Petroleum Tank Release Compensation Board

Audit Follow-up-Legislative Audit Committee Meeting January 24, 2024

Memo to Legislative Audit Committee from David Singer, Auditor, Dated December 15, 2023

Memo to Legislative Audit Committee from PTRCB, Dated January 23, 2024

Legislative Audit - For a copy of the Legislative Performance Audit of the Petroleum Tank Release Compensation Board, Audit 20P-01, click here

Audit Corrective Action Plan - to view the Audit Corrective Action Plan, click here

Audit Recommendation #3 - Recommend that the Petroleum Tank Release Compensation Board work with the Department of Environmental Quality to develop a process, seeking legislation, if necessary, whereby remediation projects are competitively bid to bring releases to closure, in accordance with exiting state procurement laws.

Stakeholder Outreach and State Fund Research Regarding Audit Recommendation #3 The Board held a stakeholder outreach meeting on July 22, 2022, along with other telephone and program research.  The results of those efforts was presented at the August 22, 2022 Board meeting and is contained in the packet for that Board Meeting. 

Ongoing research will be conducted, please refer to the agenda's on the Board Meeting accordion or look at our home page for more information.  Also, please subscribe to our interested parties list to get important notifications from our program.  The subscribe button is on the home page. 

The Board is attached to the Department of Environmental Quality for administrative purposes.

About the Fund

Underground storage tanks (USTs) in the United States are primarily used for the storage of petroleum products. They are found at service stations, connected to boilers/steam generators, or connected to emergency generators. The use of petroleum products stored in tanks contributes significantly to the economic well-being and quality of life of U.S. citizens. Leaks, spills, and other releases of petroleum products from storage tanks endanger public health and safety, ground water quality, and other state resources.

It was not until catastrophic UST failures and large-scale groundwater contamination occurred in several other states that Congress recognized the need for UST regulation. Because nearly one-half of the United States relies on groundwater as a source of drinking water, the need for UST regulation was considered highly important. By enacting Resource Conservation and Recovery Act (RCRA) Subtitle I in November 1984, Congress required operational standards for USTs and response standards that would protect human health and the environment from potential UST releases.

In 1988, the Environmental Protection Agency published final regulations setting the minimum technical standards for new and existing USTs and required owners or operators to demonstrate financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by an accidental petroleum release. It was evident that adequate financial resources need to be available, either public or private, to address problems caused by releases from petroleum storage tanks.

The Montana Legislature determined that public funds would be necessary to support a program of release detection for petroleum storage tanks and to assist owners and operators with corrective action costs from a petroleum release. The Legislature determined that proper funding for the prevention program and the cleanup fund would be financed through a petroleum storage tank cleanup fee paid by persons who use and receive the benefits of petroleum products (75-11-314, MCA).

The Montana Petroleum Tank Release Cleanup Fund (Fund) was created in 1989 to provide adequate remedies for the protection of the environmental life support system from degradation by petroleum and to provide adequate remedies to prevent unreasonable depletion and degradation of natural resources by petroleum use. The cleanup fund was established as a state special revenue fund (ARM 17-1-101(4)(b)) and is administered as a revolving fund by the Petroleum Tank Release Compensation Board (Board).

Goals & Objectives for the 2025 Biennium

To meet the intent and purpose established by the legislature, the Board has directed its efforts towards fiscally responsible management of the cleanup fund. As part of fund administration, the Board intends to:

• Ensure that funding is available to obligate to all releases ranked in the highest priority by the Waste Management and Remediation Division of the Department of Environmental Quality. These releases usually consist of those about which little is known, because they have not been investigated, or are known to have an environmental concern.
• Reimburse completed claims for obligated corrective action within usual customary business time frames.

PTRCB Statistics

Updated through October 2024

As established in 2-15-2108, Montana Code Annotated, the Board consists of seven (7) members that are appointed by the Governor of Montana. Its membership includes:

• a representative of the financial or banking industry with experience in small business or property loans;
• a representative of the petroleum services industry or a representative of the petroleum release remediation consultant industry;
• a representative of independent petroleum marketers and chain retailers;
• a representative of the general public;
• a representative of service station dealers;
• a representative of the insurance industry;
• and a person with a background in environmental regulation.

Board members serve a term of membership lasting three (3) years. Members often indicate their willingness to serve another term and frequently get reappointed. The members serve without pay, but are entitled to reimbursement for travel and per diem.

If you are interested in being a Board member visit the Governor's Boards, Councils & Commissions web page. Select "Apply or Recommend" and obtain a Recommendation for Gubernatorial Appointment application form. Be sure to indicate Petroleum Tank Release Compensation Board in the Boards, Councils & Commissions Recommending For text box (top of page 2).

