Underground Storage Tanks (USTs)

If a property has underground storage tanks, the owner and real estate manager must be aware of certain federal and state laws and regulations. Some systems are not subject to federal law but are subject to state laws.

An underground storage tank system refers to the tank or combination of tanks. A tank system includes the tank, underground connected piping, underground ancillary equipment, and any containment system. The federal UST regulations apply only to underground tanks and piping that store petroleum or certain hazardous substances.

The following types of tanks do not have to meet federal UST regulations:

• Farm and residential tanks of 1,100 gallons or less capacity that hold motor fuel used for noncommercial purposes
• Tanks storing heating oil used on the premises where they are stored
• Tanks on or above the floor of underground areas, such as basements
  or tunnels
• Septic tanks and systems for collecting storm water and wastewater
• Flow-through process tanks
• Tanks of 110 gallons or less capacity
• Emergency spill and overfill tanks

Some state/local regulatory authorities, however, may include these tank types in their UST regulations—the real estate owner and manager must check with those authorities if they have questions about the requirements for their tank type. The following website has information: http://www.epa.gov/swerust1/states/statcon1.htm

Leaks
If underground storage tanks are on a property, the real estate manager should watch for signs of leaking. Signs of a possible leak follow:

• An odor or an oily sheen on water near the facility.
• Tenants or neighbors complain about vapors in their basements or water that tastes or smells of petroleum.
• Equipment does not operate correctly; for example, the dispensing pump runs erratically.
• Monitoring devices indicate a leak.

If a leak is suspected, state and local agencies must be notified within 24 hours or other period specified by the state or local agency. Take action to stop the release and make sure there is no safety threat to the vicinity. Spills or overfills of 25 gallons, or an amount specified by state or local authorities, don’t have to be reported if they can be contained and cleaned up in 24 hours.

Based on the information provided about a leak, the governing agency will decide if further action must be taken at the site. The real estate manager may need to develop and submit a corrective action plan that explains how requirements for the site will be met.

Federal Requirements
All federally regulated USTs must comply with the following:

• Be registered with the appropriate regulatory authority
• Meet leak detection requirements

Owners and operators of USTs must do the following:

• Meet financial responsibility requirements
• Perform a site check and take corrective action in response to leaks, spills, and overfills
• Follow regulatory rules during installation and closure of tanks
• Maintain records as required
• Have periodic checks performed on corrosion protection and leak detection systems

Health Risks and Liability
Considering the environmental hazards reviewed above, every type of property faces serious and numerous risks. New laws, changes in regulations, and changes on a site suggest that conducting a thorough review of the risks and liabilities at a site at least once a year is a wise practice.

Specific firms help to assess properties for environmental risks. Depending on the property, consultation with a risk assessment firm may be beneficial. If a property has few environmental hazards, consulting with a specialized risk management firm may not be necessary. However, a risk assessment by the company’s regular property insurance agent would be beneficial.

An environmental management system (EMS) is a continual cycle of planning, implementing, reviewing, and improving the processes and actions that an organization undertakes to meet its business and environmental goals. Most EMS systems are built on the Plan, Do, Check, Act model. The following outline from the EPA is a straightforward approach for assessing and managing environmental hazards at a property:

• PLAN: planning, including identifying environmental aspects and establishing goals
• DO: implementing, including training and operational controls
• CHECK: checking, including monitoring and corrective action
• ACT: reviewing, including progress reviews and acting to make necessary changes to the EMS