PTRCB Petroleum Storage Tank Removal Costs Reimbursement Policy

Effective: January 18, 2000
Presiding Officer: Tim Hornbacher

Purpose: To establish guidelines to be followed by Board staff pertaining to a recommendation for reimbursement of corrective action costs associated with the removal of petroleum storage tanks.

Board staff will recommend reimbursement for specified costs associated with the removal of petroleum storage tanks only when:

  • The requirement for removal is confirmed in the department’s written approval of the corrective action plan;
  • The removal facilitates the most cost effective corrective action.

Board staff will not recommend reimbursement costs when:

  • The removal is required in accordance with underground petroleum storage tank rules for tank management and operation and/or the Uniform Fire Code.

Petroleum storage tank removal costs not eligible for reimbursement when the removal is approved in the corrective action plan are:

  • Product removal and disposal.
  • Costs for the replacement of a tank or piping or costs of materials, equipment or labor related to the operation, repair, or replacement of tank or piping pursuant to §75-11-307(2)(e), MCA. This includes costs of all bedding material for the installation of new petroleum storage tanks systems.
  • Costs not related to the corrective action plan.

When the petroleum storage tank removal is required by the Department as corrective action:

  • Board staff will have the owner obtain three competitive bids for the tank removal costs. The staff shall reimburse the lowest qualified bid.
  • The bid should include the total cost for sludge removal, sludge disposal, tank removal, and tank disposal)

Note: In controversial cases, prior approval of the corrective action may be evaluated by the Board.

References:

§75-11-307, MCA - Reimbursement for expenses caused by a release.
§75-11-309, MCA – Procedures for reimbursement of eligible costs.
ARM 17.56 – Montana Underground Storage Tank Rules for Tank Management and Operation
Article 79 Uniform Fire Code – Flammable and Combustible Liquids