Everything you need to know about properties with underground storage tanks

An underground storage tank is a container that holds liquids such as oil or gas. It uses media that include non-petroleum substances for short-term or long-term heat storage.

You may want an underground tank to store heating oil, save space, or as a sewage tank. Other commercial uses involve using it as underground fuel storage tanks. If your property has a new storage tank, you should be concerned about the potential risks. People rarely find untapped or empty underground storage tanks, which is why leaks can pose a problem. Approximately 4,000 tanks covered by UST regulations contain hazardous substances.

Here's everything you need to know about underground storage tank removal, starting with your responsibilities and the potential risks associated with it.

Responsibilities of owning and operating underground storage tank facilities

Your responsibilities include the following:

  • You must register your tank with the state.
  • You must follow UST state regulations.
  • You must protect against corrosion.
  • You should monitor your tanks regularly.
  • You must keep records of leaks, maintenance and repairs.

Considerations Associated with Underground Storage Tanks

The risk level of an underground storage tank depends on the age, material, construction and maintenance of the tank. Leaking oil and other dangerous substances contaminate soil and groundwater and cause health problems and environmental liabilities.

As an owner, you must comply with regulations and bear the costs of tank removal, maintenance and environmental cleaning.

1. Your financial responsibility

Regulations require you to be financially responsible. Common financial guarantee mechanisms are state funds and private insurance.

You can use a storage tank policy to cover losses associated with tank leaks or spills during the loading and unloading process. However, costs associated with removing tanks, disposing of waste or leaks from other sources are not covered. To cover these risks, you need a pollution liability insurance policy, where you individually list each underground storage tank.

2. Insurance Policies

Your insurance policy requires these elements to satisfy financial responsibility requirements:

  • Cover costs of sudden and non-sudden launches
  • Cover loading and unloading costs
  • Covers the cost of on-site and off-site cleaning
  • Requires language on certificate of insurance used in the Code of Federal Regulations, 40 CFR 280.97(b)(1) and (2)
  • Claims coverage reporting period must be six months

Insurance policies depend on claims. You must make your claim before the end of the policy period.

3. Problems with aging tanks

The life expectancy of underground tanks is 30 years, after which you should have it checked by an engineer. Waiting will increase the chances of leaks and the cost of insurance. Many markets create financial barriers to prevent you from insuring older storage tanks by offering you tank pollution liability coverage.

Instead of insurance, look into other options such as removal, replacement, or moving to above-ground tanks as a risk management strategy.

The procedure for removing underground storage tanks

An underground storage tank can reduce the value of your property. Old, unused or defective inspection tanks also pose a pollution risk. Here's how you can remove unwanted or old tanks:

1. Analyzing prerequisites and licenses

You must inform your local and state government 30 days before deciding to remove the storage tank. Before obtaining permits, you need approval to perform soil sampling and drilling. The information you provide must include location, size, and status. You will also need a certified contractor to obtain all permits and meet safety guidelines.

2. Prepare your website

You must empty the entire contents of the tank as most of the residue can be flammable. Your local OSHA office will advise you on how and where to dispose of the contents. You then render the tanks inert by using non-flammable gas, such as nitrogen, to replace the oxygen. You also need to hire certified professionals to declare your storage tank clean. Then, excavation can begin by separating the soil to reach the tank.

3. The Excavation Process and Soil Sampling Protocol

The process begins with excavation, which uses standard construction equipment that includes backhoes and excavators. They hoist the storage tank out of the hole using chains to lift it. In the case of a large storage tank, you will use a crane.

After that, you need to test the soil for contamination. You can fill the well if it is free of all hazardous materials. Otherwise, following hazardous materials guidelines, you will need clean soil to fill the excavation pit.

4. Material Disposal and Closing Report

After removing the storage tank, it is necessary to clean the waste before sending it for recycling. The process involves pressure washing and rinsing in place. Waste requires appropriate transport and disposal protocol.

The engineer behind the project will present a report that summarizes on-site activities, soil and groundwater samples, and recommendations for next steps. They will also need to sign and stamp the closing report. Copies of the report will remain with the regulatory agencies and the property owner.

Final grade

You should prepare for the cost of installing new tanks and start planning for replacement from the day of installation. You should keep all your documents and records of the removal, as this reduces the chance of an investigation that could impact the value of your property. As the process can be dangerous, work with experienced and licensed people.

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