Vol. 3 Issue 1
February 2000

ANNUAL REPORT

Introduction

August 28, 1999 marked the 10-year anniversary of Missouri's underground tank law and insurance fund. Much has been accomplished since then; much remains to be done. This issue of Latest Leaks will provide a snapshot of where we've come and some thoughts on the future.

UST Participation

Since the U.S. EPA first required all UST owners to have insurance - or a similar mechanism - to pay for cleanup of spills/leaks, participation in Missouri's Fund by UST owners has steadily increased. This is good for the environment - since it means leaks/spills will not go unattended - and good for tank owners who need not fear bankruptcy if they have a leak/spill:

AST Participation

PSTIF began insuring ASTs in January 1998. With no state or federal requirement to carry insurance, many AST owners still have not taken advantage of the inexpensive protection provided by PSTIF:

Benefits Increasing

With the Board of Trustees' emphasis on timely service and using PSTIF monies to do cleanups, monies paid out of the Fund for claims have risen dramatically. "Insurance claims" are those paid where the tanks are in service and insured by PSTIF when a release occurs or is discovered. "Remedial claims" are those where the release occurred before the site was insured by PSTIF, or where old tanks were taken out of service prior to December 31, 1997, and PSTIF is paying to clean up historic contamination.

Where's the Money Going?

This map shows claim payments by county for FY99:

Who's Benefiting?

Since PSTIF is financed primarily by a fee on petroleum, and those in the petroleum industry have actively supported PSTIF, one might think the petroleum is the biggest beneficiary of the program. A recent analysis shows, however, that the majority of payments made by PSTIF to date are to citizens and/or companies who have no involvement in the petroleum industry:

Fund Balance Continues to Drop

As previously reported, the increase in cleanups and claim payments is causing the Fund's balance to decrease. The PSTIF Board of Trustees is monitoring this trend carefully, to insure adequate cash is available to meet the Fund's commitments. In the twelve months ending 6/30/99, expenses were approximately equal to revenues, including interest. For the current fiscal year, which ends on 6/30/00, the Trustees have projected a $8.5 million drop in cash reserves. With the transport load fee at the maximum level allowed by law, careful management will be required to match cash flow with demands.

Financial Statement

The Fund's unaudited financial reports for the fiscal year ending 6/30/99 are presented below. Monthly financial reports are posted on the Fund's web site.

2000 And Beyond?

More than 1200 sites are currently in the midst of cleanup with financial assistance from PSTIF. Whether the job can be completed by the end of 2003, the "sunset date" when the Fund is scheduled to expire, remains unknown.

Studies are underway to determine how many more old tank sites may need funding from PSTIF to clean up historic contamination. Once the Board of Trustees receives that information, it will begin discussions with its Advisory Committee and other interested parties on the future of PSTIF.

In addition, trustees continue to monitor the Fund's financial status, and will analyze projected revenues and liabilities again this spring.

A new state law requires DNR's Clean Water Commission to publish regulations establishing a risk-based approach to groundwater cleanups. This could have an impact on PSTIF. Removing petroleum contaminants from groundwater can be expensive and sometimes takes years, and the costs are significantly affected by what the cleanup objective is. PSTIF staff are working with DNR as this regulation is developed.

Only one bill affecting PSTIF has been filed for consideration by the state legislature this year - HB______, filed by Representative Louis Ford, would eliminate the Board's right to choose its own chairman, and would specify that the DNR Director serves as chairman of the Board of Trustees. As of the date of this writing, no hearing on the bill has been scheduled.

Latest Leaks is a newsletter of the Missouri Petroleum Storage Tank Insurance Fund.

Board of Trustees
William "Bart" Creech III, Chairman
Bob Abernathy, Vice Chairman
John Boehm
Sam Carter
Gary D. Collins
Neal A. Gibbons, Sr.
Ron Hooker
Robert "Bob" Jackson
Steve Mahfood
Don Shaikewitz
Katherine "Katie" Wesselschmidt

Executive Director
Carol R. Eighmey
PO Box 836
Jefferson City, MO 65102
573-522-2352

Third Party Administrator
Williams & Company Consulting, Inc.
1-800-765-2765

Send address changes to:
PSTIF, PO Box 104116
Jefferson City, MO 65110

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