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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsNovember 2016

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Regulatory Flexibility Act Form

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7 DE Admin. Code 1352
The hearing record on the proposed amendments to 7 DE Admin Code Section 1352 Regulations Governing Aboveground Storage Tanks will be open November 1, 2016. Individuals may submit written comments regarding the proposed changes via e-mail to Lisa.Vest@state.de.us or via the USPS to Lisa Vest, Hearing Officer, DNREC, 89 Kings Highway, Dover, DE 19901 (302) 739-9042. A public hearing on the proposed amendments will be held on December 6, 2016 beginning at 6:00 PM at the DNREC New Castle Office, 391 Lukens Drive, New Castle, DE 19720.
1.1.1 These Regulations are enacted in accordance with Title 7 Del.C. Ch. 60, Environmental Control, and Title 7 Del.C. Ch. 74A, The Jeffrey Davis Aboveground Storage Tank Act.
1.2.2 The following ASTs shall only be subject to the requirements of Part A, § Section 1,; Part A, § Section 2,; Part A § Section 6; and Part A § Section 8; and Part E of these Regulations:
1.2.2.6 ASTs regulated pursuant to Title 29 Del.C. Ch. §8028, Division of Boiler Safety.
1.2.2.7 ASTs and associated equipment regulated as a part of a process regulated pursuant to Title 7 Del.C. Ch. 77 Extremely Hazardous Substances Risk Management Act.
1.2.3 The following ASTs shall only be subject to the requirements of Part A, § Section 1.3; PART A, 1.4; PART A, Section 1.5; PART A, Section 1.6; Part A, § Section 2; Part A, Section 4.1.1; PART A 4.1.3, PART A, Section 4.1.4; PART A, Section 4.1.5; PART A, Section 4.1.6; PART A, Section 4.1.7; PART A, Section 4.1.8, PART A 4.1.9 A, §4.1; Part A, § Section 4.2; Part A, § Section 4.3; Part A, § Section 4.4; Part A, § Section 6; Part A, § Section 8; Part A, § Section 9; and Part E of these Regulations:
1.2.3.1 ASTs used to store Regulated Substance other than diesel, kerosene or Heating Fuel with a capacity greater than 250 gallons and less than or equal to 12,499 gallons
1.2.3.2 ASTs used solely to store diesel, kerosene or heating fuel with a capacity greater than 250 gallons of less than or equal to 40,000 39,999 gallons, and.
1.2.4 ASTs regulated pursuant to 7 Del.C., Ch. 63 and the Delaware Regulations Governing Hazardous Waste shall be exempted from Part E of these Regulations.
1.2.5.2.1 The Natural Gas Pipeline Safety Act of 1968 as amended [49 U.S.C. §1671 et seq.]; or
1.2.5.2.2 The Hazardous Liquid Pipeline Safety Act of 1979 as amended [49 U.S.C. §2001 et seq.]; or
1.2.5.2.3 Pipelines regulated pursuant to 33 U.S.C. and 49 CFR 195 Transportation of Hazardous Liquids by Pipeline; or
1.2.5.2.4 Pipelines regulated pursuant to 46 U.S.C. and 33 CFR 154 Facilities transferring oil or hazardous material in bulk and 33 CFR 156 Oil and hazardous material transfer operations.
1.2.5.7 containment vessels operated as part of a publicly owned treatment works as defined pursuant to Title 7 Del.C. Ch. 60, Environmental Controls, §6002 and regulated pursuant to Title 7 Del.C. Ch. 60, Environmental Controls, §6003 or used for the storage and conveyance of wastewater to a treatment plant regulated in accordance with the requirements of the Clean Water Act.
1.2.6 Agricultural/Farm ASTs, shall only be subject to the requirements of Part A and Part E of these Regulations, provided that the Owner and or Operator shall comply with a written best management practice for the Agricultural/Farm AST, that has been submitted in writing and has received written approval from the approved by the Department and has been appropriately updated for any substantial change of conditions. Failure to comply with the best management practice shall constitute a violation of this subsection subject to all appropriate enforcement sanctions including but not limited to daily penalties.
"Aboveground Storage Tank" or "AST" means a single aboveground containment vessel having a capacity of greater than 250 gallons and currently or previously having contained Regulated Substances on or after January 1,1992. The term includes all ancillary aboveground pipes and Dispensing Systems up to the first permanently installed point of isolation and all ancillary underground pipes and Dispensing Systems. Within this definition, the word "vessel" includes any container that can be partially visually inspected, from the exterior, in an underground area. The term AST does not include any of the following:
"septic tank;
"pipeline facility (including gathering lines) regulated under:
the Natural Gas Pipeline Safety Act of 1968 as amended [49 U.S.C. §1671 et seq.], or
the Hazardous Liquid Pipeline Safety Act of 1979 as amended [49 U.S.C. §2001 et seq.]; or
Pipelines regulated pursuant to 33 U.S.C. and 49 CFR 195 Transportation of Hazardous Liquids by Pipeline; or
Pipelines regulated pursuant to 46 U.S.C. and 33 CFR 154 Facilities transferring oil or hazardous material in bulk and 33 CFR 156 Oil and hazardous material transfer operations.
containment vessels operated as part of a publicly owned treatment works as defined pursuant to Title 7 Del.C. Ch. 60, Environmental Controls, §6002 and regulated pursuant to Title 7 Del.C. Ch. 60, Environmental Controls, §6003 or used for the storage and conveyance of wastewater to a treatment plant regulated in accordance with the requirements of the Clean Water Act.
"Accidental Release" as it relates to Ffinancial Rresponsibility requirements of Part D, means any sudden or nonsudden release of a Regulated Substance from an AST that is deemed at the Department's discretion to represent an unacceptable risk to human health, safety or the environment based on accepted principles of risk assessment.
"Agricultural/Farm AST" means an AST less than 40,000 gallons containing a Regulated Substance, the contents of which are applied to the soil, crops, or livestock or ingested by livestock and used solely to directly facilitate the production of crops, livestock, livestock products or golf course turf. Crops include fish hatcheries, rangeland, cropland and nurseries including turf grass growing operations. Agricultural/Farm ASTs do not include ASTs used to store substances used in a manufacturing process. A manufacturing process does not include Agricultural/Farm ASTs used to store and blend Regulated Substances for retail sales.
"Ancillary Piping" means all piping, including valves, elbows, joints, flanges, and flexible connectors, attached to an AST through which Regulated Substance may flow.
"Annual Aggregate" means the total amount of financial responsibility available to cover all obligations that might occur in one year.
"API" means American Petroleum Institute.
"ASTM" means American Society for Testing and Materials.
"Blanketing" means the technique of maintaining the Ullage volume in a regulated AST below the Limiting Oxidant Concentration (LOC) by the use of an Inert Gas.
"Bodily Injury" shall have the meaning given to this term by State law; however this term shall not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for bodily injury;
"Bulk Storage" as it is used in Part B, Section 12 of these Regulations, means an AST which is used to store a Flammable Regulated Substance and has the Flammable Regulated Substance added to or withdrawn from the AST by a vessel, tanker truck, rail car or pipeline.
"Cathodic Protection System" means a method to prevent corrosion to metal objects by forcing protective current from an external source onto the structure to be protected to counter or overcome any corrosion activity on its surface.
"CERCLA" means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 [42 USC, § 9601(14)] and any amendments thereto.
"Certified API 653 Inspector" means an individual who is certified by the American Petroleum Institute under the terms of the API 653 certification program to perform AST inspections.
"Certified API 570 Inspector" means an individual who is certified by the American Petroleum Institute under the terms of the API 570 certification program to perform piping inspections.
"Certified STI-SP001" means an individual who is certified by the Steel Tank Institute under the terms of the STI certification program to perform Shop-Fabricated AST inspections.
"Change In Service" means any change to a registered AST to include but not be limited to permanent change in nature of contents, Removal, Permanent Change in Contents, Relocation, Permanent Closure in Place, change in status from either In-Service Tank or Out-Of-Service Tank, conversion to storage of other than Regulated Substances or conversion to a use other than as an AST, or when the AST is Emptied.
"Chief Financial Officer" in the case of Local Government Owners and Operators, means the individual with the overall authority and responsibility for the collection, disbursement, and use of funds by the Local Government.
"Combustible" means capable of undergoing Combustion.
"Combustion" means the chemical process of oxidation that occurs at a fast enough rate to produce heat and usually light in the form of either a glow or flame.
Compartmentalized AST” means a single walled compartmentalized AST bearing one Underwriter’s Laboratory (UL) label or a double walled compartmentalized AST sharing the same interstice. A compartmentalized AST is a single tank for the purposes of compliance with all applicable requirements of these Regulations. The total capacity of a compartmentalized AST is the sum of all the compartment volumes.
"Compatible" means the ability of two or more substances to maintain their respective physical and chemical properties upon contact with one another for the design life of an AST under conditions likely to be encountered at an AST facility.
"Consumptive Use" with respect to hHeating fFuel means consumed on the premises where stored, and is used solely for the operation of equipment used for the generation of heat and is connected directly or via a day tank to the heat generating equipment.
"Continuous Leak Detection" means the uninterrupted measurement of the contents or other characteristics or parameters of an AST which immediately notifies the Operator of the failure of an AST to contain a Regulated Substance.
"Controlling Interest" means direct ownership of at least 50 percent of the voting stock of another entity;
Corrective Action” means the sequence of actions, or process that includes confirming a Release, Site Assessment, interim Remedial Action, Remedial Action, monitoring, and termination of the Remedial Action.
Day” means a calendar day; however, when used to determine when a document is due, or an action is required, and the day falls on the weekend or a holiday, the document may be submitted, or the action started, on the first working day after the weekend or holiday.
"Deflagration" means the propagation of a Combustion zone at a velocity which is less than the speed of sound in the unreacted medium.
"Deflagration Pressure Containment" means the technique of specifying the design pressure of a regulated AST and its appurtenances so they are capable of withstanding the maximum pressures resulting from an internal Deflagration.
"Deflagration Suppression" means the technique of detecting and arresting Combustion in the Ullage volume of a regulated AST while the Combustion is still in its incipient stage, thus preventing the development of pressures that could result in a rupture of the AST.
"Department" means the Delaware Department of Natural Resources and Environmental Control.
"Dispensing" as it is used in Part B, Section 12 of these Regulations, means an AST which stores a Flammable Regulated Substance which is transferred directly from the AST into a portable container, or into the fuel tank of a motor, a motor vehicle or a boat to be used as a motor fuel.
"Dispensing System" means any devise including, but not limited to, hoses (rigid or flexible), piping, fittings, fixtures, gauges, alarms, rupture disks, pressure release valves, flanges, or valves and pumps that are used to distribute, meter or control the flow of Regulated Substance to and from an AST.
Effective Date” means the most recent date of promulgation of these Regulations.
"Electrically Isolated" means the electrical separation of the AST from the piping and from other metallic structures and the environment by means of a nonconductive fitting or bushing.
Empty” or “Emptying” means to thoroughly clean the interior of the AST and all Ancillary Piping of all residual Regulated Substances including but not limited to all sludge, solids, liquids, vapors, and gases.
"EPA" means the United States Environmental Protection Agency.
"Existing AST" means an AST for which substantial physical installation began prior to the effective date of these Regulations June 11, 2004. The term substantial physical installation includes, but is not limited to, a permit or contract for the installation.
External Liner” means a layer or membrane constructed of a material compatible with the contents of the AST and is installed inside an existing Secondary Containment structure to provide additional assurance of impermeability.
"Facility" means any location or part thereof containing or having contained one or more ASTs.
"Field-Constructed" means an AST which is constructed by assembling on-site at a Facility.
"Financial Reporting Year" means the latest consecutive twelve month period for which any of the following reports used to support a financial test is prepared:
"Fixed Roof" means an AST which has an immovable roof or cover used as the sole means to either contain the vapors from a Regulated Substance stored within the AST or prevent unwanted contaminants from entering the AST.
"Flammable" means a Regulated Substance which meets the definition of an NFPA 30 Flammable Liquid.
"Floating Roof" means an AST which has a movable roof or cover which floats or rides upon the surface of a Regulated Substance to contain vapors from a Regulated Substance stored within the AST or prevent unwanted contaminants from entering the AST.
"Flow Through Process Tank" means a tank that contains a Regulated Substance or substances and that forms an integral part of a production process through which there is a steady, variable, recurring, or intermittent flow of material during the operation of the process. Flow Through Process Tanks include, but are not limited to, seal tanks, surge tanks, bleed tanks, check and delay tanks, phase separator tanks, or tanks in which physical or chemical change of a material is accomplished. A Flow Through Process Tank does not include: 1) a tank that is used for the storage of material before its introduction into a production process; or 2) a tank that is used for storage of products or by-products from the production process; or 3) a tank that is used only to recirculate materials; or 4) a tank that stores fuel for combustion subsequently used to provide heat for a process.
"Free Product" means immiscible liquid phase Regulated Substance existing in the subsurface with a positive pressure such that it can flow into a well.
"Guarantor" means a business entity that:
Is engaged in a substantial business relationship with the Owner and or Operator and is issuing the guarantee as an act incident to that business relationship.
"Heating Fuel" also known as heating oil, means a type of fuel oil that is one of seven technical grades and is used for heating purposes. These grades are: No. 1, No. 2, No 4-light, No. 4-heavy, No. 5-light, No. 5-heavy, and No. 6 residual and other fuels used as substitutes for one of these fuels such as kerosene and diesel when used for heating purposes. It contains one percent (1%) or more of a petroleum product, or was originally derived from a petroleum product or petroleum containing product.
"Impervious" means a material of sufficient thickness, density and composition that is impenetrable, or has a permeability of less than 1 X 10 7 cm/sec. to the Regulated Substance, and that will prevent the discharge to the lands, ground waters, or surface waters of the State of any Regulated Substance for a period of at least as long as the maximum anticipated time during which the Regulated Substance will be in contact with the material.
"Impressed Current Cathodic Protection System" means direct current supplied to a Cathodic Protection System.
Indicated Release” means there are signs that an AST, or the secondary containment system are failing or could potentially fail to contain a Regulated Substance. Indicated Releases are Releases that are not observable and are not directly attributable to another source.
"Inert Gas" means a gas which is nonreactive with the contents of an AST. Inert gases may include but shall not be limited to nitrogen, carbon dioxide, helium, argon, xenon and krypton. An Inert Gas may consist of a mixture of different inert gases.
"Inerting" means the technique by which a Combustible mixture in the Ullage volume of an AST is rendered non-ignitable by the addition of an Inert Gas which reduces the Oxidant concentration below the Limiting Oxidant Concentration (LOC).
"In Service" means an AST that:
"Leak" means the failure of an AST to contain a Regulated Substance.
"Leak Detection" means electronic, manual or mechanical measurement of the contents or other characteristics or parameters of an AST which notifies the Operator of the failure of an AST to contain a Regulated Substance.
"Legal Defense Cost" means any expense that an Owner and or Operator or pProvider of financial assurance responsibility incurs in defending against claims or actions brought by:
The EPA or the Department to require investigations and/or cCorrective aAction or to recover the costs of investigations and/or cCorrective aAction; or
Any person to enforce the terms of a financial assurance responsibility mechanism.
"Limiting Oxidant Concentration" (LOC) means the concentration of an Oxidant below which a Deflagration cannot occur.
"Local Government" shall have the meaning given this term by applicable State law and includes Indian tribes. The term is generally intended to include:
"Major Repair or Major Alteration" means operations that require cutting, addition, removal and/or replacement of the annular plate ring, the shell to bottom weld, or a sizable portion of the shell of an AST. These include but are not limited to the following:
"Monitor Well" means a well installed in accordance with the Delaware's Regulations Governing the Construction of Water Wells that will be used for the monitoring of ground water quality.
"Motor Fuel" means petroleum or a petroleum-based substance which is typically used in the operation of a motor vehicle, small engine or aircraft engine, including:
Motor Oil” means a petroleum product used to lubricate the internal parts of an engine. The term includes lubricating and operational fluids for the mechanical components associated with the engine. This includes any hydraulic, transmission, gear or braking lubricating or operational fluid that through use, storage or handling has become unsuitable for its original purpose due to the presence of impurities or loss of original properties.
"NACE" means National Association of Corrosion Engineers.
NAPL” means a Non-Aqueous Phase Liquid composed of one or more organic compounds that are immiscible or sparingly soluble in water. The term encompasses all potential occurrences of NAPL including free, mobile, and residual.
Free NAPL” means NAPL that is hydraulically connected in the pore space and has the potential to be mobile in the environment.
NAPL Body” means the 3-dimensional form and distribution of NAPL in the subsurface existing in any phase.
NAPL Conceptual Site Model (NCSM)” means a model describing the physical properties, chemical composition, occurrence and geologic setting of the NAPL body from which estimates of flux, risk and potential remedial action can be generated. The NCSM may be a dynamic, living model that changes through time as a function of natural attenuation or engineered remedial action processes, or additional site knowledge.
Mobile NAPL” means free NAPL that is moving laterally or vertically in the environment under prevailing hydraulic conditions. The result of the NAPL movement is a net mass flux from one point to another. Not all free NAPL is mobile, but all mobile NAPL must be free NAPL.
Residual NAPL” means NAPL that is hydraulically discontinuous and immobile under prevailing conditions. Residual NAPL cannot move, but is a source for chemicals of concern dissolved in groundwater or in the vapor phase in soil gas. The residual NAPL saturation is a function of the initial or maximum NAPL saturation and the porous medium.
"New AST" means a tank for which substantial physical installation began on or after the effective date of these Regulations June 11, 2004. The term substantial physical installation includes, but is not limited to, a permit or contract for the installation.
"NFPA" means National Fire Protection Association, Inc.
"Noncommercial Purposes" with respect to Motor Fuel or motor oil means the product in the AST is not used for any activities that result in monetary gain means a business or organization whose activities do not result in monetary gain, including but not limited to educational institutions, non-profit organizations under the terms of the Internal Revenue Service code definition in section 501(c), State, Federal and Local governmental entities and religious organizations.
"Non-Ignitable" means a gas or vapor in the presence of an Oxidant in which Combustion cannot be initiated by the introduction of an ignition source such as a flame, spark, or heat.
"Occurrence" as it relates to financial responsibility, means an accident, including continuous or repeated exposure to conditions, which results in a release from an AST. This definition is not intended either to limit the meaning of "occurrence" in a way that conflicts with standard insurance usage or to prevent the use of other standard insurance terms in place of "occurrence".
"Operator" means a person operating a facility or who has operated a facility, including, but not limited to, by lease, contract or other form of authorization agreement. Operator includes any Person who has any of the responsibility for the care, custody, and control of the daily operation of an AST, including but not limited to responsibility conferred by lease, contract or other form of authorization agreement.
"Orphan Tank" means:
"Out-Of-Service" means an AST that is:
designated as an Out-Of-Service by the Owner and Operator and the Owner and Operator shall provide notification to the Department on a Department registration form; or
an empty tank; or except when the AST is emptied solely for the purpose of cleaning, routine maintenance or a change in product for a time period not to exceed one hundred eighty (180) days.
"Owner" means a person:
a Person who has or has had a legal interest in a Facility or AST; or
a Person who has or has had an equitable interest in a Facility or AST; and
except when a person holds an interest in a tank, as a security interest unless through foreclosure or other such action the holder has taken possession of or operated the tank. Owner does not mean any person who, without Participating in the Management of a Facility or Aboveground Storage Tank, holds indicia of ownership in a Facility or Aboveground Storage Tank primarily to protect the person’s security interest or is a fiduciary which has a legal title to or manages any property for purposes of administering an estate or trust of which such property is part. In the case of foreclosure the person shall not be deemed the owner of the Aboveground Storage Tank provided that the person provides notification to the Department within thirty (30) days of the initiation of foreclosure proceedings for any property containing an Aboveground Storage Tank, either In Service or Out Of Service utilizing a form provided by the Department.
"Oxidant" means any material that can react with a Regulated Substance to support Combustion in the Ullage of an AST. Oxygen in air is the most common Oxidant.
Participation in Management” means actually participating in the management or operational affairs of an Aboveground Storage Tank or Facility and does not include merely have the capacity to influence, or the unexercised right to control, an Aboveground Storage Tank or Facility operations.
"PEI" means Petroleum Equipment Institute.
"Permanent Change in Contents" means leaving an AST and Ancillary Piping in its installed location, removing the Regulated Substance from the AST and Ancillary Piping, thoroughly cleaning the interior of the AST and the Ancillary Piping, and continuing active use of the AST and Ancillary Piping with the intent of only storing and conveying a non-Regulated Substance in the AST and Ancillary Piping the replacement of one substance stored in an AST and Ancillary Piping for another substance that would effect a change in the AST and Ancillary Piping’s regulated status based on capacity and substance stored.
"Permanent Closure in Place" or "Permanently Closed in Place" or "Permanently Closing in Place" or "Permanently Closed" means leaving an AST and Ancillary Piping in its installed location, removing the Regulated Substance from the AST and Ancillary Piping, thoroughly cleaning the interior of the AST and the interior of the Ancillary Piping, disconnecting the Ancillary Piping from the AST, securing the AST and the Ancillary Piping to prevent unauthorized access, and discontinuing active use of the AST and Ancillary Piping with the intent of not introducing a Regulated Substance into the AST and Ancillary Piping.
"Permeability" means the ease with which fluid can move through a material and is measured by the rate of flow in suitable units.
"Person" means an entity, individual, trust, firm, joint stock company, federal agency, corporation (including a government corporation), partnership, company, association, state, municipality, commission, political subdivision of a state, or any interstate body.
"Pipe" means an impermeable hollow cylinder or tubular conduit that conveys or transports Regulated Substances, or is used for venting, filling, vapor recovery, or removing Regulated Substances.
"Professional Engineer" means "engineer", as defined in Title 24 Del.C. Chapter 28, Professional Engineers, namely, a person who by reason of his or her advanced knowledge of mathematics and the physical sciences, acquired by professional education and practical experience, is technically and legally qualified to practice Professional Engineering, and who is licensed by the Delaware Association of Professional Engineers.
"Property Damage" shall have the meaning given this term by applicable State law. This term shall not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for property damage. However, such exclusions for property damage shall not include corrective action associated with releases from tanks which are covered by the policy.
"Provider of Financial Assurance Responsibility" means an entity that provides financial assurance responsibility to an Owner and or Operator of an AST through one of the mechanisms listed in these Regulations, including a Guarantor, insurer, risk retention group, surety, issuer of a letter of credit, issuer of a state required mechanism, or a state.
"RCRA" means the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended, 42 USC §6901 et seq.
Reconstruction" means any work necessary to reassemble an AST that has been dismantled and Relocated to a new site.
"Regulated Substance" means a liquid or gas that:
contains one percent (1%) or more of a hazardous substance as defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 [42U.S.C. §9601(14)] and any amendments thereto; or
contains 0.1 percent (0.1%) or more of a carcinogen as defined by EPA in the Integrated Risk Information System (IRIS) April 2002 and as updated; or
is a petroleum product, or contains one percent (1%) or more of a petroleum product, or was originally derived from a petroleum or petroleum containing product, including crude oil or any fraction thereof, which is liquid at standard conditions of temperature and pressure (60 degrees Fahrenheit and 14.7 pounds per square inch absolute); or
contains Heating Fuel as defined in this Part; or
"Release" means the spilling, leaking, discharging, leaching, or disposing of a Regulated Substance into groundwater, surface water, soil, or air that is not permitted by law, regulation or permit.
"Release Prevention Barrier" means an Impervious barrier that serves to prevent the escape of Regulated Substance or to contain or channel the released Regulated Substance for Leak Detection.
"Relocation" or "Relocating" or "Relocated" means removing the Regulated Substance from an AST, thoroughly cleaning the interior of the AST, moving the AST to a new location within a Facility without a transfer of ownership or moving the AST to a different Facility without a transfer of ownership, installing the AST in its new location, and inspecting the AST prior to its continued use for the storage of a Regulated Substance.
Remedial Action” means activities conducted to protect human health, safety, and the environment. These activities include but are not limited to evaluating risk, making no further action determinations, monitoring institutional and engineering controls, and designing and operating cleanup equipment.
"Removal" or "Removing" or "Removed" means taking the Regulated Substance from the AST and Ancillary Piping, thoroughly cleaning the interior of the AST and Ancillary Piping, completely displacing the AST and Ancillary Piping from its installed location, and rendering the AST and Ancillary Piping permanently non-useable or discontinuing use of the AST and Ancillary Piping as an AST and Ancillary Piping with the intent of not introducing a Regulated Substance into the AST and Ancillary Piping.
"Retrofit" or Upgrade means to modify an AST to meet standards contained in these Regulations.
"Sacrificial Anode Cathodic Protection System" means a system to control corrosion of a metal surface which entails installing an electrode of an electrochemical cell that will oxidize preferentially to the metal surface that has been made the cathode of the electrochemical cell.
"Secondary Containment" means a containment system designed and constructed to retain any Regulated Substance that leaves the primary containment including an AST and Ancillary Piping and prevent any Regulated Substance from reaching the surface water, groundwater, or adjacent land before cleanup occurs. Included are structures/ devices sufficiently impermeable to contain released Regulated Substances for a period of time sufficient for the cleanup and removal of captured material including;
"Secretary" means the Secretary of the Department of Natural Resources and Environmental Control or a duly authorized designee.
