Division of Spill Prevention and Response

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Division of Spill Prevention and Response
Contaminated Sites Program
Industry Preparedness Program
bullet Financial Responsibility bullet Underground Tanks bullet Aboveground Tanks

Prevention and Emergency Response Program

Response Fund Administration

Division of Spill Prevention and Response

Fact Sheets, Publications

What does the Division of Spill Prevention and Response do?
The Division of Spill Prevention and Response (SPAR) is responsible for protecting Alaska’s land, waters, and air from oil and hazardous substance spills by preventing, responding to and ensuring the cleanup of unauthorized discharges of oil and hazardous substances. The Division pursues this mission through three main objectives: Prevention, Preparedness and Response. The core elements of each objective are implemented through the Division's four Programs:

What does that acronym mean?
There are many abbreviations, specialized terms and acronyms the Division uses in documents regarding the prevention and cleanup of hazardous materials. Please refer to our Glossary/Acronyms webpage to see definitions for commonly used terms and acronyms.

What are the approvals, permits or authorizations required by the Division?
bullet Please see the Approvals & Permits webpage for a comprehensive listing of authorizations required by the Division.

What is required by law to prevent or cleanup releases of oil/petroleum or hazardous materials?
bullet Please see our Statutes & Regulations webpage for a complete listing of the laws governing the Division.
bullet Please see the Approvals & Permits webpage for a comprehensive listing of authorizations required by the Division.

What guidance is available to help interpret the laws?
bullet Please see the Guidance webpage for detailed information on spill prevention, spill preparedness and spill response.

Who can I contact for more information about the Division?

Louise Cochrane, Secretary for Larry Dietrick, Director
Department of Environmental Conservation
Division of Spill Prevention and Response
410 Willoughby Ave., Suite 303
P.O. Box 111800
Juneau, AK 99811-1800
Telephone: (907) 465-5250
Fax Number: (907) 465-5262
Email: Louise.Cochrane@alaska.gov

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Contaminated Sites Program FAQ's bullet CSP Homepage

Fact Sheets, Publications

bullet See the Cleanup Process webpage.

What does the Contaminated Sites Program do?
The mission of the Contaminated Sites Program is to protect public safety, human health and the environment by identifying, overseeing and conducting the cleanup and management at contaminated sites in Alaska and by preventing releases from underground storage tank systems and unregulated aboveground storage tanks.

bullet See the Cleanup Process webpage.

  • Cleanup process for contaminated sites (PDF 304K)
  • Program flowchart (PDF 87K)

What is a contaminated site?
A contaminated site is a location where hazardous substances, including petroleum products, have been improperly disposed, spilled or leaked from their containers. Many of these sites result from failed containment equipment and improper storage measures or disposal methods considered standard practices before we became aware of the problems or hazards they can cause. Contaminated sites often threaten public health or the environment and can cause economic hardship to people and communities.

Where are they located?
Contaminated sites may be associated with military, commercial or industrial activities, including oil production and storage operations, mining, and a wide variety of smaller enterprises where hazardous materials are used. In some instances, groundwater and surface waters have become so polluted that human health or the environment have been impaired or placed at risk. Some of these pollutants are known to cause increased incidences of cancer while others may contribute to health problems.

What is found at these sites?
Many different types of hazardous substances are found at contaminated sites in Alaska. Sites contaminated by petroleum products are by far the most common. The toxic nature of petroleum products can be quite high for "light" products such as gasoline or aviation fuel, which contain high levels of the most harmful "aromatic" constituents such as benzene. Benzene is a known cancer-causing agent (carcinogen). Aromatic compounds also tend to be the most easily dissolved in water and are responsible for making many drinking water sources in the state unfit for human use. Diesel fuels and the heavier petroleum products, although hazardous, have a much lower content of the most harmful constituents.

Other contaminated sites can have chlorinated solvents, heavy metals, synthetic organic pesticides, non-chlorinated solvents, and inorganic acids and bases. The most toxic of these tend to be the chlorinated compounds, including: chlorinated solvents, polychlorinated biphenyls (PCBs), and herbicides, including dioxin-containing herbicides. The banned chlorinated pesticide DDT has also been found at several sites. Heavy metal contamination can also pose a serious threat to public health. Sites where improper disposal of lead acid batteries has occurred, or where mercury was once used in mining retort operations, typify sites where heavy metals are a concern. Chromium and arsenic also show up as heavy metal contaminants.

