Tank Bulletin -- Summer 1997
The Tank Bulletin is produced quarterly by the Department of
Ecology's Toxics Cleanup Program. The purpose of the Bulletin
is to provide information to registered underground storage tank owners and
operators and others who need to be kept current on underground storage tank
(UST) issues. Web users are encouraged to contact the
Editor and request to have their names removed from the mailing list to
conserve precious resources.
As the ‘98 UST Upgrade Deadline Looms Ever Closer, “Mom and Pop” Gasoline
Retailers Face Tough Financial Decisions and -- In Many Instances -- a Hefty
Dose of Confusing Information (adapted from L.U.S.T.LINE, Bulletin 25 December
1996)
Beaudry Store sits in rural splendor, framed by the backdrop of Camel’s Hump
Mountain, the fourth highest mountain in Vermont. Ten years ago, Terry and
Linda Pecor made the decision that selling gasoline was essential to the
viability of their small country store. “We knew we needed to be able to
offer one-stop shopping,” explains Terry. “We took a hard look at what we
had and figured we stood to lose 40 percent of our business if we closed our
tanks.”
“You really have to think about the amount of business you do and whether
it’s worth keeping those tanks,” adds Linda. “We are rural, and we do a
lot of business with loggers, school buses, and the fire department.
We’re just far enough out that we don’t have the competition. If we’d
been someplace else, we might have decided differently. Like every
business, you take long looks before you do something.”
Terry and Linda mapped out a long-term plan. Their bare steel tanks were
more than 20 years old. The first thing they did was to remove the tanks
and replace them with fiberglass tanks and spill and overfill
protection. In 1993, they had automatic tank gauges installed in both of
their gasoline tanks and their kerosene tank. At the same time, they had
vapor recovery piping installed in anticipation of any future Stage II
requirements.
“We didn’t want to have to tear up the parking area again if we could help
it, “ says Linda. “I really like the automatic monitoring,” she adds
enthusiastically. “Every morning we push the monitoring button, and we
know exactly the status of that tank. That’s really important to me. I
want to know that my tanks aren’t leaking.”
“Ten years ago,” she recalls, “none of us knew anything about all of this.
It used to be that we only needed to be concerned with weights and
measures for our gasoline and the health department for our deli
business. Now we have storage tank requirements, hazardous waste
requirements, air pollution requirements, and health and safety
requirements. The average person realizes why we’re doing these things.
No one wants to pollute. But for mom and pops, it’s harder. Most tank
owners know the rules came about for good reason, but for mom and pops
coping with these rules it’s particularly hard. Their survival margin is
slim. If they don’t get the story straight about their options, they
won’t be in a position to make intelligent, informed, business
decisions.”
Business Viability
In deciding whether to close, replace or upgrade their tanks, owners and
operators need to be able to evaluate all their options, the pros and cons of
each alternative and the costs. Examining the viability of the business--with or
without gasoline sales--is an essential element in this process. An
income/expense, or profitability, analysis should be conducted. Income should be
calculated for each element of the business (e.g., gasoline sales, groceries,
video rentals). All expenses should be included in the calculations (e.g.,
utilities, insurance, wages and benefits, taxes, debt service).
The resulting net profit calculation should be further analyzed in terms of
the decision to close, replace or upgrade. Gasoline sales, which may
constitute just one element of the total profit picture of a rural
convenience store, may well constitute the most important element of the
profit picture. If the business does not sell gasoline, will it continue
to attract the same levels of grocery sales or video rentals?
Once they’ve pulled together all their facts and figures, many tank owners
will have to take a hard look at whether it’s worth staying in the
gasoline retail business-closure may be the best business decision.
If a decision is made to replace or upgrade, most tank owners will need to be
able to get a loan. At this point, a realistic evaluation must be made of
the ability of the business to sustain additional debt. For example, an
$80,000 loan for a period of 10 years at 9 percent interest, results in a
monthly debt service of $1013.14. While the cost of replacing or upgrading
an UST system may be less than $80,000, an accurate estimate of debt service
is essential to future planning.
Financial Assistance and Public Policy
Should we care whether the mom and pops survive? If small business is the
backbone of America as many politicians proclaim, should government assist in
ensuring its survival? In many rural areas, the loss of a small marketer would
mean the loss of the only petroleum retailer for miles.
Some assistance is available to small businesses through the Small Business
Administration loan guarantees. Many mom and pops, however, are in such
tenuous financial circumstances that a loan guarantee is of little value
because they are not able to deal with additional debt service.
Some state legislators and UST program managers have grappled with how to
resolve a few basic questions: Who do we need to help just because of
environmental issues? Can we make sure that environmental compliance
concerns are not the single factor that puts a mom and pop out of
business? If a mom and pop station is teetering on the brink of failure
simply because it can’t afford the upgrade, should the state step in and
offer some assistance? If we offer assistance, what criteria do we use?
Fifteen states have instituted financial assistance programs for UST owners
and operators. Most of these are loan programs; a few are grant
programs.
