That Old Buried Tank Could Be Your Biggest Liability
Many Texas ranches have underground storage tanks (USTs) that were installed decades ago when regulations were minimal and fuel storage was straightforward. These buried tanks, some still in use and many abandoned or forgotten, represent serious environmental and financial liability.
Older bare steel tanks corrode and leak, contaminating soil and groundwater without any visible signs until serious damage has occurred. If you have or suspect you have a UST on your property, you need to know your obligations and options.
The UST Issue
Historical Context
Before the late 1980s, regulations were minimal. Most farm tanks were single-wall bare steel construction with no leak detection or corrosion protection, and many were never properly registered or closed. That matters now because corrosion occurs invisibly underground, slow leaks can release thousands of gallons, groundwater contamination can spread far from the source, and cleanup costs can be catastrophic.
Tank Age and Risk
| Tank Age | Condition | Risk Level |
|---|---|---|
| Under 15 years | Usually good | Lower |
| 15-25 years | Deteriorating | Moderate |
| 25-35 years | Poor | High |
| Over 35 years | Likely failed | Very High |
Regulatory Framework
EPA Requirements
Federal regulations apply to tanks with capacity greater than 110 gallons or combined capacity greater than 1,100 gallons. Requirements include financial responsibility, release detection, corrosion protection, overfill protection, release reporting, and closure requirements.
Texas (TCEQ) Regulations
TCEQ regulates all USTs storing petroleum, with some limited exemptions for farms. To qualify for a farm exemption, the tank must store motor fuel, must be for farm/ranch use only, and must be located on the farm or ranch where the fuel is used. Even exempt tanks carry obligations: you must report releases if they occur and properly close the tank when it's no longer in use.
What "Exempt" Doesn't Mean
A farm exemption does not eliminate cleanup liability, eliminate civil liability to neighbors, or protect you from contamination on your own land.
Signs of UST Problems
Indicators of a Leaking Tank
Aboveground clues include unexplained dead vegetation, sheen in puddles or low areas, water wells showing contamination, and fuel odor when digging nearby. Inventory discrepancies matter too: if records don't match consumption or tank levels drop without use, you likely have a leak. During excavation, look for discolored soil, fuel-saturated soil, and free product in the water.
When to Investigate
Investigate when you notice unexplained fuel loss, when a neighbor reports contamination, when you plan to sell property, when construction is planned near the tank location, or when the tank is over 25 years old.
Discovery of Unknown USTs
Finding a UST You Didn't Know About
This happens more often than you'd expect. Common scenarios include finding a tank during construction, detecting contamination in a well, and investigating odors or vegetation die-off.
Steps After Discovery
- Do not disturb the tank unnecessarily
- Assess the situation - Is it leaking? Still in use?
- Contact TCEQ for guidance
- Get professional assessment if contamination suspected
- Develop closure plan if tank no longer needed
- Address any contamination discovered
Legal Liability
Current property owners are generally responsible for tanks previous owners installed, contamination from tanks on their property, and tanks they didn't even know existed.
Operating USTs Safely
If You Have an Active UST
Leak detection should include tank tightness testing on a periodic basis, line leak detection, and monthly monitoring if required. Maintain the tank with regular inspection of accessible components, immediate repair of any issues, and proper overfill prevention.
Inventory Control
Record all dispensing, calculate daily or weekly balances, investigate any discrepancies promptly, and keep records at least 2 years.
When to Consider Closure
Consider closing the tank when it's aging and approaching 20 or more years, when you cannot meet regulatory requirements, or when converting to aboveground storage (often the better choice).
UST Closure Options
Closure in Place
- Empty the tank
- Clean tank interior
- Fill with inert solid material
- Leave tank in ground
- Site assessment for contamination
- Document closure
Tank Removal
- Empty the tank
- Clean tank (certified firm)
- Excavate and remove tank
- Assess excavation for contamination
- Backfill excavation
- Proper tank disposal
- Document removal
Temporary Closure
Temporary closure involves capping and securing openings, continuing corrosion protection, maintaining monitoring, and closing permanently within time limits (typically 12 months).