"Shop-Fabricated" means an AST which is constructed at a tank manufacturer's plant and transported to a Facility for installation.
Site Assessment” means to measure for the presence of a Release where contamination is most likely to be present at an AST site. Selection of sample types, sample locations and measurement methods shall be based on the nature of the substance stored, the type of backfill, the depth to groundwater, and other factors appropriate for identifying the presence of a Release. A Site Assessment is not restricted to the property containing the AST System.
"Spark Extinguishing System" means a process in which the radiant energy of a spark or an ember is detected and the spark or ember is quenched.
"Spent Acid" or "Spent Caustic" means an acid or caustic Regulated Substance which was used in a process where it was mixed with, or reacted with, or used as a catalyst to produce, or may have come in contact with a Flammable liquid as defined by NFPA 30.
"State" means the State of Delaware.
"Substantial Business Relationship" means the extent of a business relationship necessary under applicable state law to make a guarantee contract issued incident to that relationship valid and enforceable. A guarantee contract is issued "incident to that relationship" if it arises from and depends on existing economic transactions between the Guarantor and the Owner and or Operator.
"Substantial Governmental Relationship" means the extent of a governmental relationship necessary under applicable state law to make an added guarantee contract issued incident to that relationship valid and enforceable. A guarantee contract is issued "incident to that relationship" if it arises from a clear commonality of interest in the event of an AST release such as coterminous boundaries, overlapping constituencies, common ground water aquifer, or other relationship other than monetary compensation that provides a motivation for the Guarantor to provide a guarantee.
"Tangible Net Worth" means the tangible assets that remain after deducting liabilities; such assets do not include intangibles such as goodwill and rights to patents or royalties. For purposes of this definition, "assets" means all existing economic benefits obtained or controlled by a particular entity as a result of past transactions.
"Tank Management Branch Section" means the Tank Management Branch Section of the Division of Air and Waste Management Waste and Hazardous Substances in the Delaware Department of Natural Resources and Environmental Control.
"Termination" means only those changes that could result in a gap in financial responsibility coverage as where the insured has not obtained substitute coverage or has obtained substitute financial responsibility coverage with a different retroactive date of the original policy.
"Ullage" means the volume of a Fixed Roof AST which does not contain a Regulated Substance in liquid form. It is synonymous with the vapor space.
"Underground Pipe" means piping or portions of piping meeting all of the following conditions:
UL" means Underwriters Laboratories, Inc.
"Upgrade" or "Retrofit" means to modify an AST to meet standards contained in these Regulations.
"Upper Flammable Limit (UFL)" means the highest concentration of a Flammable substance in which Combustion can propagate in the presence of an Oxidant.
"Vault" means a structure that completely encloses the tank and must be constructed of materials compatible with the Regulated Substance to be contained in the AST.
"Verifiable Service" means delivery of mail by means of a delivery service that provides verification upon delivery.
3.1.1 The referenced standards listed in this Section have served in part as the basis for the standards enacted under these Regulations. The most recent editions of the referenced standards are available for review and inspection with prior notification at the Department of Natural Resources and Environmental Control, Tank Management Branch and from the following sources (addresses of the cited organizations are subject to change):
3.1.1.1 American Petroleum Institute (API), 1220 L Street, N.W., Washington, D.C. 20005-4070, (202) 682-8375.
3.1.1.2 National Association of Corrosion Engineers (NACE), P. O. Box 218340, Houston, Texas 77218, (713) 492-0535.
3.1.1.3 Underwriters Laboratories (UL), 333 Pfingsten Road, Northbrook, Illinois 60062, (847) 272-8800.
3.1.1.4 National Fire Protection Association (NFPA), Batterymarch Park, Quincy, MA 02269 (617)770-3000.
3.1.1.5 American Society for Non-destructive Testing (ASNT),1711 Arlington Lane, Columbus, Ohio 43228-0518 (614-274-6003).
3.1.1.6 Steel Tank Institute (STI), 570 Oakwood Road, Lake Zurich, Illinois 60047 (847) 438-8265;
3.1.1.7 American Society for Testing and Materials (ASTM), 100 Barr Harbor Drive, West Conshohocken, Pennsylvania 19429-2959
3.1.1.8 American Society of Mechanical Engineers (ASME), ASME International Three Park Avenue, New York, NY 10016-5990.0 (800) 843-2763
3.1.1.9 National Board Inspection Code, National Board of Boiler and Pressure Vessel Inspectors Testing, 1055 Crupper Drive, Columbus, OH 43229, (614)888-8320.
3.1.1.10 American National Standards Institute (ANSI), 1819 L Street, NW, 6th Floor, Washington, DC 20036 (202) 293-8020
3.2.1 In these Regulations, all referenced standards mean the most recent edition or version. The referenced standards apply to all ASTs without regard to or limitation by the application or usage of the referenced standard as expected or specified by the publishers of the referenced standards. For example, API 650 expressly applies only to tanks that contain petroleum, but as utilized in these Regulations, API 650 applies to all ASTs. Where there is an irreconcilable conflict between a standard or recommendation published by an industry or professional organization and referenced by these Regulations, and a requirement in these Regulations, the most stringent shall apply and control. Where there is an irreconcilable conflict between standards or recommendations published by industry or professional organizations and referenced by these Regulations, the most stringent shall apply and control.
3.3 Titles of Documents Standards
3.3.1.1 RPAPI Standard 570, Piping Inspection Code: Inspection, Rating, Repair, Alteration, and Rerating of In-Service Piping Systems, 3rd Edition. November 2009
3.3.1.2 RPAPI Standard 620, Design and Construction of Large, Welded, Low-Pressure Storage Tanks, 12th Edition, 2013
3.3.1.3 RPAPI Standard 650, Welded Steel Tanks for Oil Storage, March 2013
3.3.1.4 RPAPI Recommended Practice 651, Cathodic Protection of Aboveground Petroleum Storage Tanks, September 2014 Edition
3.3.1.5 RPAPI Standard 653, Tank Inspection, Repair, Alteration, and Reconstruction, 4th Edition with Addendum #1(2010), Addendum #2 (2012) and Addendum #3 (2013)
3.3.1.6 RPAPI Specification 12D, Specification for Field Welded Tanks for Storage of Production Liquid, Edition 11, 2008
3.3.1.7 RPAPI Standard 2000, Venting Atmospheric and Low Pressure Storage Tanks, 7th Edition, 2014
3.3.1.8 API Recommended Practice 1615, Installation of Underground Petroleum Storage Systems, 6th Edition, April 2011
3.3.1.9 API Recommended Practice 2015, Requirements for Safe Entry and Cleaning of Petroleum Storage Tanks, 7th Edition, May 2014.
3.3.1.10 API Recommended Practice 2016, Guidelines and Procedures for Entering and Cleaning Petroleum Storage Tanks, 1st Edition, 2001.
3.3.2.1 RPStandard Practice -01-69-2013, Control of External Corrosion on Underground or Submerged Metallic Piping Systems, 2013 Edition
3.3.2.2 Recommended Practice -01-93-2011, External Cathodic Protection of On-grade Carbon Steel Storage Tank Bottoms, 2011 Edition
3.3.2.3 RStandard Practice -02-94-2006, Design, Fabrication, and Inspection of Tanks for the Storage of Concentrated Sulfuric Acid and Oleum at Ambient Temperatures, 2006 Edition
3.3.3.1 UL142, Standard for Steel Aboveground Tanks for Flammable and Combustible Liquids, 9th Edition, December 2006
3.3.3.2 UL971, Standard for Nonmetallic Underground Piping For Flammable Liquids, 1st Edition, 1995 with revisions through March 2006
3.3.3.3 UL2085, Standard for Protected Aboveground Tanks for Flammable and Combustible Liquids, 2nd Edition, December 1997
3.3.4 National Fire Protection Association (NFPA)
3.3.4.1 NFPA 30, Flammable and Combustible Liquids Code, 2015 Edition
3.3.4.2 NFPA 303A, Automotive and Marine Service Station Code, 2011 Edition
3.3,4.3 NFPA 69, Standards on Explosion Prevention Systems, 2014 Edition.
3.3.4.4 NFPA 704, Standard for the Identification of the Fire Hazards of Materials for Emergency Response, 2012 Edition.
3.3.4.5 NFPA 30A, Code for Motor Fuel Dispensing Facilities and Repair Garages, 2015 Edition.
3.3.5 American Society for Non-destructive Testing (ASNT)
3.3.5.1 SNT-TC-1A, Personnel Qualifications and Certification in Nondestructive testing, 2011 Edition
3.3.5.2 ASNT Central Certification Program NDT Level II, November 2010 Edition
3.3.6 Steel Tank Institute (STI)
3.3.6.1 SP001-03, Standard for Inspection of In-Service Shop Fabricated Above Ground Tanks for Storage of Combustible and Flammable Liquid, 5th Edition, September 2011.
3.3.6.2 SP031, Standard for Repair of Shop-Fabricated Aboveground age of Flammable and Combustible Liquids, 4th Edition, November 2008.
3.3.7 American Society for Testing and Materials (ASTM)
3.3.7.1 ASTM D-2517, Standard Specification for Reinforced Epoxy Resin Gas Pressure Pipe and Fittings, 2011 Edition
3.3.7.2 ASTM D-2996-01, Standard Specification for Filament Wound Fiberglass (Glass-Fiber-Reinforced Thermosetting-Resin) Pipe, 2007 Edition.
3.3.7.3 ASTM D-2583-13A, Standard Test Method for Indentation Hardness of Rigid Plastics by Means of a Barcol Impressor, 1996 Edition
3.3.8 American Society of Mechanical Engineers (ASME)
3.3.8.1 ASME RTP-1 2000-2002-2013, Reinforced Thermoset Plastic Corrosion Resistant Equipment, 2013 Edition
3.3.8.2 ASME, Boiler and Pressure Vessel Code Section VIII, Division 1, Design & Fabrication of Pressure Vessels, 2013 Edition
3.9.1 ANSI 31.1, Power Piping
3.9.2 ANSI 31.3, Process Piping
3.9.3 ANSI 31.4, Liquid Transportation Systems for Hydrocarbons, Liquid Petroleum Gas, Anhydrous Ammonia, and Alcohols
3.103.9 National Board Inspection Code (NBIC)
3.3.109.1 National Board Inspection Code, Appendix 9, Repair, Alteration and Inspection of Fiber Reinforced Thermosetting Plastic Pressure Equipment. 2013 Edition.
4.1.1 Any person that owns or operates an AST unless specifically exempted in §1 of this Part with the exception of those ASTs listed in Part A, Section 1.2.2 must register each AST with the Department on utilizing an AST registration form provided by the Department.
4.1.2 Registration of ASTs shall be renewed annually by payment Annual payment of registration fees in accordance with Part A, Section 4.65 of these Regulations, on or before February 1 of every year and until the Department receives a formal notice that the AST has been Removed or Permanently Closed or undergone a Permanent Change in Contents in accordance with these Regulations.
4.1.4 Any person who sells or otherwise transfers ownership of an AST must shall notify the new Owner of the AST registration requirements of this Part A, of these Regulations.
4.1.6 The Owner shall notify the Department in writing of any significant change in the information presented on the original registration form utilizing a from provided by the Department including but not limited to change of address, change of tank ownership, change in tank status, or change in product stored from a Regulated Substance to an unregulated substance change of tank Operator, or a Change in Service at least ten (10) days prior to the change.
4.2.1 Owners and Operators must shall notify the Department of all existing ASTs that have contained a Regulated Substance on or after January 1, 1992, by completing an AST registration form provided by the Department and submitting the form to the Department by September 5, 2002.
4.3 Change in Service Permanent Closure in Place, Emptying and Removal
4.3.2 Owners or Operators must shall notify the Department on utilizing a form provided by the Department prior to Removing, Permanently Closing in Place Emptying or making a Change In Service to an AST. The notification form must be received by the Department at least ten (10) days prior to beginning the Removal or Permanent closure in Place Emptying, or making a Change In Service to the AST except in the case of a Retrofit or Upgrade which shall require the notification as specified in PART A, Section 4.6 unless such action is in response to an imminent threat to human health, safety or the environment.
4.4.1 When a transfer of ownership of an AST occurs, the new Owner shall submit a transfer of ownership form and a completed registration form all required Safety Data Sheets, and proof of compliance with the financial responsibility requirements in PART D of these Regulations to the Department so that the Department shall receive these forms no later than thirty (30) days 72 hours after the transfer.
4.4.2 The seller or former Owner shall at the time of ownership transfer, deliver to the buyer/ and new Owner all available documents and information relevant to the AST, such as including but not limited to:
4.4.2.8 Soil and/or groundwater sampling and laboratory chemical analyses reports;
4.4.3 Any person who assumes ownership of an AST from a previous registrant must complete and return to the Department a new registration form and a transfer of ownership form. The new Owner and Operator may operate the AST for no more than seventy-two (72) hours after assuming ownership without the Department having received the new registration form and a transfer of ownership form.
4.5.1 On or before February 1 of each calendar year, Owners and Operators of an AST must submit to the Department an annual per tank registration fee in accordance with Title 7 Del. C. Ch. 74A, The Jeffrey Davis Aboveground Storage Tank Act, §7413A and the table in PART A, Section 4.5.3 of these Regulations.
4.5.4 No annual registration fee will be required if an AST is Removed or Permanently Closed in Place or undergoes a Permanent Change in contents from a Regulationed Substance to a non-regulated substance prior to the February 1 deadline for payment of the registration fee. To qualify for this exemption, the registration fee shall be assessed until the Owner and Operator of the AST must comply with has completed the requirements in these Regulations for compliance the notification and Removal or Permanent Closure in Place or Permanent Change in contents requirements of these Regulations and the Department has received all required sample results.
4.5.5 The initial AST registration fee shall not be assessed until the calendar year following the year in which the AST installation is completed.
4.6.1 AST Owners and Operators shall notify the Department of all Retrofits or Upgrades of an AST on utilizing a form provided by the Department and include construction plans and supporting documents such as equipment and manufacturer specifications, at least ten (10) days prior to beginning the Retrofit or Upgrade work or other schedule as approved by the Department.
4.6.2 If within the ten (10) day period, the required notification to the Department is completely satisfied, and written approval from the Department has been received the Retrofit or Upgrade construction may proceed without waiting for the expiration of the ten (10) days.
4.6.3 If within one (1) year after initial notification to the Department the receipt of the written approval from the Department Retrofit or Upgrade work has not commenced, the approval shall expire. The Owner may submit a new registration form and a letter requesting an extension must be submitted to the Department.
5.1.1 The Owner and Operator of an AST subject to the provisions of these Regulations may request in writing a determination from the Department that any requirement of these Regulations shall not apply to such AST, and shall request approval of an alternative procedure as required.
5.2.1 The Department in its discretion may approve alternative procedures or technology or a combination of alternative procedures or technologies not specified in the Regulations if the following requirements are met. The requirements alternative procedure request must be submitted in writing and shall set forth as a minimum the following information:
5.2.1.1 Name and location of the Facility and the specific AST(s) for which an alternative procedure is sought;
5.2.1.2 The specific provision of the Regulations for which an alternative procedure is sought;
5.2.1.3 The contents of the AST;
5.2.1.4 The basis for the alternative procedure, including but not limited to the technical difficulties that would result from compliance with the established provision;
5.2.1.5 The alternative procedure or technology for which approval is sought; and
5.2.1.6 Documentation that demonstrates that the alternative procedure or technology meets or exceeds the performance standard for approved technologies and that the alternative procedure or technology offers a no less stringent degree of protection for human health, safety or the environment as would the requirements specifically established in these Regulations.
5.3.1 The Department will shall provide a written response within ninety (90) days to all requests for alternative technology approvals. The request may be denied, approved or approved with conditions written response shall state the Department’s justification for denial, approval, or approval with conditions of the request. If the technology or procedure or a combination of technologies or procedures is approved, the Owner and Operator must comply with any conditions imposed by the Department on its use to ensure the protection of human health, safety or the environment.
6.1.1 For the purpose of developing or assisting in the development of a standard regulation or of enforcement of these Regulations, an Owner and or Operator shall, upon the request of a duly designated officer or employee of the State designated by the Secretary of the Department, furnish information relating to the tank and/or its contents and shall permit the designated officer or employee at all reasonable times to have access to and to copy all records relating to the tank or its contents and to conduct monitoring or require remediation activities, pursuant to Title 7 Del.C. Ch. 74A,The Jeffrey Davis Aboveground Storage Tank Act,§7406A, which the designated officer or employee deems necessary. For the purpose of developing or assisting in the development of a standard or regulation or enforcement of these Regulations, the designated officer or employee is authorized to:
6.1.1.1 enter at reasonable times the Facility or other place where an AST or its records are located. The Owner and or Operators shall permit unannounced inspections of tanks pursuant to these Regulations;
6.1.1.2 inspect and obtain samples from any Person of Regulated Substances and to conduct monitoring of tanks, contents, or surrounding soils, water, and/or air. An inspection must be commenced and completed with reasonable promptness.
6.2.1 In submitting data under Title 7 Del.C. Ch. 74A, The Jeffrey Davis Aboveground Storage Tank Act, and these Regulations, a person required to provide such data may:
6.2.1.1 designate the data which the Owner and Operator believe is entitled to protection as business or corporate property under this subsection; and
6.2.1.2 submit such designated data separately from other data submitted under these Regulations.
6.3.1 Any such records, reports or information obtained shall be entitled to protection under United States Code Title 18 §1905, Disclosure of confidential information generally.
6.4 Any information submitted to the Department in which a confidential business information designation is requested shall be subject to Part A, Section §98 of these Regulations and the Freedom of Information Act Regulations adopted pursuant to 29 Del.C. Ch. 100 as amended.
7.1 Release Preparedness Plan Requirements
7.1.1.9 The plan must shall include a list of all emergency equipment at the Facility (such as fire extinguishing systems, spill control equipment, communications and alarm systems (internal and external), and decontamination equipment), where this equipment is required. This list must shall be kept up to date. In addition, the plan must shall include the location and a physical description of each item on the list and a brief outline of its capabilities.; and
7.1.1.10 The plan must shall include an evacuation plan for Facility personnel where there is a possibility that evacuation could be necessary. This plan must shall describe signal(s) to be used to begin evacuation, evacuation routes, and alternate evacuation routes in cases where the primary routes could be blocked
7.2.1 The Department may assume control of any Release when it is determined that the Owner or Operator is not responding in accordance with the Regulations and Title 7 Del.C. Ch. 74A, The Jeffrey Davis Aboveground Storage Tank Act. All release liability will remain with the Owner or Operator. The Department may recover all release response intervention costs from the Owner and Operator and initiate enforcement action as necessary to achieve regulatory compliance.
8.1.2 A Release of a Regulated Substance from an AST in excess of the reportable quantities specified in the regulations promulgated pursuant to Title 7 Del.C. Ch. 60, §6028, the Delaware Regulations Governing the Reporting of a Discharge of a Pollutant or an Air Contaminant, as amended, shall be reported to the Department in accordance with the requirements of Title 7 Del.C. Ch. 60 and the Regulations promulgated thereunder as amended.
8.1.3 Documentation on the routine in-service inspection report shall be made at the time of discovery of any Release or a suspected Release of a Regulated Substance from an AST in an amount less than the reportable quantities specified in the regulations promulgated pursuant to Title 7 Del.C. Ch. 60, §6028, the Delaware Regulations Governing the Reporting of a Discharge of a Pollutant or an Air Contaminant, as amended, that impacts soil, groundwater, or surface water outside a Secondary Containment area. If the commencement of cleanup activities cannot begin within 24 hours of discovery and cannot be completed within 7 days, the routine in-service inspection report shall be sent to the Tank Management Branch via fax or electronic mail.
8.2.2 A Leak of a Regulated Substance in a quantity less than the reportable quantities specified in the regulations promulgated pursuant to Title 7 Del.C. Ch. 60, §6028, the Delaware Regulations Governing the Reporting of a Discharge of a Pollutant or an Air Contaminant, as amended, inside the Secondary Containment area or that does not impact soil, groundwater, or surface water, and cannot be cleaned up within (7) seven days must be reported to the Tank Management Branch as soon as possible but in no instance shall reporting exceed (7) seven days from the time of discovery. Reporting may be made in person or by telephone or by electronic mail.
98.0 Submittal Of Confidential Information
9.1 Any claim of confidentiality as to the name and address of any registration or notification applicants will be denied by the Department.
9.28.2.1 A business confidentiality claim must shall be asserted at the time of submission of the information or at the first opportunity provided, be asserted by a person claiming confidentiality, or the Department may release the information without further notice to the person. Business information is entitled to confidential treatment if:
9.2.18.2.1.1 The business has asserted a business confidentiality claim which has not expired by its terms, nor been waived nor withdrawn, and
9.2.28.2.1.2 The business has satisfactorily shown that it has taken reasonable measures to protect the confidentiality of the information and that it intends to continue to take such measures, and
9.2.38.2.1.3 The information is not, nor has been, reasonably obtainable without the business' consent by other persons (other than governmental bodies) by the use of legitimate means (other than discovery based on a showing of special need in a judicial or quasi-judicial proceeding), and
9.2.48.2.1.4 No statute specifically requires disclosure of the information, and
9.2.58.2.1.5 Either (a) the business has satisfactorily shown that disclosure is likely to cause substantial harm to its competitive position or (b) the information is voluntarily submitted and its disclosure would likely impair the Department's ability to obtain necessary information in the future.
9.38.3.1 Any information to which this section applies, which may be entitled to confidential treatment as determined by the Department, may be released upon request to the United States Environmental Protection Agency (EPA).
9.48.4.1 Any information submitted to the Department in which a confidential business information designation is requested shall be subject to Part A Section 9 of these Regulations and the Freedom of Information Act Regulations adopted pursuant to 29 Del.C. Ch. 100 as amended.
109.0 Signage Requirements
10.19.1.1 All ASTs having with a capacity greater than 250 gallons and containing a Regulated Substance other than diesel, Heating Fuel or kerosene and all ASTs having a capacity greater than 19,999 gallons and containing diesel, Heating Fuel or kerosene shall be labeled using the hazard rating system in accordance with NFPA 704 Standard for the Identification of the Fire Hazards of Materials for Emergency Response.
10.29.2.1 All ASTs having with a capacity greater than 250 gallons and containing a Regulated Substance other than diesel, Heating Fuel or kerosene and all ASTs having a capacity greater than 19,999 gallons and containing diesel, Heating Fuel or kerosene shall be labeled with the word "Empty" if the tank contents have been removed.
10.39.3.1 All ASTs having with a capacity greater than 250 gallons and containing a Regulated Substance other than diesel, Heating Fuel or kerosene and all ASTs having a capacity greater than 19,999 gallons and containing diesel, Heating Fuel or kerosene shall be labeled with the name of the tank contents or the name of the chemical family associated with the tank contents and the tank identification number as noted on the DNREC registration form.
10.49.4.1 All ASTs existing on February 1, 2006 that are required to have a label in accordance with the Rrequirements of this Section PART A, Section 9.1, PART A, Section 9.2, or PART A, Section 9.3 shall be appropriately labeled by February 1, 2006.
1.0 General Requirements For All New Aboveground Storage Tanks and AST Relocations
1.1 General Requirements for All New ASTs and AST Relocations
1.1.1 AST Owners and Operators shall notify the Department at least sixty (60) days priot to installation of all proposed New ASTs or Relocated ASTs used for storing Regulated Substances. Notice shall specify as a minimum:
1.1.1.1 the date of commencement of installation activities;
1.1.1.2 location including the address and a plan view dimensioned drawings of the facility of sufficient detail to locate the AST's with respect to the property lines and buildings or other structures located on the property and showing the relation of the AST to the site and the site to the surrounding area;
1.1.1.3 drawings, design data, and material cut sheets type of AST and piping Leak Detection system;
1.1.1.4 description of the Regulated Substance to be stored including Safety Data Sheet which complies with the definition of such as contained in OSHA, 29 CFR, 1910.1200, Hazard Communication, with the exception of those ASTs storing Heating Fuel, diesel, kerosene or gasoline and CAS registry number or numbers if available;
1.1.1.5 type of overfill protection device including drawings and manufacturer specifications;
1.1.1.6 detail showing the proposed method of Secondary Containment including the calculations demonstrating the capacity;
1.1.1.7 the design of the proposed Cathodic Protection System showing the layout, calculations on the Cathodic Protection System, material cut sheets including anodes, cables, rectifier, hour meter and backfill, if as applicable;
1.1.1.8 description and drawings of the AST(s) and foundation to be installed, including dimensions, capacity, material of construction, manufacturer's name and address, model number, supplier's name and address, and any other information that completely describes the AST and foundation;
1.1.1.9 description of piping to be used, including Pipe diameters, materials, connections, manufacturer specifications and piping diagrams, as applicable;
1.1.1.10 any other information that will shall accurately convey the intended AST configuration.
1.1.2 No new ASTs shall be constructed of wood or concrete after the effective date of these Regulations June 11, 2004.
1.1.3 Upon notification by the AST Owner and or Operator, a review by the Department of the notification and accompanying documents must shall be made for compliance with the requirements for nNew ASTs or Relocate ASTs as applicable, and.
