject to the inherent inaccuracies of the testing technology selected. Because the tests do not yet have to meet stringent criteria for accuracy, a failed test does not necessarily prove that a tank is leaking. However, a "possible" leak discovered by a tank tightness test requires the owner to report the situation and undertake a potentially expensive investigation. In addition, a test indicating leaks could lead some to consider unnecessary tank replacement.

Tank owners should be aware of these potential problems with leak detection technology and should be sure results are verified before any significant steps are taken based on test results. False alarms may remain a problem with leak detection technology for some time to come.

Less stringent leak detection requirements apply to certain small tanks. For tanks with capacities of 550 gallons or less, a system of manual tank gauging may be used as the sole leak detection method. For tanks with capacities between 550 and 2,000 gallons, manual tank gauging is an acceptable interim leak detection method when used in conjunction with periodic tightness tests.

Serious Consequences for Leaks

The UST regulations specify situations in which a tank owner/operator must assume a tank is leaking. They include unusual operating conditions (such as erratic behavior of dispensing equipment, loss of product, or unexplained presence of water in the tank), discovery of the stored product on- or off-site (such as in a basement or sewer), or a failed leak detection test. In any of these situations, the tank owner or operator must notify the appropriate government agency within 24 hours.

Upon discovery of a potential leak, the owner/operator is required to undertake a comprehensive investigation to verify whether the tank is leaking. If there is no evidence of environmental contamination, the investigation can consist of a tightness test. However, as noted previously, the problems associated with these tests may not provide an accurate assessment of a potential leak. Regardless, if the tightness test indicates a tank is leaking, the UST must immediately be repaired or removed. In addition, the owner/operator must commence specified corrective actions.

If a leak is suspected based on apparent contamination of the surrounding site, the owner/operator is required to perform a detailed site investigation to identify the scope of the contamination. Most likely, the services of an experienced environmental consultant will be required in such a situation.

Corrective measures required as a result of a leak may include complete removal of product from the tank, removal of contaminated soil from the premises, and other engineering controls. The owner/operator may also be required to develop a detailed, long-term action plan to correct any contamination of the soil or groundwater. The ramifications of a leaking underground tank can be serious and long lasting.

Removing Tanks From Service

Previously, little control was exercised by government agencies over the removal or abandonment of underground With the new regulations enacted in 1988, however, EPA has imposed stringent new controls on UST system closure. Before a tank can be taken out of operation, the appropriate government agency must be notified at least 30 days in advance.

In order to close a tank, the owner/operator must first empty the tank completely and clean it by removing all liquids and sludges. Once emptied and cleaned, the tank can be taken out of the ground and discarded or can be filled with an inert material and abandoned in place. In either situation, a site assessment must be performed to determine whether the tank has leaked. If evidence of leakage exists, the owner/operator must perform additional tests, such as soil sampling, to evaluate the scope of the leak.

Financial Responsibility Rules: A Serious Hurdle

A key component of the new UST regulations is the requirement that owners or operators of tanks demonstrate adequate financial capability to pay for any damage caused by leaks.

The typical tank owner must demonstrate minimum financial responsibility in the amount of $500,000 per occurrence and $1 million annual aggregate. However, these amounts do not limit the potential liability of an owner or operator. If cleanup costs or injury or property damage claims exceed these prescribed levels, an injured party (including EPA) can seek to collect additional amounts from the owner or operator.

The regulations prescribe nine methods, which can be used singly or in combination, to meet the financial responsibility obligations. Unfortunately, for typical recyclers none of these methods is likely to be feasible. Few of the self-funding mechanisms are likely to be available to small businesses. In addition, the potential insurance markets thus far are inadequate to handle the demand for coverage. As a practical matter, the most likely sources of coverage are the state funded "insurance" programs that have been initiated since the regulations were released. However, the typical state fund may not provide all the required protection and serious questions exist about the adequacy of some state funds to cover anticipated leaks.

For all these reasons, tank owners or operators seeking coverage for their USTs should begin investigating available options well in advance of the October 1990 deadline.

Detailed Records Required

Anyone installing a new UST system must register the system with the appropriate state government using its required notification form. The person installing the UST must certify that the installation was performed correctly. Existing tanks were to be registered by May 1986.

In addition to the notification requirement, tank owners/operators must show evidence of financial responsibility and must maintain detailed records of leak detection results, operation of corrosion protection equipment, any repairs to the UST system, and any site investigations performed.

An Unjustifiable Luxury?

Considering the potentially burdensome impact of the new UST regulations, scrap recyclers should seriously consider whether underground tanks are an operational necessity or simply a convenience. Before the bulk of the new requirements become effective, individual tank owners should perform at least a cursory cost-benefit analysis to determine whether continued use of underground tanks is warranted. If removal of USTs would not pose insurmountable operational problems, it may be wise to close the tanks now. If, on the other hand, use of underground tanks is a necessity, begin planning now to meet the impending deadlines for compliance.

[SIDEBAR]

Exclusions From UST Requirements

Several types of tank systems are excluded from EPA’s UST regulations. The following exclusions may be relevant for scrap recyclers:

Tanks with capacities of 110 gallons or less,

Tanks storing heating oil for use on the premises,

Tanks situated in basements (that is, underground, but above the floor), and

Equipment and machinery containing regulated substances for operational purposes, such as hydraulic lifts and electrical equipment.

[SIDEBAR]

Prescribed Financial Responsibility Mechanisms

Tank owners and operators must demonstrate adequate financial responsibility, no later than October 1990, by using the following methods, singly or in combination:

Self-insurance,

Liability insurance,

Guarantees,

Surety bonds,

Letters of credit,

State-required financial responsibility program,

State fund or other state assurance system,

Trust fund, and

Standby trust fund.

Specific criteria for each of these methods are included in the financial responsibility regulations.

[SIDEBAR]

Inventory Control Programs

To comply with “interim” requirements for leak detection, an inventory control program must include the following:

Measures of inputs, withdrawals, and product remaining in the tank on a daily basis;

Measurement accuracy to the nearest 1/8 inch (that is, the dipstick used to measure tank contents must be scaled in 1/8-inch intervals);

Measured of product in the tank before and after delivery of additional product, and reconciliation with delivery receipts;

Delivery of product through a drop tube extending to within 1 foot of the tank bottom; and

Metering of product when dispensed.

Details of these and other requirements are included in the publication, Recommended Practice for Bulk Liquid Stock Control at Retail Outlets, available from the American Petroleum Institute, 1220 L St. NW, Washington, DC 20005.

[SIDEBAR]

Manual Tank Gauging Acceptable for Certain Tanks

Qualifying tanks can meet the leak detection requirements by following this program:

Tank contents must be measured at least weekly.

Each test must include beginning and ending measurements take at least 36 hours apart. No product can be added or removed during the 36-hour period.

Beginning and ending measurements must be based on the average of two consecutive stick readings.

The dipstick must be calibrated in 1/8-inch intervals.

A leak must be assumed if discrepancies between readings exceed standards specified in the regulations.

Tags:
Categories:

Have Questions?