EPA published a document titled, Financing Underground Storage Tank Work:
Federal and State Assistance Programs, to help all UST owners and
operators -- but especially those with tanks on tribal lands -- obtain
loans or grants for financing corrective action and upgrading UST
systems to meet the 1998 requirements. Copies can be ordered through the
RCRA/Superfund Hotline at 800-424-9436.
Why Not Wait Until 1998?
Terry and Linda Pecor upgraded their tanks on a phase-in basis. In terms of
which tanks and what hardware they would install, they relied on their
contractor. “You rely on others to make some of these decisions and hope you do
the right thing,” says Linda. “I find myself trying to second-guess everybody,
and I don’t hesitate to call the state if I have questions.”
Terry and Linda Pecor have made their tank management decisions; they’ve
addressed their corrosion protection, leak detection and spill and
overfill requirements; and now they are comfortably out of the fray
should there be a last minute ‘98 deadline stampede. Unfortunately, this
isn’t the case for many others like them.
Waiting until the last minute presents potential problems of backlogs,
material shortages, and worst of all, shortages of qualified, competent
contractors to install new systems and upgrade or remove existing
systems. While some tank and equipment manufacturers may not agree that
there will be shortages, most agree that the costs for products and
services are likely to go up as the ‘98 deadline approaches.
Many mom and pop businesses have already made the decision to hang in there
until the ‘98 deadline and then close up shop. Without some form of
assistance, some of the marginal facilities will have to make that hard
business decision to shut the doors and pull down the shades. For those
small businesses who want to stay in business but haven’t gotten their
upgrade house in order, now is the time to act.
Return to Table of Contents
Your inventory control and tightness test records are the most important
items that will be asked for during an UST inspection. Unfortunately, Ecology
inspectors are finding that many owners/operators are failing to perform their
monthly reconciliation. This should not be confused with SIR (Statistical
Inventory Reconciliation), a different method of release detection where the
owner/operator sends in the daily numbers monthly to a third party for
statistical analysis.
Here’s a quick summary on how to do your monthly reconciliation:
- Make sure all days have recorded values for the daily shortage or
excess. This is how it is calculated:
Opening amount of petroleum (closing stick reading inventory from previous
day)
+
Deliveries
-
Sales
-
Closing amount of petroleum (stick reading)
=
Daily shortage or excess
- Add all of the daily shortages or excess values for the calendar month and
write down the total or “monthly shortage or excess.”
- Calculate the product throughput for the month by summarizing the daily pump
meter readings.
- Take 1.0 percent of the product throughput volume and add 130 gallons to fin
d
the comparison number. The 130 gallons is added to reduce the number of false
alarms.
- Compare the monthly shortage or excess to the comparison number and note on
your record sheet whether the monthly shortage or excess is greater than or less
than the comparison number.
- If the monthly shortage or excess is greater than the comparison number, you
may have an UST leak.
- Carefully recheck all numbers and calculations. If you can’t find a reason
for the shortage or excess, continue another month of inventory control with an
ending record reconciliation. If the second consecutive month does not indicate
a leak, no further action is necessary.
- If the second month indicates a shortage or excess that again exceeds the
comparison number, you must do the following:
- a) report the suspected leak within 24 hours to 1-800-258-5990 or to
your Ecology regional office,
- b) investigate the suspected release by conducting a tightness test and
- c) call your insurance company.
Ecology has several good publications on how to do proper inventory control
and monthly reconciliation. Contact your regional office to request copies or to
have any of your questions answered.
Return to Table of Contents
Do you, as an UST owner, remember reading and then signing a pink piece of
paper when you initially got your UST permit -- your first UST permit?
That piece of pink paper contains the “Terms and Conditions” of your UST
permit. It includes all the laws, that you, as a tank owner, must comply
with. Unfortunately, the very first time you purchased your UST permit
is probably the only opportunity you’ve had to read it -- until now.
Terms and Conditions of the Underground Storage Tank Permit -
Owners and
operators of petroleum underground tanks must:
 |
Maintain proof of financial responsibility for taking corrective action and
compensating third parties for bodily injury and property damages caused by
petroleum releases. |
|
Provide release detection for petroleum USTs that can detect a release
from any part of the tank and piping; must be installed, calibrated,
operated and maintained according to manufacturers’ |
instructions; and must meet the appropriate performance requirements in WAC
173-360-345 or 355.