1.1.3.1 A formal letter of approval or denial of the installation shall be issued by the Department to the Owner and Operator within sixty (60) days of the Department's receipt of the installation notification and supporting documentation as specified in PART B, Section § 1.1 of this Part.
1.1.3.2 If a denial is issued, all required corrections and compliance with the nNew AST requirements or Relocated AST must shall be met before the installation can be approved.
1.1.3.3 If within the sixty (60) day notification period, the Department or its designee issued a formal letter of approval, the installation of the AST may begin.
1.1.4 Approval letters must shall be posted at the construction site at the facility where the nNew AST installation or AST Relocation is in progress.
1.1.5 During construction, an Owner and or Operator shall not cause or allow a substantial design change which is not in accordance with the approved plans and all terms and conditions of the Department's approval.
1.1.6 The design eEngineer of record must shall approve in writing any and all substantial design changes and resubmit to the Department for formal approval.
1.1.7 A formal approval of installation shall be valid for one year from the date of approval. If construction of the AST is not initiated within one year of issuance of the Department's letter of approval, the Owner or Operator shall request an extension in writing, including the cause for the delay and the expected date of construction initiation or the approval shall lapse. For the purpose of this rule, initiated shall mean construction equipment commonly used in Facility or system construction has been mobilized to the site and that materials used in the construction of the Facility or AST have been delivered to the site and construction has begun.
1.1.8 Department approval for installation of an AST shall not eliminate the need to obtain applicable approvals and/or permits from the authority(ies) enforcing the State Fire Prevention Regulations, local building codes or other State or Federal laws or regulations.
1.9 The Department shall assess a one-time construction permit fee for a New AST based on the schedule below for an AST constructed after the effective date of the Regulations promulgated pursuant to Title 7 Del.C. Ch. 74A, The Jeffrey Davis Aboveground Storage Tank Act, §7414A. Any person required to pay a fee under Title 16 Del.C. Ch. 66, Fire Prevention, to the State Fire Marshal related to an AST shall receive a 10% reduction in the construction permit fee.
2.0 Design Aand Construction Requirements Ffor New Metallic Field-cConstructed ASTs
2.1.1 All new metallic Field-Constructed ASTs that will contain Regulated Substances shall:
2.1.1.2 Be of welded construction.
2.1.21.3 Meet or exceed the following design or manufacturing standards, as applicable:
2.1.2.1.3.1 API Standard 620, Design and Construction of Large, Welded, Low-Pressure Storage Tanks;
2.1.2.1.3.2 API Standard 650, Welded Steel Tanks for Oil Storage;
2.1.2.1.3.3 API Standard 12D, Specification for Field Welded Tanks for Storage of Production Liquids;
2.1.2.1.3.4 NACE RP0294-94 SP0294; Design, Fabrication, and Inspection of Tanks for the Storage of Concentrated Sulfuric Acid and Oleum at Ambient Temperatures;
2.1.2.1.3.5 NFPA 30, Flammable and Combustible Liquids Code;
2.1.2.1.3.6 Other standards approved by the Department.
2.1.2 All metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 shall have a suitable foundation capable of supporting the tank full of product or the test media without excessive differential settlement as defined in API 653. The foundation design and construction shall be based on sound engineering practices. The foundation design shall provide positive drainage of water away from the base. ASTs located in areas subject to flooding must shall be protected from flotation.
2.1.3 All metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 with tank bottoms in contact with soil shall be protected from corrosion in accordance with § PART B, Section 5 of this Part.
2.1.4 All metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 shall be placed on a Release Prevention Barrier. The integrity of the barrier shall not deteriorate due to exposure to the elements or soil in the presence of Regulated Substances. The following are acceptable Release Prevention Barriers:
2.1.4.1 An Impervious soil layer or geosynthetic clay liner with a permeability of 10-7 1 x 10-7 cm/sec or less; or
2.1.4.2 An Impervious geosynthetic liner installed in accordance with manufacturer's recomendations such as a 60 mil unreinforced liner, 40 mil reinforced liner, or a material of similar or more stringent specifications and that is compatible with the Regulated Substance being stored; or
2.1.4.3 A double bottom with Leak Detection monitoring for the presence of Regulated Substance leakage; or
2.1.4.4 An Impervious concrete slab foundation.
2.1.5 All metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 shall have Secondary Containment installed in accordance with PART B, Section §7 of this Part.
2.1.6 All metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 shall have base line data including:
2.1.6.1 Floor and wall/shell thickness measurements which shall be kept on file by the Owner for the life of the AST and shall be made available to the Department upon request.
2.1.6.2 Material certifications which shall be kept on file by the Owner for the life of the AST and shall be made available to the Department upon request.
2.1.7 A report including the welding procedures, welding certification reports, and any non-destructive testing performed on the AST shall be kept on file by the Owner for the life of the AST and which shall be submitted to the Department prior to placing the AST iIn sService.
2.1.8 All metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 constructed for the purpose of storing sulfuric acid or Spent Acid or Spent Caustic or other Regulated Substances with similar corrosive properties, shall be subject to additional design consideration including but not limited to NACE Standard RPSP0294, material compatibility, coating requirements and additional non-destructive examination (NDE).
2.1.9 All metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 shall provide a method of Leak Detection in accordance with PART B, Section §9 of this Part.
2.1.10 All metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 shall be equipped with an overfill prevention and spill containment system in accordance with PART B, Section §8 of this Part.
2.1.11 All ASTs regulated under this sSection shall be equipped with normal and emergency venting in accordance with API 2000 and NFPA 30.
2.1.12 All metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 shall be inspected and tested in accordance with API 650 or the design standard(s) under which the AST was constructed as applicable before being placed iIn sService.
2.1.13 All exposed exterior surfaces of all metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 shall be protected from corrosion.
2.1.14 The completed installation of all metallic Field-Constructed ASTs installed after the effective date of these Regulations June 11, 2004 is to be inspected and certified by a Certified API 653 Inspector.
3.0 Design Aand Construction Requirements Ffor New Metallic Shop-fabricated ASTs
3.1.1 All new metallic Shop-Fabricated ASTs that will contain Regulated Substances shall meet or exceed the following design or manufacturing standards, as applicable:
3.1.1.1 UL 2085, Protected Aboveground Tanks for Flammable and Combustible Liquids;
3.1.1.2 UL 142, Standard for Steel Aboveground Tanks for Flammable and Combustible Liquids;
3.1.1.3 API 650 Appendix Annex J, Shop-Assembled Storage Tanks;
3.1.1.4 NFPA 30, Flammable and Combustible Liquids Code;
3.1.1.5 ASME, Boiler & Pressure Vessel Code, Section VIII, Division 1, Design & Fabrication of Pressure Vessels;
3.1.1.6 Other standards approved by the Department.
3.1.2 All metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 shall have a suitable foundation capable of supporting the tank full of Regulated Substance or the test media without excessive differential settlement as defined in API 653 or manufacturer's recommendation. The foundation design and construction shall be based on sound engineering practices. The foundation design shall provide positive drainage of water away from the base. ASTs located in areas subject to flooding must shall be protected from flotation.
3.1.3 All metallic shop fabricated ASTs installed after the effective date of these Regulations June 11, 2004 with tank bottoms in contact with soil shall be protected from corrosion in accordance with PART B, Section §5 of this Part.
3.1.4 All metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 shall be placed on a Release Prevention Barrier. The integrity of the Release Prevention bBarrier shall not deteriorate due to exposure to the elements or soil in the presence of Regulated Substances. The following are acceptable Release Prevention Barriers:
3.1.4.1 An Impervious soil layer, or geosynthetic clay liner with a permeability of 10-7 cm/sec or less; or
3.1.4.2 An Impervious geosynthetic liner installed in accordance with manufacturer's recommendations such as a 60 mil unreinforced liner, 40 mil reinforced liner, or a material of similar or more stringent specifications that is compatible with the Regulated Substance being stored; or
3.1.4.3 A double bottom or double wall with Leak Detection monitoring for the presence of Regulated Substance leakage; or
3.1.4.4 An Impervious concrete slab foundation; and
3.1.4.5 An AST that is in a saddle or other suitable support may utilize steel containment.
3.1.5 All metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 shall have Secondary Containment installed in accordance with PART B, Section §7 of this Part.
3.1.6 Installation of all metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 constructed for the purpose of storing sulfuric acid, Spent Acid or Spent Caustic or other Regulated Substances with similar corrosive properties shall be subject to additional design consideration including but not limited to NACE Standard RPSP0294, material compatibility, coating requirements and additional non-destructive examination (NDE).
3.1.7 All metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 shall provide a method of Leak Detection in accordance with PART B, Section §9 of this Part.
3.1.8 All metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 shall be equipped with an overfill prevention and spill containment system in accordance with PART B, Section §8 of this Part.
3.1.9 All metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 shall be equipped with normal and emergency venting in accordance with API 2000, NFPA 30, UL 142 and UL 2085, as applicable.
3.1.10 All metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 ASTs shall be tested in accordance with industry standards and manufacturer's recommendations before being placed iIn sService.
3.1.11 All exposed exterior surfaces of all metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 shall be protected from corrosion.
3.1.12 The completed installation of every AST installed after the effective date of these Regulations June 11, 2004 is to be inspected and certified by an inspector familiar with Shop-Fabricated ASTs such as certified STI-SP001 Inspectors and qualified by experience for such inspections.
3.1.13 All metallic Shop-Fabricated ASTs installed after the effective date of these Regulations June 11, 2004 shall have base line data including:
3.1.13.1 Floor and wall/shell thickness measurements which shall be kept on file by the Owner for the life of the AST and shall be made available to the Department upon request.
3.1.13.2 Material certifications which shall be kept on file by the Owner for the life of the AST and shall be submitted to the Department prior to placing the AST in service.
3.1.14 A report including the welding procedures, welding certification reports, and any non-destructive testing performed on the AST shall be kept on file by the Owner for the life of the AST and which shall be submitted to the Department prior to placing the AST in service.
4.0 Design Aand Construction Requirements Ffor New Non-metallic Shop-fabricated Aand Field-constructed ASTs
4.1.1 All nNew non-metallic ASTs shall be designed, fabricated, inspected, stamped and installed in accordance with ASME, RTP-1 Reinforced Thermoset Plastic Corrosion Resistant Equipment.
4.1.2 No nNew ASTs may shall be constructed of wood or concrete after the effective date of these Regulations June 11, 2004.
4.1.3 Flammable substances shall not be stored in non-metallic ASTs without specific approval from the Department.
4.1.4 All non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 shall have a suitable foundation capable of supporting the tank full of Regulated Substance or the test media without excessive differential settlement as defined in API 653 or manufacturer's recommendations. The foundation design and construction shall be based on sound engineering practices. The foundation design shall provide positive drainage of water away from the base. ASTs located in areas subject to flooding must shall be protected from flotation.
4.1.5 All non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 shall be placed on a Release Prevention Barrier. The integrity of the barrier shall not deteriorate due to exposure to the elements or soil in the presence of Regulated Substances. The following are acceptable Release Prevention Barriers:
4.1.5.1 An Impervious soil layer, or geosynthetic clay liner with a permeability of 10-7 1x10-7 cm/sec or less; or
4.1.5.2 An Impervious geosynthetic liner installed in accordance with manufacturer’s recommendations such as a 60 mil non-unreinforced liner, 40 mil reinforced liner, or a material of similar or more stringent specifications and that is compatible with the product being stored; or
4.1.5.3 A double bottom or double wall with Leak Detection monitoring for the presence of a Regulated Substance leakage; or
4.1.5.4 An Impervious concrete slab foundation.
4.1.6 All non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 shall have Secondary Containment installed in accordance with PART B, Section §7 of this Part.
4.1.7 All non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 shall have base line data including:
4.7.1 Floor and wall/shell thickness measurements which shall be kept on file by the Owner for the life of the AST and shall be made available to the Department upon request.
4.7.2 Material certifications which shall be kept on file by the Owner for the life of the AST and shall be submitted to the Department prior to placing the AST in service.
4.1.8 Installation of all non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 constructed for the purpose of storing sulfuric acid, Spent Acid or Spent Caustic or other Regulations Substances with similar corrosive properties shall be subject to additional design consideration including but not limited to NACE Standard FPSP0294, material compatibility, coating requirements and additional non-destructive examination (NDE).
4.1.9 All non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 shall provide a method of Leak Detection in accordance with PART B, Section §9 of this Part.
4.1.10 All non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 shall be equipped with an overfill prevention and spill containment system in accordance with PART B, Section §8 of this Part.
4.1.11 All non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 shall be equipped with normal and emergency venting in accordance with API 2000 and NFPA 30.
4.1.12 All non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 shall be tested in accordance with industry standards and manufacturer’s recommendations before being placed iIn sService.
4.1.13 All exposed exterior surfaces of non-metallic ASTs installed after the effective date of these Regulations must June 11, 2004 shall be protected from corrosion or deterioration.
4.1.14 The completed installation of all non-metallic ASTs installed after the effective date of these Regulations June 11, 2004 shall be inspected in accordance with ASME RTP-1 and the NBIC, Appendix 9 Part 3 Supplement 4.
5.0 Design Aand Installation Requirements Ffor Cathodic Protection Systems Ffor ASTs
5.1 General Requirements for Design and Installation of Cathodic Protection Systems for AST
5.1.1 All New metallic ASTs including double bottom ASTs installed on foundations consisting of sand, soil or other material that can allow moisture penetration and corrosion, shall install a Cathodic Protection System to mitigate external corrosion of the tank bottom.
5.1.2 A Cathodic Protection System for the external bottom of a nNew or eExisting metallic AST must shall be designed, installed, inspected and maintained to meet or exceed the requirements of the most recent edition of the following industry standards, as applicable:
5.1.2.1 NACE Standard RPSP01-93 - External Cathodic Protection of On-Grade Carbon Steel Storage Tank Bottoms;
5.1.2.2 API Recommended Practice 651 - Cathodic Protection of Aboveground Petroleum Storage Tanks
5.1.2.3 NACE Standard RPSP0169 - Control of External Corrosion on Underground or Submerged Metallic Piping Systems
5.2 Required Qualifications of Personnel Designing Cathodic Protection Systems
5.2.1 Cathodic Protection Systems shall be designed by individuals who have obtained a NACE Cathodic Protection Level 3 Specialist Certification and have relevant work experience in the design of Cathodic Protection Systems for ASTs.
5.3 Design and Installation Requirements for Cathodic Protection Systems
5.3.1 Cathodic Protection Systems shall be installed and operating within one year after installation at the time of installation or upgrade of a metallic AST and shall be operational at the completion of the new installation or upgrade, or other schedule as approved by the Department.
5.3.2 Each Cathodic Protection System must shall be designed and installed with test stations or other methods to enable the Owner and/or Operator to monitor the operation of the Cathodic Protection System.
5.3.5 After installation of a Sacrificial Anode System, measurements of AST- to- soil potential must shall be made no sooner than sixty (60) days and no later than one hundred and eighty (180) days after installation of the Cathodic Protection System in accordance with the requirements of PART C. Section 5. If inadequate cathodic protection is indicated, the cause shall be determined, and necessary repairs shall be made within ninety (90) days, or other schedule approved by the Department, in accordance with one of the industry standards referenced in §5.1.2 of this Part.
6.1 General Requirements for New Underground Piping - General Requirements
6.1.1 All uUnderground pPiping installed after the effective date of these Regulations June 11, 2004 shall comply with the requirements of this section.
6.1.3 All uUnderground pPiping and piping Secondary Containment materials shall be compatible with the Regulated Substance that is to be stored in the AST.
6.1.4 The uUnderground pPiping layout shall be designed to minimize crossed lines and interference with conduit and other AST components. If crossing of lines is unavoidable, adequate clearance must shall be provided to prevent contact.
6.1.7 Pipe joints must shall be cut accurately and deburred to provide liquid-tight seals. No threaded or flanged connections shall be in contact with the soil.
6.1.8 New uUnderground pPiping systems shall be designed, constructed, and installed with access and isolation points to permit pressure testing of piping without the need for excavation.
6.1.10 All new uUnderground pPiping shall be tested in accordance with API 570 prior to introduction of any Regulated Substance into the piping.
6.1.11 Metallic Underground metallic pPiping that penetrates earthen or concrete dike walls or other structures must shall be sleeved and electrically isolated from the sleeve.
6.2 Requirements for New Non - Metallic Underground Piping
6.2.1 New Non-metallic uUnderground pPiping shall be designed and constructed in accordance with:
6.2.1.1 ASTM Specification D-2996-71, Standard Specification for Filament Wound RTRP; and
6.2.1.2 UL 971, Standard for Nonmetallic Underground Piping for Flammable Liquids.
6.2.3 Thermoplastic extrusion flexible uUnderground pPiping shall be designed and constructed in accordance with:
6.2.3.1 UL 971, Standard for Nonmetallic Underground Piping for Flammable Liquids.
6.2.4 Other non-metallic uUnderground pPiping may be approved by the Department.
6.3 Requirements for New Steel Underground Piping
6.3.1.2.1 API Recommended Practice 1615, Installation of Underground Petroleum Storage Systems; and
6.3.1.2.2 ANSI B31.1, Power Piping; and
6.3.1.2.3 ANSI B31.3, Process Piping; and
6.3.1.2.4 ANSI B31.4, Liquid Transportation Systems for Hydrocarbons, Liquid Petroleum Gas, Anhydrous Ammonia, and Alcohols Pipeline Transportation Systems for Liquids and Slurries; and
6.4 Requirements for New Other Metallic Underground Piping
6.5 Requirements for Corrosion Protection for New Steel Underground Piping
6.5.1.1 consist of a Sacrificial Anode Cathodic Protection System or an Impressed Current Cathodic Protection System designed, fabricated, and installed in accordance with nationally recognized standards including but not limited to API recommended practice RP651, NACE standard number RP-0285-85, and NACE RP-01-69 SP0169; and
6.5.1.2 have a Cathodic Protection System designed by individuals who have obtained a NACE Cathodic Protection Level 3 Specialist Certification and have relevant work experience in the design of Cathodic Protection Systems for Underground Piping; and
6.5.2 After installation of a Sacrificial Anode System, measurements of Underground Pipe-to-soil potential must shall be made no sooner than sixty (60) days and no later than one hundred and eighty (180) days after installation of the Cathodic Protection System in accordance with the requirements of PART C. Section 5. If inadequate cathodic protection is indicated, the cause shall be determined, and necessary repairs shall be made within ninety (90) days or other schedule approved by the Department in accordance with one of the industry standards referenced in §5.1.2 of this Part.
6.6.1 Backfill material adjacent to the uUnderground pPiping must shall consist of sand or pea gravel. The material must shall be clean, washed, inert, free flowing, homogeneous, well granulated, non-corrosive, and free of debris, rock, ice, snow or organic material. Particle length shall be no more than 3/8-3/4" in size and shall comply with the manufacturer's specifications. Mixing of the backfill adjacent to the Underground pPipe with native substance and/or foreign objects is prohibited.
6.7.1 Any repairs to Underground Pipe that must be repaired shall be repaired to equal or exceed standards of its the original condition of the Underground Piping.
6.7.2 An Owner and Operator may repair holes in Underground Pipe and fittings such as with repair methods that include but are not limited to patching, welding, or clamping and that are made in accordance with manufacturer’s specifications and applicable industry standards as a temporary repair for up to not to exceed thirty 30 days. After thirty (30) days with a temporary repair the Underground Piping shall be permanently repaired or shall be taken Out of Service.
7.0 Design Aand Construction Requirements Ffor Secondary Containment and Spill Containment Ffor New ASTs
7.1.2 Secondary Containment shall not be used to store materials. The Secondary Containment will shall be used to collect spills or Leaks, which must shall then be promptly removed, in accordance with appropriate disposal and safety procedures.
7.1.4 Secondary Containment must shall be designed and constructed to retain any Regulated Substance that leaves the primary containment including an AST and Ancillary Piping and prevent any Regulated Substance from reaching the surface water, groundwater, or adjacent land before cleanup occurs.
7.2.1.1 Dikes shall be constructed of materials compatible with the contents of the AST and which will shall retain any Regulated Substance that leaves the primary containment including an AST and Ancillary Piping and prevent any Regulated Substance from reaching the surface water, groundwater, or adjacent land before cleanup occurs.
7.2.1.2 There must shall be no openings or unsealed penetrations of the walls or floor of the dike. Any exceptions will be tank AST specific and will shall require Department approval.
7.2.1.3 All dikes must shall have a minimum capacity to contain 110% of the volume of the largest AST within the diked area or 100% of the volume of the largest AST plus six inches of freeboard for precipitation regardless of engineering controls or design.
7.2.1.4 The extent of the diked area should shall be sufficient to capture overflows, splashing caused by overfilling and/or the trajectory of sidewall leaks.
7.2.1.5 Sumps should shall be installed as part of all dikes and the dike floors sloped to the sumps to enhance material removal.
7.2.1.6 Pumps which are permanently installed for the removal of collected material to areas outside the dike area should shall be locked in the off position when not in use and should shall be monitored when in use to avoid discharging Regulated Substances to the environment. Portable pumps which are used for the removal of collected material to areas outside of dikes should shall be monitored while in use to avoid discharging Regulated Substances to the environment. Pumps which discharge material back to the ASTs within the diked area need not be locked when not in use, but pumps which pump in either direction must shall have valve locks to control discharges outside the dike, and when discharging outside the dike should shall be monitored.
7.2.1.8 A Permanent walkway, stairway or ramp must shall provide access to prevent dike wall degradation.
7.2.2.1 The paving/curbing combination, to be considered Secondary Containment, must be able to contain shall have a minimum capacity to contain 110% of the volume of the largest AST 100% of the volume of the largest AST plus six inches freeboard for precipitation or to direct spilled or lLeaked materials to a containment structure that has the ability shall have a minimum capacity to contain 110% of the volume of the largest AST or 100% of the volume of the largest AST plus six inches of freeboard for precipitation regardless of engineering controls or design.
7.2.2.2 The curbing and/or paving must shall be constructed of materials compatible with the contents of the ASTs around which they are installed. If necessary the curbing and paving shall be coated with a protective material.
7.2.2.3 To provide a liquid tight seal, curbing must shall be installed as either part of the paving (integrally poured) or, if installed later, must shall have a liquid barrier included in the installation.
7.2.2.4 The extent of the curbed area should shall be sufficient to capture overflows, splashing caused by overfilling and/or the trajectory of sidewall leaks.
7.2.2.5 Sumps should be installed as part of all curbs and the floors sloped to the sumps to enhance material removal.
7.2.3.1 A Vault shall completely enclose the AST and must shall be constructed of materials compatible with the Regulated Substance to be contained in the AST and shall have a minimum capacity to contain 110% of the volume of the largest AST.
7.2.3.2 All lines to and from ASTs installed in Vaults must shall pass through the roof of the Vault. No lines may shall penetrate the walls or floor of the Vault.
7.2.3.7 There may shall be no backfill around the AST and there shall be sufficient space between the AST and the vVault to allow inspection of the AST and equipment. ASTs designed for underground use may shall not be used in Vaults.
7.2.4.1.1 Overfill prevention as required in PART B, Section §8 of this Part; and
7.2.4.1.2 Leak Detection as required in PART B, Section §9 of this Part; and
7.2.4.1.3 Where an AST roof is involved, the outer wall of the double walled AST shall be designed to contain 100% of the volume of the AST. If there is an open top, the total containment must shall be constructed to contain 110% of the volume of the largest AST within the system or 100% of the volume of the largest AST plus six inches of freeboard for precipitation, regardless of engineering controls or design.
7.2.5.1 An external liner is a liner constructed of a material compatible with the contents of the AST which is installed inside an existing Secondary Containment structure, such as a dike, to provide additional assurance of impermeability. External liners are usually installed inside earthen dikes and under an AST.
7.2.5.2 Secondary Containment lining materials shall be constructed and maintained to retain any Regulated Substance that leaves the primary containment including an AST and Ancillary Piping and prevent any Regulated Substance from reaching the surface water, groundwater, or adjacent land before cleanup occurs for the operational life of the ASTs.
7.2.5.3 Lining materials must shall be compatible with the Regulated Substance stored in the AST.
8.0 Design Aand Installation Requirements for Overfill and Spill Prevention
8.1 General Requirements for Design and Installation of Overfill and Spill Protection
8.1.1 Owners and or Operators shall institute safe fill, shutdown and transfer procedures or equivalent measures established by the Department, that will shall ensure that spills resulting from AST overfills or other Regulated Substance transfer operations do not occur.
8.1.24 Receipts of Regulated Substance shall be authorized by the Operator, or fFacility personnel trained by the Operator and or Owner. The authorizing person shall ensure the volume available in the AST(s) is greater than the volume of Regulated Substance to be transferred to the AST(s) before the transfer operation commences. The Operator and Owner shall ensure that all AST fill valves not in use are secured and that only the AST(s) designated is receiving Regulated Substance. The Operator and Owner shall ensure the transfer operation is monitored either by manual or automatic means to prevent an overfill.
8.1.35 If the transfer operations are not being continuously monitored by a transfer operator appropriately trained in safe transfer procedures, the AST must shall be equipped with overfill prevention equipment that will shall automatically shut off the flow into the AST when the AST is no more than 95% full or other safe fill level approved by the Department. All automatic shutoff equipment shall be equipped with a fail-safe mechanism that will shall function in the event of power failure, malfunction or similar event.