Contamination Assessment and Cleanup
Site Assessment
Assessments are needed when contamination is suspected, before property transfer (due diligence), and when TCEQ requires one. The process includes soil sampling, groundwater sampling if applicable, laboratory analysis, and a report to TCEQ.
Cleanup Requirements
If contamination is confirmed, you'll need a corrective action plan, cleanup to TCEQ standards, monitoring until closure is approved, and documentation throughout the process.
Cleanup Costs
| Scenario | Estimated Cost |
|---|---|
| Clean closure (no contamination) | $5,000-15,000 |
| Minor soil contamination | $15,000-50,000 |
| Moderate contamination | $50,000-150,000 |
| Groundwater contamination | $150,000-500,000+ |
| Extensive contamination | $500,000+ |
Financial Responsibility
PST Trust Fund (PSTF)
The PST Trust Fund is available for eligible releases but doesn't cover all costs. The owner must be in compliance, proper claim procedures must be followed, and deductibles apply.
Farm Tank Challenges
Farm tanks often face complications: they may not be in compliance with regulations, exempt tanks may not qualify for the fund, and documentation may not have been maintained.
Insurance
Standard farm policies often have low sublimits for environmental coverage and may require specific endorsements. Look into underground storage tank insurance and pollution liability coverage for better protection.
Property Transactions
Buying Property with USTs
Before buying property with known or suspected USTs, review any available records, consider a Phase I Environmental Site Assessment, negotiate who bears liability, and get representations and warranties. Red flags include old fuel dispensers visible on the property, evidence of former fuel storage, and neighbor complaints about contamination.
Selling Property with USTs
If you're selling, consider pre-sale closure, provide all available documentation, address known contamination, and be prepared for price adjustments.
Converting to Aboveground Storage
Why Convert
Aboveground storage tanks offer easier leak detection, a lower regulatory burden in most cases, less expensive maintenance, and simpler closure or removal when the time comes.
Conversion Process
- Properly close existing UST
- Assess site for contamination
- Address any contamination found
- Install new AST with proper features
- Consider secondary containment
- Register new tank if required
Working with Professionals
When to Get Help
Hire qualified professionals for contamination assessment, cleanup activities, regulatory compliance, and property transactions involving USTs.
Finding Qualified Contractors
Look for experience with farm and ranch sites, references from similar projects, proper insurance, and a solid grasp of the regulations.
Regulatory Assistance
TCEQ offers help through their PST program staff and regional offices.
Quick Reference: UST Decision Guide
Do I Have a UST Issue?
- Do you know or suspect a UST is on your property?
- Is the tank still in active use? If yes, make sure you're in compliance. If no, close it properly.
- Is the tank over 20 years old? That's high risk. Consider closure.
- Have you noticed any contamination signs? Investigate immediately.
- Are you planning to sell the property? Address the tank before sale.
Action Steps
For active, compliant tanks: Put monitoring in place, plan for eventual closure, and consider conversion to AST.
For inactive or non-compliant tanks: Contact TCEQ for guidance, plan for proper closure, and budget for potential cleanup.
For suspected leaks or contamination: Contact TCEQ, get professional help, and document everything.
Bottom Line
Steel tanks over 25 years old have very likely failed, and the farm exemption has real limits. You're still liable for environmental damage regardless of your exempt status. If a previous owner installed a tank on your property, it's your liability now, and you can't just abandon it. Proper closure is required by law.
Contamination spreads once it starts, so act quickly when problems are detected. Cleanup is expensive, but prevention and early action save money. Aboveground storage tanks are often the better long-term choice, so consider converting. Keep all your records, because documentation is critical in UST matters. Professional help is a wise investment given the complexity, and TCEQ's resources and guidance are there for you to use.
Related Articles
- Fuel Storage Tank Requirements
- Spill Prevention and Cleanup
- Diesel and Gasoline Handling Safety
- Fire Prevention Around Fuel
Texas Resources
- TCEQ Petroleum Storage Tanks: www.tceq.texas.gov/permitting/petroleum_storage_tanks
- TCEQ Small Business Assistance: 1-800-447-2827
- PST Remediation Fund: Information on cleanup funding
- TCEQ Regional Offices: Local assistance and guidance