Threats to human health posed by these hazardous substances cover a wide range. Many of the chlorinated hydrocarbons and some of the heavy metals are known to be carcinogenic. A wide range of acute and chronic health effects may result from exposure to other compounds. Some compounds present both a carcinogenic and chronic health risk. In some cases the most important factors to consider in weighing the effects of contaminants may be ecological rather than human health based. This may be particularly true in remote locations where exposure to humans is less likely.

Who is responsible for cleanup?
In Alaska, about one-third of the sites in the DEC inventory are on federal lands, with most of these on military bases. Another one-third are privately owned and can include commercial and/or industrial properties. The rest are owned by the state and local governments. DEC participates with other local, state and federal agencies in cooperative cleanup operations. In most cases, the responsible parties contract with environmental consulting firms to clean up sites, with oversight provided by DEC staff. However, when a responsible party cannot be identified and a site is a serious threat to public health or the environment, the state may bear the cost of site investigation and/or cleanup. Although Alaska law requires that state funds be recovered from responsible parties, the responsible party is not always able to pay.

How are Alaskans affected?
Contamination of groundwater is the most serious problem in Alaska and the most costly to solve. Many sites currently listed on the inventory have drinking water which exceeds state and EPA health standards for contamination. Populations of fish and other wildlife, on which many Alaskans depend for subsistence, sport, and commercial harvest may be impaired. Contamination may also result in significant economic losses. For example, property transfers can be delayed or may not occur if a site is suspected or known to be contaminated.

What are the requirements for investigating and cleaning up Leaking Underground Storage Tank sites?
DEC has specific regulations that govern the identification, assessment, cleanup and closure of leaking UST sites. Because of the complex nature of contamination sampling and remediation, we recommend that you refer to Articles 2 and 3 of the UST regulations, 18 AAC 78, and the UST Procedures Manual.

What is Cost Recovery?
The State of Alaska is authorized, under Federal regulation 42 U.S.C. 699 1 b(h), to recover State funds used during oversight of a petroleum cleanup from a leaking underground storage tank (LUST). The State is also authorized by Alaska Statute 46.08.070 to recover money expended by the Department to contain or cleanup the release of oil or a hazardous substance, including petroleum. "Oversight" costs can include Department staff salaries, travel, equipment, supplies, contracts and services, and general program management. Typical cost expenditures for staff time can include, but are not limited to: performing plan reviews; drafting approval letters; attending site meetings; offering technical assistance via phone; and doing site visits or inspections.

If you have questions about Cost Recovery, please contact Vicente Alinson at 907-465-6219.

Who can I contact for more information about the Contaminated Sites Program?

Steve Bainbridge, Program Manager
Contaminated Sites Program
DEC Division of Spill Prevention and Response
Fairbanks, AK 99709
Telephone: (907) 451-2182
Fax Number: (907) 451-2155
Email Address: Steve.Bainbridge@alaska.gov

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Industry Preparedness Program FAQ'sbullet IPP Homepage

Financial responsibility Underground Storage Tanks
  Aboveground Storage Tanks

Financial Responsibility

Underground Storage Tanks

Aboveground Storage Tanks

Financial Responsibility

What is Direct Action?
Direct action means that the person who provides proof of financial responsibility on behalf of an oil industry operator could be sued in Alaska courts jointly with a potentially responsible party should either fail to satisfy claims for oil pollution damages. The difference is that the responsible party could be liable for the full cost of all damages - without limit - while the person providing proof of financial responsibility may only be liable up to the limit of the policy, guaranty, bond or letter of credit they provide, and only for pollution losses compensable under AS 46.04.040(i) that resulted from an oil discharge.

Why are the dollar amounts so irregular?
AS 46.04.045 requires that the Department periodically adjust the dollar amounts by regulation to match inflation, as determined by the Anchorage Consumer Price Index (CPI). Adjustments occur every three years. Most dollar amounts have increased by 43.5 percent since 1990. The most recent adjustment occurred on October 16, 2005. The next adjustment is expected to occur on October 1, 2008 and will be calculated using the February 2008 CPI.