8.1.46 If the transfer operations are being continuously monitored by a transfer operator appropriately trained in safe transfer procedures the AST must shall be equipped with a high level alarm or other automatic mechanism approved by the Department, that will shall immediately alert the Operator to prevent an overfill event.
8.1.46.1 The high level alarm shall be monitored continuously and upon alert the Operator will shall implement safe shut down procedures to prevent an overfill.
8.1.46.2 The alarm shall consist of a visual and audible device capable of alerting the transfer operator both by sight and hearing, to prevent an overfill situation. If the operator is in a surveillance station, this alarm shall cause a warning light and audible signal in that station to activate. In addition, this system shall alarm on failure, malfunction or power loss.
8.1.67 If installed, an automatic shutdown system utilized during transfer of Regulated Substance shall include the capability to direct the flow of Regulated Substance to another AST capable of receiving the transferred Regulated Substance or the capability to shut down the pumping or transfer system.
8.1.78 All ASTs shall be equipped with a gauge or other measuring device that is readily visible and accurately indicates the level of Regulated Substance or quantity of Regulated Substance in the AST.
8.1.89 The overfill prevention and measuring device must be shall operate independent of each other.
9.1 General Requirements for Leak Detection
9.1.1 A Leak of Regulated Substances must shall be detected and contained before contamination of soil outside the containment area or water resources occurs.
9.1.2 New ASTs shall have a method, or combination of methods, of Leak Detection that can detect a Leak from any portion of the AST. Leak Detection methods shall be separate from the method utilized to comply with the requirements for overfill prevention in PART B, Section 8.
9.1.3 Leak Detection methods other than visual shall be installed, calibrated, tested, operated and maintained in accordance with the manufacturer's instructions, including routine maintenance checks for operability to ensure that the device is functioning as designed.
9.1.7 Any interstitial spaces, including but not limited to those located in double-walled ASTs, double-walled piping, and double bottoms that are installed as part of nNew or Upgraded AST, shall be equipped with interstitial monitoring equipment capable of detecting a discharge of Regulated Substance into the interstitial space under all operating conditions.
9.1.8 The requirements of PART B, Section §9.1.2, PART B, Section §9.1.6 and PART B, Section §9.1.7 shall not apply to double-walled ASTs that are not in contact with the soil and that additionally meet the requirements for Secondary Containment in accordance with PART B, Section §7 of this Part.
10.0 Relocation, Repairs Aand Modifications Requirements for ASTs
10.1.1 Repairs, modifications and Relocations shall be performed, inspected and tested in accordance with API 653 or STI-SP001 STI-SP031 or NACE RPSP0294 or ASME RTP-1 as applicable or other standards approved by the Department.
10.2.1 All Relocated ASTs shall meets the standards for New ASTs as applicable, with the exception that the Department may approve the use of existing material of construction, and shall meet the following requirements before, the AST is utilized for storage of Regulated Substances:
10.2.1.1 The Owner and or Operator shall notify the Department of the scheduled Relocation and shall have received a formal letter of approval according to the requirements of PART B, Section §1 of this Part; and
10.2.1.3 The AST is determined to be structurally sound in its new location by a Professional Engineer or an inspector certified per the applicable code such as but not limited to a Certified API 653 Inspector or a Certified STI-SP001 Inspector or qualified by training and experience in the absence of a code certification process.
11.1.1 Within one (1) year of the effective date of these Regulations By June 11, 2005, all ASTs shall be equipped with a gauge or other measuring device that accurately shows the level of Regulated Substanceor quantity of Regulated Substance in the AST.
11.1.2 Within one (1) year of the effective date of these Regulations By June 11, 2005 all ASTs shall have an overfill prevention procedure per the requirements in PART B, Section §8 of this Part.
11.1.3 Within three (3) years of the effective date of these Regulations, By June 11, 2007 all ASTs shall have normal and emergency venting installed in accordance with API 2000 or NFPA 30 or UL142 or UL2085 as applicable.
11.1.4 Within ten (10) years of the effective date of these Regulations, By June 11, 2014 the required overfill prevention equipment and the measuring device must shall function independently of each other per the requirements in PART B, Section §8 of this Part.
11.1.5 Within seven (7) years of the effective date of these Regulations, By June 11, 2011 an AST which is not equipped with cathodic protection or an internal liner approved by the Department and documented to be capable of preventing a Release, shall be Upgraded to meet the requirements of PART B, Section §11.1.7 of this Part.
11.1.6 Within fifteen (15) years of the effective date of these Regulations, By June 11, 2019 an AST which is equipped with cathodic protection in accordance with PART B, Section §5 of this Part, or an internal liner approved by the Department and documented to be capable of preventing a Release, shall be Upgraded to meet the requirements of PART B, Section §11.1.7 of this Part.
11.1.7.1 Leak Detection equipment in accordance with the requirements of PART B, Section §9 or method approved by the Department; or
11.1.7.4 Annual iIn sService test or inspection approved by the Department; or
11.1.8 Within three (3) years of the effective date of these Regulations, By June 11, 2007 all ASTs must shall comply with the Inerting requirements of PART B, Section §12 of this Part.
11.2.1 Within ten (10) years of the effective date of these Regulations, By June 11, 2014 all existing Underground Piping that does not meet the requirements for new Underground Piping as required in PART B, Section §6 of this Part must shall be Upgraded to meet such requirements.
11.3 Upgrade Requirements for Tanks Built Prior to the Effective Date of the Regulations June 11, 2004 Converting to Storage of a Regulated Substance
11.3.1 Persons, who own an aboveground storage tank installed prior to the effective date of the Regulations; which have has only stored non-Regulated Substances; who intend to convert the aboveground storage tank to the storage of a Regulated Substance and the conversion will make the tank subject to these Regulations, shall notify the Department of the Change-In-Service on an AST registration form provided by the Department at least ten (10) sixty (60) days prior to initiating the Change-In-Service. The form shall be accompanied with documentation that the tank shall comply with the following requirements:
11.3.1.2 All aboveground and underground piping connected to the tank which will shall convey a Regulated Substance shall comply with an API 570 external visual inspection and API 570 pressure test as applicable.
11.3.2 If within the ten (10) sixty (60) day period, the required notification to the Department is completely satisfied, the conversion to storage of a Regulated Substance may proceed without waiting for the expiration of the ten (10) days.
11.4 Upgrade Requirements for Tanks Built After the Effective Date of the Regulations June 11, 2004Converting to Storage of a Regulated Substance
11.4.1 Persons, who own an aboveground storage tank installed after the effective date of the Regulations June 11, 2004; which have only stored non-Regulated Substances; who intend to convert the aboveground storage tank to the storage of a Regulated Substance and the conversion will make the tank subject to these Regulations, shall notify the Department of the Change-In-Service on utilizing an AST registration form provided by the Department at least ten (10) sixty (60) days prior to initiating the Change-In-Service. The form shall be accompanied with documentation that the tank shall comply with the following requirements:
11.4.1.3 All aboveground and underground piping connected to the tank which will shall convey a Regulated Substance shall comply with an API 570 external visual inspection and API 570 pressure test as applicable.
11.4.2 If within the ten (10) sixty (60) day period, the required notification to the Department is completely satisfied, the conversion to storage of a Regulated Substance may proceed without waiting for the expiration of the ten (10) sixty (60) days.
12.1.1 All ASTs without a Floating Roof installed or erected after the effective date of these Regulations June 11, 2004 and containing Flammable Regulated Substances as defined by NFPA 30, or Spent Acids, or Spent Caustics, or other Regulated Substances as defined by the Department shall have an automatic system in place to maintain the Ullage volume of the AST below the Limiting Oxidant Concentration (LOC), for any gaseous Oxidant which may be present, by the use of an Inert Gas bBlanketing system in accordance with NFPA 69. Systems operated above the Upper Flammable Limit (UFL) shall be subject to approval by the Department prior to installation. Other methods to prevent a Deflagration such as but not limited to sSpark eExtinguishing sSystems, Deflagration sSuppression, or Deflagration pPressure cContainment shall be subject to approval by the Department prior to installation.
12.1.2.1 All eExisting Shop Fabricated ASTs which meet the requirements of UL 142 and any the requirements of the Delaware State Fire Prevention Regulations;
12.1.2.2 All eExisting Field Constructed ASTs used for Dispensing which meet the requirements of API 650 and API 2000 and any the requirements of the Delaware State Fire Prevention Regulations;
12.1.2.3 New Shop Fabricated horizontal ASTs less than or equal to 50,000 gallons and nNew Shop Fabricated vertical ASTs less than or equal to 30,000 gallons used for Bulk Storage which meet the requirements of UL 142 and any the requirements of the Delaware State Fire Prevention Regulations;
12.1.2.4 New Shop Fabricated horizontal ASTs less than or equal to 50,000 gallons and nNew Shop Fabricated vertical ASTs less than or equal to 30,000 gallons used for Dispensing which meet the requirements of UL 142 and UL 2085 and the requirements of the Delaware State Fire Prevention Regulations;
13.1 General Requirements for Out of Service ASTs
13.1.1.2 is an empty tank except when the AST is emptied solely for the purpose of cleaning, routine maintenance or a change in product for a time period not to exceed one hundred eighty (180) days; or
13.1.2 The Owner and Operator shall notify the Department, on utilizing a form provided by the Department, upon taking an AST Out-of-Service unless the AST is empty or Out-Of-Service because of scheduled testing or inspection per these Regulations.
13.1.3.1 Remove all the Regulated Substance from Disconnect the AST and isolate connected from all piping; and
13.1.3.3 Thoroughly clean the interior of Empty the AST and all Ancillary Piping of all sludge, solids, and residual Regulated Substance and retain documentation of the proper disposition of the removed sludge, liquids, solids and residual Regulated Substance.
13.1.4 The Owner and or Operator of an AST that has remained Out-Of-Service for a period greater than three (3) years shall assess the site to determine whether there is soil or groundwater contamination attributable to the AST as per the requirements of PART B, Section §14 of this Part.
13.2.1 An AST which has been taken Out-of-Service and for which notice is required under Part B, Section §13.1.2 of this Part shall not be placed back into service, nor shall a Regulated Substance be introduced into the AST until the Owner and Operator certifies to the Department in writing that the AST is in compliance with all applicable statutes and Regulations.
13.2.2 An AST Owner and or Operator who reactivates an AST, which has been Out-of-Service per PART B, Section §13.1.1 shall notify the Department by amending the AST registration form required by Part A, §4, utilizing a form provided by the Department ten (10) days prior to putting the AST back into service.
13.2.3 Prior to placing an AST which has been Out-of-Service for more than 1 year and Empty, back into service, the Owner and or Operator shall thoroughly inspect and test the AST and appurtenances per the required time frames in PART C of these Regulations for evidence of the following conditions:
14.1 General Requirements for Service, Retrofit, Upgrade, repair or maintenance activity
14.1.1 If, dDuring an any AST Removal, Permanent Closure in Place, Permanent Change in Contents, converting the AST to another use, or when an AST has been Out of Service for more than three years activity, when there is evidence of soil or groundwater contamination from a Regulated Substance attributable to the AST, detected by site assessment, observation, or analysis, the Owner and or Operator shall notify the Department immediately of any evidence of soil or groundwater contamination from a Regulated Substance and shall comply with all notification and Corrective Action requirements of Part E of these Regulations.
14.2 Site Assessment During an AST Removal, Relocation, Permanent Closure in Place, Change in Contents, Converting the AST to Another Use or Out-of-Service Assessment Retrofit, Upgrade, repair or maintenance
14.2.1 The Owner and or Operator of the AST shall assess the site to determine whether there is soil or groundwater contamination attributable to the AST when:
14.2.2.43 All Leak Detection devices or subsurface monitoring locations shall be sampled.
14.2.3 The soil and groundwater samples shall be submitted to an appropriately certified a laboratory for certified to perform the required analyses analysis. The samples shall include a sample obtained from the location with the highest concentration of volatile organics.
14.2.4 Samples Analytes shall be analyzed selected based upon any and all Regulated Substances stored in the AST over its lifetime. Laboratory analysis methods for the analytes shall be methods approved by the Department.
14.2.5 Laboratory analysis methods for the analyses required in §14.2.4 of this Part shall be as to the method approved by the Department The samples shall be obtained from the locations with the suspected highest concentration of contaminants of concern.
15.1.1 An The AST Owner and or Operator shall notify the Department of the scheduled Removal of an AST on utilizing a form provided by the Department not later than (10) days prior to the Removal of an AST.
15.1.2 An Owner and Operator shall comply with the requirements of §14 of this Part. An AST and Ancillary Piping may be treated as separate entities for the purpose of Removal, Permanent Closure in Place or Permanent Change in Contents.
15.1.3 An The AST Owner and or Operator shall comply with the requirements of PART B, Section §14 of this Part.
15.2.1 To Remove an AST, an Owner and or Operator shall at a minimum comply with the following requirements:
16.1 General Requirements for Permanent Closure in Place of ASTs
16.1.1 An The Owner and or Operator shall notify the Department of the scheduled Permanent Closure in Place of an AST on utilizing a form provided by the Department not later than (10) days prior to the Permanent Closure in Place of an AST.
16.1.2 An Owner and Operator shall comply with the requirements of §14 of this Part. An AST and Ancillary Piping may be treated as separate entities for the purpose of Removal, Permanent Closure in Place or Permanent Change in Contents.
16.2.1 To Permanently Close in Place an AST, an the Owner and or Operator shall at a minimum comply with the following requirements:
16.2.1.1 Remove all the Regulated Substance from the AST and Ancillary Piping; Empty the AST and all Ancillary Piping of all Regulated Substances in accordance with API RP2015 and API RP2016 and retain documentation of the proper disposition of the removed sludge, liquids, solids and residual Regulated Substance for a minimum of three (3) years; and
16.2.1.2 Thoroughly clean the interior of the AST and all Ancillary Piping of all sludge, solids, and residual Regulated Substance with documentation of the proper disposition of the removed sludge, solids and residual Regulated Substance; and
16.2.1.3 Secure the AST and Ancillary Piping to prevent unauthorized entrance or tampering so that a Regulated Substance is not accidentally or intentionally introduced into the AST and Ancillary Piping, by means such as securely bolting and locking or welding all manways and valves or capping or plugging fill lines, gauge openings, or pump lines and disconnecting and blanking all Ancillary Piping; All Permanently Closed ASTs shall be labeled in accordance with PART A, Section 9.5.
16.3.2 Prior to placing an AST which has been Permanently Closed back into service, the Owner and or Operator shall meet all New AST standards in these Regulations.
17.1 General Requirements for Permanent Change in Contents
17.1.1 An The Owner and or Operator shall notify the Department of the scheduled Permanent Change in Contents of an AST on utilizing a form provided by the Department not later than (10) days prior to the Permanent Change in Contents of an AST.
17.1.2 An Owner and Operator shall comply with the requirements of §14 of this Part. An AST and Ancillary Piping may be treated as separate entities for the purpose of Removal, Permanent Closure in Place or Permanent Change in Contents.
17.2.1 To undergo a Permanent Change in Contents in an AST, an the Owner and or Operator shall at a minimum comply with the following requirements:
1.1 General Requirements for Inventory Control
1.1.1 Every Owner and or Operator shall maintain inventory control records for each AST containing a Regulated Substance. Records shall be kept for each AST or cluster of ASTs if they are normally interconnected, and shall include measurements of transfers of a Regulated Substance into and out of the AST, measurements of inventory on hand, and records of gains and losses. Reconciliation of records shall be kept current, shall account for all variables which could affect an apparent loss or gain, and shall be in accordance with generally accepted practices. The records shall be accumulated for each day an AST has a Regulated Substance added or withdrawn but in no instance shall the interval between measurement of inventory on hand exceed seven (7) days. The records shall include at a minimum:
1.1.2 Each By July 11, 2004 AST Owner and or Operator shall institute inventory control procedures within thirty (30) days of the effective date of these Regulations capable of detecting a significant variation of inventory. A significant variation shall be considered as a gain or a loss in excess of 1% of the throughput or storage capacity of each individual AST on a thirty (30) day or monthly basis.
1.1.2.1 Reconciliations of inventory measurements shall be conducted monthly or every thirty (30) days. If the significant variation persists for two consecutive thirty (30) day periods, the Owner and or Operator shall conduct an investigation to determine the cause of the variation. This investigation shall be completed within ten (10) working days of the end of the second reconciliation period that shows significant variation. If this investigation does not reveal the cause of the inventory variation the Owner and or Operator shall notify the Department and shall adhere to the reporting requirements of Part A, §8 and the cCorrective aAction requirements of Part E of these Regulations.
2.1 General Requirements Secondary Containment Inspection
2.1.2 If the Secondary Containment has been tested or inspected and fails to meet the criteria established in Part B § Section 7of these Regulations, the Owner and or Operator will have sixty (60) days from the date of the inspection identifying the problem to correct the problem or other schedule approved by the Department. Temporary safety measures shall be instituted as required by the Department.
2.1.3 Owners and Operators of ASTs shall adhere to the reporting requirements of Part A §8, and the cCorrective aAction requirements of Part E of these Regulations at any time evidence of a Leak or Release from Secondary Containment is noted during the course of an inspection.
2.1.4 If a significant change in the structure of the Secondary Containment occurs, the Owner and or Operator shall verify that the Secondary Containment meets or exceeds the criteria established in Part B, § Section 7 of these Regulations.
2.2 Routine In-Service Inspections Requirements for Secondary Containment
2.2.2 The routine iIn-sService inspection of the Secondary Containment shall include visual inspection from the ground.
2.3 External Inspections Requirements for Secondary Containment
3.1 General Requirements for Overfill Protection Testing
3.1.1 The overfill prevention system required in Part B, § Section 8 shall be tested no less frequently than every ninety-three (93) days to ensure proper function and records of testing shall be maintained at the Facility for three (3) years.
3.1.2 Existing ASTs with overfill prevention systems shall implement the testing requirements as required in PART C, Section §3.1.1 of this Part within thirty (30) days of the effective date of these Regulations by July 11, 2004.
3.1.3 The gauge or measuring device required in Part B, § Section 8 shall be calibrated no less frequently than once every twelve (12) months and records of testing shall be maintained at the Facility for three (3) years.
3.1.4 Existing ASTs with a gauge or measuring device shall implement the calibration requirements as required in PART C, Section §3.1.3 of this Part within thirty (30) days of the effective date of these Regulations July 11, 2004.
4.1 General Requirements for Underground Piping Inspection, Monitoring and Testing
4.1.1 Existing Underground Piping in compliance with an API 570 inspection and testing schedule as of the effective date of these Regulations June 11, 2004, or other schedule approved by the Department, shall adhere to their current established inspection schedule.
4.1.2 All existing Underground Piping not in compliance with an API 570 inspection and testing schedule as of the effective date of these Regulations June 11, 2004, or other schedule approved by the Department, shall be pressure tested annually, per in accordance with API 570 and API 574 where applicable, or in accordance with manufacturer’s specifications, or in accordance with a method approved in writing by the Department, until it is Upgraded to the new piping standards or removed from service.
4.1.3 In lieu of annual testing, the Department may approve an alternative risk-based schedule on a case-by-case basis. Any alternative method shall be approved in writing by the Department prior to implementation. In no case shall the inspection interval exceed ten (10) years.
4.1.5 Underground Piping that has been repaired or reactivated after being oOut-of-sService, shall be reassessed to ensure the Underground Piping meets or exceeds the original performance specifications prior to returning to service.
5.1.2.1 NACE Standard RP0193, External Cathodic Protection of On-Grade Carbon Steel Storage Tank Bottoms; and
5.1.2.2 API RP651, Cathodic Protection of Aboveground Petroleum Storage Tanks; and
5.1.2.3 NACE Standard RP0169 Control of External Corrosion on Underground or Submerged Metallic Piping Systems, and
5.1.3 By June 11, 2005 Existing ASTs with a Cathodic Protection System shall have, within one year of the effective date of these Regulations, test stations or access points which enable the Owner and Operator to test the adequacy of cathodic protection.
5.2 Requirements for Impressed Current Cathodic Protection Systems
5.2.1 The source of protective current for an Impressed Current System shall be monitored in accordance with one of the Standards referenced in PART C, Section §5.1.2, of this Part every sixty-three (63) but in no case shall the monitoring frequency be less than at least once every thirty-one (31) days, and the results recorded. If any inspection or monitoring indicates that the system is not functioning properly and the AST or Underground Piping are not being adequately protected in accordance with one of the Standards referenced in PART C, Section §5.1.2 of this Part, the cause shall be determined and the necessary repairs shall be made within ninety sixty (960) days or other schedule approved by the Department, in accordance with one of the Standards referenced in PART C, Section §5.1.2 of this Part.
5.2.2 All Impressed Current Systems shall be inspected and tested every twelve (12) months as part of a preventative maintenance program to minimize iIn-sService failure. The inspection and tests shall include a check for electrical shorts, ground connections, meter accuracy, and circuit resistance. The effectiveness of isolating devices, continuity bonds, and insulators shall be evaluated during this inspection.
5.2.3 Impressed Current Systems that are not operating as required shall be repaired or replaced within ninety sixty (960) days or other schedule approved by the Department, or the AST and Underground Piping which has the non-operational system shall be drained of its Regulated Substance and placed out of service Out Of Service in accordance with Part B, § PART B, Section 13 of these Regulations until the Impressed Current System is repaired or replaced.
5.3 Requirements for Sacrificial Anode Cathodic Protection Systems.
5.3.1 Sacrificial Anode Systems shall be inspected and tested at a minimum of once every 12 months, in accordance with industry Standards as referenced in PART C, Section §5.1.2 of this Part. Sufficient AST-to-soil and Underground Piping-to-soil potential measurements shall be made and recorded to determine if the AST and Underground Piping is protected in accordance with one of the industry Standards referenced in PART C, Section §5.1.2 of this Part. If any inspection and test indicates that the system is not functioning properly and the AST or Underground Piping are not being adequately protected in accordance with one of the Standards referenced in PART C, Section §5.1.2 of this Part, the cause shall be determined and the necessary repairs shall be made within ninetysixty (960) days or other schedule approved by the Department, in accordance with one of the Standards referenced in PART C, Section §5.1.2 of this Part
5.3.2 Sacrificial Anode Systems that are not operating as required shall be repaired or replaced within sixty ninety (960) days or other schedule approved by the Department, or the AST and Underground Piping which has the non-operational system shall be drained of its Regulated Substance and placed out of serviceOut Of Service in accordance with Part B, Section §13 of these Regulations until the Sacrificial Anode System is repaired or replaced.
5.4 Required Qualifications of Personnel Designing, Maintaining and Repairing Cathodic Protection Systems
5.4.1 Cathodic Protection Systems shall be designed by individuals who have obtained a NACE Cathodic Protection Level 3 Specialist Certification and have relevant work experience in the design of Cathodic Protection Systems for ASTs and Underground Piping.
5.4.2 For the maintenance and repair of existing Cathodic Protection Systems, or the replacement of an existing system component with a similar component, excluding minor maintenance procedures that do not substantially change the system such as replacement of fuses, the individual shall be certified by NACE for Cathodic Protection at Level 1, Level 2, or Level 3 the CP Technician, CP Technologist, or CP Specialist level and have specific knowledge and experience in the maintenance and repair of Cathodic Protection Systems for ASTs and Underground Piping. The NACE certified individual performing a specific task on a Cathodic Protection System shall be qualified at the appropriate Certification Level for that specific task as defined by NACE.
6.1 General Requirements for Metallic Field-Constructed AST Inspections
6.1.1 All New and Existing metallic Field-Constructed ASTs shall meet or exceed the applicable standards or recommendations in API 653 and, as applicable, NACE RSP0294 or the requirements in this Section, whichever are more stringent. Where multiple standards may be applied during the course of a tank inspection, only one (1) standard shall be utilized.
6.1.3 All New metallic Field-Constructed ASTs and Existing metallic Field-Constructed ASTs with new tank bottoms, shall complete an internal inspection in accordance with PART C, Section §6.4 of this Part, within ten (10) years of the date of completion of the installation of the AST or completion of the installation of the new tank bottom. All Existing metallic Field-Constructed ASTs shall complete an internal inspection in accordance with PART C, Section §6.4 of this Part, within three (3) years of the effective date of these Regulations, by June 11, 2007 except those ASTs that are in compliance with an established, documented API 653 or NACE RP0294SPO0294 inspection schedule, as of the effective date of these Regulations June 11, 2004.
6.1.4 All New metallic Field-Constructed ASTs shall complete an external inspection in accordance with PART C, Section §6.3 of this Part, within five (5) years of the date of completion of the installation. All Existing metallic Field-Constructed ASTs shall complete an external inspection in accordance with PART C, Section §6.3 of this Part, within one year of the effective date of these Regulations by June 11, 2005, except those ASTs that are in compliance with an established, documented API 653 or NACE RP0294SP0294 inspection schedule, as of the effective date of these Regulations June 11, 2004.
6.1.5 When an AST has been tested or inspected as required by these Regulations, the Owner and or Operator shall immediately initiate the actions required or recommended by the report of the Certified API 653 Inspector, including but not limited to requirements or recommendations for repair or removal from service.
