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How Should Prospective Purchasers Address Potentially Regulated Storage Tanks at a Property?

The first thing to determine is whether the tanks on the property are regulated. The Pennsylvania Department of Environmental Protection ("PADEP") regulations for underground storage tanks ("USTs") and aboveground storage tanks ("ASTs"), found in Chapter 245 of the Pennsylvania Code, only apply to tanks used to store a "regulated substance." In general, this means (1) petroleum or (2) hazardous substances as defined in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. However, in November 2007, Pennsylvania issued changes to its tank regulations that expanded the definition of "regulated substances" to include non-petroleum oils, such a biodiesel, synthetic oils, and wood-derivative oils, and pure ethanol. Note that there are exceptions to the definitions of USTs and ASTs that may exempt the tanks from regulation. For instance, tanks used to store propane gas are exempt from regulation under PADEP's tank program, as are most tanks that are used to store heating oil (as long as the heating oil is used to provide heat for people on the premises, and is not used in an industrial process).

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