Proactive Petroleum Storage Tank Replacement

Ensuring Safety For Healthcare Facilities 

Healthcare facilities rely on secure petroleum storage tanks to keep their operations in compliance with emergency fuel capacity. This makes proactive tank replacement crucial, as it can help maintain compliance with regulations, prevent unexpected fuel disruptions, and even save money in the long run.  

Watch the video below to see how much money you could end up saving with a plan in place for your storage tank replacement.

 

Top 3 Issues with Old Tanks

Facility owners and managers need to weigh the risks, potential insurance liabilities, and disruption to operations caused by an old petroleum storage tank system. Is delaying the replacement of an out-of-date system in your best interest? In GHP’s experience, the answer is often no. It is not worth relying on an older storage tank system for critical operations. The top problems we’ve seen are:

  1. Heightened Risk of Fuel Release

    As tanks reach the end of their lifespan, they can develop a multitude of issues that require ongoing and frequent attention. Old tanks often have sludge build-up, corroded piping and fittings, water intrusion, or a lack of double-wall containment. Utility work or tree roots from nearby landscaping can put underground fuel lines at risk. These issues lead to increased maintenance costs and risk of fuel corruption or release.  

    Additionally, fuel level probes and monitors only detect fuel release if it is below the average fuel volume. This means a storage tank can have a hole near the top that remains undetected until water infiltrates, petroleum vapors are detected, or an ullage test is conducted. Simple water intrusion can contaminate the stored fuel or even be distributed to critical equipment. Undetected problems like these pose a significant risk, especially for facilities with critical infrastructure, like hospitals that need a reliable and clean fuel supply. During an emergency, an older storage tank could become a critical issue. 

  2. Struggling with Compliance 

    As petroleum storage tanks age, maintaining compliance with current regulations becomes more and more challenging. Many facilities struggle to keep up-to-date inspection and maintenance records, with some being outdated by months or even years. This puts the facility at risk of violations and penalties. There are also numerous instances of tanks being misregistered or, even worse, unregistered. Keeping up with regulatory notification and environmental compliance not only avoids fines but also ensures the safe operation of the tanks at your facility. 

  3. Human Error and Its Consequences 

    The most common failures GHP sees with older tanks involve human error. Incidents such as overfilling a tank, relying on tank inspection for leak detection, or accidentally puncturing a tank or line with heavy equipment can require an emergency response.  However, the most significant concern arises when a tank fails. This results in an unknown and significant loss of fuel into the environment.

For hospitals who need critical infrastructure, this isn’t an option. They must immediately have a backup source of fuel in the event of a power loss. When a petroleum storage tank fails in its primary purpose, supplying a temporary supply source is a costly solution. Healthcare facilities can spend more than $60,000 renting temporary fuel storage.

 

Ensuring Compliance with Regulations 

One of the crucial steps to keeping your petroleum storage tanks in environmental compliance is following federal and local regulations. The Environmental Protection Agency has rules for petroleum storage tanks, and individual states can file for primacy of their program. These state programs must be at least as strict as the federal program but are often times more stringent. In addition to state regulators, the local fire marshal plays a significant role in overseeing petroleum storage and codes compliance.

To ensure you meet the standards set by these various authorities, it's essential to:

  • Conduct federally mandated monthly and annual walkthrough inspections.

    Unfortunately, many facilities fail to adhere to even this basic requirement, which can lead to compliance issues.

  • Establish a proper schedule for conducting these in-house tank inspections.

    Many times, it is even better to have a third-party assessment to determine potential problems and develop a compliance program.

  • Maintain open communication with authorities and stay informed about the law.

    This includes keeping updated about regulatory changes or current interpretation of rules. Seeking professional assistance and training from local vendors is the best way for facility managers to navigate the complex world of petroleum storage tank compliance.

 

3 Most Important Indicators of Preventative Replacement 

If facility managers want to ensure the safety and efficiency of petroleum storage tanks, they need to recognize the signs that a tank may need to be preventatively replaced. In order of importance, the key considerations are:

  1. Corrosion protection

    The presence of a corrosion protection system is the top indicator of the need for a preventative tank replacement. If your tank has corrosion protection, then it has some portion of exposed steel. Steel that lacks adequate corrosion protection or has a history of corrosion protection-related issues is more susceptible to pitting and holes. Down the line, that means leaks and fuel contamination. Upgrading to a newer tank with built-in corrosion protection or made of a non-corrosive material can minimize these risks and ensure long-lasting performance.

