Sylvie Willis
There are several reasons why someone might want to install a fuel tank on their property. For example, storing your own diesel fuel on-site can be more convenient and efficient, as well as offering more control over costs. However, there are also many considerations to take into account, such as the costs and liabilities of installing and maintaining a fuel tank, as well as the environmental impact and potential for soil and groundwater pollution from leaks. It is also important to be aware of any federal, state, and local laws and regulations that must be adhered to when installing a fuel tank.
Characteristics and considerations for installing a fuel tank on your property
| Characteristics | Values |
|---|---|
| Size | Tanks can range in size from 500 to 30,000 gallons. Tanks over 1,000 gallons may be subject to Environmental Protection Agency (EPA) regulations and require registration and testing. |
| Type | Above-ground storage tanks (ASTs) are a common choice for construction fleets due to their ease of inspection, maintenance, and relocation. However, they are susceptible to vehicle damage, theft, vandalism, and natural disasters like high winds and flooding. |
| Cost | You may need to rent or purchase a tank, and fuel costs will apply. On-site tanks can provide cost savings through bulk fuel purchases, lower prices, and reduced delivery service wait times. |
| Convenience | On-site fuel tanks offer convenience by eliminating the need to visit gas stations, saving time and payroll costs. |
| Control | On-site tanks provide greater control over fuel costs by allowing you to monitor fuel usage, track information, and cut down on waste and theft. |
| Efficiency | On-site tanks can improve efficiency for businesses with fleets of vehicles or equipment, leading to increased productivity and profitability. |
| Maintenance | Proper tank design and maintenance are crucial to prevent fuel contamination and leaks. Regular tank content sampling and analysis can help identify issues. |
| Regulations | Federal, state, and local laws and regulations govern the installation and use of fuel tanks. It is essential to research and comply with these regulations to avoid legal and environmental issues. |
| Refilling | Contact a bulk fuel dealer or a fuel delivery company to refill your tank. They usually have minimum delivery requirements based on your location. |
| Risks | Fuel tanks carry risks of soil and groundwater pollution from leaks and spills. Underground tanks may pose additional risks during property transactions, and proper removal and closure reports are essential. |
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What You'll Learn
Pros and cons of having a fuel tank on your property
There are several pros and cons to having a fuel tank on your property.
Pros
Having a fuel tank on your property can give you more control over your fuel costs. You can monitor who is using the fuel, when, and for what purpose. This can help you cut down on costs, eliminate waste, and prevent theft. Additionally, you can take advantage of lower prices by purchasing fuel in bulk at a discount compared to retail gas stations and buying fuel when prices decrease. Having a fuel tank on-site can also be more convenient and save you time and money by eliminating the need to go to a gas station, especially if the nearest one isn't close. This can be particularly beneficial for large companies with fleets of vehicles or those using heavy machinery.
Cons
One of the main downsides of having a fuel tank on your property is the risk of theft. Fuel is a valuable commodity, and it may attract thieves, including dishonest employees. Additionally, there is a risk of leaks and spills, which can be costly to clean up and may result in environmental contamination. The cost of cleanup for spills averages $130,000. You will also incur the cost of either renting or purchasing a tank, which can be expensive, ranging from $400 to $2,000 for a propane tank. If you decide to sell your property, having a fuel tank may be seen as a red flag by potential buyers, mortgage lenders, or insurance companies, potentially reducing your buyer pool. Furthermore, as the tank owner, you are liable for any repairs and maintenance, which can be a significant responsibility.
Overall, while having a fuel tank on your property can offer certain advantages, it is essential to carefully consider the potential liabilities and costs associated with ownership or rental.
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Regulations and liabilities
If you have a fuel tank on your property, you must comply with certain regulations and liabilities. The Environmental Protection Agency (EPA) has specific regulations for fuel tanks, and the requirements vary depending on the size of the tank and its usage. If your tank is 1,000 gallons or less and is used for personal use on your private property, you are likely exempt from EPA regulations. However, if your tank exceeds 1,000 gallons, even if it is on your private property, you must adhere to the same regulations as a commercial gas station.
