News from the Oklahoma Corporation Commission

Office of Public Information -- Phone: (405) 521-4180 FAX (405) 521-6945

FOR IMMEDIATE RELEASE Contact: Patrick K. Petree Reference: FD3998-16

[Editors: You may wish to localize this story by checking with gasoline marketers in your area about their plans for upgrading underground storage tank systems to meet new federal environmental safety standards that become effective on Dec. 23, 1998.]

EPA Tank Upgrade Rule May Reduce Fuel Sales Network

OKLAHOMA CITY -- An upcoming U.S. Environmental Protection Agency (EPA) deadline will eliminate some of Oklahoma's 4,375 locations for buying gasoline and diesel fuel, but how many may close won't be known until late this year, the Oklahoma Corporation Commission says.

By Dec. 23, petroleum storage tank owners must replace underground tanks installed before December 1988 or equip the old tanks with the same environmental safety devices that are included in newer tanks systems. Tanks not upgraded by the deadline face immediate closure. The EPA says it won't extend the deadline because tank owners have known about it for 10 years.

"Some operators have or will be closing tanks rather than upgrading them. This shouldn't pose any significant disruption for motorists in urban areas where there are many places to buy gasoline, but it could cause inconvenience in some rural communities where there are fewer choices," Ray Smith, Fuel Division director, said.

The Corporation Commission enforces EPA storage tank regulations in Oklahoma. Commission records indicate that only about 4,800 of approximately 16,000 regulated tanks in Oklahoma have been upgraded to meet the new nationwide environmental protection standards.

"We are urging tank owners to make upgrade decisions now to avoid a last-minute shortage of tank systems and tank installers, but all we can do is warn them that the deadline won't be extended. The decision to upgrade or close is a private business matter," Smith said.

Smith said most of the tank system upgrades in Oklahoma have been done by major gasoline marketers.

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Tank Rules - 2

"We don't know what the small independents, the 'mom and pop' operators, are going to do, and I don't think some of them know either. Upgrades are costly. That's certainly a consideration. Low-volume stations are the most vulnerable. For some tank owners, there may not be enough business and income to justify the expense of a tank system upgrade," Smith said.

The Corporation Commission estimates that the cost options for upgrading a typical three-tank filling station in a metropolitan area would be about $8,290 for cathodic protection and spill and overfill devices, $22,680 for relining tanks and replacing lines, or $45,000 for replacing tanks and lines.

Costs would be greater in rural areas where transportation expense would have to be added, and supply and demand factors as the deadline approaches could further boost costs.

Smith said the Corporation Commission will work with the EPA to enforce the closure requirement for tanks that have not been upgraded by the Dec. 23 deadline.

"We hope the disruption won't be significant, but that's a matter for tank owners to decide," he said.

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