  2. Age of the tank

    The age of your tank provides a very easy guide to whether you need to plan for replacement. Many older or lined-steel tanks were not manufactured to hold modern refineries’ petroleum formulas. Generally if a tank is over 30 years old, it is out of warranty and the best option is to start planning for replacement, regardless of its current condition. Advancements in technology and materials have improved the durability and efficiency of modern tanks.

  3. Single-walled construction

    Tanks with single-wall construction are more vulnerable to leaks and spills compared to double-walled tanks required by current regulations. If your facility uses single-wall tanks, consider upgrading to double-wall tanks to enhance safety and reduce liabilities.

 

The Path to Preventative Tank Replacement 

Being proactive about tank replacement helps ensure the longevity and safety of your fuel supply. This starts with an initial audit. GHP can gather information about the age, registration, and environmental compliance issues related to your tanks. This data will pinpoint the best time to invest in a new fuel system.

To pave the way for preventative tank replacement, you should: 

  • Evaluate the age and condition of your tanks: Check the age of your tanks and inspect them for signs of deterioration, corrosion, or recurring minor issues. Early detection is the best way to address problems before they escalate to more significant issues. 

  • Consider compliance records: Analyze any past compliance issues and how they were resolved. This can provide insight into whether your tanks require replacement or if improved maintenance and monitoring can keep them operating within regulations. 

  • Seek professional opinions and recommendations: Engage third-party experts such as GHP early on to conduct thorough assessments of your tanks. They can recommend when a tank replacement or other upgrades are the best course of action for your facility's budget and safety priorities.

 

How to Maintain Compliance 

Once you've established a plan for a preventative replacement, it's important to set up your tanks for success to ensure ongoing compliance. Working closely with professionals and vendors can help you develop a customized maintenance and monitoring schedule that meets both federal and local regulations, as well as your facility's specific needs.

  • Develop a regular maintenance schedule: Create a schedule for routine inspections, maintenance, and monitoring to ensure that your tanks remain in optimal condition. This can help you detect and address potential problems before they turn into significant issues or compliance violations. 

  • Implement training and support: Invest in training for your facility managers to ensure they have the necessary skills to maintain and monitor tanks. Partner with local vendors to provide support throughout the varied stages of tank management. This helps facility managers and maintenance personnel establish a solid foundation for ongoing success. 

  • Stay informed about changes in regulations: Keep updated on any changes to federal, state, and local regulations governing storage tanks. Regular communication with regulatory authorities and attending relevant industry events can help you stay informed and ensure your facility remains compliant. 

 

The Benefits of Preventative Replacement 

We encourage facility owners and managers to be proactive when it comes to aging petroleum storage tanks. Conduct regular maintenance and inspections, keep compliance records up-to-date, and address potential issues before they escalate. In many instances, investing in tank replacement is the best long-term plan for the overall facility. New storage tank systems have the added benefit of greater automation and protective redundancies.

Petroleum storage tank replacement is inevitable for facilities that need a backup fuel supply for critical infrastructure. It’s a large investment, but there are long-term cost savings in developing a plan and having control over the replacement:

  • Coordinate tank replacement within a facility’s operations, resulting in reduced overall impact on a facility. That luxury is no longer available if there is an emergency fuel loss.

  • Avoid deeper involvement from federal, state, and local regulators. If there’s an emergency and government authorities direct things, that leads to additional costs, possible regulatory fines, and interference with facility operations. 

  • Have the opportunity to budget for the replacement and spend today’s dollars on it. A five-year delay represents a 20% increase in costs for the same project.

The benefits of a preventative tank replacement plan far outweigh the upfront cost. Healthcare facilities can achieve significant long-term cost savings, maintain compliance, improve operational efficiency, and contribute to a more sustainable environment by proactively investing in modern petroleum storage tank systems.  

 

Why You Need to Engage Tank Experts Early On 

Working with tank experts to help navigate regulations is essential for the success of your proactive tank replacement plan. Professional consultants have the knowledge and experience to assess your facility's current tank infrastructure, identify potential issues before they escalate, and offer customized solutions tailored to your specific needs. All of this leads to cost-effective solutions that ensure continued petroleum supply for your facility.

 

Do you need to assess your petroleum storage tank?
Contact GHP’s Senior Project Manager, Charley Thompson, PG, at
cthompson@ghp1.com or call 615-254-8500. 

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