State regulations (Title 17, Chapter 56, Administrative Rules of Montana) require Underground Storage Tanks (UST) owners and operators to demonstrate financial responsibility for the clean-up or third party liability compensation that results from petroleum release from UST systems. Who must demonstrate financial responsibility? Owners or operators of petroleum UST systems must demonstrate financial responsibility for taking corrective action and for compensating third parties. What UST systems require demonstration of financial responsibility? Financial responsibility requirements apply to underground tanks and piping storing petroleum.
- There are two categories of exclusions that are listed below:
- State and federal owned UST systems,
- Tanks excluded under ARM 17.56.102(2),(3),(4),(5) or (6).
Elements of Financial Responsibility
There are four primary elements that make up the financial responsibility requirements for Underground Storage Tank (UST) Systems.
- Owners or Operators must demonstrate each of the following elements:
- Financial responsibility mechanism
This is the financial assurance option selected by owners/operators.
- Amount of financial responsibility
This is the amount of coverage required that depends on the tank operator and number of tanks covered.
- Scope of financial responsibility
This is the financial responsibility mechanism that must cover the required categories of obligations and releases(e.g., corrective action and third-party compensation).
- Certification This is the documentation that demonstrates the correct financial responsibility mechanisms, coverage amount and scope sufficient.
Certification of Financial Responsibility
Owners and operators must keep certain records as evidence they are currently meeting their financial responsibility obligations. The primary record is the Certification of Financial Responsibility. The regulations require that an updated copy of a correctly worded certification of financial responsibility is maintained. The purpose of the certification is to declare the:
- Mechanism of coverage,
- Name of issuer and,
- Amount of coverage
Every owner/operator must fill out the form below and keep a copy on site:
Mechanisms of Financial Responsibility
Owners and operators have a variety of options available for providing financial responsibility for their UST systems.
If PTRCB Fund is the mechanism selected by owner/operator, first dollar coverage in the amount of $17,500.00 must be documented using one of the mechanisms below, in addition to the Certificate of Financial Responsibility.
The financial statement forms below are available for documentation of the first dollar coverage amount.
Financial Responsibility Mechanisms for Local Governments
Local governments may use the financial responsibility mechanisms available to other Owners and Operators. However, they have the option of using four additional mechanisms that have been tailored to their characteristics.
Amounts of Financial Responsibility
|Group 1 - Petroleum producers, refiners, or marketers|
|Group 2 - Non-marketers|
Scope of Financial Responsibility
The scope of financial responsibility covers:
Sudden and non-sudden