6.1.6 A report of the findings of any API 653 inspection that concludes the AST is not fit for service shall be submitted to the Department and the AST Owner and or Operator within thirty (30) days of the conclusion of the inspection. The Owner and or Operator shall submit to the Department with the API 653 inspection report an additional report detailing a proposed course of action including but not limited to removal of the AST contents and a schedule for repairs prior to the AST being returned to service. Removal of the AST contents shall commence within five (5) days of the conclusion that the AST is not fit for service and completion of the removal of the AST contents shall not exceed ninety (90) days, unless an alternative schedule is approved by the Department.
6.1.8 Owners and Operators of ASTs shall adhere to the reporting requirements of Part A §8, and the cCorrective aAction requirements of Part E at any time evidence of a Release or Leak is noted during the course of an inspection.
6.2 Requirements for Routine In-Service Inspections for Metallic ASTs
6.2.2 The routine in-service inspection shall at a minimum be completed in accordance with the guidance contained in API 653 and API 570 or other equivalent procedure approved by the Department. An appropriate check list containing at a minimum the criteria in API 653 Appendix Annex C, Tank In-service Inspection Checklist and API 5704 Appendix D Annex A, External Inspection Checklist for Process Piping and including the condition of the Secondary Containment, shall be developed and completed for each AST and aboveground Ancillary Piping at each routine in-service inspection. For ASTs equipped with a Release Prevention Barrier or a double bottom, the checklist must include criteria for visual inspection for evidence of Releases and Leaks.
6.2.3 The routine in-service inspection may be completed by Owner and or Operator designated personnel other than an API certified inspector. If designated personnel are not specifically certified in accordance with API 653, training shall include but is not limited to the following:
6.2.3.6 Records of training shall be maintained at the Facility by the Owner and or Operator for five (5) years after the termination date of employment for personnel and shall be made available for review at the Department's request.
6.2.4 The routine iIn-sService inspection shall include close visual inspection from the ground.
6.2.5 Routine iIn-sService inspection reports shall be retained at the Facility by the Owner andor Operator for five (5) years after the routine in-service inspection and shall be made available for review at the Department's request.
6.2.6 The routine in-service inspection program shall be developed and implemented within 180 days of the effective date of these Regulations by December 8, 2004.
6.3 Requirements for External Inspections for Metallic ASTs
6.3.1 External inspections shall at a minimum follow the latest approved edition referenced in PART A, Section 3, of nationally recognized codes, standards, guidelines or recommended practices including but not limited to API 653, API 570, and NACE RSP-0294.
6.3.2 External inspection frequencies for ASTs and aboveground Ancillary Piping shall follow the recommended guidelines, codes, standards or recommended practices referenced in PART C, Section §6.3.1 of this Part, including but not limited to the calculated corrosion rate, but in no instance shall the external inspection frequency exceed five (5) years.
6.3.3 Only Certified API 653 Inspectors and Certified API 570 Inspectors shall perform external inspections. An appropriate check list containing at a minimum the criteria in API 653 Appendix Annex C, Tank In-service Inspection Checklist and API 5704 Appendix D Annex A, External Inspection Checklist for Process Piping and including the condition of the Secondary Containment, shall be developed and completed for each AST and aboveground Ancillary Piping at each external inspection. Where material thickness measurements are performed, only qualified American Society for Non Destructive Testing (ASNT) SNT-TC-1A, latest edition, Level II technician or ASNT Central Certification Program Level II technicians or Certified API 653 Inspectors with experience in performing material thickness measurements shall perform the test.
6.4 Requirements for Internal Inspections for Metallic ASTs
6.4.1 Internal inspections shall at a minimum follow the latest approved edition referenced in PART A, Section 3, of nationally recognized standards, guidelines or recommended practices including but not limited to API 653 and, if applicable, NACE RSP-0294.
6.4.2 The internal inspection shall at a minimum be completed in accordance with the recommended guidelines, codes, standards or recommended practices referenced in PART C, Section §6.4.1 of this Part or other equivalent procedure approved by the Department. An appropriate check list containing at a minimum the criteria in API 653 Appendix Annex C, Tank Out-Of-Service Inspection Checklist shall be developed and completed for each AST at each internal inspection.
6.4.3 Internal inspection frequencies for ASTs with an established documented corrosion rate, as of the effective date of these Regulations June 11, 2004, shall follow the inspection frequency of API 653 or NACE RP-0294SP0294 as applicable including but not limited to the use of calculated corrosion rates.
6.4.6 Alternative internal inspection intervals may be established as outlined in API 653 using the Risk Based Inspection procedures, robotics, statistical analysis and related methods allowed by API 653, only for ASTs with 110% secondary containment dikes and a continuous method of Leak detection. Any alternative method shall be approved in writing by the Department prior to implementation.
6.4.7 Internal inspection reports shall be submitted to the Department within thirty (30) days of inspection completion and shall be retained at the Facility for the life of the AST by current and future Owners and Operators.
7.1 General Requirements for Metallic Shop-Fabricated AST Inspections
7.1.1 All New and Existing metallic Shop-Fabricated ASTs shall meet or exceed the applicable standards or recommendations in API 653 or STI-SP001 or NACE RSP0294 or the requirements in this Section whichever are more stringent. Where multiple standards may be applied during the course of a tank inspection, only one (1) standard shall be applied.
7.1.3 All New metallic Shop-Fabricated ASTs shall complete an internal inspection in accordance with PART C, Section §7.4 of this Part, within ten years of the date of completion of the installation. All Existing metallic Shop-Fabricated ASTs shall complete an internal inspection in accordance with PART C, Section §7.4 of this Part, within three (3) years of the effective date of these Regulations by June 11, 2007, except those ASTs that are in compliance with an established, documented API 653 or STI-SP001 or NACE RP0294SP0294 inspection schedule.
7.1.4 All New metallic Shop-Fabricated ASTs shall complete an external inspection in accordance with PART C, Section §7.3 of this Part, within five years of the date of completion of the installation. All Existing metallic Shop-Fabricated ASTs shall complete an external inspection in accordance with PART C, Section §7.3 of this Part, within one year of the effective date of these Regulations by June 11, 2005, except those ASTs that are in compliance with an established, documented API 653 or STI-SP001 or NACE RP0294SP0294 inspection schedule.
7.1.5 When an AST has been tested or inspected as required by these Regulations, the Owner orand Operator shall immediately initiate the actions required or recommended by the report of the Certified API 653 Inspector or the Certified STI-SP001 Inspector, including but not limited to recommendations for repair or removal from service.
7.1.6 A report of the findings of any API 653 or STI - SP001 inspection that concludes the AST is not fit for service shall be submitted to the Department and the AST Owner orand Operator within thirty (30) days of the conclusion of the inspection. The Owner orand Operator shall submit to the Department with the API 653 or STI-SP001 inspection report an additional report detailing a proposed course of action including but not limited to removal of the AST contents and a schedule for repairs prior to the AST being returned to service. Removal of the AST contents shall commence within five (5) days of the conclusion that the AST is not fit for service and completion of the removal of the AST contents shall not exceed ninety (90) days, unless an alternative schedule is approved by the Department.
7.1.8 Owners and Operators of ASTs shall adhere to the reporting requirements of Part A §8, and the cCorrective aAction requirements of Part E at any time evidence of a Release or Leak is noted during the course of an inspection.
7.2 Requirements for Routine In-Service Inspections for Shop-Fabricated ASTs
7.2.2 The routine in-service inspection shall at a minimum be completed in accordance with the guidance contained in API 653 or STI-SP001 and API 570 or other equivalent procedure approved by the Department. An appropriate check list containing at a minimum the criteria in API 653 Appendix Annex C, Tank In-service Inspection Checklist and API 5704 Appendix Annex D, External Inspection Checklist for Process Piping and including the condition of the Secondary Containment shall be developed and completed for each AST and aboveground Ancillary Piping at each routine in-service inspection. For ASTs equipped with a Release Prevention Barrier or a double bottom, the checklist must include criteria for visual inspection for evidence of Releases and Leaks.
7.2.3 The routine in-service inspection may be completed by Owner and or Operator designated personnel other than an API or STI certified inspector. If designated personnel are not specifically certified in accordance with API 653 or STI-SP001, training shall include but is not limited to the following:
7.2.3.6 Records of training shall be maintained at the Facility by the Owner and or Operator for five (5) years after the termination date of employment for personnel and shall be made available for review at the Department's request.
7.2.4 The routine iIn-sService inspection shall include close visual inspection from the ground.
7.2.5 Routine iIn-sService inspection reports shall be retained at the Facility by the Owner and or Operator for five (5) years after the routine iIn-sService inspection and shall be made available for review at the Department's request.
7.2.6 The routine iIn-sService inspection program shall be developed and implemented within 180 days of the effective date of these Regulations by December 8, 2004.
7.3 Requirements for External Inspections
7.3.2 External inspection frequencies for ASTs and aboveground Ancillary Piping shall follow the recommended guidelines, codes, standards or recommended practices referenced in PART C, Section §7.3.1 of this Part including but not limited to the calculated corrosion rate, but in no instance shall the external inspection frequency exceed five (5) years.
7.3.3 Only Certified API 653 Inspectors or Certified STI-SP001 Inspectors or Certified API 570 Inspectors shall perform external inspections. An appropriate check list containing at a minimum the criteria in API 653 Appendix Annex C, Tank In-service Inspection Checklist and API 5704 Appendix Annex D, External Inspection Checklist for Process Piping and including the condition of the Secondary Containment, shall be developed and completed for each AST and aboveground Ancillary Piping at each external inspection. Where material thickness measurements are performed, only qualified American Society for Non Destructive Testing (ASNT) SNT-TC-1A, latest edition, Level II technicians or ASNT Central Certification Program Level II technician or Certified API 653 Inspectors with experience in performing material thickness measurements shall perform the test.
7.4 Requirements Internal Inspections
7.4.2 The internal inspection shall at a minimum be completed in accordance with the recommended guidelines, codes, standards or recommended practices referenced in PART C, Section §7.4.1 of this Part or other equivalent procedure approved by the Department. An appropriate check list containing at a minimum the criteria in API 653 Appendix Annex C, Tank Out-of-sService Inspection Checklist shall be developed and completed for each AST at each internal inspection.
7.4.3 Internal inspection frequencies for ASTs with an established documented corrosion rate, as of the effective date of these Regulations, June 11, 2004 shall follow the inspection frequency of API 653, or NACE RP-0294SP0294, or STI-SP001 as applicable including but not limited to the use of calculated corrosion rates.
7.4.5 Only Certified API 653 Inspectors or Certified STI-SP001 Inspectors shall perform the internal inspections. Where non-destructive testing methods are performed, only qualified SNT-TC-1A, latest edition, Level II technicians or ASNT Central Certification Program Level II technicians or Certified API 653 Inspectors with experience in performing non-destructive testing shall perform the test.
8.1.1.3 The Owner andor Operator shall notify the Department in writing ten (10) days prior to work commencing when ASTs subject to this Section are emptied for maintenance, repairs, or removed from service.
8.1.1.4 When a FRTP AST has been tested or inspected as required by these Regulations the Owner andor Operator shall immediately initiate the actions required or recommended by the report of the certified inspector or the experience qualified individual, including but not limited to recommendations for repair or removal from service.
8.1.1.5 A report of the findings of any inspection required by this Section that concludes the AST is not fit for service shall be submitted to the Department and the AST Owner andor Operator within thirty (30) days of the conclusion of the inspection. The Owner andor Operator shall submit to the Department with the inspection report an additional report detailing a proposed course of action including but not limited to removal of the AST contents and a schedule for repairs prior to the AST being returned to service. Removal of the AST contents shall commence within five (5) days of the conclusion that the AST is not fit for service and completion of the removal of the AST contents shall not exceed ninety (90) days, unless an alternative schedule is approved by the Department.
8.1.1.6 Owners and Operators of ASTs shall adhere to the reporting requirements of Part A §8, and the cCorrective aAction requirements of Part E at any time evidence of a Release or Leak is noted during the course of an inspection.
8.1.4.1.2 All Existing Fiber Reinforced Thermosetting Plastic Shop-Fabricated and Field Constructed ASTs shall complete an internal inspection in accordance with PART C, Section §8.17 of this Part within three (3) years of the effective date of these Regulations by June 11, 2007, except those ASTs that have an established, documented inspection schedule that includes the inspection criteria and frequency established in this Section.
8.1.4.2.1 All New Fiber Reinforced Thermosetting Plastic Shop-Fabricated and Field-Constructed ASTs shall complete an external inspection in accordance with PART C, Section §8.16 of this Part, within three (3) years of the date of the AST being placed into service.
8.1.4.2.2 All Existing Fiber Reinforced Thermosetting Plastic Shop-Fabricated and Field-Constructed ASTs shall complete an external inspection in accordance with PART C, Section §8.16 of this Part, within three (3) years of the effective date of these Regulations, by June 11, 2007 except ASTs that have an established, documented inspection schedule that includes the inspection criteria and frequency established in this Section.
8.1.5.2 The routine in-service inspection shall include a visual external inspection of the AST's exterior surfaces. An appropriate check list containing at a minimum the criteria in PART C, Section §8.1.5.3.4 of this Part and API 653 Appendix Annex C, Tank In-sService Inspection Checklist and API 5704 Appendix Annex D, External Inspection Checklist for Process Piping and including the condition of the Secondary Containment, will be developed and completed for each AST at each routine in-service inspection. For ASTs equipped with a Release Prevention Barrier or a double bottom, the checklist must include criteria for visual inspection for evidence of Releases and Leaks.
8.1.5.3 The routine in-service inspection may be completed by Owner and or Operator designated personnel other than an API , STI, ASME RTP-1, or NBIC certified inspector. If designated personnel are not specifically trained in accordance with a nationally recognized certification program, training shall include but is not limited to the following:
8.1.5.5 Records of training shall be maintained at the Facility by the Owner and or Operator for five (5) years after the termination date of employment for personnel and shall be made available for review at the Department's request.
8.1.5.7 Routine iIn-sService inspection reports shall be retained at the Facility by the Owner andor Operator for five (5) years after the routine in-service inspection and shall be made available for review at the Department's request.
8.1.5.8 The routine iIn-sService inspection program shall be developed and implemented within 180 days of the effective date of these Regulations by December 8, 2004.
8.1.6.1.3 Where material thickness measurements are performed, only qualified American Society for Non Destructive Testing (ASNT) SNT-TC-1A, latest edition, Level II technicians or ASNT Central Certification Program Level II technicians or Certified API 653 Inspectors with experience in performing material thickness measurements shall perform the test.
8.1.6.2 Specific Requirements for External Inspections
8.1.6.2.5 If known upsets occur whichthat are outside the AST's designed specifications then an external inspection shall be performed within thirty (30) days of the upset to ensure the integrity of the AST.
8.1.7.1.1 Internal inspections shall, at a minimum, follow the Requirements of this Section.
8.1.7.1.3 Where non-destructive testing methods are performed, only qualified SNT-TC-1A, latest edition, Level II technicians or ASNT Central Certification Program Level II technicians or Certified API 653 Inspectors with experience in performing non-destructive testing methods shall perform the test.
8.1.7.2.6 If known upsets occur whichthat are outside the AST's design specifications then an internal inspection shall be performed within thirty (30) days of the upset to ensure the integrity of the AST.
8.1.8 Underground Pipe Requirements
8.1.8.1 Underground Pipe is not subject to the requirements of Part C, §8 of these Regulations.
8.2.1.1 Owners and or Operators of non-metallic Field-Constructed or Shop-Fabricated ASTs constructed of material other than fiber reinforced thermosetting plastic (FRTP), shall submit to the Department for approval before implementation, a schedule and criteria for inspections and testing. Inspection criteria shall include routine inspections, internal inspections and external inspections. Testing criteria shall include non-destructive testing and thickness measurements. The Owner and or Operator shall also meet any applicable Referenced Standards.
8.2.1.2 The Owner andor Operator shall notify the Department in writing ten (10) days prior to work commencing when ASTs subject to this Section are emptied for maintenance, repairs, or removed from service.
8.2.1.3 When a non-metallic AST has been tested or inspected as required by these Regulations the Owner andor Operator shall immediately initiate the actions required or recommended by the report of the certified inspector or the experience qualified individual, including but not limited to recommendations for repair or removal from service.
8.2.1.4 A report of the findings of any inspection required by this Section that concludes the AST is not fit for service shall be submitted to the Department and the AST Owner and Operator within thirty (30) days of the conclusion of the inspection. The Owner andor Operator shall submit to the Department with the inspection report an additional report detailing a proposed course of action including but not limited to removal of the AST contents and a schedule for repairs prior to the AST being returned to service. Removal of the AST contents shall commence within five (5) days of the conclusion that the AST is not fit for service and completion of the removal of the AST contents shall not exceed ninety (90) days, unless an alternative schedule is approved by the Department.
8.2.1.5.1 ASME RTP-1 Reinforced Thermoset Plastic Corrosion Resistant Equipment; or
9.2.1.1 Leak Detection checklists that did not document a Leak shall be retained at the Facility by the Owner andor Operator for five (5) years after the Leak Detection inspection and shall be made available for review at the Department's request.
9.2.1.2 Leak Detection checklists that did document a Leak shall be retained at the Facility by the Owner andor Operator for the life of the AST by current and future Owners and or Operators.
9.2.1.3 Owners and or Operators shall adhere to the reporting requirements of Part A §8, and the corrective action requirements of Part E at any time evidence of a Leak Release is noted during the course of an inspection.
10.1.2 Owners and or Operators of ASTs subject to the Inerting Requirements of these Regulations shall adhere to the reporting requirements of Part B Section §12 at any time the Inerting system or other Department approved Deflagration prevention system is not operating in compliance with the requirements of Part B Section §12.
10.2.1.1 10.2.2 Records of the calibration, testing, and maintenance of Inerting systems and other Department approved Deflagration prevention systems shall be made and shall be retained at the Facility by the Owner andor Operator for five (5) years after the report was generated. Reports shall be made available for review at the Department's request.
10.2.2 10.2.3 All manufacturers' instructions, and the performance claims and their manner of determination described in writing by the equipment manufacturer or installer for the Inerting system or Deflagration prevention system shall be retained at the Facility for the life of the AST.
1.0 Applicability General Requirements for Financial Responsibility
1.1 Applicability
1.11 This Part applies to Owners and Operators of ASTs as defined in Title 7 Del.C. Ch. 74A, §7402A and not otherwise exempt under Title 7 Del.C. Ch. 74A, §7404A or PART D, Section §1.2 of this Section.
1.1.2 An AST that is subject to and in compliance with the financial requirements of Delaware's Regulations Governing Hazardous Waste or 40 CFR 264 or 40 CFR 265 is exempt from compliance with this PartPART D.
1.1.3 Financial responsibility under this Part is only applicable to Accidental Releases occurring after the date established in PART D, Section §2 of this Part.
1.1.4 The State and federal government entities whose debts and liabilities are the debts and liabilities of the State or the United States are exempt from the requirements of this Part for ASTs owned by a State or Federal government entity.
1.1.5 If the Owner and Operator of an AST are separate Persons, only one Person is required to demonstrate financial responsibility; however, both parties are liable in event of noncompliance. Regardless of which party complies, the date set for compliance is established in §2 of this Part PART D, Section 2.
2.1.1 Owners and Operators of ASTs shall comply with the requirements of this Part PART D by June 1, 2005.
2.1.2 The Owner and Operator must submit the appropriate documentation as referenced in §§5 -15 and PART D, Sections 5 through 15 Appendices A-through Q of this Part on an annual basis once every twelve (12) months to the Department as proof of compliance with the financial assurance requirements of this Part. The Owner and Operator shall maintain a copy of all documentation as referenced in §§5 -15 PART D, Sections 5 thought 15 and Appendices Forms A-through Q of this Part PART D.
2.1.3 Owners and Operators must maintain evidence of all current and historical financial assurance mechanisms used to demonstrate financial responsibility under this Part PART D until released from the requirements under §19 PART D, Section 19 of this Part.
2.1.4 Records documenting compliance with the Ffinancial Rresponsibility requirements of this Part must be made available upon the request of the Department.
3.1.1 Owners and Operators of ASTs must shall demonstrate financial responsibility for taking cCorrective aAction and for compensating third parties for Bodily Injury and Property Damage caused by Accidental Releases from the operation of ASTs in at least the following amounts. Aggregate storage capacities used to establish the following levels of financial responsibility are the total storage capacity of all applicable ASTs in the State of Delaware:
3.1.11 For a Person owning aggregate storage capacity less than or equal to 500,000 gallons, the demonstration of financial responsibility for cCorrective aAction and third-party liability shall be a minimum of $500,000 per occurrence and $1 million Annual Aggregate.
3.1.1.2 For a Person owning aggregate storage capacity of greater than 500,000 gallons and less than or equal to 1,000,000 gallons, the demonstration of financial responsibility for cCorrective aAction and third-party liability shall be a minimum of $1 million per occurrence and $1 million Annual Aggregate.
3.1.1.3 For a Person owning aggregate storage capacity of greater than 1,000,000 gallons and less than or equal to 3,000,000 gallons, the demonstration of financial responsibility for cCorrective aAction and third-party liability shall be a minimum of $1 million per occurrence and $2 million Annual Aggregate.
3.1.1.4 For a Person owning aggregate storage capacity of greater than 3,000,000 gallons and less than or equal to 5,000,000 gallons, the demonstration of financial responsibility for cCorrective aAction and third-party liability shall be a minimum of $2 million per occurrence and $4 million Annual Aggregate.
3.1.1.5 For a Person owning aggregate storage of greater than 5,000,000 gallons, the demonstration of financial responsibility for cCorrective aAction and third-party liability shall be a minimum of $3 million per occurrence and $6 million Annual Aggregate.
3.2.1 The amount of financial responsibility required under this Section excludes legal defense and administrative costs.
3.32.2 The required per Occurrence and Annual Aggregate coverage amounts do not in any way limit the liability of the Owner andor Operator.
3.42.3 The Annual Aggregate on ASTs is separate from the Annual Aggregate on underground storage tanks.
3.52.4 Owners and Operators shall review the amount of financial responsibility provided whenever additional ASTs are installed to comply with the requirements of §3.1 of this Part PART D, Section 3.1.
4.1.1 Except as provided by §§4.2 and 4.3 of this Section Part D, Section 4.1.2 and PART D, Section 4.1.3:
4.1.1.1 An Owner andor Operator may use any one or combination of the mechanisms listed in §§ PART D, Sections 5 through 10 of this Part, inclusive, to satisfy the requirements of §3 of this Part PART D, Section 3.
4.1.1.2 A Local Government Owner andor Operator may use any one or combination of the mechanisms listed in §§ PART D, Sections 5 through 14 of this Part, inclusive, to satisfy the requirements of §3 of this Part PART D, Section 3.
4.1.2 An Owner andor Operator may use self insurance in combination with a guarantee only if, for the purpose of meeting the requirements of the financial test under this rule, the financial statements of the Owner andor Operator are not consolidated with the financial statements of the Guarantor.
4.1.3 If the Owner andor Operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial responsibility for:
4.1.3.1 Taking corrective action; and
4.1.3.2 Compensating third parties for Bodily Injury and Property Damage caused by Accidental Releases; the amount of financial responsibility provided by the combination of mechanisms must be in the full amount specified in §3.1 of this PART D, Section 3.1.
4.1.4 Where an Owner or Operator uses a combination of separate mechanisms to cumulatively demonstrate financial responsibility, the mechanisms shall clearly and expressly state the order and priority of the mechanisms in paying for corrective action and/or compensation of third parties, and such order and priority shall be consistent with all regulatory requirements for demonstrating financial responsibility.
5.11 To satisfy the requirements of §3 PART D, Section 3 of this Part by self insurance, the Owner, Operator, or Guarantor must;
5.1.11 Meet the financial test in §5.2 or §5.3 of this Section PART D, Section 5.1.2 or PART D, Section 5.1.3 based on year-end financial statements for the latest completed Financial Reporting Year; and,
5.1.12 Complete Appendix PART D, Section 21 Form A of this Part exactly as shown, except that the instructions in brackets are to be replaced by the relevant information and the brackets deleted; and,
5.1.1.3 Submit the completed Appendix PART D, Section 21, Form A of this Part to the Department, signed by the Chief Financial Officer of the Owner, Operator, or Guarantor, within one hundred and twenty (120) days of the close of each fiscal year.
5.1.2 Alternative I - Net Worth Test
5.1.2.1 The Owner, Operator, or Guarantor, must shall have a Tangible Net Worth of at least $10 million; and
5.1.2.2 The Owner, Operator, or Guarantor, must shall have a Tangible Net Worth of at least ten times the sum of the following:
5.1.2.2.1 The applicable Annual Aggregate amount required by §3 of this Part PART D, Section 3 less the amount obtained through another mechanism or combination of mechanisms in accordance with § 4 of this Part PART D, Section 4, for which a financial test is used to demonstrate financial responsibility to the Department under this Section; and
5.1.2.2.2 Any other liability coverage for which the Owner or Operator is using the test to demonstrate financial responsibility to the State or EPA, (this includes but is not limited to Subtitle C Hazardous waste facilities, SDWA hazardous waste injection wells, Subtitle I Underground Storage Tank facilities), and
5.1.2.3 The Owner, Operator, or Guarantor, must shall either:
5.12.3.1 File financial statements annually with the U.S. Securities and Exchange Commission (SEC), the Energy Information Administration (EIA), or the Rural Utilities Service (RUS), the Board of Governors of the Federal Reserve System, the Comptroller of the Currency or the Federal Deposit Insurance Corporation; or
5.1.2.3.2 Annually report the firm's Tangible Net Worth to Dun & Bradstreet, and Dun & Bradstreet must shall have assigned the firm a financial strength rating of 4A or 5A, and
5.12.4 The firm's year-end financial statements, if independently audited, cannot include an adverse auditor's opinion, a disclaimer of opinion, or a going concern qualification.
