The Department
of Revenue will be mailing a notice to all payers of the fee, advising
them of the change. Increased revenue will begin flowing into the
Fund in March 2002.
Decision
on "Hold Claims"
The Board
also announced plans to decide what to do with "Hold Claims" at its
meeting on January 23. The Board has asked its staff to meet with
the Advisory Committee to formulate a plan and timetable for funding
some or all of these claims.
Since
March 2000, more than 200 requests for funding to clean up old, out-of-use
tank sites have been placed on hold. At a few of these sites, the
property owner has proceeded with tank removal and/or cleanup, paying
cleanup costs himself and hoping for eventual reimbursement from PSTIF.
However, at most of the properties, work has simply been postponed.
Although
most "Hold Claims" are tank removal projects where there is no indication
whether the property is contaminated or not, or how extensive the
contamination is, PSTIF staff have estimated a liability of $6.1 million
for "Hold Claims."
Proposed
Rule Changes
Four
changes to PSTIF's regulations will appear as Proposed Amendments
in the December 17 issue of the Missouri State Register. Two of the
changes simply implement decisions made by the Missouri Legislature
earlier this year.
The other
two changes are more substantive. One would authori ze continued insurance
coverage, albeit limited, for AST owners who temporarily take their
insured tanks out of use. Presently, if an insured underground tank
(UST) owner takes his tanks out of use, he can leave them empty indefinitely
and repeatedly renew his insurance policy, as long as he maintains
any cathodic protection system which may exist on the tanks and lines.
AST owners, however, currently have no such option. A change was recommended
by the Board's Advisory Committee to give AST owners parity with UST
owners.
The second
significant change would impose, for the first time, a deadline for
submission of invoices to PSTIF. Fund participants and beneficiaries
would have two years from the date a "No Further Action Letter" is
issued by the Department of Natural Resources (indicating the cleanup
was completed), to send invoices to PSTIF. Failure to meet the deadline
would waive the Fund's liability.
The proposed
rules may be reviewed at http://mosl.sos.state.mo.us/
moreg/moreg.htm. Or, you may request copies from the PSTIF
by calling (573)522-2352.
DNR
Plans to Revise Guidance Documents
As part
of a plan to revise and update its approach to tank site cleanups,
the Department of Natural Resources plans to employ a consultant to
facilitate the revision of its guidance documents.
Since
1992, most tank site cleanups have followed procedures set forth in
three Guidance Documents - One for tank closures, one for site characterization
and one for corrective action. The Closure Guidance Document was revised
in 1996, but the other two have not been revised since their initial
publication.
Proposals
were received October 12, 2001 and the consultant will be hired by
year's end. The Department hopes to have the changes substantially
completed by fourth quarter of 2002. Opportunities for input from
interested stakeholders will be provided. PSTIF will participate in
this process, since procedural changes or changes to cleanup standards
can have significant financial impacts on the Fund.
Risk
Based Decision Making
Discussions
about how to implement a tiered risk-based approach to tank site cleanups
continue. The Board will hear a presentation on this subject at its
November 24 meeting.
DNR staff
continue their work on a proposed regulation which would provide a
framework for risk-based decision making at all sites where groundwater
cleanups are done, including tank sites.
In the
meantime, DNR's Tanks Section has agreed to work with PSTIF to see
if the CALM Guidance Document, currently used by DNR's Voluntary Cleanup
Program, can assist consultants in evaluating the risks posed by petroleum-contaminated
tank sites and establishing alternate cleanup levels at a limited
number of sites. Two sites have been selected for this approach, and
the owners' consultants are presently preparing analyses and reports.
Be
Sure the Right Folks Are Insured
As businesses
and properties are bought and sold, it is easy to forget a pesky little
detail like pollution liability insurance. But that oversight can
be disastrous. Like other insurers, PSTIF only honors claims from
people or companies it insures. If a convenience store is sold, and
the policy is not transferred, the new owner has no pollution liability
protection and can find himself paying cleanup costs out of his own
pocket.
Do not
fail to contact the Fund Administrator when operators, tank owners,
or property owners change at a site insured by PSTIF.
AST
Cleanup Rules
New regulations
pertaining to certain AST owners were proposed by DNR in the October
15 State Register. The rules require that releases be reported and
outline what must be done after a release occurs. The rule does not
address operational requirements for active ASTs.
Can
We Get 100%?
PSTIF,
the Department of Natural Resources and the Department of Agriculture
have combined efforts to make sure every operating underground tank
in our state has a "financial responsibility" mechanism in place to
pay for cleanup in the event a leak occurs.
Some
tank owners self-insure this liability, some buy commercial insurance,
some use a guarantee from another party with the necessary financial
resources. But the vast majority - about 75% - use PSTIF to provide
this protection.
Letters
were recently sent by the Fund's Executive Director to 364 underground
tank owners whose tanks are in use, but who are not insured by PSTIF,
inviting them to apply for coverage. About 140 of those locations
are retail establishments, and will be reminded of the opportunity
to participate in PSTIF by Department of Agriculture's inspectors,
as they conduct their regular inspections during the next six months.
Meanwhile, DNR has sent letters to 518 tank owners, asking for documentation
demonstrating compliance.
Although
leaks from upgraded tanks and piping are rare, they still occur -
usually when you least expect it. Our goal is to make sure 100% of
underground tank owners have the required financial resources to deal
with a leak, because you never know when or where it might happen
to you!
Winter
Is Coming
Some
of the required maintenance work on tank systems - like checking the
cathodic protection system or checking internal tank linings - are
much harder to do in cold weather. But when your insurance policy
comes due for renewal, we'll expect those things to be done. So don't
procrastinate! Schedule these things now to avoid bad weather delays
that could result in cancellation of your insurance coverage.
HAPPY
THANKSGIVING!
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
Judith W. Baker
Gary D. Collins
James P. Ford
Neal A. Gibbons, Sr.
Ron Hooker
Robert "Bob" Jackson
Steve Mahfood
Donald W. McNutt
Joyce Murphy
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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