It is important to be aware of the liabilities associated with owning a fuel tank. The most significant concern is the risk of fuel theft. This can occur through dishonest employees accessing fuel for their vehicles or those of their friends and relatives, particularly when fuelling outside of regular business hours. To mitigate theft, modern fuel pumps offer secure keypads with PINs linked to specific employees and vehicles. Additionally, ensuring the tank is visible but not easily accessible, well-lit, and within camera view can enhance security.
Another liability is the potential for spills and leaks. The cost of cleaning up a diesel spill can be substantial, averaging $130,000. To prevent spills, it is recommended to place the tank in a secure location, away from the property's entrance and exits, and surround it with a fence and a heavy lock. Regular inspections and maintenance of the tank are also necessary to identify potential issues and ensure compliance with safety standards.
Financial responsibility is also a crucial aspect of owning a fuel tank. Owners and operators of regulated petroleum storage tanks are required to have the financial resources to cover the costs of corrective action and compensation for any bodily injury or property damage resulting from a discharge from the tank system. This includes unexpected events such as accidental discharges of petroleum from underground storage tanks.
Before installing a fuel tank, it is essential to obtain the necessary permits from the relevant authorities, such as the city, county, and state. Each locale has its own specific requirements, and there may be fees associated with obtaining these permits. Additionally, having a fuel tank on your property can impact your insurance policy, so it is advisable to consult with your insurance company to understand any potential changes in coverage or costs.
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Installation and maintenance
Before installing a fuel tank on your property, it is important to be aware of the various federal, state, and local regulations that you must adhere to. For instance, in the US, the Environmental Protection Agency (EPA) has certain regulations in place for fuel tanks over 1,000 gallons, and some states have their own regulations for tanks of any size. Therefore, it is crucial to research the laws and regulations specific to your location before installing a fuel tank.
When choosing a fuel tank, consider opting for a reputable company that provides tanks that meet the required standards and approvals. For example, Western Global offers fuel tanks that adhere to approvals and standards such as US DOT, UL142, and UNIBC. Their tanks are also double-walled, providing an extra layer of security and simplifying the inspection process.
Once you have selected a compliant fuel tank, the next step is to allocate a safe place for installation. It is recommended to install the tank on firm, level ground, away from potential health and safety risks and any residential or office buildings. Placing the tank on a paved or asphalt surface can help with pollution prevention. Ensure that you have the correct safety response equipment on standby, such as powder, foam, or spill response products.
After installing the tank, it is important to perform a thorough inspection, especially if it is a second-hand tank. Western Global tanks are designed to be filled to a 95% capacity, which is considered the tank safe fill. It is also recommended to orient the tank in an east-west direction to reduce exposure to solar radiation and prevent fuel tank weathering.
To maintain your fuel tank, regular maintenance is crucial. While regulations vary by state, many require tank "servicing" every 3 to 5 years. However, this does not include the repair of structural issues, which may need to be addressed separately. It is important to follow best practices and invest in advanced monitoring systems to continuously check for leaks, temperature changes, or other potential issues. Proper maintenance can also reduce weathering effects, and in the case of ASTs, placing the tank out of the way can help improve safety and reduce concerns related to vandalism or car crashes.
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Refilling and replacement
Refilling:
When refilling a fuel tank, safety should be the top priority to avoid any accidents or incidents. If you're refilling a propane tank, it's important to turn off the tank valve to prevent any propane from leaking out. Place the tank upright and secure it to avoid any movement during transport. Cushioning the cylinder with a towel or placing it in a box can help with this. Ensure proper ventilation by opening windows during transport. Identify a nearby refill station that can cater to your specific fuel needs.
