Leaky Tanks, Big Fines: How to Keep Your Fuel Storage Safe and Legal

While bulk fuel storage tanks offer convenience and cost savings, they also require attention to environmental safety, maintenance, and compliance with regulations. If you already have a tank or plan to install one, understanding the associated risks and responsibilities is critical to protect your investment and operations.

If not properly maintained or installed, storage tanks can offer environmental risks. Leaks and spills can contaminate soil and groundwater, leading to long-term damage to ecosystems and potentially affecting human health. Groundwater contamination is especially concerning as it often serves as a primary source of drinking water for many communities.

Improperly managed tanks can also release harmful vapors, including volatile organic compounds (VOCs) and polycyclic aromatic hydrocarbons (PAHs), into the atmosphere. These emissions can contribute to air quality issues like smog and acid rain. Fires and explosions are another potential hazard, particularly if tanks are placed too close to buildings or heat sources.

Understanding and Complying with Regulations

Compliance with environmental regulations is a critical aspect of operating a fuel storage tank. The U.S. Environmental Protection Agency (EPA) oversees underground storage tanks (USTs) and has established stringent guidelines for performance, maintenance, and spill prevention. These regulations were updated in 2015 to include additional requirements, such as secondary containment and routine operational checks.

Facilities with underground storage systems holding more than 110 gallons of fuel must adhere to these key requirements:

• Registration – UST systems must be registered with the appropriate authorities to ensure proper tracking and oversight.
• Leak Detection and Protection – Facilities are required to implement leak detection measures, spill prevention systems, and corrosion protection to minimize the risk of environmental contamination.
• Insurance Coverage – Operators must carry insurance to cover the costs of cleanup and damages in case of a leak or spill. As we explained in our article “3 Risks of Missing Underground Fuel Tank Inspections”, cleanup costs vary depending on the extent of contamination and state cleanup standards. Removing a small amount of contaminated soil may cost around $10,000, while the average cost of cleaning up a UST with more extensive contamination is approximately $154,000. If groundwater is affected, cleanup expenses can range from $100,000 to over $1 million.

The regulations for Above-ground storage tanks (ASTs) focus on preventing, controlling, and cleaning up spills and are governed by the Spill Prevention, Control, and Countermeasures (SPCC) rule under the oil pollution prevention section of the Clean Water Act (40 CFR 112). Although the term “aboveground storage tank” is not explicitly used in the SPCC rule, the term “bulk storage container” applies to any container used to store oil. ASTs are also subject to state and local regulations, which may have specific requirements for installation, maintenance, and spill response. Familiarizing yourself with these rules is essential to avoid fines and ensure the safe operation of your tank. Obtaining necessary permits, conducting audits, and maintaining detailed records are all part of staying compliant.

The SPCC rule applies to facilities with:

• Aboveground oil storage capacity exceeding 1,320 gallons, excluding containers with a storage capacity of less than 55 gallons.
• The potential to discharge oil into navigable waters or adjoining shorelines.

Therefore, facilities subject to the SPCC rule must develop and implement a Spill Prevention and Control Plan. This plan must:

• Be prepared using sound engineering practices.
• Identify the location and type of storage containers, containment measures, and risks associated with major releases.
• Detail available emergency equipment and outline procedures for notifying regulatory and emergency agencies in the event of a spill.

Regular Maintenance

A fuel tank is not a “set it and forget it” piece of equipment. Regular maintenance is essential to ensure both operational reliability and environmental safety.

Over time, tanks can accumulate sludge, water, and other contaminants that degrade fuel quality. Cleaning the tank periodically prevents these issues, ensuring your equipment runs smoothly when you need it most. Inspections are equally important—checking for corrosion, leaks, and wear on valves and seals can help you catch problems before they escalate.

Advanced monitoring systems, such as Automatic Tank Gauges (ATGs) – mandatory for USTs – will detect leaks or abnormal pressure levels, adding an extra layer of safety. These systems can alert you to potential issues in real time, giving you the opportunity to act quickly and minimize environmental risks. For aboveground tanks, typically an inventory monitor (also called a tank probe, and sometimes also called an ATG) is sufficient for your needs. Because a leak would be visibly apparent, the government is less stringent about tracking and reporting.

You can learn more about ATGs in our article “What’s that – Automatic Tank Gauge.”

The Importance of Proactive Measures

Fuel storage tanks are more than just a convenience—they’re a responsibility. By taking proactive steps, you can mitigate environmental risks while ensuring the safety and reliability of your business operations.

Are you confident your tank meets the necessary standards for environmental standards?

Mansfield Energy services thousands of commercial, industrial, and government tanks across the US, providing the scale and expertise to ensure your tanks are treated right every time. With a network of local qualified technicians, Mansfield can help you get the help you need quickly, reliably, and at a fair price.

If your business is operating bulk fuel tanks across the US, it’s time to get serious about equipment maintenance and upkeep. Get better data, better service, and better control by choosing Mansfield as your fuel tank repair & maintenance partner. Get in touch today!