5.13 Alternative II - Net Working Capital Test
5.13.1 The Owner, Operator, or Guarantor must shall have a Tangible Net Worth of at least $10 million; and
5.13.2 The Owner, Operator, or Guarantor must shall have a Tangible Net Worth of six times the sum of the following:
5.13.2.1 The applicable Annual Aggregate amount required by §3 of this Part PART D, Section 3 less the amount obtained through another mechanism or combination of mechanisms in accordance with §4 of this Part PART D, Section 4, for which a financial test is used to demonstrate financial responsibility to the Department under this Section; and
5.13.2.2 Any other liability coverage for which the Owner or Operator is using the test to demonstrate financial responsibility to the State or EPA, (this includes but is not limited to Subtitle C Hazardous waste facilities, SDWA hazardous waste injection wells, Subtitle I Underground Storage Tank facilities); and
5.1.3.3 The Owner, Operator, or Guarantor must shall have either:
5.13.3.1 At least 90 percent of assets are in the United States, or
5.13.3.2 U.S. assets are at least six times the sum of the following:
5.1.3.3.2.1 The applicable Annual Aggregate amount required by §3 of this Part PART D, Section 3 less the amount obtained through another mechanism or combination of mechanisms in accordance with §4 of this Part PART D, Section 4, for which a financial test is used to demonstrate financial responsibility to the Department under this Section; and
5.1.3.3.2.2 Any other liability coverage for which the Owner or Operator is using the test to demonstrate financial responsibility to the State or EPA, (this includes but is not limited to Subtitle C Hazardous waste facilities, SDWA hazardous waste injection wells, Subtitle I Underground Storage Tank facilities); and
5.1.3.4 The Owner, Operator, or Guarantor must shall have either
5.1.3.4.1 Net working capital of at least six times the sum of the following:
5.1.3.4.1.1 The applicable Annual Aggregate amount required by §3 of this Part PART D, Section 3 less the amount obtained through another mechanism or combination of mechanisms in accordance with §4 of this Part PART D, Section 4, for which a financial test is used to demonstrate financial responsibility to the Department under this Section; and
5.1.3.4.1.2 Any other liability coverage for which the Owner or Operator is using the test to demonstrate financial responsibility to the State or EPA, (this includes but is not limited to Subtitle C Hazardous waste facilities, SDWA hazardous waste injection wells, Subtitle I Underground Storage Tank facilities); or
5.1.3.4.2 A current Standard & Poor's bond rating of AAA, AA, A or BBB, or a current Moody's bond rating of Aaa, Aa, A or Baa for the most recent bond issuance, and
5.13.5 The fiscal year end financial statements of the Owner, Operator, or Guarantor, shall be independently audited, and cannot include an adverse auditor's opinion, a disclaimer of opinion, or a going concern qualification, and
5.1.3.6 If the financial statements of the Owner, Operator, or Guarantor are not submitted annually to the U.S. Securities and Exchange Commission (SEC), the Energy Information Administration (EIA) or the Rural Utilities Service (RUS) the Owner, Operator, or Guarantor using the Alternative II test, must obtain a special report by an independent certified public accountant which contains the accountant's certification that there are no material differences between the financial data in the submission required under § 5.1.3 of this Part PART D, Section 5.1.2.4 and the independently audited year-end financial statements and footnotes for the latest completed Financial Reporting Year.
5.14 If an Owner or Operator finds that he or she no longer meets the requirements of § 5.1.1 of this Part PART D, Section 5.1, the Owner or Operator must shall obtain alternative coverage within one hundred fifty (150) days of the latest completed Financial Reporting Year.
5.15 The Department may require reports of financial condition at any time from the Owner, Operator, or Guarantor. If the Department finds, on the basis of such reports or other information, that the Owner, Operator, or Guarantor no longer meets the requirements of §5.1.1 of this Part PART D, Section 5.1, the Owner or Operator must shall obtain alternate coverage within 30 days after notification by Verifiable Service of such a finding.
5.16 If the Owner and Operator fail to obtain alternate coverage within one hundred fifty (150) days of finding that he or she no longer meets the requirements of §5.1.1 of this Part PART D, Section 5.1, or within thirty 30) days of notification by the Department that he or she no longer meets the requirements of §5.1.1 of this Part PART D, Section 5.1, the Owner andor Operator must notify the Secretary of such failure within ten (10) days.
6.1.1 An Owner or Operator may satisfy the requirements of § PART D, Section 3 of this Part by obtaining a guarantee that conforms to the requirements of this Section. The Guarantor must be a business entity that:
6.11.1 Possesses a Controlling Interest in the Owner or Operator; or
6.11.2 Possesses a Controlling Interest in a firm that has a Controlling Interest in the Owner or Operator; or
6.11.3 Is an affiliate which is controlled through stock ownership by a common parent firm that possesses a Controlling Interest in the Owner or Operator; or
6.11.4 Is engaged in a Substantial Business Relationship with the Owner or Operator and is issuing the guarantee as an act incident to that business relationship.
6.12 The Guarantor must shall:
6.1.2.1 Comply with PART D, Section §5 of this Part; and
6.1.2.2 Complete Appendix PART D, Section 22, Form B of this Part, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted; and
6.1.2.3 Submit the completed Appendix PART D, Section 22, Form B of this Part to the Department together with their submission under §5 of this Part; and
6.1.2.4 Provide the Owner or Operator with copies of their submissions under PART D, Sections 6.1.2.1 and PART D, Section 6.1.2.3 of this Part.
6.1.3 If the Guarantor fails to meet the requirements of the financial test at the end of any Financial Reporting Year, within one hundred twenty (120) days of the end of that Financial Reporting Year the Guarantor shall send by Verifiable Service, before cancellation or non renewal of the guarantee, notice to the Owner and Operator and to the Department. The guarantee will terminate no less than one hundred twenty (120) days after the date the Owner and Operator receives the notification, as evidenced by Verifiable Service. The Owner or Operator must obtain alternative coverage as specified in § Section 17.2 of this Part.
6.1.4 If the Department notifies the Guarantor that he no longer meets the requirements of § Section 5.1.1 of this Part, the Guarantor must notify the Owner and Operator by Verifiable Service within ten (10) days of receiving such notification from the Department. The guarantee will terminate no less than one hundred (120) days after the date the Owner and Operator receives the notification, as evidenced by Verifiable Service. The Owner or Operator must obtain alternative coverage as specified in § Section 17.2 of this Part.
6.1.5 The Owner or Operator who uses a guarantee to satisfy the requirements of § Section 3 of this Part must also establish a standby trust fund at the same time that the guarantee is obtained. Under the terms of the guarantee, all amounts paid by the Guarantor under the guarantee will be deposited directly into the standby trust fund in accordance with instructions from the Department under PART D, Section §18 of this Part. This standby trust fund must meet the requirements specified in PART D, Section §15 of this Part.
7.1.1 An Owner or Operator may satisfy the requirements of PART D, Section §3 of this Part by obtaining liability insurance that conforms to the requirements of this Section. Such insurance may be in the form of a separate insurance policy or an endorsement to an existing insurance policy.
7.1.2 Each insurance policy must be amended by an endorsement worded as specified in Appendix PART D, Section 22, Form C of this Part or evidenced by a certificate of insurance worded as specified in Appendix PART D, Section 23, Form D of this Part except that instructions in brackets must be replaced with the relevant information and the brackets deleted.
7.1.3 Each insurance policy must be issued by an insurer or a risk retention group that, at a minimum, is licensed to transact the business of insurance or eligible to provide insurance as an excess or surplus lines insurer in one or more States and has a current Standard & Poor's rating of AAA, AA, A or BBB, or a current Moody's rating of Aaa, Aa, A or Baa.
8.1.1 An Owner or Operator may satisfy the requirements of PART D, Section §3.1 of this Part by obtaining a surety bond that conforms to the requirements of this Section. The surety company issuing the bond must be among those listed as acceptable sureties on federal bonds in the latest Circular 570 of the U.S. Department of the Treasury.
8.1.2 The surety bond must be worded as shown in Appendix PART D, Section 24, Form E of this Part, except that instructions in brackets must be replaced with the relevant information and the brackets deleted.
8.1.3 Under the terms of the bond, the surety will become liable on the bond obligation when the Owner or Operator fails to perform as guaranteed by the bond. In all cases, the surety's liability is limited to the levels of financial responsibility required by PART D, Section §3 of this Part.
8.1.4 The Owner or Operator who uses a surety bond to satisfy the requirements of PART D, Section §3 of this Part must also establish a standby trust fund when the surety bond is acquired. Under the terms of the bond, all amounts paid by the surety under the bond will be deposited directly into the standby trust fund in accordance with instructions from the Secretary under PART D, Section §20 of this Part. This standby trust fund must meet the requirements specified in PART D, Section §15 of this Part.
8.1.5 An Owner or Operator may use a surety bond to establish financial responsibility only if the State's Attorney General has submitted a written statement to the Department that a surety bond executed as described in this Section is a legally valid and enforceable obligation in the State of Delaware.
8.1.6 The Surety(ies) company may cancel the bond by sending notice of cancellation to the Owner and Operator and the Department by Verifiable Service, provided, however, that cancellation shall not occur during the 120 days beginning on the date of receipt of the notice of cancellation by the Owner and Operator as evidenced by Verifiable Service. The Owner or Operator must obtain alternative coverage as specified in PART D, Section §17.2 of this Part.
8.1.7 If the Department notifies the Owner or Operator that the Surety(ies) company no longer meets the requirements of this Section, the Owner or Operator must shall obtain alternative coverage as specified in PART D, Section §17.2 of this Part.
9.1.1 An Owner or Operator may satisfy the requirements of PART D, Section §3 of this Part by obtaining an irrevocable standby letter of credit that conforms to the requirements of this Section and is issued by an institution that has authority to issue letters of credit and whose letter of credit operations are regulated and examined by a federal or State agency.
9.1.2 The letter of credit must be worded as shown in Appendix PART D, Section 25, Form F of this Part except that instructions in brackets are to be replaced with the relevant information and the brackets deleted.
9.13 An Owner or Operator who uses a letter of credit to satisfy the requirements of PART D, Section §3 of this Part must also establish a standby trust fund when the letter of credit is acquired. Under the terms of the letter of credit, all amounts paid pursuant to a draft by the Department will be deposited by the issuing institution directly into the standby trust fund in accordance with instructions from the Department under ART D, Section §18 of this Part. This standby trust fund must meet the requirements specified in PART D, Section §15 of this Part.
9.1.4 The letter of credit must be irrevocable with a term specified by the issuing institution. The letter of credit must provide that credit be automatically renewed from the same term as the original term, unless, at least one hundred and twenty (120) days before the current expiration date, the issuing institution notifies the Owner and Operator by Verifiable Service of its decision not to renew the letter of credit. Under the terms of the letter of credit, the one hundred and twenty (120) days will begin on the date when the Owner and Operator receives the notice, as evidenced by the Verifiable Service.
10.1.1 An Owner or Operator may satisfy the requirements of PART D, Section §3 of this Part by establishing a trust fund that conforms to the requirements of this Section. The trustee must be an entity that has the authority to act as a trustee and whose trust operations are regulated and examined by a federal agency or an agency of the State in which the fund is established.
10.1.2 The wording of the trust agreement must be identical to the wording specified in Appendix PART D, Section 26, Form G of this Part except that instructions in brackets are to be replaced with the relevant information and the brackets deleted, and must be accompanied by a formal certification of acknowledgment as specified in Appendix PART D, Section 26, Form G of this Part.
10.1.3 The trust fund, when established, must be funded for the full required amount of coverage, or funded for part of the required amount of coverage and used in combination with other mechanism(s) that provide the remaining required coverage.
10.1.4 If the value of the trust fund is greater than the required amount of coverage, the Owner or Operator may submit a written request by Verifiable Service to the Secretary for Release of the excess.
10.1.5 If other financial assurance as specified in this Section is substituted for part of the trust fund, the Owner or Operator may submit a written request by Verifiable Service to the Secretary for release of the excess.
10.1.6 Within sixty (60) days after receiving a request from the Owner or Operator for Release of funds as specified in §§ PART D, Section10.1.4 or PART D, Section 10.1.5 above, the Department will instruct the trustee to Release to the Owner or Operator such funds as the Department specifies in writing by Verifiable Service.
11.1.1 A general purpose Local Government Owner or Operator and/or Local Government serving as a Guarantor may satisfy the requirements of PART D, Section §3 of this Part by having a currently outstanding issue or issues of general obligation bonds of at least the minimum Annual Aggregate amount required in PART D, Section §3 of this Part excluding refunded obligations, with a Moody's rating of Aaa, Aa, A, or Baa, or a Standard & Poor's rating of AAA, AA, A, or BBB. Where a Local Government has multiple outstanding issues, or where a Local Government's bonds are rated by both Moody's and Standard & Poor's, the lowest rating must be used to determine eligibility. Bonds that are backed by credit enhancement other than municipal bond insurance may not be considered in determining the amount of applicable bonds outstanding.
11.1.2 A Local Government Owner or Operator or Local Government serving as a Guarantor that (i) is not a general purpose Local Government and (ii) does not have the legal authority to issue general obligation bonds may satisfy the requirements of PART D, Section §3 of this Part by:
11.1.2.1 having a currently outstanding issue or issues of revenue bonds of at least the minimum Annual Aggregate amount required in PART D, Section §3 of this Part excluding refunded issues and
11.1.3 The Local Government Owner or Operator and/or Guarantor must maintain a copy of its bond rating published within the last twelve (12) months by Moody's or Standard & Poor's.
11.1.4 To demonstrate that it meets the Local Government bond rating test, the Chief Financial Officer of a general purpose Local Government Owner or Operator and/or Guarantor must have a letter signed by the Chief Financial Officer worded as specified in Appendix PART D, Section 27, Form J of this Part except that instructions in brackets are to be replaced by the relevant information and the brackets deleted.
11.1.5 To demonstrate that it meets the Local Government bond rating test, the Chief Financial Officer of Local Government Owner, Operator, or Guarantor other than a general purpose government must have a letter signed by the Chief Financial Officer worded as specified in Appendix PART D, Section 28, Form K of this Part except that instructions in brackets are to be replaced with relevant information and the brackets deleted.
11.1.6 The Department may require reports of financial condition at any time from the Local Government Owner, Operator, or Local Government Guarantor. If the Department finds, on the basis of such reports or other information, that the Local Government Owner, Operator, or Guarantor, no longer meets the Local Government bond rating test requirements of this Section, the Local Government Owner or Operator must obtain alternative coverage within thirty (30) days after notification of such a finding.
11.1.7 If a Local Government Owner or Operator using the bond rating test to provide financial assurance finds that it no longer meets the bond rating test requirements, the Local Government Owner andor Operator must obtain alternative coverage within one hundred and fifty 150 days of the change in status.
11.1.8 A Local Government Owner or Operator using the Local Government bond rating test under PART D, Section §11 of this Part must maintain a copy of its bond rating published within the last twelve months by Moody's or Standard & Poor's.
12.1.1 A Local Government Owner or Operator may satisfy the requirements of PART D, Section §3 of this Part by passing the financial test specified in this Section. To be eligible to use the financial test, the Local Government Owner or Operator must have the ability and authority to assess and levy taxes or to freely establish fees and charges. To pass the Local Government financial test, the Owner or Operator must meet the criteria of PART D, Section §12.1.3 and PART D, Section §12.1.4 of this Part based on year end financial statements for the latest completed Financial Reporting Year.
12.1.2 The Local Government Owner or Operator must have the following information available, as shown in the year end financial statements for the latest completed fiscal year:
12.1.2.1 Total Revenues: Consists of the sum of general fund operating and non operating revenues including net local taxes, licenses and permits, fines and forfeitures, revenues from use of money and property, charges for services, investment earnings, sales (property, publications, etc.), intergovernmental revenues (restricted and unrestricted), and total revenues from all other governmental funds including enterprise, debt service, capital projects, and special revenues, but excluding revenues to funds held in a trust or agency capacity. For purposes of this test, the calculation of total revenues shall exclude all transfers between funds under the direct control of the Local Government using the financial test (interfund transfers), liquidation of investments, and issuance of debt.
12.1.2.2 Total Expenditures: Consists of the sum of general fund operating and non operating expenditures including public safety, public utilities, transportation, public works, environmental protection, cultural and recreational, community development, revenue sharing, employee benefits and compensation, office management, planning and zoning, capital projects, interest payments on debt, payments for retirement of debt principal, and total expenditures from all other governmental funds including enterprise, debt service, capital projects, and special revenues. For purposes of this test, the calculation of total expenditures shall exclude all transfers between funds under the direct control of the Local Government using the financial test (interfund transfers).
12.1.2.3 Local Revenues: Consists of total revenues (as defined in PART D, Section 12.1.2.1 of this Part) minus the sum of all transfers from other governmental entities, including all monies received from Federal, State, or Local Government sources.
12.1.2.4 Debt Service:Consists of the sum of all interest and principal payments on all long term credit obligations and all interest bearing short term credit obligations. Includes interest and principal payments on general obligation bonds, revenue bonds, notes, mortgages, judgments, and interest bearing warrants. Excludes payments on non interest bearing short term obligations, interfund obligations, amounts owed in a trust or agency capacity, and advances and contingent loans from other governments.
12.1.2.5 Total Funds: Consists of the sum of cash and investment securities from all funds, including general, enterprise, debt service, capital projects, and special revenue funds, but excluding employee retirement funds, at the end of the Local Government's Financial Reporting Year. Includes Federal securities, Federal agency securities, State and Local Government securities, and other securities such as bonds, notes and mortgages. For purposes of this test, the calculation of total funds shall exclude agency funds, private trust funds, accounts receivable, value of real property, and other non security assets.
12.1.2.6 Population: Consists of the number of people in the area served by the Local Government.
12.1.3 The Local Government's year-end financial statements, if independently audited, cannot include an adverse auditor's opinion or a disclaimer of opinion. The Local Government cannot have outstanding issues of general obligation or revenue bonds that are rated as less than investment grade.
12.1.4 The Local Government Owner or Operator must have a letter signed by the Chief Financial Officer worded as specified in Appendix PART D, Section 29, Form L of this Part except that instructions in brackets are to be replaced with relevant information and the brackets deleted.
12.1.5 To demonstrate that it meets the financial test under PART D, Section §12.1.2 of this Part, the Chief Financial Officer of the Local Government Owner or Operator, must sign, within one hundred and twenty (120) days of the close of each Financial Reporting Year, as defined by the twelve month period for which financial statements used to support the financial test are prepared, a letter worded as specified in Appendix PART D, Section 29, Form L of this Part except that instructions in brackets are to be replaced with relevant information and the brackets deleted.
12.1.6 If a Local Government Owner or Operator using the test to provide financial assurance responsibility finds that it no longer meets the requirements of the financial test based on the year end financial statements, the Owner or Operator must obtain alternative coverage within one hundred and fifty one (150) days of the end of the year for which financial statements have been prepared.
12.1.7 The Department may require reports of financial condition at any time from the Local Government Owner or Operator. If the Department finds, on the basis of such reports or other information, that the Local Government Owner or Operator no longer meets the financial test requirements of PART D, Section §§12.1.2 and PART D, Section 12.1.5 of this Part, the Owner or Operator must obtain alternate coverage within thirty (30) days after notification of such a finding.
12.1.8 If the Local Government Owner andor Operator fails to obtain alternate assurance within one hundred and fifty (150) days of finding that it no longer meets the requirements of the financial test based on the year end financial statements or within thirty (30) days of notification by the Department that it no longer meets the requirements of the financial test, the Owner andor Operator must notify the Department of such failure within ten (10) days.
13.1.1 A Local Government Owner or Operator may satisfy the requirements of PART D, Section §3 of this Part by obtaining a guarantee that conforms to the requirements of this Section. The Guarantor must be either the State in which the Local Government Owner or Operator is located or a Local Government having a "Substantial Business Relationship" with the Owner or Operator and issuing the guarantee as an act incident to that relationship. A Local Government acting as the Guarantor must:
13.1.1.1 Demonstrate that it meets the bond rating test requirement of PART D, Section §11 of this Part and deliver a copy of the completed Chief Financial Officer's letter as contained in Appendix PART D, Section 27, Form J of this Part to the Local Government Owner or Operator; or
13.1.1.2 Demonstrate that it meets the worksheet test requirements of PART D, Section §12 of this Part and deliver a copy of the completed Chief Financial Officer's letter as contained in Appendix PART D, Section 28, Form K of this Part to the Local Government Owner and Operator; or
13.1.1.3 Demonstrate that it meets the Local Government fund requirements of PART D, Section §§14.1.1.1, PART D, Section 14.1.1.2 or PART D, Section 14.1.1.3 of this Part and deliver a copy of the completed Chief Financial Officer's letter as contained in Appendix PART D Section 31, Form Q of this Part to the Local Government Owner and Operator.
13.1.2 If the Local Government Guarantor is unable to demonstrate financial assurance responsibility under any of the mechanisms in PART D, Section §11, PART D, Section §12 or PART D, Section §14 of this Part, at the end of the Financial Reporting Year, the Guarantor shall send by Verifiable Service, before cancellation or non renewal of the guarantee, notice to the Owner and Operator and to the Department. The guarantee will terminate no less than one hundred and twenty (120) days after the date the Owner and Operator receives the notification, as evidenced by Verifiable Service. The Owner or Operator must obtain alternative coverage as specified in PART D, Section §17.2 of this Part.
13.1.3 The guarantee agreement shall be worded as specified in Appendix PART D, Section 29 Form M, Appendix PART D, Section 30, Form N, Appendix PART D, Section 31 Form O or Appendix PART D, Section 32 Form P of this Part, depending on which of the following alternative guarantee arrangements is selected:
13.1.3.1 If, in the default or incapacity of the Owner or Operator, the Guarantor guarantees to fund a standby trust as directed by the Secretary, the guarantee shall be worded as specified in Appendix PART D, Section 29 Form M or Appendix PART D, Section 30, Form N of this Part.
13.1.3.2 If, in the default or incapacity of the Owner or Operator, the Guarantor guarantees to make payments as directed by the Secretary for taking cCorrective aAction or compensating third parties for Bodily Injury and Property Damage, the guarantee shall be worded as specified in Appendix PART D, Section 31 Form O or Appendix PART D, Section 32 Form P of this Part.
13.1.4 If the Guarantor is a State, the Local Government guarantee with standby trust must be worded as shown in Appendix PART D, Section 29 Form M of this Part, except that instructions in brackets are to be replaced with relevant information and the brackets deleted.
13.1.5 If the Guarantor is a Local Government, the Local Government guarantee with standby trust must be worded as shown in Appendix PART D, Section 30 Form N of this Part, except that instructions in brackets are to be replaced with relevant information and the brackets deleted.
13.1.6 If the Guarantor is a State, the Local Government guarantee without standby trust must be worded as shown in Appendix PART D, Section 31 Form O of this Part, except that instructions in brackets are to be replaced with relevant information and the brackets deleted.
13.1.7 If the Guarantor is a Local Government, the Local Government guarantee without standby trust must be worded as shown in Appendix PART D, Section 32 Form P of this Part, except that instructions in brackets are to be replaced with relevant information and the brackets deleted.
13.1.8 A Local Government Owner or Operator using the Local Government guarantee under PART D, Section §13 of this Part, where the Guarantor's demonstration of financial responsibility relies on the bond rating test under PART D, Section §11 of this Part must maintain a copy of the Guarantor's bond rating published within the last twelve months by Moody's or Standard & Poor's.
13.1.9 A Local Government Owner or Operator using the Local Government guarantee supported by the PART D, Section §14, Local Government fund, must maintain a copy of the Guarantor's year end financial statements for the most recent completed Financial Reporting Year showing the amount of the fund.