Replacement:
In some cases, you may need to replace your fuel tank, especially if it is damaged or outdated. Replacing a fuel tank can be a complex process, and it's important to consider the regulations and requirements in your area. If your fuel tank is underground and over 1,000 gallons, it likely needs to be registered and tested to comply with Environmental Protection Agency (EPA) regulations. Some states have their own regulations as well, so it's essential to be informed about the rules in your specific location. The replacement process can vary depending on the make and model of your tank and the accessibility of fasteners and surrounding components. In some cases, you may need to replace tank supports, hardware, hanger straps, and bolts. It's recommended to consult a professional or a mechanic to ensure the job is done safely and correctly.
Refilling Best Practices:
To ensure the best results when refilling your fuel tank, consider the following:
- Allow an expert to refill your tank whenever possible. They have the knowledge and experience to do it correctly and safely.
- Know the correct weight of your cylinder at full capacity to avoid underfilling or overfilling.
- Frequently wipe down your tank to remove dust and debris, as this can help extend its lifespan.
Replacement Considerations:
When it comes to replacing your fuel tank, here are some points to keep in mind:
- If your tank is damaged or outdated, replacement may be necessary.
- Consider the regulations and requirements in your area, especially if your tank is large or underground.
- The replacement process can vary, so it's important to consult resources or professionals familiar with your specific tank.
- Be prepared for potential costs associated with replacement, including parts and labor.
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Selling a property with a fuel tank
If you're selling a property with a fuel tank, there are several factors to consider. Firstly, it's important to understand the regulations surrounding fuel tanks, which can vary depending on your location. For example, in some states, if your fuel tank is over 1,000 gallons, you may be subject to the same regulations as a gas station. Additionally, mortgage companies are increasingly requiring environmental investigations to avoid future lawsuits over underground pollution. As a result, a fuel tank on your property may raise red flags for potential buyers, mortgage lenders, and insurance companies.
To make your property more attractive to buyers, you may want to consider removing the fuel tank before putting it on the market. This can be a complex and costly process, especially if the tank is underground. In some cases, you may need to obtain a decommission letter from the relevant environmental authority, which involves emptying and properly decommissioning the tank. Soil testing may also be recommended to check for any leaks or contamination, which can be costly to remediate.
If you choose to sell the property with the fuel tank still in place, be prepared for serious negotiations with the buyer. They may insist on soil testing and a risk assessment, and may even request a discount to cover future problems or removal costs. Additionally, your property may spend more time on the market as many buyers are wary of the risks and costs associated with fuel tanks.
On the other hand, having a fuel tank on your property can also be advantageous. It can provide convenience, control over fuel costs, and efficiency, especially if you have a large company with a fleet of vehicles or equipment. Additionally, buyers may use the presence of a fuel tank as a negotiating tool to secure a better deal. By understanding the issues and working with certified professionals, both parties can benefit from the situation.
Overall, when selling a property with a fuel tank, it's important to be transparent and proactive. Disclose the presence of the tank to potential buyers and consider having the necessary tests and documentation ready. By addressing any concerns early on, you can increase the chances of a smooth and successful sale.
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Frequently asked questions
There are several benefits to installing a fuel tank on your property. Firstly, it is convenient, saving you time and money by not having to go to a gas station. Secondly, you have more control over costs as you know who is getting the fuel, for what vehicle, and when. Lastly, you can purchase fuel in bulk at a lower price and don't have to wait for fuel delivery services.
There are several potential drawbacks and liabilities to consider when installing a fuel tank on your property. Firstly, there is a risk of theft, spills, or leaks, which can lead to soil and groundwater pollution. Secondly, there may be additional costs such as tank rental or purchase, and you may be subject to various federal, state, and local laws and regulations. Finally, above-ground storage tanks (ASTs) are vulnerable to high winds, flooding, theft, and vandalism.
If you're interested in getting a fuel tank installed on your property, start by checking your local laws and regulations to ensure compliance. You can then contact a bulk fuel dealer or a local fuel delivery company, who will usually provide a tank when delivering fuel. Additionally, consider reaching out to companies that specialize in tank installations, as they can guide you through the process and ensure compliance with regulations.