Current Board Members

• The November 18, 2024 Meeting will be held in *Room 111 of the Metcalf Building.  Please contact gpirre@mt.gov or taylor.pirre@mt.gov for a zoom invitation to join online.

**Please note that any information that you would like to have the Board review must be provided to the Board staff by the Agenda Close date for the meeting you are presenting at.  That information is delivered to the Board to allow the 10 days of review required by law. Any presentation materials that are not part of the packet but are brought to the meeting for dissemination may result in the matter being tabled by the Board for a subsequent Board meeting to provide time for Board review.  Materials must be submitted to PTRCB via USPS at PO Box 200902, Helena, MT 59620-0902 or by email.

2024 Meetings

2023 Meetings

How to Apply to the Fund

Complete an Application for Petroleum Release Eligibility (Form 1R)

• All past and present tanks at a facility must be listed on the eligibility form.
• The form must have the notarized signature of the owner/operator.
• Return the form to the Petroleum Tank Release Compensation Board to the address provided on the form, as soon as it is completed.

Voluntary Registration

An owner or operator may register a petroleum storage tank with the Board for the purposes of determining potential eligibility for reimbursement under the Petroleum Tank Release Cleanup Fund, prior to the discovery of a release at a facility.  A voluntary registration with the Board is sometimes done as part of a property transaction so that the buyer has knowledge of potential eligibility before the facility is purchased.

How to Register a Petroleum Storage Tank with PTRCB

Complete an Application for Voluntary Registration of Petroleum Storage Tanks (Form 1V)

• All past and present tanks at a facility must be listed on the voluntary registration form.
• The form must have the notarized signature of the owner/operator.
• Return the form to the Petroleum Tank Release Compensation Board to the address provided on the form, as soon as it is completed.

What Happens to the Application?

The review process can take a few months. The Board staff will: 

• review the application for completeness and accuracy,
• seek compliance information from other regulatory agencies, including the following:
  • DEQ Underground Storage Tank program,
  • DEQ Petroleum Tank Cleanup Section,
  • Fire Protection Investigation Bureau,
• Inform the tank owner or operator of the staff recommendation in writing.

If a regulatory agency has reported non-compliance regarding the operation and management of the petroleum storage tank, the Board may find that the owner or operator is ineligible for reimbursement. If the information on the form establishes potential eligibility and no inaccuracies have been discovered, the Board will issue a statement indicating potential eligibility for reimbursement.

Discovered (Found) Underground Petroleum Storage Tanks

To be eligible for assistance from the Petroleum Tank Release Cleanup Fund, administered by the Petroleum Tank Release Compensation Board (PTRCB), owners/operators who discover an underground storage tank must apply to the Department of Environmental Quality (DEQ or Department) for a tank closure permit within 30 days of the date upon which the owner first had knowledge of the tank. They must also close the tank in accordance with the requirements of the permit, before the permit expires. Review: Montana Code Annotated [MCA], Section 75-11-308(1)(b)(iii)

Recommended Steps for Discovered Tanks:

1. Notify the Department of Environmental Quality/Underground Storage Tanks (DEQ/UST) (406-444-0485) of the tank that has been discovered (found tank). DEQ/UST will respond by sending out a Notification Form. Under section VII of the Notification Form, you will find the topic titled Financial Responsibility (see page 2 of the UST Notification Form). Federal and State regulations require the owner or operator of an active underground storage tank system to register the tank with the Department and obtain a proper permit. Part of the requirements of an active UST is financial responsibility. Financial responsibility can be met using several “financial assurance mechanism(s)” and the Petroleum Tank Release Cleanup Fund is one mechanism that can be used to meet most of the financial responsibility requirements for UST systems containing petroleum. Since the Fund does not meet all the financial responsibility requirements for a UST owner, there are a number of mechanisms that can be used to bridge the gap. It is important to note that if the discovered tank has been properly closed in place it should not contain any liquid substance. If there is no liquid in the tank and the tank is not determined to be part of an active dispensing system, Federal and State rules for financial assurance do not apply. Although those rules don’t apply, the owner may want to be able to acquire assistance from the Fund. The Fund rules require the owner to apply to DEQ/UST for a closure permit and to close the tank in accordance with the requirements of the permit, before the permit expires. This action places the tank into a temporary permitted status, which requires the owner to show Financial Responsibility. You, as the responsible party, should obtain a closure permit and properly remove the tank (or properly close the tank in place) so that any release that may have occurred from the tank may be able to receive assistance from the Fund. Please see Underground Storage Website for instructions, definitions and a link to the Montana Certificate of Financial Responsibility Form.
2. Apply to DEQ/UST for a Closure Permit, within 30 days of discovery. Contact them via email at DEQ UST Program, or call (406) 444-5300.
3. Close the tank in accordance with closure requirements and all permit conditions.
4. If it appears that a release may have occurred, report a suspected release to DEQ using the information on the webpage Hotline For Reporting Leaks (1-800-457-0568 or after hours and holidays call 1-406-324-4777).
5. If you want to apply for financial assistance from the Fund, for corrective action costs associated with cleaning up any discovered release, complete an Application for Petroleum Release Eligibility, (Form 1-R).

