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Risks/Issues :: Commercial & Industrial Tanks

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What are the requirements and risks for in-use and/or abandoned commercial or industrial petroleum Underground Storage Tanks (USTs)? The regulations and laws concerning these USTs are relatively complex and beyond the scope of this Website. The topics below attempt to provide a brief summary of the requirements and issues. Please visit the Virginia Department of Environmental Quality Website for more detailed information regarding regulations.

State Water Control Law

Article 9 of State Water Control Law requires that commercial and industrial petroleum USTs (with the exception of USTs used to store heating oil for heating on the premises) be registered with the Virginia Department of Environmental Quality (VDEQ). USTs which have not been in use for more than one year must be permanently closed. Closure consists of properly removing the UST from the premises, or in some cases the UST can be filled on-site with an approved inert solid such as concrete or sand. A permit must be obtained from the local building or fire official, and a record of closure must be submitted to the VDEQ.

Commercial and industrial petroleum USTs (again, with the exception of USTs used to store heating oil for heating on the premises) that are in use must meet certain standards—the USTs are required to have corrosion resistance, spill/overfill protection, and leak detection.

Selling or Buying Property

Due to the potential liability, it is very difficult to sell property containing USTs that are not in compliance with State Water Control Law. Typically, environmental site assessments are required by prospective buyers and/or lenders to identify USTs and other potential environmental liabilities. It is wise to address USTs now while there is financial assistance from the Virginia Petroleum Storage Tank Fund (VPSTF) for necessary environmental cleanup. If leaking USTs are identified in the future pursuant to a real estate transaction, cleanup may be required per Article 9 of State Water Control Law, but financial assistance may not be available.

Third Party Lawsuits

In addition to being liable for environmental cleanups under State Water Control Law, owners of leaking USTs are responsible for property damage and/or injuries caused by the released petroleum. They therefore may be subject to third party lawsuits.

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