Aboveground Storage Tanks (ASTs)

New regulatory guidelines become effective on August 13, 2008. The key actions that the owner will need to implement include specific spill protection, overfill protection, and corrosion protection requirements.

There are various compliance options for each of these requirements, including internal inspection of the existing ASTs to meet the corrosion protection requirements. If you choose to close your ASTs, you will need to do so in accordance with MDEQ guidelines, including a 30 day notice. The regulations do not require closure sampling but do specify that evidence of a release must be reported to MDEQ.

Discussions with MDEQ staff indicate that very few AST closures document a release requiring reporting. MDEQ also indicated that after August 13, 2008, they will be conducting inspections and “red tagging” non-compliant AST systems. Many non-compliant ASTs are being internally inspected, lined, and placed back on new concrete bases. This seems to be a very good way to move forward.

Insight from BLDI:

• Since MDEQ will be “red tagging” non-compliant ASTs, operating non-compliant ASTs and testing your luck is not really feasible.
• The MDEQ release reporting criteria is a bit different for ASTs and a discussion with legal counsel prior to testing/closure is recommended.
• Based on MDEQ information, your fears of a release may be overestimated. Relax. Do the right thing and you will likely be in fine shape.

Underground Storage Tanks (USTs)

In 1998 many UST owners used interior lining as a means to meet the UST regulations for upgrading their UST systems. One key provision for lining USTs was an inspection requirement within ten years of lining the USTs. For many companies this requirement has already passed. The tanks must be entered to be inspected requiring the removal of the fuel, accessing the top of the UST, cleaning the UST interior and entry by a certified inspector. The lining is required to be in good condition with no delamination. The cost, some of our clients have incurred, are from $1,800 to $4,000 per tank.
If the lining is found damaged or delaminated, Michigan regulations do not allow repair of the lining. In fact, at this point the UST must be closed if the lining is flawed or not performing to original specs or if it’s not structurally sound. Further, there is some probability that a release from the UST system will be documented – requiring reporting to MDEQ and corrective action. Our experience indicates the majority of UST closures for tank systems that are over 20 years old find reportable releases. Recent data from Michigan Petroleum Association (MPA) indicates that the average cost to close a release in Michigan is from $105,000 to $360,000.

Insight from BLDI:

• Tank inspections can be fairly pricey and will have some probability that the tanks will need to be closed anyway. You may want to consider closure instead of inspection.
• In any case, when conducting the inspection or closure, we suggest you have your legal advisor review your business situation, including Tank insurance, prior to conducting such work.

For more information, call BLDI at 616.459.3737.

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