|
Operate and maintain corrosion protection systems in accordance with WAC
173-360-320 for new or upgraded steel tanks and piping installed after
December 22, 1988. |
|
Provide for spill and overfill protection for new or upgraded tanks
installed after December 22, 1988, that are filled with more than 25
gallons at a time. |
|
Report, investigate and clean up any spills and overfills in accordance
with WAC 173-360-375. |
|
Use a certified UST supervisor to perform all UST service activities:
repairs, tank installation, retrofitting, tank decommissioning,
tightness testing, corrosion protection installation and testing, and
site assessment. |
|
Notify Ecology of intent to install a new UST system at least 30 days,
but not more than 90 days, prior to installation. |
|
Permanently close a tank after it has been temporarily closed or out of
service for 12 months and does not meet the performance standards for
new UST systems or the upgrading requirements in WAC 173-360-310(2)(3). |
|
Notify Ecology at least 30 days before beginning either a permanent
closure or a change-in-service. |
|
Have a certified UST supervisor conduct a site assessment at permanent
closure or change-in-service as required under WAC 173-360-385 through
395. |
|
Notify the Department of Ecology within 30 days after brining any newly
installed UST system into use. |
You can order this information in Spanish by calling Tony Valero (509)
454-7833 or Greg Bohn (509) 454-4174. You can order this information in Korean
by calling (425) 649-7253.
If you have any questions about these requirements, please call the Ecology
office nearest you. Contacts and phone numbers are listed on the back
page of this newsletter.
Return to Table of Contents
If you have them, they’re easily forgotten.
Emergency power generator tanks are almost always found in obscure, out of
the way places -- like basements or buried behind a maze of pipes and such --
and they may only get fuel once a year. But don’t forget these tanks! They’re
going to need upgrading just like many of the underground storage tanks in the
state.
These USTs need cathodic protection and spill and overfill prevention
equipment to meet the upcoming upgrading deadline of December 22, 1998.
It’s easy to say, “I’ll get to it,” though it’s much easier to lose
track and forget -- and most of us do what is easiest. So pick up the
phone book and start calling for bids to have your tank upgraded.
Return to Table of Contents
The following recently had technical assistance visits on their tank sites and
were found in COMPLIANCE!
- Lovell, Inc; owner of Toledo Towing and Repair; Toledo
- School Dist. #302 Lewis County; owner of Chehalis School Dist. #302;
Chehalis
- School Dist. #401 Lewis County; owner of Pupil Transportation Co-Op;
Centralia
- Silver Creek, Inc.; owner of Mayfield BP; Silver Creek
- Bill and Julie Latimer; owner of Adna Grocery; Chehalis
- Melvin Moodenbaugh; owner of Randle One Stop; Randle
- LeDuc Enterprises, Inc.; owner of LeDuc’s South Tower Chevron; Centralia
Return to Table of Contents
Do You Need Help With Your Independent Cleanup
If you’re conducting an independent cleanup on your LUST site, you may
soon be able to turn to Ecology for more advice on the technical and
administrative requirements of the new Model Toxics Control Act (MTCA).
In an effort to enhance the quality of independent cleanups, the MTCA
Policy Advisory Committee (PAC) recommended that Ecology have the
statutory authority to provide informal advice to persons conducting
independent cleanups, including the authority to provide site-specific
advice.
In the past, Ecology provided technical assistance through its
Independent Remedial Action Program (IRAP). This is still an existing
program. How the program works is once the cleanup is conducted, the
person conducting the independent cleanup may submit their independent
cleanup report to Ecology for review. Ecology staff will review the
report, and if all the requirements of MTCA are met, can issue a status
of “No Further Action (NFA)” for the site. Ecology charges a fee to
recover their costs. Once a site receives an NFA, the site can be
removed from the Leaking Underground Storage Tank List.
How this new type of assistance will work is that people can request
assistance from Ecology right at the very beginning of their cleanup.
Ecology can advise people during the investigative, cleanup, and
preparation of report (IRAP) phase of their cleanup.
Ecology staff are currently developing the rules and procedures for
implementing this program, including how the agency’s costs are
recovered. Further details will be provided in the next few months.
Return to Table of Contents
According to the Underground Storage Tank (UST) Regulations, WAC
173-360-130, it is the duty of both the permit holder and of the person
delivering regulated substances to verify that the facility receiving
product has a permit.
A simple technique that owners and operators can do to make this easy
for the delivery person is to post the permit in the window of the
facility -- in plain view. Permits are now incorporated into the Master
Business License, so if you’re reluctant to put the original in the
window, make a photocopy and put that in the window.
Other suggestions and practices UST inspectors have noticed owners/
operators do that may be beneficial to you include:
- attaching a copy of the permit to the tanks
- placing a copy in a clear, plastic sleeve inside the fill ports
The delivery person needs to keep in mind that a quick check of the
permit is necessary to make sure it hasn’t expired. There are
substantial fines for delivery to an unpermitted tank or to a tank that
has an expired permit.
The UST regulation applies to suppliers, common carriers and other
delivery persons of a regulated substance.
Return to Table of Contents
Map of Ecology's Regional Offices
UST/LUST Information: 1-800-826-7716
Return to Table of Contents
Feedback:
Comments and suggestions on the content of these pages should
be submitted to:
Sherrie Minnick
WA State Dept. of Ecology
PO Box 47600
Olympia, WA 98504-7600
Phone: (360) 407-7200
FAX: (360) 407-7154
E-mail: shan461@ecy.wa.gov