Why should Alaskans even care about proof of financial responsibility?
Facilities, vessels, industries and operators who produce, transport or use large volumes of oil have the potential to cause significant financial damage to public and private resources if an oil spill were to occur. Due to this increased risk, Alaska requires the largest operators to meet enhanced spill prevention and response standards. Before operating in Alaska, these same operators must also meet minimum financial standards to mitigate any public and private damages if spill prevention and response fails. This is termed "proof of financial responsibility."

Who must demonstrate proof of financial responsibility in Alaska?
As of May 2008, the program regulates:

  • 83 Oil tank farms
  • 7 Crude oil transmission pipelines
  • 22 Offshore oil platforms
  • 22 Oil and gas exploration projects
  • 11 Oil production facilities
  • 4 Refineries
  • 50 Oil tankers
  • 170 Oil barges
  • 373 Nontank vessels
  • 2 Railroad tank car operators
  • Underground Storage Tanks also have financial responsibility requirements under different regulations.

What is used as proof of financial responsibility?
Financial evidence submitted by regulated operators may include:

  • oil pollution liability insurance
  • self-insurance (independently audited financial reports)
  • surety bonds
  • letters of credit
  • certificates of deposit
  • financial guaranties

How much proof do these operators provide?
The value of proof submitted to the Department by these operators ranges from $1.5 million up to $600 million for the largest crude oil tankers. The total amount of proof required for all operators in Alaska is currently about $3.2 billion.

What happens to this proof?
The Department reviews this evidence to ensure it meets the minimum financial standards established by the legislature and the minimum quality and liquidity standards established by regulation. Operators who meet these requirements are issued approval certificates for each qualifying facility or vessel. Facilities or vessels may not operate without a valid financial responsibility approval certificate issued by the Department.
(Legal references: Alaska Statutes Title 46, Chapter 4, sections 040, 045, 047 and 055. Regulations in the Alaska Administrative Code Title 18, Chapter 75, Article 2.)

What happens if there is a spill?
It is against the law to spill oil in Alaska, and every person who spills oil is responsible for cleaning up the spill and for any public and private pollution damages that may result. Claims for damages may be settled directly by the responsible party or may proceed to litigation through the court system. In the case of regulated operators who must have approved proof of financial responsibility before they can legally operate, their "proof" may be encumbered until claims have been settled or adjudicated. These regulated operators may then be required to post additional proof before they can legally operate other facilities or vessels.
(Legal references: Alaska Statutes Title 46, Chapter 3, sections 758, 759, 760, and 822, and Chapter 4, sections 030 and 040.)

Is Proof of Financial Responsibility a new program in Alaska?
No. The State's financial responsibility program started in 1980 in connection with the first oil spill contingency plan laws to regulate the new Trans-Alaska Pipeline System.

History:

  • 1976 - Alaska enacts its first laws requiring contingency plans and proof of financial responsibility for oil tankers, oil barges and oil terminals in response to the opening of the Trans-Alaska Pipeline System and the 1976 Federal Clean Water Act. The U.S. Supreme Court in the case of Chevron vs. Hammond overturned part of these laws, which were subsequently rewritten.
  • 1980 - Alaska enacts its current laws requiring contingency plans and proof of financial responsibility (including direct action) for oil tankers, oil barges and oil terminals.
  • 1990 - Financial responsibility dollar amounts were increased and applicability extended to oil wells, pipelines and production facilities in response to Exxon Valdez oil spill.
  • 2000 - Financial responsibility requirements were extended to nontank vessels and railroad tank cars in response to the Kuroshima and Alaska Railroad spills.
What are the financial responsibility provisions for nontank vessels and railroad tank cars?
Financial responsibility provisions of Senate Bill 273 for non-tank vessels and railroad tank cars became effective on September 1, 2000. Operators must complete an application form and provide acceptable proof of financial responsibility before operating a non-tank vessel in Alaskan waters.

bullet Application Form (nontank vessels only) (PDF 103K)

How do I renew a State of Alaska Nontank Vessel Certificate of Financial Responsibility (COFR)?
bullet See 18 AAC 75.205

  • Step 1. Thirty (30) days before current approval expires, please submit a renewal application to the Alaska DEC. The renewal application is on Page 4, Section D of the application form. It can be found on our web page or by contacting the Alaska DEC. It must be signed upon oath or affirmation by an authorized representative responsible for the overall management of the vessel, or by an agent who has been delegated that authority by the responsible party.
  • Step 1B. Place a check mark in the box in the top, left-hand corner which states "…this is a renewal application…"
  • Step 1C. Enter the vessel name and certificate number from your current approval certificate.