14.1 Requirements for Use of Local Government Fund to Comply with Financial Responsibility
1. A Local Government Owner andor Operator may satisfy the requirements of PART D, Section §3 of this Part by establishing a dedicated fund account that conforms to the requirements of this Section. Except as specified in PART D, Section §14.1.1.2 of this Part, a dedicated fund may not be commingled with other funds or otherwise used in normal operations. A dedicated fund will be considered eligible if it meets one of the following requirements:
14.1.1.1 The fund is dedicated by State constitutional provision, or Local Government statute, charter, ordinance, or order to pay for taking cCorrective aAction and for compensating third parties for Bodily Injury and Property Damage caused by Accidental Releases arising from the operation of petroleum ASTs and is funded for the full amount of coverage required under PART D, Section §3 of this Part, or funded for part of the required amount of coverage and used in combination with other mechanism(s) that provide the remaining coverage; or
14.1.1.2 The fund is dedicated by State constitutional provision, or Local Government statute, charter, ordinance, or order as a contingency fund for general emergencies, including taking cCorrective aAction and compensating third parties for Bodily Injury and Property Damage caused by Accidental Releases arising from the operation of ASTs, and is funded for five times the full amount of coverage required under PART D, Section §3 of this Part, or funded for part of the required amount of coverage and used in combination with other mechanism(s) that provide the remaining coverage. If the fund is funded for less than five times the amount of coverage required under PART D, Section §3 of this Part, the amount of financial responsibility demonstrated by the fund may shall not exceed one fifth the amount in the fund; or
14.1.1.3 The fund is dedicated by State constitutional provision, or Local Government statute, charter, ordinance or order to pay for taking cCorrective aAction and for compensating third parties for Bodily Injury and Property Damage caused by Accidental Releases arising from the operation of ASTs. A payment is made to the fund once every year for seven years until the fund is fully funded. This seven year period is hereafter referred to as the "pay in period." The amount of each payment must be determined by this formula: (TF-CF)/Y
Where TF is the total required financial assurance responsibility for the Owner or Operator, CF is the current amount in the fund, and Y is the number of years remaining in the pay in period, and
14.1.1.3.1 The Local Government Owner or Operator has available bonding authority, approved through voter referendum (if such approval is necessary prior to the issuance of bonds), for an amount equal to the difference between the required amount of coverage and the amount held in the dedicated fund. This bonding authority shall be available for taking corrective action and for compensating third parties for Bodily Injury and Property Damage caused by Accidental Releases arising from the operation of ASTs, or
14.1.1.3.2 The Local Government Owner or Operator has a letter signed by the appropriate State aAttorney gGeneral stating that the use of the bonding authority will not increase the Local Government's debt beyond the legal debt ceilings established by the relevant State laws. The letter must shall also State that prior voter approval is not necessary before use of the bonding authority.
14.1.2 To demonstrate that it meets the requirements of the Local Government fund, the Chief Financial Officer of the Local Government Owner or Operator and/or Guarantor must sign a letter worded as specified in Appendix PART D, Section 31, Form Q of this Part, except that the instructions in brackets are to be replaced by the relevant information and the brackets deleted.
14.1.3 An Owner or Operator using a Local Government fund under PART D, Section §14 of this Part must shall maintain the following documents:
14.1.3.1 A copy of the State constitutional provision or Local Government statute, charter, ordinance, or order dedicating the fund, and
14.1.3.2 Year end financial statements for the most recent completed Financial Reporting Year showing the amount in the fund. If the fund is established under PART D, Section §14.1.1.3 of this Part using incremental funding backed by bonding authority, the financial statements must show the previous year's balance, the amount of funding during the year, and the closing balance in the fund, and
14.1.3.3 If the fund is established under PART D, Section §14.1.1.3 of this Part using incremental funding backed by bonding authority, the Owner or Operator must also maintain documentation of the required bonding authority, including either the results of voter referendum under PART D, Section §14.1.1.3.1 of this Part, or attestation by the State Attorney General as specified under PART D, Section §14.1.1.3.2 of this Part.
15.1.1 An Owner or Operator using any one of the mechanisms authorized by PART D, Section §§6, PART D, Section 8, PART D, Section 9 and PART D, Section 10 of this Part shall establish a standby trust fund when the mechanism is acquired. The trustee of the standby trust fund must be an entity that has the authority to act as a trustee and whose trust operations are regulated and examined by an agency of the State in which the fund is established.
15.1.2 The standby trust agreement shall be worded as shown in Appendix PART D, Section 28 Form H of this Part except that instructions in brackets are to be replaced with the relevant information and the brackets deleted.
15.1.3 The Secretary will instruct the trustee to refund the balance of the standby trust fund to the Provider of Financial Assurance Responsibility if the Secretary determines that no additional corrective action costs or third party liability claims will occur as a result of a Release covered by the financial assurance responsibility mechanism for which the standby trust fund was established.
15.1.4 An Owner or Operator may establish one trust fund as the depository mechanism for all funds assured in compliance with this Part PART D.
16.0 Substitution of Financial Assurance Responsibility Mechanisms by Owner or Operator
16.1.1 An Owner or Operator may substitute any alternate financial assurance responsibility mechanisms as specified in this Part PART D, provided that at all times the Owner or Operator maintains an effective financial assurance responsibility mechanism or combination of mechanisms that satisfies the requirements of PART D, Section §3 of this Part.
16.1.2 After obtaining alternate financial assurance responsibility as specified in this Part PART D, an Owner or Operator may cancel a financial assurance responsibility mechanism by providing notice as evidenced by Verifiable Service, to the Provider of Financial Assurance Responsibility and shall submitting a copy of such notice to the Department within ten (10) days of the change.
17.1 Requirements for Cancellation or Non-Renewal of a Financial Responsibility Mechanism:
17.1.1 Except as otherwise provided, a Provider of Financial Assurance Responsibility may cancel or fail to renew an assurance mechanism by sending a notice of Termination by Verifiable Service to the Owner and Operator, subject to the following:
17.1.1.1 Termination of a Local Government guarantee, a guarantee, a surety bond or a letter of credit may not occur until one hundred and twenty (120) days after the date on which the Owner and Operator receives the notice of Termination, as evidenced by Verifiable Service.
17.1.1.3 Termination for non payment of premium or misrepresentation by the insured may not occur until a minimum of ten (10) days after the date on which the Owner and Operator receives the notice of Termination, as evidenced by Verifiable Service.
17.1.2 If a provider of financial responsibility cancels or fails to renew for reasons other than the incapability of the provider as specified in PART D, Section §17.2 of this Part, the Owner or Operator shall obtain alternate coverage within sixty (60) days after receipt of the notice of Termination. If the Owner and Operator fail to obtain alternate coverage within sixty (60) days after receipt of the notice of Termination, the Owner or Operator shall notify the Department of such failure within ten (10) days and submit the following to the Department: The Owner and Operator shall submit proof of the alternative financial responsibility mechanism to the Department in accordance with PART D.
17.1.23.1 The name and address of the Provider of Financial Assurance; and
17.1.23.2 The effective date of Termination; and
17.1.23.3 The evidence of the financial assurance mechanism subject to the Termination maintained in accordance with §2.3 of this Part PART D, Section 2.
17.2 Requirements for Bankruptcy or Other Incapacity of Owner or Operator or Provider of Financial Assurance Responsibility
17.2.2 Within ten (10) days after commencement of a voluntary or involuntary proceeding under Title 11 (Bankruptcy), U.S. Code, naming a Guarantor providing financial assurance responsibility as debtor, such Guarantor shall notify the Owner and Operator and the Department by Verifiable Service of such commencement.
17.2.3 Within ten (10) days after the suspension or revocation of the authority of a Provider of Financial Assurance Responsibility to issue a financial assurance mechanism, such provider shall notify the Owner and Operator by Verifiable Service of such suspension or revocation.
17.2.5 Within ten (10) days of receiving notification per PART D, Section §§17.2.2, PART D, Section 17.2.3 or PART D, Section 17.2.4 of this Part, the Owner shall notify the Department by Verifiable Service.
17.2.6 An Owner or Operator who obtains financial assurance responsibility by a mechanism other than the financial test of self-insurance will be deemed to be without the required financial assurance responsibility in the event of bankruptcy or incapacity of its Provider of Financial Assurance Responsibility, or a suspension or revocation of the authority of the Provider of Financial Assurance Responsibility to issue a guarantee, insurance policy, risk retention group coverage policy, surety bond, or letter of credit.
17.2.7 Except in the case of financial test of self insurance, the Owner and Operator shall obtain alternate financial assurance responsibility within thirty (30) days after receiving notice of a bankruptcy or incapacity of its Provider of Financial Assurance Responsibility per PART D, Section §17.2 of this Part. If the Owner or Operator does not obtain alternate coverage within thirty (30) days after such notification, the Owner and Operator shall notify the Department within ten (10) days.
18.0 Drawing on Financial Assurance Responsibility Mechanisms
18.1.1 Except as specified in PART D, Section §18.1.4 of this Part, the Department shall require the Guarantor, surety, or institution issuing a letter of credit, to place the amount of funds stipulated by the Department, up to the limit of funds provided by the financial assurance responsibility mechanism, into the standby trust if:
18.1.1.1 The Owner or Operator fails to establish alternate financial assurance responsibility within sixty (60) days after receiving notice of cancellation of the guarantee, surety bond, letter of credit, or, as applicable, other financial assurance responsibility mechanisms; and
18.1.1.2 The Department determines or suspects that a Release from an AST covered by the mechanism has occurred and so notifies the Owner or Operator or the Owner and Operator has notified the Department pursuant to requirements established under Part E of these regulations of a Release from an AST system covered by the mechanism; or
18.1.1.3 The conditions of PART D, Section §18.1.2.1 or PART D, Section §18.1.2.2 of this Part are satisfied.
18.1.2.1 The Department makes a final determination that a Release has occurred and immediate or long term cCorrective aAction for the Release is needed, but the Owner or Operator, after appropriate notice and opportunity to comply, has not conducted cCorrective aAction as required under Part E of these Regulations; or
18.1.2.2 The Department has received either:
18.1.2.2.1 Certification from the Owner or Operator and the third party liability claimant(s) and from attorneys representing the Owner or Operator and the third party liability claimant(s) that a third party liability claim should be paid. The certification shall be worded as shown in Appendix PART D, Section 28, Form I of this Part except that instructions in brackets are to be replaced with the relevant information and the brackets deleted; or
18.1.2.2.2 A valid final court order establishing a judgment against the Owner or Operator for Bodily Injury or Property Damage caused by an Accidental Release from an AST covered by financial assurance responsibility under this Part and the Department determines that the Owner or Operator has not satisfied the judgment.
18.1.3 If the Department determines that the amount of cCorrective aAction costs and third party liability claims eligible for payment under PART D, Section §18.1.2 of this Part may exceed the balance of the standby trust fund and the obligation of the Provider of Financial Assurance esponsibility, the first priority for payment shall be cCorrective aAction costs necessary to protect human health and the environment. The Department shall pay third party liability claims in the order in which the Department receives certifications under PART D, Section §18.1.2 of this Part.
18.1.4 A governmental entity acting as Guarantor under PART D, Section §13 of this Part, the Local Government guarantee without standby trust, shall make payments as directed by the Secretary under the circumstances described in PART D, Section §§18.1.1, PART D, Section 18.1.2 and PART D, Section 18.1.3 of this Part.
19.1.1 An Owner and Operator is no longer required to maintain financial responsibility under this Part PART D for an AST after the requirements of Part B, Section 14 of these Regulations have been met, and, if corrective action is required, after corrective action has been completed as required by Part E of these Regulations. when:
20.1.1 If at any time after a standby trust is funded upon the instruction of the Secretary with funds drawn from a guarantee, Local Government guarantee with standby trust, letter of credit, or surety bond, and the amount in the standby trust is reduced below the full amount of coverage required, the Owner or Operator shall by the anniversary date of the financial mechanism from which the funds were drawn:
20.1.1.1 Replenish the value of financial assurance responsibility to equal the full amount of coverage required, or
20.1.1.2 Acquire another financial assurance responsibility mechanism for the amount by which funds in the standby trust have been reduced.
20.1.2 For purposes of this Section, the full amount of coverage required is the amount of financial responsibility required by §3 of this Part. If a combination of mechanisms was used to provide the assurance financial responsibility funds which were drawn upon, replenishment shall occur by the earliest anniversary date among the mechanisms.
Section 21. APPENDIX A AST Financial Test of Self Insurance Letter from Chief Financial Officer
This letter is in support of the use of [the financial test of self-insurance” and/or “guarantee”] to demonstrate financial responsibility for [“taking corrective action” and/or “compensating third parties for bodily injury and property damage] caused by [“sudden accidental releases” and/or “non-sudden accidental releases”] in the amount of at least [dollar amount] per occurrence and [dollar amount] annual aggregate arising from operating (an) aboveground storage tank(s).
List for each facility: the name and address of the facility where tanks ASTs assured by this financial test are located, and whether tanks are assured by this financial test. If separate mechanisms or combinations of mechanisms are being used to assure any of the tanks at this facility, list each tank AST assured by this financial test by the tank AST identification number provided in the notification submitted pursuant to Part A of these regulations.
AST Facility I.D. Number: ____________________ (as listed on DNREC registration certificate)
A [“financial test,” and/or “guarantee”] is also used by [“owner” or “operator” or “Guarantor”] to Demonstrate evidence of financial responsibility in the following amounts under other EPA regulations or State programs including but not limited to Subtitle C Hazardous waste facilities, SDWA Class I hazardous waste injection wells and aggregate UST AST coverage.
This [“Owner or Operator,” or “Guarantor”] has not received an adverse opinion, a disclaimer of opinion, or a “going concern” qualification from an independent auditor on his financial statements for the latest completed fiscal year.
I hereby certify that the wording of this letter is identical to the wording specified in Part D, Section 5.1 as such Regulations the Delaware Regulations Governing Aboveground Storage Tanks were constituted on the date shown immediately below.
[Fill in the information for Alternative I if the criteria of Part D, Section 5.1.2 are being used to demonstrate compliance with the financial test requirements. Fill in the information for Alternative II if the criteria of Part D, Section 5.1.3 are being used to demonstrate compliance with the financial test requirements.]
waste injection wells and aggregate UST or AST coverage) ….............$___________
*If the answer to line 7 or line 8 is “No”, this test cannot be used to meet the AST Financial Responsibility requirements.
Complete Lines 9-11 OR Line 12
13. If the firm’s Have year-end financial statements have been
independently audited, they which do not
(Answer “Yes” only if both all criteria have been met)……..............._____ _____
*If the answer to line 8 or line 9 is “No”, this test cannot be
-OR-
Section 22. APPENDIX Form B - AST Guarantee
Guarantee made this [Date] by [Name of guaranteeing entity], a business entity organized under the laws of the State of Delaware [name of state], herein referred to as Guarantor, to the Department of Natural Resources and Environmental Control (DNREC) and to any and all third parties, and obligees, on behalf of [Owner or Operator] of [Business Name and Address]
Recitals
(1) Guarantor meets or exceeds the financial test criteria of PART D, Section 5.1.2 or PART D, Section 5.1.3 and agrees to comply with the requirements for Guarantors as specified in PART D, Section 61.
(2) [Owner or Operator] owns or operates the following aboveground storage tank(s) covered by this guarantee:
Attach tank schedule:
AST Facility I.D. Number: ____________________(as listed on DNREC registration certificate)
Facility Name: ______________________________________________________________
Facility Street: ______________________________________________________________
Facility City: _____________________________________ Facility Zip Code: ____________
In the event that [Owner or Operator] fails to provide alternate coverage within sixty 60 days after receipt of a notice of cancellation of this guarantee and the Secretary has determined or suspects that a release has occurred at an aboveground storage tank covered by this guarantee, the Guarantor, upon instructions from the DNREC, shall fund a standby trust fund in accordance with the provisions of Part D, Section 1518 in an amount not to exceed the coverage limits specified above.
In the event that the Department NREC determines that [Owner or Operator] has failed to perform cCorrective aAction for release arising out of the operation of the above–identified tank(s) in accordance with Part E, the Guarantor upon written instructions from the Department NREC shall fund a standby trust fund in accordance with the provisions of Part D, Section 1518 in an amount not to exceed the coverage limits specified above.
If [Owner or Operator] fails to satisfy a judgment or award based on a determination of liability for bodily injury or property damage to third parties caused by accidental releases arising from the operation of the above-identified tank(s), or fails to pay an amount agreed to in settlement of a claim arising from or alleged to arise from such injury or damage, the Guarantor, upon written instructions from the DNREC, shall fund a standby trust fund in accordance with the provisions of Part D, Section 1518 to satisfy such judgment(s), award(s), or settlement agreement(s) up to the limits of coverage specified above.
(4) Guarantor agrees that if, at the end of any fiscal year before cancellation of this guarantee, the Guarantor fails to meet the financial test criteria of Part D, Sections 5.1.1 and PART D, Section 5.1.2 or PART D, Section 5.1.3, Guarantor shall send within one hundred and twenty (120) days of such failure, by verifiable service, notice to [Owner or Operator]. The guarantee will terminate 120 days from the date of receipt of the notice by [Owner or Operator] as evidenced by verifiable service.
(5) Guarantor agrees to notify [Owner or Operator] by certified mail verifiable service of a voluntary or involuntary proceeding under Title 11 (Bankruptcy), U.S. Code, naming Guarantor as debtor, within ten (10) days after commencement of the proceeding.
(7) Guarantor agrees to remain bound under this guarantee for so long as [Owner or Operator] must comply with the applicable financial responsibility requirements of these regulations for the above-identified tank(s), except that Guarantor may cancel this guarantee by sending notice by certified mail to [Owner or Operator] such cancellation to become effective no earlier than one hundred and twenty (120) days after receipt of such notice by [Owner or Operator] as evidenced by the return receipt.
(a) Any obligation of [Owner or Operator] under a workers’ compensation, disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [Owner or Operator] arising from, and in the course of, employment by [Owner or Operator];
(d) Property damage to any property owned, rented, loaned to, in the care of, custody, or control of, or occupied by [Owner or Operator] that is not the direct result of a release from an aboveground storage tank;
(e) Bodily injury or property damage for which [Owner or Operator] is obligated to pay damages by reason of the assumption of liability in a contract or agreement other than a contract or agreement entered into to meet the requirements of PART D, Section 3 of this Part.
I hereby certify that the wording of this guarantee is identical to the wording specified in Part D, Section 6 of the Delaware Regulations Governing Aboveground Storage Tanks as such regulations were constituted on the effective date shown immediately below.
[Name of Guarantor]
[Authorized signature for Guarantor]
[Name of person signing]
[Title of person signing]
Section 23. APPENDIX Form C - AST Endorsement
Name: __________________________________[name of each covered location]
Address: _________________________________[address of each covered location]
Name of [Insurer or Risk Retention Group]: ______________________________
Address of [Insurer or Risk Retention Group]: ____________________________
Attach tank schedule:
For [insert: “taking cCorrective aAction” and/or “compensating third parties for bodily injury and property damage caused by”] accidental releases in accordance with and subject to the limits of liability, exclusions, conditions, and other terms of the policy; [if coverage is different for different tanks or locations, indicate the type of coverage applicable to each tank or location] arising from operating the aboveground storage tank(s) identified above.
The limits of liability are [insert the dollar amount of the “each occurrence” and “annual aggregate” limits of the Insurer’s or Group’s liability; if the amount of coverage is different for different types of coverage or for different aboveground storage tanks or locations, indicate the amount of coverage for each type of coverage and/or for each aboveground storage tank or location], exclusive of legal defense costs which are subject to a separate limit under the policy.
[Policy Number]
[Date]
a. Bankruptcy or insolvency of the insured shall not relieve the [“Insurer” or “Group”] of its obligations under the policy to which this endorsement is attached.
b. The [“Insurer” or “Group”] is liable for the payment of amounts within any deductible applicable to the policy to the provider of corrective action or a damaged third-party, with a right of reimbursement by the insured from any such payment made by the [“Insurer” or “Group”]. This provision does not apply with respect to that amount of any deductible for which coverage is demonstrated under another mechanism or combination of mechanisms as specified in Part D, Sections 5 through 15 of these regulations.
c. Whenever requested by the DNREC, the [“Insurer” or “Group”] agrees to furnish to the DNREC a signed duplicate original of the policy and all endorsements.
d. Cancellation or any other termination of the insurance by the [“Insurer” or “Group”], except for non-payment of premium or misrepresentation by the insured, will be effective only upon written notice and only after the expiration of sixty (60) days after a copy of such written notice is received by the insured. Cancellation for non-payment of premium or misrepresentation by the insured will be effective only upon written notice and only after expiration of a minimum of 10 days after a copy of such written notice is received by the insured.
e. Cancellation for non-payment of premium or misrepresentation by the insured shall be effective only upon written notice and only after expiration of a minimum of ten (10) days after a copy of such written notice is received by the insured.
ef. Insert for claims-made policies:
The insurance covers claims otherwise covered by the policy that are reported to the [“Insurer” or “Group”] within six (6) months of the effective date of the cancellation or non-renewal of the policy except where the new or renewed policy has the same retroactive date or a retroactive date earlier than that of the prior policy, and which arise out of any covered occurrence that commenced after the policy retroactive date, if applicable, and prior to such policy renewal or termination date. Claims reported during such extended reporting period are subject to the terms, conditions, limits, including limits of liability, and exclusions of the policy.
g. In the event of termination or nonrenewal of the insurance by the [“Insurer” or “Group”], the insurer shall notify the Department of Natural Resources and Environmental Control, Tank Management Section, by Verifiable Service, of termination or nonrenewal not more than twenty (20) days after the termination or nonrenewal. The notice shall state the name and address of the insured, the date of termination or nonrenewal, and the address of the ASTs previously insured.
I hereby certify that the wording of this instrument is identical to the wording in Appendix PART D, Section 23 Form C of the Delaware Regulations Governing Aboveground Storage Tanks as constituted on the date shown immediately below and that the [“Insurer” or “Group”] is [“licensed to transact the business of insurance or eligible to provide insurance as an excess or surplus lines insurer in one or more states”].
[Signature of authorized representative of Insurer or Risk Retention Group]
[Name of person signing]
[Title of person signing]
Authorized Representative of [name of Insurer or Risk Retention Group]
[Address of Representative]
Section 24. APPENDIX Form D Certificate of Insurance
[name of each covered location]
[address of each covered location]
Period of Coverage: _______________ [current policy period]______________________
Name of [Insurer or Risk Retention Group]: ___________________________________
Address of [Insurer or Risk Retention Group] __________________________________
1. [Name of the Insurer or Risk Retention Group], the “insurer” or “Group,” as identified above, hereby certifies that it has issued liability insurance covering the following aboveground storage tank(s):
Attach tank schedule:
AST Facility I.D. Number: ____________________(as listed on DNREC registration certificate)
For [insert: “taking cCorrective aAction” and/or “compensating third parties for bodily injury and property damage” caused by Accidental Releases in accordance with and subject to the limits of liability, exclusions, conditions, and other terms of the policy if coverage is different for different tanks or locations, indicate the type of coverage applicable to each tank or location arising from operating the aboveground storage tank(s) identified above.
The limits of liability are [insert the dollar amount of the “each Occurrence” and “Annual Aggregate” limits of the Insurer’s or Group’s liability if the amount of coverage is different for different types of coverage or for different aboveground storage tanks or locations, indicate the amount of coverage for each type of coverage and/or for each aboveground storage tank or location], exclusive of legal defense costs which are subject to a separate limits under the policy. This coverage is provided under _______________. The effective date of said policy is _____________.
[policy number] [date]
c. Whenever requested by the Department, the [“Insurer” or “Group”] agrees to furnish to the Department a signed duplicate original of the policy and all endorsements.
d. Cancellation or any other termination of the insurance by the [“Insurer” or “Group”], except for non-payment of premium or misrepresentation by the insured will be effective only upon written notice and only after the expiration of 60 days after a copy of such written notice is received by the insured.
The insurance covers claims otherwise covered by the policy that are reported to the [“Insurer” or “Group”] within six months of the effective date of the cancellation or non-renewal of the policy except where the new or renewed policy has the same retroactive date or a retroactive date earlier than that of the prior policy, and which arise out of any covered occurrence that commenced after the policy retroactive date, if applicable, and prior to such policy renewal or termination date. Claims reported during such extended reporting period are subject to the terms, conditions, limits, including limits of liability, and ex-clusions of the policy.
I hereby certify that the wording of this instrument is identical to the wording in Section 23 Appendix Form D of the Delaware Regulations Governing Aboveground Storage Tanks as constituted on the date shown immediately below and that the [“Insurer” or “Group”] is licensed to transact the business of insurance, or eligible to provide insurance as an excess or surplus lines insurer, in one or more states.”
[Signature of authorized representative of Insurer or Risk Retention
[Name of person signing]
[Title of person signing]
[Authorized Representative of Insurer or Risk Retention Group]
[Address of Representative]
Section 25. APPENDIX Form E AST Surety Performance Bond
Principal: [legal name and business address of Owner or Operator] _________________
Type of organization: [insert “individual,” “joint venture,” “partnership,” or “corporation”]
Surety(ies): ________________ [name(s) and business address(es)]_______________
List for each facility: the name and address of the facility where tanks ASTs assured by this financial test are located, and whether tanks ASTs are assured by this financial test. If separate mechanisms or combinations of mechanisms are being used to assure any of the tanks at this facility, list each tank AST assured by this financial test by the tank AST identification number provided in the notification submitted pursuant to Part A of these regulations.
AST Facility I.D. Number: ____________________ (as listed on DNREC registration certificate)
Name/Address of AST Facility Name:___________________________________________________
Tank ID# (from AST registration form) Tank size Tank product
List the coverage guaranteed by the bond: “taking cCorrective aAction” and/or “compensating third parties for bodily injury and property damage” caused by accidental releases arising from operating the aboveground storage tank AST.