The Department's UST section maintains a list of Licensed Installer/Removers that can assist you with the closure permit application and tank removal process.

Business Process Flow Charts

These charts illustrate the process that the Petroleum Tank Release Compensation Board (PTRCB), in conjunction with DEQ, uses when a petroleum release occurs and the Owner/Operator wishes to apply for eligibility and potential reimbursement of the cleanup costs of an eligible release. For more information contact us at 406-444-9710.

Release Eligibility Process Flowchart

Workplan Obligation Process Flowchart

Claim for Reimbursement Process Flowchart

Most of the frequently asked questions for PTRCB are tied to reimbursement decisions recommended or made by the staff or the Board.  To provide more clarity about the considerations and criteria undertaken in coming to these decisions there will be a general overview of the legal construct that guides our decision making and then more specific information regarding specific topics that are recurring.

More To Come 

Copay:

When two parties pay part of the expenses, it’s called cost sharing. Deductibles, coinsurance, and copays are all examples of cost sharing. Understanding how these work help you know when and how much you have to pay.

A deductible is the amount you pay for services before your insurance begins to pay. Let's say your plan's deductible is $1,000.00. That means for most services, you'll pay 100 percent of your expenses until the amount you pay reaches $1,000.00. After that, you share the cost with your plan by paying any coinsurance or copays.

Coinsurance is your share of the costs of a service. It's usually figured as a percentage of the amount allowed to be charged for services. You start paying coinsurance after you've paid any required deductible.

A copay is a fixed amount you pay for a service, usually when you receive the service. In some plans the copay amount can vary by the type of service. Most plans have a specified copay amount by type of service. For example, most individuals are familiar with medical plans where a doctor’s office visit might have a copay of $25. The copay for an emergency room visit will usually cost more, such as $250.

The Petroleum Tank Release Cleanup Fund does not have a deductible or a coinsurance requirement. It does, however, have a copay requirement. The copay requirement varies by the type of petroleum storage tank that the release occurred from.

For a release from a heating oil tank when product is for consumptive use on the premises where it is stored or from a farm or residential tank with a capacity of 1,100 gallons or less that is used for storing motor fuel for noncommercial purposes, the copay is 50 percent of the first $10,000 of eligible costs (50% of $10,00.00 = $5,000.00). Once the copay is met, the Fund reimburses 100 percent of subsequent eligible costs up to a maximum total reimbursement of $495,000.

For a release from any other type of Fund-eligible tank, the copay is 50 percent of the first $35,000 of eligible costs (50% of $35,000.00 = $17,500.00). Once the copay is met the fund reimburses 100 percent of subsequent eligible costs, up to a maximum total reimbursement of $982,500.

Since the copay is 50 percent of eligible costs, the owner is responsible for half of every corrective action expense that is determined to be Fund-eligible and determined to be actually, reasonably, and necessarily incurred to clean up the release. The owner remains responsible for 100 percent of any costs that are not considered eligible or actually, reasonably, or necessarily incurred to clean up the release.

There are several qualification requirements for a tank to be eligible for the Fund. Releases must be discovered and reported to the Department of Environmental Quality (DEQ or department) on or after April 13, 1989, must be in compliance with certain petroleum storage tank requirements, and must remain in compliance with certain storage tank requirements.

In order for costs to be reimbursable from the Fund the costs must be associated with cleanup, must be part of a department-approved corrective action plan, must be Fund-eligible, and must be actually, reasonably, or necessarily incurred to clean up the release. As an example, costs associated with upgrading a petroleum storage tank system or any part of a petroleum storage tank system are not considered Fund-eligible costs.

Multiple Funding Sources

Costs paid (or reimbursed to an owner/operator) by an insurer (or grantor) can be considered to have been paid by the owner or operator toward satisfaction of the 50% copay requirements only if:

1. The owner has insurance (or grant) that covers cleanup costs, and
2. The costs the insurer (or grantor) pays or reimburses an owner or operator qualify as fund-eligible and reimbursable costs, and
3. The owner or operator notifies the Board of that reimbursement by filing an Allocation to Copay (Form 11) before applying for reimbursement from the Fund by filing a Claim for Reimbursement (Form 3).

