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What you need to understand about properties having underground storage tanks

In the general sense, an underground storage tank is a container holding various kinds of liquids for considerable periods of time (oil or gas). Furthermore mediums are used including non-petroleum substances for storage either in the short or long term.

Underground tanks are often installed for storing heating oil, making space more economical, or using them as a sewage disposal tank. 

Other commercial uses of storage tanks which can be used as underground storage tanks for fuel and other liquids. If properties have new storage tanks, then property owners need to worry about the potential risks they have.

It’s not just the United States where stringent regulations are present. The Middle East, European Union, East Asian countries of South Korea, Taiwan and Japan plus Chile, Argentina, Brazil and Colombia plus the Caribbean have strict codes regarding underground tanks.

Untapped underground storage tanks – are they found easily?

However, people hardly find untapped underground storage tanks, or find them empty. This is why leaky underground storage tanks can cause a huge problem. Moreover, almost 4,000 tanks covered by UST (Underground Storage Tanks) regulations store hazardous materials.

Here are some facts which will help explain a lot about removal of underground storage tanks, beginning with responsibilities of property owners and the potential risks involved.

Responsibilities of owning and operating facilities with underground storage tanks

Here are some responsibilities of property owners having underground storage tanks beneath their properties:

  • The tank needs to be registered with the state.
  • Property owners having underground storage tanks should follow all underground storage tank regulations of their respective state.
  • The tanks need to be protected against corrosion.
  • All tanks need to be monitored regularly.
  • Owners must keep records of any and all leaks, maintenance and repairs.

What considerations are associated with underground storage tanks?

The level of risk of an underground storage tank is directly proportional to the tank’s age, plus the materials used for making it, its maintenance and the time it was constructed. When substances leak from these tanks, both the soil and groundwater get contaminated. This results in health issues and other environmental problems.

Property owners must comply with regulations of the state, and also should keep in mind the cost of removing these tanks plus their maintenance and associated environmental cleanups.

The financial responsibility

Regulations require property owners to be financially responsible. Common financial assurance mechanisms include private insurance and state funds. However the expenses of removing the tanks, disposing of their waste and leaks from other sources are not covered by insurance policies. 

Covering these risks requires a resolute pollution liability insurance policy which utilizes each  storage tank as an individual tank. 

The costs associated with removing tanks, waste disposal or controlling leaks from other sources  aren’t covered. A different kind of pollution liability insurance policy covering each storage tank individually is required.

The required insurance policies

The insurance policy requires the following elements for satisfying requirements of financial responsibility:

  • Covering costs from sudden and non-sudden releases of pollutants.
  • It must cover expenses of loading and unloading tanks.
  • It should also cover expenses of on-site and off-site cleanups.
  • It should have the certificate of insurance used in the Code of Federal Regulations.
  • The coverage reporting period for any claims made should be six months approximately.

The insurance policies usually are dependent on a claims made basis. Property owners need to make their claim before the policy period ends.

Problems that come with aging underground storage tanks

The average life expectancy of underground storage tanks is around 30 years. After this period, property owners should have an engineer check the tank and see what needs to be done. 

Does waiting work in this regard? Experts say not because it will raise the chances of more leakage and rising insurance expenses. A lot of markets create financial barriers preventing property owners from getting older storage tanks insured, and they do so by offering them liability coverage for tank pollution.

Insurance isn’t always a viable option. Property owners having underground storage tanks beneath their properties need to look for alternate options like tank removal, tank replacement, or switching to tanks above the ground as part of their risk management strategy.

What is the procedure for removal of underground storage tanks from various properties?

A leaky or compromised underground storage tank can bring down a property’s value by a very large margin. Construction claims experts explain that old, unused or failed inspection tanks are also a huge pollution risk and can cause environmental damage. Here are some proven tips on removing underground storage tanks:

Examining all prerequisites and permits

Property owners need to inform their local and state authorities 30 days before they decide to remove their storage tank. Before obtaining permits, owners need approval to conduct soil sampling plus drilling.

The information property owners will offer must include the size, location and status of the property. They also need a certified contractor to have all the needed permits and to meet all safety guidelines in this matter.

Preparing the site

Once property owners have emptied the tanks of their content (as most waste is flammable), their local OSHA office will guide them on how and where such content/materials can be disposed off properly. Then the tanks are made inert using non flammable gasses like nitrogen to replace oxygen.

Property owners need certified professionals to declare the storage tanks as clean and safe. Afterwards, the excavation can begin by separating the soil.

Protocols for excavation process and soil sampling should be followed

The process starts with digging using standard construction equipment including excavators and backhoes. These equipment hoist the storage tank out of the ground by using chains. A crane is used if the storage tank is large.

Once the tank(s) are removed the soil will be tested for contamination. The pit can be backfilled if it is free of all hazardous materials. Else using the guidelines for hazardous materials is needed for cleaning the soil to fill the excavation pit.

Material disposal and closure report

Once the storage tank is removed, cleaning up waste is needed before it is sent for recycling. The process involves pressure washing and rinsing on the site. This waste requires proper protocols for transport and disposal.

Such a project does involve an engineer who will submit a report. That report will summarize on-site activities, samples of soil and groundwater, along with recommendations for further steps to be taken. 

They will also need to sign and put a stamp/seal on the closure report. The report’s copies remain with all regulatory agencies and the property’s owner.

Conclusion

Property owners should be ready for the cost of installation of new tanks. They should also start planning for their replacement from the first day of installation. All the documents should be retained and records of the removal as it reduces the chance of investigation which affects the property’s value.

The process is dangerous. Yes, it is not easy to handle hazardous materials as the waste seeping from such tanks not only can contaminate the soil but can also pose a threat to human health. Yes, underground sewage tanks not only have fecal matter but also chemicals disposed of, which can be fatal.

Moreover, these fatal chemical combinations can contaminate the human soil for years, leaving it in a strange wasteland like state. If groundwater is contaminated then drinking water supply lines are affected too.

Project advisory experts who have dealt with such cases often reveal the hard work it takes in removing those tanks and also draining them of the material. The sludge in these tanks is hazardous and often requires proper disposal. That sludge cannot be left in the ground due to fear of soil contamination.

Categories: Real estate
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