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Underground Fuel Storage Tanks Matthew A. McGovern, P.E. May 1996

INTRODUCTION

Owners of underground storage tanks often fail to realize the legal requirements—federal, state, and local—associated with their ownership as well as the liability associated with leaking tanks. Leaking underground fuel storage tanks cause environmental damage to such elements as the underground aquifer (fresh water supply) and trees. In addition to environmental contamination, these leaking tanks also can cause fires and explosions, thus becoming a very real threat to human safety.

The great post-World War II expansion in the United States resulted in the underground installation of many single-wall steel tanks and piping to supply fuel and chemicals in support of that expansion. There are literally several million underground storage tank systems currently in use nationally which contain petroleum or hazardous chemicals. Tens of thousands of these underground storage tanks (USTs), including their piping, are currently leaking. Many more are expected to leak in the future.

NEW EPA FEDERAL REGULATIONS FOR 1998

Facility planners need to be aware that in a move to address these anticipated problems, the U.S. federal government’s Environmental Protection Agency (EPA), building on it’s existing regulations, has instituted new regulations which will take affect on December 22, 1998. First responding to the problem of leaking underground storage tanks in 1984, the United States Congress added Subtitle I to the Resource Conservation Recovery Act (RCRA). Subtitle I required the EPA to develop regulations to protect human health and the environment from leaking USTs.

The Federal Regulations of 1984 contained the following major points:

• USTs installed after December 1988 must meet the requirements for new USTs concerning correct installation, spill and overflow prevention, corrosion protection, and leak detection.
• UST systems must be installed correctly by using qualified installers who follow industrial codes (faulty installations are a significant cause of UST failures, particularly piping failures).
• Stored contents must be compatible with the UST system.

1998 Deadline
By December 22, 1998 (ten years after the initial ’84 UST regulations became fully effective), revised Federal Underground Storage Tank Regulations will require that bare steel tanks, 110 gallons or larger, be upgraded to include:

• Corrosion protection for steel tanks and piping, and
• Devices that prevent spills and overfills.

It is important to note that these updated regulations do not include tanks being used for the storage of heating oil for on-site consumption. However, based on the serious environmental problems these damaged tanks can cause, it is recommended that they be updated at the same time work is being performed on other USTs in preparation to meet the 1998 compliance deadline. For more information on exceptions, see 40CFR 280.10 (available from the U.S. Government Superintendent of Documents in Washington, DC).

REGULATION ENFORCEMENT AND PENALTIES

Enforcement of these new regulations is expected to be handled initially by each state’s Department of Conservation (DEC) *, with cases moving to the federal EPA level only if the respective states don’t handle them adequately. Regulation enforcement will be accomplished through several avenues:

• Non-compliance can result in the facility being closed down and put out of service. This authority is granted by Federal Law to the EPA as well as to State Environmental Authorities.
• The financial penalties for a polluter not in compliance with Federal and State Regulations are subject to the wishes of the judicial system. The intentional disregard of this law will also bring about large loss (financial) settlements to those affected by the violations. It will be practically impossible to defend a client that has intentionally disregarded these Environmental Regulations.

Be aware, too, that each state has the right to adopt and enforce regulations, which are more stringent than those issued by the federal government.

OPTIONS TO MEET FEDERAL REGULATION

There are three options for owners covered under this new 1998 federal regulation:

Option #1—Install a new system
The best long-term solution to the underground storage problem is to install a new system. Options for new installations are presented later in this CEFPI Brief.

Option #2—Retrofit the existing system
This option may be desirable when you cannot afford a new tank or are planning to remove the tank from service within the next 5-10 years. You may, under this option, either reline the tank, install cathodic protection to both the tank and piping and/or a combination of the above; for example, reline the tank and cathodically protect both the tank and piping. In addition, you are required with Option #2 to add a spill bucket and an overfill alarm or prevention device which applies under Option #1.

Option #3—Properly close the old UST system
Closing the old system must take place when the existing tanks and pipes are unsuitable for continued service and you choose not to replace them. When closing a tank, the following steps must be followed:

• Have the tank pumped free of product and cleaned.
• Pull the tank out or, if left in place, fill it with a solid inert material, such as sand or concrete slurry.
• Disconnect all piping, especially the fill pipe, to prevent an accidental delivery after the tank has been removed.
• Perform a site assessment. This is a written report that you keep on file to prove to future buyers, insurance companies, and the DEC or other environmental agencies that the site is clean.

The cost to replace or upgrade underground fuel storage tanks varies greatly, depending on many factors. One critical factor is whether or not the tank has been leaking fuel for any period of time due to the fact that proper disposal of the resultant contaminated soil and/or contaminated water adds substantially to the cost of the project. Another important factor affecting tank replacement cost is the location of the tank and the typography as well as the geography of the area. At the same time, spills that are able to get into the underground aquifer add greatly to the project cost. Also, the type of soils will play a very important part in the movement of the spilled oil.