Therefore, the owner needs to decide if they want to have insurance (or grant) dollars go towards their copay. If they do, they need to inform the Board of those costs the insurance company has reimbursed the owner by completing a Request for Allocation of Costs to Co-Pay form (Form 11) and provide it to the Board before applying for reimbursement from the Fund (Form 3).

When an owner has insurance (or grant) funding that is being used to investigate and mitigate a petroleum spill, it can be quite difficult to keep all the financial aspects organized. It is possible to have multiple contractors conducting different aspects of the investigation, remediation, and reconstruction that are invoicing at different times. When these expenses are being covered by multiple sources of funding the financial aspects of the project become quite complicated. In addition, completing and submitting the proper forms, whether requesting allocation of costs to copay, requesting reimbursement from the Fund, or obtaining reimbursement from insurance (or grant) needs to be done accurately and in the proper manner.

The manner in which costs are submitted to the Board is very important and should be coordinated with the other available funding sources. In most instances, a grant or insurance payment received from another funding source can be used to offset the owners co-pay requirement. A Multiple Source Funding Spreadsheet (Form 10) was created to assist owners, or their representative, to harmonize the funding source with the invoice information. The Board recommends that the owner update the Form 10 (or equivalent) for all costs incurred and submit an updated Form 10 each time a Request for Allocation of Costs to Co-Pay (form 11) or a Claim for Reimbursement (Form 3) is submitted.

Corrective Action Claims

Upon completion of any portion of an approved corrective action plan, the owner/operator or remediation contractor acting on behalf of an owner or operator may submit a claim for corrective action costs. 

Claim for Reimbursement - Corrective Action (Form 3):  
Claims should be submitted upon completion of a task or tasks of a Department of Environmental Quality corrective action plan for a single petroleum release.

Request for Allocation of Cost to Co-Pay (Form 11)  (§75-11-307(5), MCA):
This form can ONLY be used if you have received a grant or insurance reimbursement for PTRCB eligible costs. This request may be submitted to seek allocation of costs to the PTRCB co-pay requirement, as allowed by current law, as of April 24, 2015.

Third Party Claim for Reimbursement Form 3-T (§75-11-307)(1)(b), MCA):
Complete this form if a petroleum release from this facility has impacted a third party and the owner or operator of the facility is requesting reimbursement of compensation that has been paid to a third party for bodily injury or property damage. A separate claim must be submitted for each release. In addition, a separate claim must be submitted for each impacted third party. The Petroleum Tank Release Compensation Board may not reimburse for property damage until the corrective action is completed. Note: This form must be signed by the impacted third party and the owner or operator of the facility

Any owner or operator who is sued for damages resulting from a release shall notify the Board within one week of being served with a summons and complaint. The owner or operator shall also advise the Board if any insurer is defending him, and the name of such insurer.

Any owner or operator who, prior to litigation, enters into negotiations with a third party who claims to have been damaged by a release, or who receives a demand for payment of damages to a third party who claims to have been damaged by a release, shall notify the Board of such demand or negotiations.

The Board may review any settlement negotiations for the purposed of determining the dollar amount of bodily injury or property damages actually, necessarily, and reasonably incurred by third parties which, if paid by the defendant, would be considered eligible costs.

Complete instructions for these forms are available on our Forms web page and should be reviewed prior to completing or submitting a claim for reimbursement.

5-Year Rule (§75-11-307(2)(h), MCA): Expenses for work completed by or on behalf of the owner or operator more than 5 years prior to the owner’s or operator’s request for reimbursement may not be reimbursed. The date these forms are received by the Petroleum Tank Release Compensation Board is the date the 5 years is calculated from.

Eligible Expenses: Expenses that are typically eligible may be found in §75-11-307(1), MCA and ARM 17.58.342(1).

Ineligible Expenses: Costs that are typically ineligible may be found in §75-11-307(2), MCA and ARM 17.58.342(2).

