Sell Gas?
A quick snap shot of what you need to know about the retailing and storage of petroleum products in Ontario.
Provincial Regulations
With the average estimated cost to clean up a contaminated site at $200,000.00 and the Spills Bill 133 which allows the Ministry of Environment to impose penalties of up to $100,000 per day for hazardous spills without the risk, time and expense of court proceedings, you need to manage your site properly!
Gasoline storage in Ontario is governed by the 2007 Liquid Fuels Handling Code. The LFHC requires leak detection monitoring and/or testing as well as corrosion protection assessments at regular intervals to help prevent the contamination of soil and ground water.
Single wall tanks (steel or Fibreglass) can have one of two methods of leak detection:
A monthly level ll monitoring system.
Monthly monitoring can be obtained by either purchasing an automatic leak detection device (expensive first party system) or through a Statistical Inventory Reconciliation service provider (inexpensive third party system).
Perform a level l precision leak detection test every 2 years.
Registered testing companies can complete a certified test on your system.
Note: dipping your tanks every day is required under the LFHC. It does not qualify as a certified leak detection method. If you have an electronic system and all it does is provide daily fuel levels, you do not have a leak detection system.
Single wall piping requires testing: Suction system (motor at the pump).
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Annually if Steel
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Annually if the check valve is at the tank (steel or FRP)
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Every 5 years if you are on an Statistical Inventory Reconciliation program
Note: A basic tank monitoring system will not be performing a leak detection test on your piping.
Pressure system piping (submersible turbine pump at the tank).
Time is up! You have to install an Electronic line leak detection device (PLLD) or upgrade your piping to double wall before September 2011.
Double wall tanks and lines.
These systems do not require regular testing as leak detection is achieved constantly by monitoring the interstitial space between the two tanks. If you do not have an electronic alarm, vacuum, or brine solution to check on a regular basis....you do not have double wall tanks!
Double wall systems are not fool proof and need to be inspected by a petroleum mechanic on an annual basis as outlined in the LFHC.
Corrosion Protection.
If you have steel tanks and/or piping a cathodic protection survey is required every 2 years to determine if the level of protection is great enough to prevent your equipment from rusting. If you have steel equipment in the ground you need to protect your investment! The protection obtained from a sacrificial anode does not last forever and needs to be checked frequently to determine whether a new anode needs to be installed.
Meter Calibration and Federal Regulations.
If you are not having your pump meters calibrated on a regular basis using a new technology vapour compensating device you are most likely giving away fuel!
The calibration of your meters not only ensures that you are not giving away fuel, but ensures that your daily reconciliation is accurate. You will never know if you have a leak or if you are giving away fuel unless you remove the meter calibration variable.
The Federal Government recently passed new legislation “The Fairness at the Pump Act” which requires bi-annual pump meter calibrations by a registered service provider to certify that the meter is dispensing the proper amount of fuel. Measurement Canada will be phasing in the enforcement of the new act over the next few years.
Protect the public perception of your business and have your pump meters calibrated and certified on a regular basis.
In conclusion, the relationship between the cost to clean up a contaminated site and the employment of leak detection is not a linear equation! The employment of proper leak detection methodology vs. basic manual reconciliation and regular meter calibrations will provide a positive return on the investment. This has been a very brief summary of the testing regulations in Ontario and it is recommended that if you either review the 2007 LFHC or contact a qualified service provider.
Jeff Weber is the national sales director for Tanknology Canada which specializes in inventory loss reduction, leak detection, and compliance testing for national, regional and independent retailers across Canada through specialized technology. For more information or a no obligation assessment please contact him directly at jweber@tanknology.ca.