Note: If there are any changes to the original application as previously submitted, then you must fill out an entirely new application. This includes a change in P&I Club or Insurance Company, vessel ownership, applicant name, or changes in address or contact information.

  • Step 2. Submit a copy of the original application sent last year.
  • Step 3. Send us your renewal confirmation letter. You have up to 90 days following P&I club coverage or insurance renewal to submit the required additional documentation, which are usually certificates of entry, and related endorsements.

Please keep in mind that if the vessel is not currently operating in Alaska, or if you do not anticipate a call to Alaska around the time of expiration, then you have the option of waiting to renew your certificate until you receive the necessary paperwork from your insurance provider. This allows you the opportunity to submit the application materials to the DEC all at once. In such case, be sure the required documentation arrives no less than 15 days prior to reentering Alaskan State waters.

Is there an application or permit fee?
 No.

What is the deadline for applications?
For non-tank vessels, a completed and signed application must be received by this department at least 15 days before the vessel begins operations in Alaska waters. We will accept applications received less than 15 days before start of operations if the following conditions are met:

  • The application is received at least 5 days before operations start, and
  • The applicant demonstrates that unanticipated circumstances prevented the applicant from meeting the 15 day deadline.

Is a U.S. Coast Guard (federal) COFR sufficient proof of financial responsibility?
Not usually. Most federal COFR reinsurance policies, such as SIGCO or Shoreline, specifically exclude state coverage.

What about deductible amounts?
Alaskan regulation 18 AAC 75.271(d) for nontank vessels requires supplemental coverage for the amount of any deductibles, (including aggregate deductibles) over $50,000. This can be met by either:

  • Supplemental coverage for the amount of the deductible by means of other acceptable insurance, a surety, a guaranty, self-insurance, a letter of credit, certificate of deposit, or other acceptable proof of financial responsibility; or
  • A deductible provision that provides for a loss reimbursement plan containing language guaranteeing the insurer will be responsible for the payment of all claims on a first dollar basis, without waiting for the insured to pay the deductible.
Most applicants submitting P&I cover as evidence of financial responsibility find it more convenient to have a nil deductible for oil pollution endorsement added to their certificate of entry.

Is a notary required?
Yes. Under 18 AAC 75.205(c), all financial responsibility applications must be signed upon "oath or affirmation." In the U.S.A., a state notary public meets that requirement. If the application is filed by an overseas company, there are several options to meet the "oath or affirmation" requirement:

  • locate a U.S. notary by contacting your local U.S. embassy; use a U.S. based ship's agent to prepare the application on your behalf. The U.S. agent can have the application notarized in the U.S.; or
  • use a local international equivalent to a U.S. notary that is capable of meeting the "oath or affirmation" requirement.

What are "non-persistent" and "persistent" oils?
Non-persistent oil means a petroleum-based oil that, at the time of shipment, consists of hydrocarbon fractions:

  • of which at least 50% (by volume) distills at a temperature of 340 degrees C (or 645 degrees F); and
  • of which at least 95% (by volume) distills at a temperature of 370 degrees C (or 700 degrees F).
Typical non-persistent oils include MGO, MDO, kerosene, no.2 diesel, aviation gasoline, and hydraulic fluids.

Persistent oil means petroleum-based oils that do not meet the distillation criteria for non-persistent oils. Typical persistent oils include IFO 180, bunkers, heavy fuel oil, and NSFO.

How long is an Alaska COFR valid?
Alaska Certificates of Financial Responsibility expire:

  • annually, for self-insurance; on the date of change for surety bonds, insurance, P&I cover, etc.;
  • on the expiration date of a bond, letter of credit, etc.

What is the definition of an "operator"?
Under AS 46.04.900, "operator" means the "person" who, through contract, lease, sublease, or otherwise, exerts general supervision and control of activities at the facility or vessel; the term includes, by way of example and not limitation, a prime or general contractor, the master of a vessel and the master's employer, or any other person who, personally or through an agent or contractor, undertakes the general functioning of the facility. Also, under AS 46.04.900, "person" means an individual, public or private corporation, political subdivision, government agency, municipality, industry, partnership, association, firm, trust, estate, or any other entity.