Whereas said Principal is required under 7 Del.C. Ch. 74A, as amended, to provide financial assurance responsibility for [insert: “taking cCorrective aAction” and/or “compensating third parties for Bodily Injury and Property Damage”] caused by aAccidental rReleases; (if coverage is different for different tanks or locations, indicate the type of coverage applicable to each tank or location) arising from operating the aboveground storage tanks ASTs identified above, and
Now, therefore, the conditions of the obligation are such that if the Principal shall faithfully [“take cCorrective aAction, in accordance with Part E of these regulations and the Department’s instructions for, compensate injured third parties for bBodily iInjury and pProperty dDamage caused by aAccidental rReleases arising from operating the tank(s) identified above, or if the Principal shall provide alternate financial assurance responsibility, as specified in Part D of these regulations, within one hundred twenty (120 days after the date the notice of cancellation is received by the Principal from the Surety(ies), then this obligation shall be null and void; otherwise it is to remain in full force and effect.
(a) Any obligation of _____________________________ [Owner or Operator] under a workers’ compensation, [Owner or Operator] disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of ____________________ [Owner or Operator] arising from, and in [Owner or Operator] the course of, employment by [insert Owner or Operator];
(d) Property damage to any property owned, rented, loaned to, in the care, custody, or control of, or occupied by ____________________ [Owner or Operator] that is not the direct result of a release from [Owner or Operator] an aboveground storage tank AST;
(e) Bodily injury or property damage for which [insert oOwner or oOperator] is obligated to pay damages by reason of the assumption of liability in a contract or agreement other than a contract or agreement entered into to meet the requirements of Part D, Section 3 of these regulations.
Upon notification by the Department that the Principal has failed to [“take cCorrective aAction, in accordance with Part E of these regulations and the Department’s instructions,” and/or “compensate injured third parties”] as guaranteed by this bond, the Surety(ies) shall either perform [“cCorrective aAction in accordance with Part E of these regulations and the Department’s instructions,” and/or “third-party liability compensation”] or place funds in an amount up to the aAnnual aAggregate penal sum into the standby trust fund as directed by the Department under Part D, Section 1518 of these regulations.
The liability of the Surety(ies) shall not be discharged, by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in the aAnnual aAggregate to the penal sum shown on the face of the bond, but in no event shall the obligation of the Surety(ies) hereunder exceed the amount of said aAnnual aAggregate penal sum.
The persons whose signatures appear below hereby certify that they are authorized to execute this surety bond on behalf of the Principal and Surety(ies) and that the wording of this surety bond is identical to the wording specified in this Appendix Part D, Section 25 Form E of the Delaware Regulations Governing Aboveground Storage Tanks as such regulations were constituted on the date this bond was executed.
[Signature(s)]
[Name(s)
[Title(s)]
[Corporate seal]
[Name and address]________________________________________________
Print legibly or type
Print legibly or type
Print legibly or type
[Signature(s)] 1. ______________________________ 2. ________________________
[Name(s) and title(s)] 1. _______________________________________________
[Corporate seal]
[For every co-surety, provide signature(s), corporate seal, and other information in the same manner as for Surety above.]
Section 26. APPENDIX Form F AST Irrevocable Standby Letter of Credit
[Name and address of issuing institution]
We hereby establish our Irrevocable Standby Letter of Credit No. _____ in your favor, at the request and for the account of [owner or operator name] of [address] up to the aggregate amount of [in words] U.S. dollars ($[insert dollar amount]), available upon presentation [insert, if more than one Director of a state implementing agency is a beneficiary, “by any one of you”] of
This letter of credit may be drawn on to cover [insert: “taking cCorrective aAction” and/or “compensating third parties for bBodily iInjury and pProperty dDamage” caused by aAccidental rReleases] arising from operating the aboveground storage tank(s) identified below in the amount of [in words] $[insert dollar amount] per oOccurrence and [in words] $[insert dollar amount] aAnnual aAggregate:
[Attach tank schedule:
List for each facility: the name and address of the facility where tanks ASTs assured by this financial test are located, and whether tanks ASTs are assured by this financial test. If separate mechanisms or combinations of mechanisms are being used to assure any of the tanks at this facility, list each tank AST assured by this financial test by the tank AST identification number provided in the notification submitted pursuant to Part A of these regulations.]
AST Facility I.D. Number: ________________________________(as listed on DNREC registration certificate)
Name/Address of AST Facility Name:_____________________________
Facility Street: ______________________________________________________________
Facility City: _____________________________________ Facility Zip Code: ____________
(a) Any obligation of __[Owner or Operator]__ under a workers’ compensation, disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of __________ arising from, and [insert Owner or Operator] in the course of, employment by [insert owner or operator];
(d) Property damage to any property owned, rented, loaned to, in the care, custody, or control of, or occupied by _______________________ [insert Owner or Operator] that is not the direct result of a rRelease [insert Owner or Operator] from a aboveground storage tank;
(e) Bodily injury or property damage for which ___________________ [insert Owner or Operator] is obligated to pay [Owner or Operator] damages by reason of the assumption of liability in a contract or agreement other than a contract or agreement entered into to meet the requirements of Part D, Section 3 of these regulations.
This letter of credit is effective as of _______ and shall expire on ______, but such expiration date [date] shall be automatically extended for a period of [at least the length of the original term] on _[expiration date]__and on each successive expiration date, unless, at least on hundred twenty (120) days before the current expiration date, we notify __[Owner or Operator_ by certified mail that we have decided not to extend this letter of credit beyond the current expiration date. In the event that _[Owner or Operator_ is so notified, any unused portion of the credit shall be available upon presentation of your sight draft for on hundred twenty (120) days after the date of receipt by _[Owner or Operator_, as shown on the signed return receipt.
We certify that the wording of this letter of credit is identical to the wording specified in this Appendix PART D, Section 25, Form F of the Delaware Regulations Governing Aboveground Storage Tanks as such regulations were constituted on the date shown immediately below.
[Signature(s) and title(s) of official(s) of issuing institution]
This credit is subject to [insert “the most recent edition of the Uniform Customs and Practice for Documentary Credits, published by the International Chamber of Commerce,” or “the Uniform Commercial Code”].
Section 27. APPENDIX Form G AST Trust Agreement
Trust agreement, the “Agreement,” entered into as of [date] by and between [Owner or Operator], a [Name of State] [“corporation”, “partnership,” “association,” or “proprietorship”], the “Grantor,” and [insert “Incorporated in the (Name of Corporate Trustee) State of __” or “a national bank”]
Whereas, the Department of Natural Resources and Environmental Control (DNREC the), an agency of the State of Delaware, has established certain regulations applicable to the Grantor, requiring that an Owner or Operator of an aboveground storage tank (AST) shall provide assurance that funds will be available when needed for cCorrective aAction and third-party compensation for bodily injury and property damage caused by aAccidental rReleases arising from the operation of the aboveground storage tank. The attached Schedule A lists the number of tanks at each facility and the name(s) and address(es) of the facility(ies) where the tanks are located that are covered by the standby trust agreement.
[Whereas, the Grantor has elected to establish [insert either “a guarantee,” “surety bond,” or “letter of credit”] to provide all or part of such financial assurance for the aboveground storage tanks identified herein and is required to establish a standby trust fund able to accept payments from the instrument (This paragraph is only applicable to the standby trust agreement.)];
(a) The term “Grantor” means the Owner or Operator who enters into this Agreement and any successors or assigns of the Grantor.
(b) The term “Trustee” means the Trustee who enters into this Agreement and any successor Trustee.
SECTION 2. Identification of the Financial Assurance Mechanism
SECTION 32. Establishment of the Fund
The Grantor and the Trustee hereby establish a trust fund, the “Fund,” for the benefit of [the Department]. The Grantor and the Trustee intend that no third party have access to the fund except as herein provided. [The Fund is established initially as a standby to receive payments and shall not consist of any property.] Payments made by the provider of fFinancial assurance Responsibility pursuant to [the DNREC Secretary’s] instruction are transferred to the Trustee and are referred to as the Fund, together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Fund shall be held by the trustee, IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall it undertake any responsibility for the amount or adequacy of, nor any duty to collect from the Grantor as provider of fFinancial assurance Responsibility, any payments necessary to discharge any liability of the Grantor established by the Department.
SECTION 34. Payment for Corrective Action and/or Third–Party Liability Claims
The Trustee shall make payments from the Fund as the DNREC Secretary shall direct, in writing, to provide for the payment of the costs of [insert: “taking cCorrective aAction” and/or “compensating third parties for bBodily iInjury and property damage” caused by aAccidental rReleases] arising from operating the tanks covered by the financial assurance responsibility mechanism identified in this Agreement.
(a) Any obligation of [insert Owner or Operator] under a workers’ compensation, disability benefits, or unemployment compensation law or other similar law;
(d) Property damage to any property owned, rented, loaned to, in the care, custody, or control of, or occupied by [insert Owner or Operator] that is not the direct result of a release from a aboveground storage tank;
(e) Bodily injury or property damage for which [insert Owner or Operator] is obligated to pay damages by reason of the assumption of liability in a contract or agreement other than a contract or agreement entered into to meet the requirements of Part D, Section 3 of these regulations. The Trustee shall reimburse the Grantor, or other persons as specified by the Department, from the Fund for corrective action expenditures and/or third-party liability claims in such amounts as [the DNREC Secretary] shall direct in writing. In addition, the Trustee shall refund to the Grantor such amounts as the Department specifies in writing. Upon refund, such funds shall no longer constitute part of the Fund as defined herein.
SECTION 54. Payments Comprising the Fund
SECTION 6. Trustee Management
A. Securities or other obligations of the Grantor, or any other Owner or Operator of the tanks, or any of their affiliates as defined in the Investment Company Act of 1940, as amended, 15 U.S.C. 80a-2(a), shall not be acquired or held, unless they are securities or other obligations of the federal or a state government;
SECTION 76. Commingling and Investment
B. To purchase shares in any investment company registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 et seq., including one which may be created, managed, underwritten, or to which investment advice is rendered or the shares of which are sold by the Trustee. The Trustee may vote such shares in its discretion.
SECTION 87. Express Powers of Trustee
SECTION 98. Taxes and Expenses
SECTION 109. Advice of Counsel
SECTION 110. Trustee Compensation
SECTION 121. Successor Trustee
SECTION 132. Instructions to the Trustee
All orders, requests, and instructions by the Grantor to the trustee shall be in writing, signed by such persons as are designated in the attached Schedule B Exhibit A as required in Section 18 or such other designees as the Grantor may designate by amendment to Schedule B Exhibit A. The Trustee shall be fully protected in acting without inquiry in accordance with the Grantor’s orders, requests, and instructions. All orders, requests, and instructions by the Secretary to the Trustee shall be in writing, signed by the Secretary, and the Trustee shall act and shall be fully protected in acting in accordance with such orders, requests, and instructions. The Trustee shall have the right to assume, in the absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor or the Department hereunder has occurred. The Trustee shall have no duty to act in the absence of such orders, requests, and instructions from the Grantor and/or the Department, except as provided for herein.
SECTION 143. Amendment of Agreement
SECTION 154. Irrevocability and Termination
Subject to the right of the parties to amend this Agreement as provided in §14 PART D, Section 13 of this Appendix Form above, this Trust shall be irrevocable and shall continue until terminated at the written direction of the Grantor and the Trustee, or by the Trustee and the Department, if the Grantor ceases to exist. Upon termination of the Trust, all remaining trust property, less final trust administration expenses, shall be delivered to the Grantor.
SECTION 165. Immunity and Indemnification
SECTION 176. Choice of Law
SECTION 187. Interpretation
[Signature of Grantor] ______________________________
[Name of the Grantor] _____________________________
[Title] __________________________________
[Signature of Trustee] _____________________________
[Name of Trustee] ________________________________
[Title] ________________________
[Seal]
Attest:__________________________[Signature of Witness]________________
[Name of Witness]_________________________________________
[Title]________________________________________________
[Seal]
The trust agreement must be accompanied by a formal certification of acknowledgment similar to the following. State requirements may differ on the proper content of this acknowledgment.
On this _[Date]_, before me personally came [Owner or Operator]_ to me known, who, being by me duly sworn, did depose and say that he/she resides at _[address]________, that she/he is __[Title] ________ of __ [Corporation]_, the corporation described in and which executed the above instrument; that he/she knows the seal of said corporation; that the seal affixed to such instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that she/he signed his/her name thereto by like order.
[Signature of Notary Public] __________________________________________
[Name of Notary Public] _____________________________________________
Section 28. APPENDIX Form H AST Standby Trust Agreement
Standby Trust agreement, the “Agreement,” entered into as of [date] by and between [Owner or Operator], a [Name of State] [“corporation”, “partnership,” “association,” or “proprietorship”], the “Grantor,” and _____________________________________, [insert “Incorporated in the (Name of Corporate Trustee) State of ________________” or “a national bank”], the “Trustee.”
Whereas, the Department of Natural Resources and Environmental Control (DNREC), an agency of the State of Delaware, has established certain regulations applicable to the Grantor, requiring that an Owner or Operator of an aboveground storage tank shall provide assurance that funds will be available when needed for cCorrective aAction and third-party compensation for bodily injury and property damage caused by aAccidental rReleases arising from the operation of the aboveground storage tank AST. The attached Schedule A lists the number of tanks at each facility and the name(s) and address(es) of the facility(ies) where the tanks are located that are covered by the standby trust agreement.
AST Facility I.D. Number: ____________________ (as listed on DNREC registration certificate)
Facility Name: ______________________________________________________________
Facility Street: ______________________________________________________________
Facility City: _____________________________________ Facility Zip Code: ____________
Whereas, the Grantor has elected to establish [insert either “a guarantee,” “surety bond,” or “letter of credit”] to provide all or part of such financial assurance responsiblity for the aboveground storage tanks identified herein and is required to establish a standby trust fund able to accept payments from the instrument;
SECTION 2. Identification of the Financial Assurance Responsibility Mechanism
This Agreement pertains to the [identify the financial assurance responsibility mechanism, either a guarantee, surety bond, or letter of credit, from which the standby trust fund is established to receive payments (This paragraph is only applicable to the standby trust agreement.)].
The Grantor and the Trustee hereby establish a trust fund, the “Fund,” for the benefit of [the Department]. The Grantor and the Trustee intend that no third party have access to the fund except as herein provided. [The Fund is established initially as a standby to receive payments and shall not consist of any property.] Payments made by the provider of financial assurance Responsibility pursuant to [the Secretary’s] instruction are transferred to the Trustee and are referred to as the Fund, together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Fund shall be held by the trustee, IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall it undertake any responsibility for the amount or adequacy of, nor any duty to collect from the Grantor as provider of financial assurance Responsibility, any payments necessary to discharge any liability of the Grantor established by the Department.
SECTION 4. Payment for Corrective Action and/or Third–Party Liability Claims
The Trustee shall make payments from the Fund as the DNREC Secretary shall direct, in writing, to provide for the payment of the costs of [insert: “taking cCorrective aAction” and/or “compensating third parties for bodily injury and property damage” caused by aAccidental rReleases] arising from operating the tanks covered by the financial assurance responsibility mechanism identified in this Agreement.
(a) Any obligation of [insert Owner or Operator] under a workers’ compensation, disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to any employee of [insert Owner or Operator] arising from, and in the course of employment by [insert Owner or Operator];
(d) Property damage to any property owned, rented, loaned to, in the care, custody, or control of, or occupied by [insert Owner or Operator] that is not the direct result of a release from an aboveground storage tank;
(e) Bodily injury or property damage for which [insert Owner or Operator] is obligated to pay damages by reason of the assumption of liability in a contract or agreement other than a contract or agreement entered into to meet the requirements of Part D, Section 3 of these regulations. The Trustee shall reimburse the Grantor, or other persons as specified by the Department, from the Fund for corrective action expenditures and/or third-party liability claims in such amounts as [the Secretary] shall direct in writing. In addition, the Trustee shall refund to the Grantor such amounts as the Department specifies in writing. Upon refund, such funds shall no longer constitute part of the Fund as defined herein.
A. Securities or other obligations of the Grantor, or any other Owner or Operator of the tanks, or any of their affiliates as defined in the Investment Company Act of 1940, as amended, 15 U.S.C. 80a-2(a), shall not be acquired or held, unless they are securities or other obligations of the federal or a state government;
B. To purchase shares in any investment company registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 et seq., including one which may be created, managed, underwritten, or to which investment advice is rendered or the shares of which are sold by the Trustee. The Trustee may vote such shares in its discretion.
All orders, requests, and instructions by the Grantor to the trustee shall be in writing, signed by such persons as are designated in the attached Schedule B Exhibit A as required in Section 19 or such other designees as the Grantor may designate by amendment to Schedule B Exhibit A. The Trustee shall be fully protected in acting without inquiry in accordance with the Grantor’s orders, requests, and instructions. All orders, requests, and instructions by the Secretary to the Trustee shall be in writing, signed by the Secretary, and the Trustee shall act and shall be fully protected in acting in accordance with such orders, requests, and instructions. The Trustee shall have the right to assume, in the absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor or the Department hereunder has occurred. The Trustee shall have no duty to act in the absence of such orders, requests, and instructions from the Grantor and/or the Department, except as provided for herein.
[Signature of Grantor] ____________________________________________________________
[Name of the Grantor] ____________________________________________________________
[Title] _____________________________________________________________
[Signature of Trustee] _____________________________________________________________
[Name of Trustee] ________________________________________________________________
[Title] ______________________________________________________________________ [Seal]
[Signature of Witness] ____________________________________________________________
[Name of Witness] _______________________________________________________________
[Title] ___________________________________________________________
[Seal]
On this _[Date] __, before me personally came _[Owner or Operator]__ to me known, who, being by me duly sworn, did depose and say that he/she resides at __[address]__,
that she/he is _[Title]_ of _ [Corporation]_, the corporation described in and which executed the above instrument; that he/she knows the seal of said corporation; that the seal affixed to such instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that she/he signed his/her name thereto by like order.
[Signature of Notary Public] __________________________________________
[Name of Notary Public] _____________________________________________
Section 29. APPENDIX Form I AST Certification of Valid Claim
The undersigned, as principals and as legal representatives of [Owner or Operator] and [insert name and address of third-party claimant] hereby certify that the claim of bodily injury [and/or] property damage caused by an accidental release arising from operating [Owner or Operator] aboveground storage tank should be paid in the amount of $[ ______________ ].
[Signature(s)]__________________ [Signature(s)]______________________
Section 30. APPENDIX Form J AST Bond Rating Test General Purpose Local Government
I am the chief financial officer of [insert: name and address of Local Government Owner or Operator, or Guarantor]. This letter is in support of the use of the bond rating test to demonstrate financial responsibility for [insert: “taking cCorrective aAction” and/or “compensating third parties for bodily injury and property damage”] caused by [insert : “sudden aAccidental rReleases” and/or “nonsudden aAccidental rReleases”] in the amount of at least [insert: dollar amount] per oOccurrence and [insert: dollar amount] aAnnual aAggregate arising from operating (an) aboveground storage tank(s) (ASTs).
Aboveground storage tanks (ASTs) at the following fFacilities ASTs are assured by this bond rating test:
[List for each fFacility: the name and address of the facility where tanks are assured by the bond rating test are located, and indicate which ASTs are assured by this Bond Rating Test. List each AST by the AST identification number provided in the registration form submitted pursuant to Part A of these Regulations].
AST Facility I.D. Number: ____________________ (as listed on DNREC registration certificate)
Facility Name: ______________________________________________________________
Facility Street: ______________________________________________________________
Facility City: _____________________________________ Facility Zip Code: ____________
[Moody’s or
The total outstanding obligation of [insert amount], excluding refunded bond issues, exceeds the minimum amount of $1 million required in PART D, Section 3. All outstanding general obligation bonds issued by this government that have been rated by Moody’s or Standard & Poor’s are rated as at least investment grade (Moody’s Baa or Standard & Poor’s BBB) based on the most recent ratings published within the last twelve 12 months. Neither rating service has provided notification within the last 12 months of downgrading of bond ratings below investment grade or of withdrawal of bond rating other than for repayment of outstanding bond issues.
I hereby certify that the wording of this letter is identical to the wording specified in Part D, Appendix J PART D, Section 30, Form J of the Delaware Regulations Governing Aboveground Storage Tanks as such regulations were constituted on the date shown immediately below.
[Signature]
[Name]
[Title]
[Date]
Section 31. APPENDIX Form K AST Bond Rating Test/Local Government - Other
I am the chief financial officer of [insert: name and address of Local Government Owner or Operator, or Guarantor]. This letter is in support of the use of the bond rating test to demonstrate financial responsibility for [insert: “taking cCorrective aAction” and/or “compensating third parties for bodily injury and property damage”] caused by [insert: “sudden aAccidental rReleases” and/or “nonsudden aAccidental rReleases”] in the amount of at least [insert: dollar amount] per oOccurrence and [insert: dollar amount] aAnnual aAggregate arising from operating (an) aboveground storage tank(s) (ASTs). This Local Government is not organized to provide general governmental services and does not have the legal authority under state law or constitutional provisions to issue general obligation debt.
Aboveground storage tanks at the following facilities are assured by this bond rating test:
[List for each facility: the name and address of the facility where tanks are assured by the bond rating test are located, and indicate which ASTs are assured by this Bond Rating Test. List each AST by the AST identification number provided in the registration form submitted pursuant to Part A of these Regulations.
AST Facility I.D. Number: ____________________ (as listed on DNREC registration certificate)
Facility Name: ______________________________________________________________
Facility Street: ______________________________________________________________
Facility City: _____________________________________ Facility Zip Code: ____________
The details of the issue date, maturity, outstanding amount, bond rating, and bond rating agency of all outstanding revenue bond issues that are being used by [name of Local Government Owner or Operator, or Guarantor] to demonstrate financial responsibility are as follows: [complete table]
[Moody’s or
The total outstanding obligation of [insert amount], excluding refunded bond issues, exceeds the minimum amount of $1 million required in PART D, Section 3. All outstanding revenue bonds issued by this government that have been rated by Moody’s or Standard & Poor’s are rated as at least investment grade (Moody’s Baa or Standard & Poor’s BBB) based on the most recent ratings published within the last 12 months. The revenue bonds listed are not backed by third-party credit enhancement or are insured by a municipal bond insurance company. Neither rating service has provided notification within the last twelve 12 months of downgrading of bond ratings below investment grade or of withdrawal of bond rating other than for repayment of outstanding bond issues.
I hereby certify that the wording of this letter is identical to the wording specified in Part D, Appendix K PART D, Section 31, Form K of the Delaware Regulations Governing Aboveground Storage Tanks as such regulations were constituted on the date shown immediately below.
[Signature]
[Name]
[Title]
[Date]
Section 32. APPENDIX Form L AST Local Government Financial Test
I am the chief financial officer of [insert: name and address of the Owner or Operator]. This letter is in support of the use of the Local Government financial test to demonstrate financial responsibility for [insert: “taking cCorrective aAction” and/or “compensating third parties for bBodily iInjury and pProperty dDamage”] caused by [insert: “sudden aAccidental rReleases” and/or “nonsudden aAccidental rReleases”] in the amount of at least [insert: dollar amount] per occurrence and [insert: dollar amount] aAnnual aAggregate arising from operating [an] aboveground storage tank[s].
Aboveground storage tanks at the following facilities are assured by this financial test
[List for each fFacility: the name and address of the Facility where ASTs assured by this financial test are located, and indicate which ASTs are assured by this Local Government financial test. If separate mechanisms or combinations of mechanisms are being used to assure any of the tanks ASTs at this Facility, list each AST assured by this financial test by the tank identification number provided in the notification registration form submitted pursuant to Part A of these Regulations].
AST Facility I.D. Number: ____________________ (as listed on DNREC registration certificate)
Facility Name: ______________________________________________________________
Facility Street: ______________________________________________________________
Facility City: _____________________________________ Facility Zip Code: ____________
I hereby certify that the financial index shown on line 16 of the worksheet is greater than zero and that the wording of this letter is identical to the wording specified in Part D, Section 32 Appendix Form L of the Delaware Regulations Governing Aboveground Storage Tanks as such rRegulations were constituted on the date shown immediately below.
[Signature]
[Name]
[Title]
[Date]
APPENDIX Form M AST Local Government Guarantee With Standby Trust Made By A State
Guarantee made this [date] by [name of state], herein referred to as Guarantor, to [Delaware Department of Natural Resources and Environmental Control] and to any and all third parties, and obliges, on behalf of [Local Government Owner or Operator].
(2) [Local Government Owner or Operator] owns or operates the following aboveground storage tank(s) (ASTs) covered by this guarantee:
[List the number of tanks at each facility and the name(s) and address(es) of the facility(ies) where the tanks are located. If more than one instrument is used to assure different tanks at any one facility, for each tank covered by this instrument, list the tank identification number provided in the notification submitted pursuant to Part A of Delaware's Regulations Governing Aboveground Storage Tank Systems, and the name and address of the facility.]
AST Facility I.D. Number: ____________________ (as listed on DNREC registration certificate)
Facility Name: ______________________________________________________________
Facility Street: ______________________________________________________________
Facility City: _____________________________________ Facility Zip Code: ____________
This guarantee satisfies Part D, requirements for assuring funding for [insert: “taking cCorrective aAction” and/or “compensating third parties for bBodily iInjury and pProperty dDamage caused by” either “sudden aAccidental rReleases” or “nonsudden aAccidental rReleases” or “aAccidental rReleases”; if coverage is different for different tanks ASTs or locations, indicate the type of coverage applicable to each tank AST or location] arising from operating the above-identified aboveground storage tank(s) AST(s) in the amount of [