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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