| Chairman McNutt called the meeting to order.
Melvin Schebaum, MFA Oil Company, was introduced as the new trustee representing owners/operators of aboveground storage tanks, and Bruce Work was introduced as a new trustee representing the general public. |
| Trustees Present: |
Absent: |
Don McNutt, Chairman
James Ford, Vice Chairman
John Albert, Department of Agriculture
Randy Allen, Office of Administration
Tom Kolb
Danny Opie
Melvin Schebaum
Dan Schuette, Department of Natural Resources
Bruce Work
|
Gary O'Neal
Tom Pfeiffer
|
| Staff Present: |
|
Carol R. Eighmey, Executive Director
Diane Wallace, Executive Assistant
Tim Duggan, Assistant Attorney General
Pat Eriksen, Managing Partner, Williams & Company
Pat Vuchetich, General Claims Manager
Ray Lentz, Operations Manager
Dave Pate, Claims Manager |
Claim Appeal – Nauser Investments Property, Claim 52329
Mark Pfeiffer, Bley & Pfeiffer, and Greg Nauser, property owner, presented the appeal. They explained the history of the property and the circumstances involving the discovery of an old UST during construction to expand the business. Mr. Pfeiffer emphasized that his client had not done any work to clean up pollution beyond what was required by the Department of Natural Resources.
Pat Vuchetich then explained that the costs for soil removal had been denied because there was no laboratory data indicating that the soil was impacted with petroleum at levels that required cleanup. He pointed out that the original site assessment report by Terracon stated that the levels of petroleum in the soil were below DNR's cleanup standards.
Trustees asked several questions. Mr. Kolb asked Mr. Nauser if DNR made it clear to him that the cleanup was “voluntary;” Mr. Nauser indicated he was told it was mandatory. Mr. Kolb asked why the consultant never contacted the PSTIF before or during the cleanup; Mr. Pfeiffer and Mr. Nauser indicated they did not know.
Claim Appeal – Former Fina (Total), Claim 50052
Beverlee Roper, Blackwell Sanders Peper Martin, presented the appeal on behalf of her client, ATOFina. She emphasized that her client does not believe it has any liability for any releases which may have occurred after 1990, and is not asking the PSTIF to pay for cleanup of any subsequent releases. It was noted that no subsequent releases have been reported, and no one knows for sure if any have occurred.
Ms. Eighmey reviewed the legislative history of the Fund as it relates to this claim appeal, noting that benefits were made available to Fina for the 1990 release by HB251, enacted in 1995. She reminded trustees that their rules require that operating UST systems, from which there was a previous release, must have obtained PSTIF insurance by a certain deadline and remained continuously insured in order to preserve benefits for the “pre-existing release.” She noted that in this case, ATOFina has raised a new issue – i.e., It is now claiming benefits on the basis that all the tanks and piping that leaked in the 1980's or 1990 have been replaced, making the release eligible as one that occurred from “out-of-use” tanks.
Approval of Minutes – March 23, 2005 Meeting
Dan Schuette moved that the minutes from the March 23, 2005 Board meeting be approved. Randy Allen seconded. Motion carried.
Monthly Reports
Chairman McNutt invited Trustees to review the monthly reports. Dan Schuette moved that the Board release funding for four new remedial claims. Jim Ford seconded. Motion carried.
Comments from DNR Director
New DNR Director Doyle Childers was introduced to the Board and mentioned that his staff is working with PSTIF staff to respond to a recent communication from EPA.
Report on FY05 Inspections – Rounds & Associates
Patrick Rounds and Brian Wiegert, Rounds & Associates, were introduced. Mr. Wiegert presented results of the inspections conducted for the Board in FY05, most of which were AST sites. He highlighted the fact that when an inspector observes a problem, the tank owner is immediately notified and asked to correct it. He reminded trustees that inspection reports and photographs are provided to the PSTIF's underwriting staff, who utilize the information each year when the policy for that site is renewed. Mr. Rounds summarized the project, noting that the loss control inspections performed by his staff include a review of operating practices vis-à-vis the regulations applicable to the site, as well as other aspects of good tank operations and maintenance. He said that most owners are grateful for the advice and assistance provided by the inspectors, once they realize their motive is to save the owner money by preventing leaks and claims.
Legislative Report
Chairman McNutt directed the Board's attention to information in their notebooks concerning the FY06 budget enacted by the Missouri Legislature. Tom Kolb made a motion to approve $1 million in funding for DNR for FY06, and $140,942 for OA to use to pay for centralized state services. Bruce Work seconded, and the motion carried. (Jim Ford was out of the room at the time of the vote.) Mr. Work asked about recent correspondence concerning inspections; Ms. Eighmey indicated more dialogue with DNR and EPA is needed. Mr. Schuette commented that the Governor had made it clear in his budget that there would be no money provided by the PSTIF to DNR for UST compliance inspections in FY06.
Update on RBCA Implementation
Carol Eighmey gave an overview of recent events involving the implementation of RBCA. John Balkenbush reported that proposed revisions to DNR's RBCA Guidance Document for Tank Sites were recently circulated via the Internet for comments. He also noted that his staff and consultants were already using the revised Tier 1 standards that are tailored to the type of soil at the site. He said the Department hopes to receive and act on all comments by the end of July, and will then undertake the writing of regulations to codify the new cleanup standards.
Update on Compliance/Enforcement Issues
Carol Eighmey summarized recent efforts by the DNR and AGO to compel all UST owners to have a financial responsibility mechanism. Chairman McNutt said he was encouraged to see action being taken against tank owner/operators who are not in compliance. Trustees asked for more specifics about actions taken when it is discovered that a UST owner does not have an FR mechanism. Dan Schuette responded that the Department contacts the owner several times to try and persuade him to comply, then refers the matter through the Hazardous Waste Management Commission to the Attorney General's Office. In response to a question about how long these efforts typically take, Kathy Flippin estimated 135 days as the approximate time for the Department's efforts, before asking their Commission to send the file to the AGO. Mr. McNutt asked if the Department has authority to shut down the facility for failure to comply; Mr. Schuette answered that there are differing legal opinions on that, so the best way to accomplish that is via a court order.
Actuarial Report – Pinnacle Resources
Chuck Emma, Pinnacle Resources, was introduced and presented the results of his actuarial analysis of the Trust Fund, which concluded that the current reserve estimate is about $20 million less than it should be. There was a brief discussion about whether any change should be made to the transport load fee; Ms. Eighmey indicated she would pose that question to the Board's Advisory Committee.
Administrative Issues
Executive Director Travel Request to Attend State Fund Administrator's (SFA) Conference, June 26-29, 2005 – Melvin Schebaum moved that the Board approve out-of-state travel for the Executive Director to attend the SFA Conference, with the understanding that travel costs not covered by other sources may be paid by the PSTIF. John Albert seconded, and the motion carried. (Danny Opie was temporarily out of the room at the time.)
Billings -- Chairman McNutt called the Trustees' attention to the recent bills in their notebooks.
Jim Ford moved that the Board go into closed session to discuss and vote on matters related to legal actions, causes of action, litigation and/or personnel issues pursuant to Section 610.021, RSMo. Tom Kolb seconded. Motion carried.
If
such action is approved a majority vote of a quorum of the Board,
the Board of Trustees of the Petroleum Storage Tank Insurance Fund
may go into closed session at this meeting to discuss legal, confidential
or privileged matters pursuant to Section 610.021, RSMo.
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