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New Underground Storage Tank Regulations Looming Large in 1998

This article was edited and reviewed by FindLaw Attorney Writers | Last reviewed March 26, 2008

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December 22, 1998 is an important date for commercial and industrial property owners, their lenders, lawyers and consultants. By that date, underground storage tanks ("USTs") must conform to stringent regulatory standards imposed by both the United States Environmental Protection Agency ("EPA") and the Minnesota Pollution Control Agency ("MPCA").

On or before December 22, 1998, owners and operators of regulated USTs installed on or before December 22, 1988 containing petroleum products must do one of the following:

  1. Upgrade existing USTs to comply with the new standards;
  2. Take non-complying USTs out of service; or
  3. Remove non-complying USTs from the ground.
Residential tanks and tanks used to store heating oil for consumptive purposes with capacities of 1,100 gallons or less are not included in the definition of UST under Minnesota or federal law. In addition, federal law excludes otherwise regulated USTs with capacities of 110 gallons or less from UST regulations. However, releases from such USTs are regulated by the MPCA under a different set of provisions. USTs installed after December 22, 1988 are already subject to these regulations.

Minnesota Rules* require regulated UST owners and operators to meet standards for tank operation and design, leak detection and reporting, corrective action, and UST closure. For regulated USTs installed on or before December 22, 1988, owners and operators must install additional corrosion protection to unprotected steel UST systems and provide spill and overfill protection to both currently unprotected steel and fiberglass systems that remain in service. The regulations also require that owners and operators follow certain procedures in the removal of USTs that do not remain in service, as well as in the temporary and permanent closure of USTs.

  • Suggested Action. Owners and operators of USTs should first determine whether the regulations apply to their USTs. After determining that the impending regulations apply to your USTs, consider hiring a certified consultant who can assist you in determining the following: whether you have regulated USTs; the action, if any, you must take to ensure that your USTs will comply with the regulations by December 22, 1998; the cost of upgrading, replacing or closing (temporarily or permanently) any regulated USTs; the availability of state aid; the penalties for noncompliance with the regulations; the amount of time needed to upgrade, replace or close any regulated USTs so that you can come up with a plan of action and allow for environmental review and sign-off on plans for closing USTs; and a plan to ensure the appropriate response to leaks that may occur during the upgrading, replacing or closing process.

The costs of complying with these regulations will govern, to a great extent, your course of action. It will not be cheaper to ignore the December 22, 1998 deadline and take no action with respect to your regulated USTs. The penalties for non-compliance are harsh and acting quickly to comply with the regulations is the first step to avoid being penalized.

* 40 C.F.R. Parts 280 and 281 and Minnesota Rules Chapter 7150

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