JANUARY 11, 2008 - ONTARIO UNDERGROUND STORAGE TANK REGULATIONS

There are changes to the laws governing underground storage tanks in Ontario. A new Liquid Fuel Handling Code 2007 became effective September 1, 2007. The code applies to all tanks that store liquid fuels for motive purposes (i.e., gasoline and diesel). The changes in this code may require you, or your client, to conduct additional investigation, remediation and/or reporting. PGL can interpret how these changes affect you and your site and we have provided an overview for your information.

Underground storage tanks (USTs) are the most common environmental contamination issue for properties, simply because many USTs leak. Leakage is a problem from perforation due to age (corrosion), and more commonly, from leaks in joints, failures due to settlement or improper installation, or simple overfilling. Leakage becomes a greater problem with age, such that 20 years is regarded as the safe service life of an UST.

Leak testing is used by many to assess the integrity of a tank but can lead to a false sense of security. Leak testing systems can only find leaks above a certain rate, and for example cannot detect a drip. This is important when you consider that a regular drip can lead to a discharge of 2,000L per year, far more than most spills.

The environmental problems that can arise from USTs, and the costs related to simply assessing if they have leaked, in almost every case far outweigh any convenience of a buried tank. We customarily recommend that all clients that do not absolutely require USTs, decommission and remove them, and replace them (if at all) with aboveground systems which allow complete visual inspection.

Most USTs in Ontario are regulated by the Technical Standards and Safety Authority (TSSA). Some of the items not regulated by the TSSA but that may be stored in underground tanks include waste oils and solvents. Regulations and codes are in place for motive fuels such as gasoline and diesel for vehicles and for fuels used for appliances such as boilers, heaters or generators. Environmental aspects of fuels are governed by the TSSA's Environmental Management Protocol for Operating Fuel Handling Sites in Ontario.

The regulations and codes are complex documents and therefore PGL has highlighted a few key aspects that may affect your operations or property transaction below:

• All USTs that have been out of service for two years are to be removed.
• USTs installed after May 1, 1974 under Ontario Regulation 532 Gasoline Handling Act, or USTs of an unknown date are to be upgraded as per Liquid Fuels Handling Code 2007.
• Removal is to be conducted by a TSSA-certified contractor, and an environmental professional is to conduct an assessment during the removal.
• A record of the removal and assessment is to be provided to the TSSA.
• There are various conditions that require reporting to the TSSA. These include discovery of sheen or free product (hydrocarbon floating on groundwater surface), contamination found on property boundary, or contamination exceeding specified levels. Following the reporting to the TSSA, a management plan is required for these issues and TSSA approval of the plan.

Some of the recent environmental changes to the Liquid Fuels Handling Code 2007 include a requirement that assessment reports be submitted to the TSSA for the removal of all underground tanks and aboveground tanks greater than 5,000L. The code also requires that facilities that have discovered a leak in a single-walled pipe shall replace the piping system within 12 months of discovering the leak.

If you have questions or issues related to USTs, fuelling systems or contamination, please feel free to contact one of PGL's experienced professionals for assistance. PGL has removed over 1,000 USTs and has extensive experience in issues related to USTs and subsurface contamination.