Important Tidbits:

• In order for a claim to receive reimbursement the claimed work must be part of a Department approved corrective action plan, and the corrective action plan must be obligated by the Board.
• The Fund reimburses the owner or operator for corrective action costs. An owner or operator may designate a person, including a grantor, as an agent to receive the reimbursement for eligible costs incurred by the person if the owner or operator remains legally responsible for all costs and liabilities incurred as a result of the release. If the owner wants to designate a person they shall complete a Designation of Representative (Form 5) and submit it to the Board.
• Claims for reimbursement for more than $25,000 must be approved by the Petroleum Tank Release Compensation Board at a regularly scheduled meeting unless the Board has directed the staff to reimburse claims associated with work plans the Board has reviewed.
• The Board has granted the staff the authority to reimburse claims less than or equal to $25,000 on weekly reimbursements. The Board will ratify the reimbursement at their next scheduled meeting; if a claim is not ratified by the Board, the claimant will be notified within 15 days.
•  A site summary report which provides a list of the claims submitted and their status can be obtained from the Board staff.  Please contact us for site specific information.

An owner or operator seeking reimbursement for eligible costs shall comply with the Laws regarding reimbursement from the Fund, and procedures established by the Board. Subject to the availability of money from the Fund, an owner or operator who is eligible will be reimbursed by the Board from the Fund for reasonable and eligible costs when the Fund contains sufficient money, indicated by obligation of the work plan.

In accordance with §75-11-307(6), MCA, if the Fund does not contain sufficient money to pay approved claims for eligible costs, a reimbursement may not be made and the Fund and the Board are not liable for making any reimbursement for the costs at that time. When the Fund has sufficient revenue, eligible costs must be reimbursed in the order in which they are approved by the Board. The Board staff is obligating revenue monthly to the releases which pose the greatest threat to the environment.

The Fund’s current financial condition does not negate the requirement to submit claims for reimbursement in a timely manner. The law states that the owner or operator may not be reimbursed from the Fund for expenses associated with work completed by or on behalf of the owner or operator more than 5 years prior to the owner’s request for reimbursement. This limitation does not apply to claims for compensation paid to third parties for bodily injury or property damage. (§75-11-307(2)(i), MCA)

The maximum reimbursement for preparation of standard corrective action plans and standard reports can be found below.

Reimbursement will be made for eligible costs in accordance with MCA, 75-11-309(3)(a)(ii) and ARM 17.58.342. The task names, duties and rate codes are provided below.

The forms below can be filled out on-line, saved, printed, signed, notarized and sent to the Petroleum Tank Release Compensation Board. A W-9 may be necessary for processing some of our forms or for updating our data base - click here for a blank W-9 form - submit to Petro Staff, Garnet Pirre, via hard copy only.

If you would like to receive payment by direct deposit, please use this link for the most up-to-date form: Electronic Funds Transfer - please submit to Fiscal Services at Department of Environmental Quality, PO Box 200901, Helena, MT 59620-0901

If you're experiencing difficulty with our fillable forms in Google Chrome - please try using another browser, such as Internet Explorer.
 

Forms

Unit Cost Worksheets

Checklists

Reference Documents

• Actuarial Report 2016
• Board Reference Guide 2024 (information only) 
• Reimbursement Corrective Action Letter
• Biennial Reports:  2006, 2008, 2010, 2012, 2014, 2016, 2018, 2020, 2022, 2024 
• Legislative Performance Audit 2003  Legislative Performance Audit 2020
• Department of Environmental Quality Draft Standardized Corrective Action Plans and Reports, Department Technical Guidance Documents, Other Documents.

Links of Interest

• Data Search Tool
  • Data Search Tool Notice
• Montana Petroleum Tank Release Compensation Board Laws
  
  • Administrative Rules of Montana
  • Montana Code Annotated
• DEQ Brownfields
  • Brownfields' Main Page
• DEQ Petroleum Tank Cleanup Section (PTCS)
  • Petroleum Tank Cleanup's Main Page
  • Guidance Documents are on the main page in accordion of same name
  • Process Improvement Subgroup Documents
    • Montana Groundwater Monitoring & Sampling Unit Cost Worksheet 
    • Montana Remedial Investigation Guidance Workplan & Report Prep Cost Worksheet
    • Montana Cleanup Guidance Workplan & Report Prep Cost Downloadable
  • MUST News is on the main page under the accordion called MUST News
  • DEQ Work Plan/Report Templates under accordion called Work Plan Review
• DEQ Underground Storage Tanks (UST) Program
  • DEQ Underground Storage Tank's Main Page
  • MT Certificate of Financial Responsibility
• DNRC - Department of Natural Resources and Conservation
  • Montana Department of Natural Resources Main Page
  • Board of Water Well Contractors
  • Reclamation and Development Grants Program
  • Well Abandonment Form
  • Well Data - Ground Water Info Center (MT Bureau of Mines & Geology Data Center)
• Other Related Links of Interest
  • Federal SPCC Rule
  • ASTSWMO Publications