The State's Regulation of Underground Storage Tanks

The state if North Carolina currently has over 100,000 inactive leaking underground fuel storage tanks (USTs) that were previously associated with home heating systems. These residential tanks are currently not regulated by the State and are potentially causing an enormous amount of contamination to the underlying soils and groundwater. During the 1950s most homes utilized oil heat, which commonly involved buried oil tanks. These tanks are now hidden, ticking time bombs. Human nature is “out of site out of mind”, and with that mentality our water system is being affected. In this blog I will be presenting reasons why the State should be regulating these underground storage tanks and why they are currently not doing so.

After about twenty to thirty years most of these underground tanks, which are made of steel, will begin to corrode and leak. This leakage contaminates the surrounding soils and in some cases the leakage may migrate downward and intersect the groundwater table, making the groundwater toxic to human consumption. Once the groundwater has been contaminated it will no longer be suitable for human utilization for generations. By having the State regulate these tanks, it would minimize incidence of leakage through regularly scheduled monitoring and by removing tanks that are no longer in service. (Payne)

When people decide to switch from a heating oil system to a more current alternative heating system (i.e. natural gas, propane, electric), the oil tank no longer in use would usually be left in the ground to corrode and inevitably leak. By the State regulating these USTs, the State could impose annual tank operating fees, which the owner of a property with a UST would be responsible for paying. The funds generated by such a regulatory program could be used to assist with environmental cleanup associated with leaking USTs. The State currently has such a program for commercial USTs called the North Carolina Leaking Petroleum Underground Storage Tank Cleanup Fund commonly referred to as the “UST Trust Fund”. (NC State Trust Fund) Requiring annual operating fees from private individuals having a UST would encourage said homeowners to have their inactive USTs removed or face having to pay annual fees for keeping them in the ground. This, in effect, would expedite the removal of leaking tanks, which would help to minimize the negative impact on the environment. If they aren’t in the ground, they can’t corrode and leak oil into our natural water systems.

Legally, if a homeowner has the knowledge of an existing underground storage tank they cannot sell their house without informing the buyer that the property has one. A seller has a legal responsibility to disclose all known environmental conditions to a perspective buyer. This includes asbestos, lead paint, and the presence of a UST. This legality has been the source of a very stressful situation for a lot of people wishing to sell their home. It is not uncommon for someone to purchase a property without the knowledge of an existing underground storage tank, only later to find out that one was there. When the time came for the house to be sold again, a perspective buyer may request an inspection only to find the existence of an underground tank. The next step is to have an environmental consultant or a licensed geologist perform an inspection of the tank and the underlying soils to determine if the tank has leaked causing significant contamination. Statistical evaluation of home heating oil USTs has shown that about 80% of inactive USTs have leaked. (FAQ) If it has, the seller is put into a situation where they are legally bound to take care of the problem before they can sell their house. If the homeowner still wishes to sell their house, they will have to incur great expense to take care of the problem by removing the tank and all associated contamination.

After contamination has been confirmed, the state of North Carolina requires that the Department of Environment and Natural Resources (DENR) be notified within twenty-four hours of the release discovery. DENR will require the release be abated as soon as possible by having the tank and its contents removed. Following the abatement of the release, remediation of the release must occur by removing as much of the contaminated soils as possible. Once the removal of contamination has been completed, the seller has fulfilled their legal obligation. The cost for the removal of these tanks and associated contamination may range from between $10,000 to more than $15,000. (FAQ) It is not uncommon for people who have never used an on-site UST to be the responsible party to incur the expense of a UST cleanup.

Having home heating oil USTs regulated by the State would better protect innocent buyers from having to be responsible for someone else’s problem. This could be accomplished by incorporating mandatory UST inspections for all homes built prior to 1960 as part of the regulatory framework, which would effectively identify greater numbers of hidden USTs prior to a property’s conveyance (Payne). Focusing on and understanding the liabilities commonly associated with USTs will make the general public more aware to the potential impact USTs can have on the environment. Homeowners would be held accountable for protecting the environment and preserving our community’s natural resources for future generations (i.e. drinking water). The “out of site out of mind” mentality would no longer be able to be applied to this situation.

One may wonder why the State is not currently regulating these tanks. There are a number of factors that may influence the State’s decision not to regulate these tanks at this time. One reason involves an organization called the Petroleum Marketers Association of America (PMAA). The PMAA has a strong lobbying presence at the State level and one of their main goals is to make it as easy as possible to sell fuel, maximizing profit for their members (fuel distributors). They want to minimize the costs that may inhibit said sells such as tank operating fees and taxes. The PMAA doesn’t want tanks to be regulated because if they were, homeowners would be charged tank operating fees and may decide to switch to a cheaper heating alternative other than oil. Doing this would lessen the sells and profit of the PMAA. Another reason influencing the State’s decision not to regulate home heating oil USTs is that the State currently may not have the personnel to manage such a program. The increased workload that overseeing such a program would entail would be too much for the State’s budget to compensate for. (Payne)

In summary, by regulating these tanks, homeowners wouldn’t be stuck with a huge expensive problem and our community’s groundwater supply would be cleaner. It appears that the State’s current position to not regulate home heating oil USTs is influenced by the desire of some in the private sector to make money while on the other hand not wishing to allocate the necessary funds at the State level required to manage such a regulatory program. The lobbyists want more money, and value that more than the cleanup and removal of leaking tanks that are contaminating our groundwater making it toxic and inconsumable for future generations.

Works Cited

(FAQ) Frequently Asked Questions. Cedar Rock Environmental. 22 DEC 2009. Web. 17 MAY 2010. http://www.cedarrockenvironmental.com/faq.html#faq1.

NC State Trust Fund. Cedar Rock Environmental. 22 DEC 2009. Web. 17 MAY 2010. http://www.cedarrockenvironmental.com/trustfund.html.

Payne, Robert A. Personal Interview. 17 MAY 2010.