Keeping the above factors in mind, the following information is presented regarding abatement costs. In it’s November 16, 1995 issue of the Tank Bulletin, the New York State Department of Environmental Conservation published the results of a tank survey developed by Environmental Information, Ltd., a Minneapolis-based market research firm, which indicated the average national cost of tank replacement is $25,000 per tank. This survey also indicated that for a typical gas station or fleet depot, upgrading tanks along with new pumps and canopy can reach as high as $100,000. Serving as the consultant on two recent tank replacement projects in New York state, the author’s experiences are as follows: the first project replaced one 5,000 gallon underground #2 fuel oil tank for $150,000; the second project replaced two 6,000 gallon underground diesel storage tanks with one 8,000 gallon tank at the cost of $135,000.

DETERMINING TANK LEAKAGE

Unfortunately, a leaking underground fuel storage tank is not as easy to determine as you might think. The following questions will help you to determine if you have a leaking tank:

• Are you using more fuel than normal?
• Is your tank taking on water? A rise in water level greater than 1/2 inch for an 8-12 hour period clearly indicates a problem.
• Are there signs of oil sheen in nearby streams, wetlands, or drainage ditches?
• Are there signs of distressed (withered) vegetation over the down slope of the tank?
• Are there signs of spills around the fill pipe or around the vent pipe?

A “yes” answer to any of these questions warrants bringing in an expert to evaluate the situation.

WHAT TO DO WHEN YOUR PETROLEUM UST LEAKS

• In the short-term, take immediate action to stop and contain the leak or spill.
• Tell the Regulatory Authority within 24 hours that there is a leak or spill. However, petroleum spills and overfills of less than 25 gallons do not have to be reported if you immediately contain and clean up these releases.
• Make sure the leak or spill poses no immediate hazard to human health and safety by removing explosive vapors and fire hazards. Your local fire department should be able to help or advise you with this task.
• You must also make sure that you handle contaminated soil properly so that it poses no hazard, e.g., from vapors or direct contact.
• Find out how far the petroleum has moved and begin to recover the leaking petroleum, such as product floating on water table.
• Report your progress and any information you have collected to the Regulatory Authority no later than 20 days after you have confirmed a leak or spill.
• Investigate the extent to which the leak has damaged or might damage the environment.
• You must report to the Regulatory Authority what you have learned from a full investigation of the site within 45 days of confirming your leak or spill. At the same time, you also should submit a report explaining how you plan to remove the leaking petroleum if you have found contaminated water to ground water. Additional site studies may be required.

Tanks and piping should be properly protected against corrosion. Steel tanks and piping can be coated with a corrosion-resistant coating and cathodically protected. Cathodic protection uses either sacrificial anodes or impress current to prevent electrolysis. Tanks and piping can be made totally of a non-corrodible material such as fiberglass-reinforced plastic. Any metal piping connected to non-corrodible tanks still requires corrosion protection. Steel tanks can be protected using a method in which a thick layer of non-corrodible material is bonded to the tank.

LEAK DETECTION AND TESTING

Tanks must be checked at least once a month to see if they are leaking. The following are accepted monthly monitoring methods:

• automatic tank gauging
• monitoring for vapors in the soil
• monitoring the interstitial space in double wall tank installations
• monitoring for liquids in the ground water.

Pressurized piping must have devices to automatically shut off or restrict flow or else have an alarm that indicates a leak. Suction piping should drain back into the storage tank and release suction. A check valve should be installed in each suction line below the suction pump.

LEAK TESTING

Leak testing of USTs can be accomplished only after isolating the tank. Standard tests include gravitational and pressurization testing.

TANK REPLACEMENTS TO CONSIDER

• Single wall steel tank replacement—Probably the least expensive replacement solution.
• Double wall steel tank with fiberglass coating—This offering will provide additional rigidity as well as protection against leaks. The interstitial space can be monitored for leaks and the fiberglass exterior will provide corrosion protection for the installation.
• Fiberglass single wall—This offering will provide corrosion protection automatically. Unfortunately, the rigidity of the fiberglass tank could result in premature failure.
• Double wall fiberglass tank—This installation provides additional protection against leaks. It also is not as rigid as a steel offering.
• Above ground tank replacement—In those locations where space is available, replacing USTs with above ground tanks is a viable alternative. Provisions must be made to retain any leaking either by building a dike or purchasing a double walled tank. Installations over 10,000 gallons require dikes:
• fire rated (UL 2085) reinforced concrete
• fire rated (UL 2085) double walled steel
• tanks with built-in dike area
• non-fire rated single wall steel tanks.

The owner of the UST is financially responsible for the cost of cleaning up a leak and compensating other people for bodily injury and/or property damage caused by your leak. A complete explanation of your financial responsibility appears in the Federal Register of October 26, 1988 and EPA brochure, Dollars and Cents. In general, owners or operators of petroleum USTs must be able to demonstrate their ability to pay for damage that could be caused if their tanks leaked. These payments would need to cover the cost to cleanup a site and to compensate other people for bodily injury and property damage.

INSURANCE PROTECTION

It is sometimes desirable, in light of the tremendous liability assumed by ownership of underground fuel storage tanks, to purchase insurance which covers the school district or the entity in case of a major leak resulting in unexpected costs.

FEDERAL VERSUS STATE REQUIREMENTS

The regulations listed above are those developed by the U.S. Federal Government. Once again, be aware that your state and local Regulatory Authorities may have requirements that are somewhat different or perhaps more strict. You will need to identify your Regulatory Authority and its specific requirements for USTs. If you are not sure who your Regulatory Authority is, contact your local Fire Marshall for help.

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