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Operating Your Own Underground Tanks Is Risky Business.
If your underground tank springs a leak, you take a bath.
There are far too many risks involved anymore for you to take the chance of operating your own underground tanks. Let us take the weight off of your shoulders by being your fuel service provider.
Upgrading or replacing your underground tanks: Know the Facts.
DRAMATIC NEW ENVIRONMENTAL PROTECTION RULES FOR UNDERGROUND FUEL STORAGE TANKS HAVE ALREADY BEGUN TO BE PHASED-IN, AND WILL CONTINUE TO BE BROUGHT ON-LINE THROUGHOUT THE NEAR FUTURE. THE RULES AND REGULATIONS ARE MANY, BUT THE BOTTOM LINE IS THIS: MOST EXISTING BARE STEEL TANKS MUST BE REPLACED. FOR TANKS THAT DON’T NEED REPLACEMENT, OTHER RULES APPLY.
Leak Detection – You must use federally approved monthly monitoring procedures (vapor monitoring, auto tank gauging, ground water monitoring, electronic monitoring) or maintain monthly inventory control along with tank tightness testing.
Corrosion Detection – You must add a cathodic protection system or interior lining to upgrade your tanks to current standards.
Spill/Overflow Prevention – Your fueling facility must have approved catchment basins and auto shut-off devices or overfill alarms. Also annual inspection reports will have to be filed with D.E.R. when a program is developed in the near future.
Operating Your Underground Tanks: Consider the Costs:
- Insurance
Tank owners must participate in a state sponsored fund to provide $1 million in liability coverage. Let’s assume that the cost of pollution insurance for your tanks is $3,500 per year and your company purchases 100,000 gallons per year. This amounts to $.035 per gallon to maintain insurance, not to mention the deductible if a claim is made.
- Registration/ Permits
Tank owners must register with D.E.R. and pay an annual fee. Also, tank facilities must have permits from D.E.R. and pay any necessary application fees. If the correct permits are not obtained, no product may be legally purchased. The annual registration fee for tank owners is $50.00 per tank. In addition, a bond must be posted to the PA Department of Revenue in order to obtain a diesel fuel tax license.
- Fuel Inventory/ Freight Changes
Carrying your own fuel inventory ties up your valuable working capital. Also the product carrier must be paid for each bulk delivery.
The average freight charge associated with transporting fuel is $.01 per gallon. The amount of working capital tied into your inventory varies with the size of your tank.
- Unforeseen Problems
Spills, leaks, vandalism or fire are very real possibilities and each could be devastating. Also water in your tanks could seriously hinder the performance of your vehicles. Simple defining the extent of a contamination problem could cost $25,000 to $250,000. A leak caught early and still within the property boundary may cost between $10,000 and $30,000 to clean up. Depending on site specific conditions, the cost of a leak migrating beyond property boundaries can soar into millions of dollars for clean-up and reparations. Litigation may double these costs.
- Leak Detection/Monitoring
Federally approved leak detection procedures can be very expensive and will be required by law. Penalties for failure to abide by this law are substantial. The average cost associated with installing a federally approved leak detection system is approximately $7,000. Depending on your particular situation, the cost could well exceed this figure. Annual tank tightness testing will be permitted until 1998 and will cost your company $600 per tank. This method is very risky because theoretically, your tank could leak for 364 days before being tested again. The resulting leak could be very extensive and costly.
- Corrosion Protection
In order to upgrade your tanks to current standards a cathodic system or an interior lining must be added to your tanks. To add a cathodic Protection system to your underground tank will cost your company at least $7,500. Again, depending on your tank placement the figure could be much higher.
- Spill/Overflow Prevention
In order to comply with Federal Regulations your company will be required to install drop tubes and spill catchment basins. The installation of approved drop tubes and spill catchment basins will typically cost $1,000 per tank.
- Record Keeping
Maintaining adequate records of your inventory taxes, and leak detection reports are time consuming and costly. Improperly kept records could result in substantial fines.
ALL OF THESE COSTLY FACTORS COULD BE AVOIDED BY SIMPLY OPENING A PACIFIC PRIDE ACCOUNT. WE WILL TAKE CARE OF THESE POTENTIAL LIABILITIES AND PROVIDE YOU WITH SOMETHING YOU CAN’T PUT A PRICE TAG ON, "PEACE OF MIND".
The D.E.R. is on the Prowl
SPECIALLY APPOINTED TASK FORCES HAVE BEEN ESTABLISHED THROUGHOUT THE STATE FOR THE SOLE REASON OF CHECKING AND ENFORCING THE NEW LAWS REGARDING UNDERGROUND STORAGE TANKS. THEIR INTENT IS TO FIND THOSE COMPANIES NOT ABIDING BY THE NEW REGULATIONS. THE COMPANIES WHICH ARE FOUND TO BE NEGLIGENT IN COMPLYING WITH THESE REGULATIONS WILL BE PROSECUTED IN THE WAY OF SUBSTANTIAL FINES AND NEGATIVE PUBLICITY IN BOTH LOCAL NEWSPAPERS AND ON TELEVISION NEWSCASTS.
Some Questions To Consider
- How old are your tanks?
- Are your tanks steel?
- What method of leak detection do you currently use?
- Are your tanks corrosion protected?
- Do you have updated spill overflow prevention?
- Does your insurance adequately cover a major spill or leak?
- Does it really pay to keep your underground storage tank?
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