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Brownfields Properties with Underground Storage Tanks - FAQs

Brownfields Properties with Underground Storage Tanks

Q How much does it cost to clean up a leaking UST site, and how long should it take?
A

It is difficult to estimate the “average” cost or time for a leaking UST site to qualify for a No Further Remediation Letter because of the many variables that exist when a tank has a release.  A minor leak from a small gasoline tank is the most basic type of release, which can be remediated quickly and relatively inexpensively with removal of the tank and surrounding soil.  As the severity of the release increases (such as with larger tanks), a large amount of soil and groundwater or an off-site property may be impacted, and the cost and time to achieve cleanup increases.

Fortunately, with the development of risk-based cleanup objectives (called a Tiered Approach to Corrective Action Objectives, or TACO), an owner or operator has a number of options in regard to the amount of actual remediation that must be completed.  For example, an owner or operator may choose to apply engineered barriers and institutional controls at the site to expedite closure and to keep costs down.

Engineered barriers and institutional controls limit land use and prevent human exposure to soil and groundwater contamination.

An owner or operator should shop comparatively for consultants and contractors and stay involved in the remedial process in order to make informed decisions concerning available options.  The amount of time needed for cleanup is also dependent on uncontrollable factors such as seasonal fluctuations, regulatory review processes, and the availability of contractors and equipment.

Q Can I buy a piece of property with leaking underground storage tanks?  Would I be liable for the contamination?
A

The Illinois EPA does not restrict the sale of environmentally contaminated property.  Sellers of properties with USTs are required, however, to disclose the presence of USTs to potential buyers under the Responsible Property Transfer Act.

Under the Leaking UST Program only, the owner or operator of an UST is liable for corrective action in the event of a release, and either individual may be liable for all activities required under the law.  The owner or lessee of the property is not necessarily the owner or operator of the USTs.  These terms have a limited meaning for purposes of the UST regulations.  The operator is the person having the responsibility for the daily operation of the tank, including storage and dispensing of product.  The owner of a tank in use on or after November 8, 1984, is any person who owned the tank while it was still in service (35 Illinois Administrative Code, 731).

Because of the complexity and variety of business arrangements, determination of owner and operator status in a particular instance is usually a site-specific analysis.  However, an individual purchasing a property with USTs that are no longer in service generally would not be considered the owner or operator of the USTs and would not be liable for clean up of releases from those tanks.  This assumes that the new property owner or lessee was not involved in ownership or operation of the tanks while they were in service and has not registered as owner of the tanks.

Please note:  If existing USTs on a property are registered with the OSFM, new property owners who intend to remove the tanks and clean up petroleum contamination may want to consider transferring tank registration to themselves so they may be eligible for the UST Fund.  (Contact the OSFM for details.)  Be sure to consider the legal consequences in becoming the tank owner or operator since you would also become subject to all of the tank regulations.

Any tank leak or spill is cause for concern.  Property owners, even if they do not own or operate the tanks, may be subject to third party lawsuits or liable for other provisions of the Environmental Protection Act if the environmental contamination harms human health or the environment.

 

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