MFA Incorporated
MFA OIL
Still prevention control and countermeasures rule
By Tracy Barth

The U.S. Environmental Protection Agency's Spill Prevention, Control and Countermeasures (SPCC) rule applies to owners or operators of facilities (including farms) that hold an aggregate of 1,320 gallons of petroleum products in aboveground storage tanks of 55 gallons or greater, where a spill might eventually reach a navigable waterway.

The EPA's SPCC rule, originally mandated in 1973 under the Clean Water Act, is one of many issues petroleum marketers, refiners and pipeline fuel terminals face in a heavily regulated industry. Its purpose is three-fold: First, to minimize the possibility of hazardous materials (such as gasoline and diesel fuel) contaminating our waterways; second, to ensure that storage tanks are tested periodically for leak integrity and finally, to prevent unauthorized persons from tampering with hazardous materials.

The rule requires a plan that outlines how a regulated facility will prevent spills from tanks and address any release of oil products. The EPA rule now consists of these requirements:

-Secondary containment for tanks and loading racks

-Periodic integrity testing of aboveground tanks and piping

-Fencing and lighting of tank sites

-Security on tanks and valves

-Renewal of plans every 5 years

In order to be considered "compliant," a facility's plans must be approved by a certified professional engineer.

EPA's amended requirements have been costly for petroleum marketers. In Missouri, additional costs mandated by the state departments of Agriculture, Natural Resources and others caused a number of petroleum marketers to close or sell their businesses, reducing the number of petroleum marketers in rural Missouri.

A lawsuit by the Petroleum Marketers Association of America succeeded in pushing compliance dates back to Feb. 17, 2006, for amendment of an existing SPCC Plan and Aug. 18, 2006, for implementation of a plan. Marketers who have been able to maintain their businesses, along with others in the industry, are scrambling ensure facilities meet standards.

SPCC impact on farmers

Although the SPCC rule technically applies to all businesses, including farms, that have storage for an aggregate volume of at least 1,320 gallons of petroleum products, historically the EPA hasn't inspected farms or imposed compliance issues upon them. However, with an eye on the 2006 deadlines, the Agriculture Coalition is taking steps to protect its constituency from potentially ruinous expenses comparable to those imposed on the petroleum industry.

The coalition, which includes the National Council of Farmer Cooperatives and the Farm Bureau, has expressed concerns about the EPA's position that qualifying farms must comply with the SPCC oil spill rule. They refer to USDA research that says the rule could affect nearly half a million farms at a cost of $4.5 billion, pointing out that farming is a completely different, lower risk business than the fueling and lubricants industries.

Advocacy groups that represent farmers are working diligently in Washington, D.C., 'politicking' members of U.S. House and Senate committees, urging them to engage EPA on issues that confront farmers. According to Bob Looney at Cenex Harvest States, "We are asking EPA to 'defer' all language on farms and small agriculture facilities in its 2002 regulation when it publishes its August 2005 proposed rule on 'small entities' so we have time to make the regulation better for agriculture."

Tracy Barth is director of compliance and safety for MFA Oil.

  September 2005
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