Underground Storage Tank Assessment

The investigation, cleanup, and closure of a release is costly but, if the proper steps are taken, the cost may be covered under Michigan's MUSTA cleanup fund.

• MUSTA: Michigan Underground Storage Tank Authority
• Determination of Eligibility: the first step is to ensure that all the required paperwork is filed with MUSTA
• Compliance with applicable regulations, especially release reporting, is also critical to ensure MUSTA eligibility
• Reimbursement is available up to $1,000,000 for eligible expenses
• MUSTA has required deductibles of: $2,000 for owners of seven or fewer USTs and $10,000 for owners of eight or more USTs.
• Some limited financial assistance (Legacy Fund) may also be available for releases prior to December 30, 2014
  

If you are the owner or operator of a registered refined underground storage tank (UST) system and have submitted the “Documentation of Financial Responsibility” (FR) form with an eligible mechanism (i.e., State Financial Test, Letter of Credit, Surety Bond, etc.) to provide proof of FR for the deductible amount, then you may qualify for the MUSTA cleanup fund. Qualification for the MUSTA cleanup fund does not ensure coverage of the claim. Eligibility of the coverage of the claim once a confirmed release is reported is evaluated after the claim is submitted.

Once you have qualified for the MUSTA cleanup fund, you must submit the FR documentation every year to maintain your coverage on your underground storage tank system.

The deductible is determined on the total number of tanks an owner/operator (O/O) is affiliated with and/or operates. If an O/O or its affiliates own or operate fewer than eight underground storage tanks (USTs), their deductible amount is $2,000 per claim. If an O/O or its affiliates own or operate eight or more USTs, their deductible amount is $10,000 per claim.

There is no annual premium or fee unless one is incurred by purchasing an eligible mechanism to document FR (i.e., Letter of Credit, Surety Bond, etc. from a third party).

Claims are denied primarily for the following reasons:

• The release occurred prior to December 30, 2014
• The release was not reported by the O/O as required by Part 211 within 24 hours of discovery
• The O/O failed to meet the financial responsibility requirements of Part 211 at the time of the release (i.e., MUSTA coverage was not in place at the time of the release)
• The release was discovered on or after December 30 of 2014
• When a release (both suspected and confirmed) is discovered it is reported to the proper authorities within 24 hours
• All necessary insurance requirements are in place

To help avoid these potential denials, make sure of the following:

• The release was discovered on or after December 30 of 2014
• When a release (both suspected and confirmed) is discovered it is reported to the proper authorities within 24 hours
• All necessary insurance requirements are in place

Only the owner or operator of the registered refined underground storage tank (UST) system at the time of the discovery of the release is eligible to file a MUSTA claim. Approved claims may be transferred to a new owner in the event of a sale of the property.

A typical leaking underground storage tank (LUST) scenario involves the release of a fuel product from an underground storage tank (UST) that can contaminate surrounding soil, groundwater, or surface waters, or affect indoor air spaces. Early detection of an UST release is important, as is determining the source of the release, the type of fuel released, the occurrence of imminently threatened receptors, and the appropriate initial response. Warning signs of a release can be identified through inspection and monitoring, inventory control, and leak-detection technology. Once the release is confirmed, the release must be reported within 24 hours, as described above.

If an owner/operator finds visible or olfactory evidence of contamination in the underground storage tank excavation or along pipe runs, or if analytical results show contamination, the owner/operator or their consultant must report a suspected or confirmed release within 24 hours to the Michigan Department of Licensing and Regulatory Affairs Storage Tank Division by:

• FAX ( using form (BFS-3826) to 517-332-1428 or 517-332-1427
• E-mail (using form (BFS-3826) to LARA-UST-AST@michigan.gov

"Visible evidence" means presence of a product sheen on water or stained soils. "Olfactory evidence" means the smell of product odors in soils or water within the tank or pipe excavation.

Positive indication from field monitoring equipment such as H-Nu meters, organic vapor analyzers, or combustible gas detectors constitutes a suspected release. However, the owner/operator may report a suspected or confirmed release anytime they believe one has occurred.

Once a release is confirmed and reported within 24 hours, specific tasks and associated reports are required to be submitted to the Michigan Department of Environment, Great Lakes, and Energy (EGLE). At any time prior to the regulatory due date, upon completion of all required tasks, a Closure Report (CR) may be submitted to EGLE. Part 213 requires the following reports:

• Initial Assessment Report (IAR): requires information related to the initial abatement measures, and site investigation. The IAR is required to be submitted to EGLE within 180 days of the release.
• Final Assessment Report (FAR): requires full characterization of the impacted media (soil, groundwater, vapor), exposure assessment, corrective action and timelines for task completion. The FAR is required to be submitted to EGLE within 365 days of the release.
• Corrective Action Plan (CAP): provides a detailed description of method and means to address the impacted media and mitigate exposures. The CAP is submitted as part of the FAR and has the same submittal time-frame requirement.
• Closure Report (CR): documents the completion of all investigation and corrective action. The CR often includes restrictions on exposures to impacted soil and/or groundwater to remain in place. There is no specified timeline on submittal of a CR.

For confirmed release(s) for which the claim was approved, eligibility for work begins at the date and time the release was discovered. The exception to this is a suspected release(s) that is upgraded to confirmed, in which case eligibility begins 24 hours prior to the date and time the release was upgraded to confirmed.

• Amend the facility’s affiliated underground storage tank registration with LARA
• Following the updating of registration with LARA the Transfer of Claim Submittal Form, which can be found on our webpage, needs to be completed and submitted to MUSTA for review

Assuming the new release meets MUSTA eligibility requirements and is eligible for MUSTA coverage, these situations will be reviewed on a case-by-case basis. If possible, MUSTA expects that costs associated with the ineligible release(s) to be separated from those related to the new release. If this cannot be done as in the case of comingled plumes a cost allocation may be requested by MUSTA.

At BLDI, we understand the impact to you as a result of a confirmed release is not isolated to just the physical release from your UST system. Rather, it’s often the greatest single factor affecting the value of your property, the value of your business, and the means for you to retire. It influences your ability to refinance your loan, sell your business/property or, often more important, transition the property to the next generation. We’re here to help you assess your options for being in the best possible situation when it’s time for you to deal with your Underground Storage Tank (UST) system and that’s why we developed our “UST 360” tool. The “UST 360” tool includes:

• Your personal, business, and financial goals
• The history, design, and compliance of your UST system
• Insurance or state fund issues
• The past, current, or future cleanup issues
• Your future plans to upgrade your system, refinance, sell, retire, or transition the business

BLDI will work to use every tool that we can to ensure that you have coverage for your new confirmed release. As stated above, the “UST 360” tool was created to ensure that we can effectively minimize the stress on your business when a confirmed release occurs from your underground storage tank (UST) system. MUSTA will cover costs related to the restricted[1] closure of a confirmed release according to their schedule of costs[2]. Yes, some costs are not covered by MUSTA; however, BLDI works within MUSTA’s schedule of costs to ensure that any cost to you is minimal.

[1] MUSTA will cover costs that results in the restricted closure of a Site. A restricted closure means that some activities (i.e., use of groundwater, uses of the property) will be prohibited on the Site. Depending on the levels of contamination, some limited remediation may be covered by MUSTA; however, costs to remediate the Site to ‘non-contaminated’ or ‘pre-release’ levels will not be covered.

[2] Occasionally, EGLE will require activities that MUSTA may not cover under their schedule of costs. When this happens, BLDI will explain the circumstances and try to minimize costs to you as must as possible.