Underground Storage Tanks

What is the definition of an underground storage tank?
An underground storage tank or underground storage tank system means one or more stationary devices, including any connected underground pipes, designed to contain an accumulation of petroleum, of which the volume, including the volume of underground pipes, is 10% or more beneath the surface of the grade. DEC's definition is essentially the same as EPA's, although Alaska does not include tanks that store Hazardous Waste. Please see regulations governing UST's (18 AAC 78) for more information.

What types of underground tanks are not regulated by 18 AAC 78?

  • Tanks of any size storing heating oil for on-site consumption. See the Prevention and Emergency Response Program's Heating Oil Tank webpage.
  • Any tanks less than 110 gallons capacity.
  • Any farm or residential motor fuel tank used for non commercial purposes that is less than 1,100 gallons capacity.
  • Hazardous waste storage tanks. For more information...
  • Septic tanks. For more information...
  • Pipeline facility. For more information...
  • Tanks in basement or tunnel. For information...
  • Emergency overfill tanks that are emptied within 24 hours, or
  • Flow through process tanks.

Unsure of your situation? Contact DEC's UST Manager, Larry Brinkerhoff, for an interpretation at 907-269-3055, email: Larry.Brinkerhoff@alaska.gov

What are the basic requirements to operate a regulated underground petroleum tank system in Alaska? What about Registration Fees and Late Fees?
  • All active underground storage tanks owned by commercial, private and local government tank owners must pay an annual registration fee.
  • Fees are due on December 1 of the year preceding the registration year. UST registration expires on December 31 each year. (i.e.: 2003 fees were due December 31, 2002).
  • Fees received after the December 31 are considered late.  There is a $10.00 per day late fee for each day fees are overdue.  There are no exceptions.
  • Fee amounts:

Annual Fees for Upgraded Tank*

$50.00 per tanks, regardless of size

* tank and piping must have leak detection, spill and overfill devices, and corrosion protection. No exceptions.

Annual Fees for Non-Upgraded Tank

Size

Fee
Less than 1,000 gallons $150.00
1,000 - 5,000 gallons $300.00
Over 5,000 gallons $500.00
  • Full fees for non-upgraded tanks will continue to be assessed for the registration year 2004.

What are the Leak Detection requirements?

Diagram of UST.

Options for Tanks include at least one of the following:

  • Automatic Tank Gauging
  • Interstitial Monitoring
  • Statistical Inventory Reconciliation (SIR)
  • Tank Tightness Testing (TTT) and Inventory Control (only allowed until December 22, 1998, or up to 10 years after installation or upgrade, whichever is later)
  • Manual Tank Gauging (only allowed for tanks 2000 gallons or less)
Options for Piping include at least one of the following:

    For Pressurized Piping: You must have both

  • Automatic line leak detectors (ALLD) either flow restrictor, flow shut-off or continuous alarm capable of detecting a 3 gallon-per-hour leak in one hour. Learn more about ALLD's.

    and

  • Annual line tightness testing or
  • Monthly monitoring (Interstitial monitoring, SIR, or an ALLD capable of detecting  a 0.2 gph leak monthly).

    For Suction Piping: You must have

  • Line tightness testing every three years, however,
  • No Leak Detection required for Suction Piping if piping system: operates at less than atmospheric pressure; slopes back to tank; and has check valve below suction pump.

For Leak Detection systems installed after December 22, 1990, the system must be able to detect a leak with a probability of detection of 95% and a probability of false alarm of 5%. One way an owner/operator can ensure that his/her UST system meets the "95/5" rule is to have the system evaluated by a independent third-party. A number of national and international firms specialize in leak detection performance evaluations.

Leak Detection Probation: For regulated underground storage tanks (USTs) required to be inspected, owners/operators must maintain one year of leak detection records for their UST system and provide them during inspection. Twelve consecutive months of leak detection records are required. An UST system can not receive a three year tag unless 8 of the 12 LD records are passing, including the last 2 consecutive months. If these requirements are not met, then the UST system will be placed on Leak Detection Probation. The terms of LD Probation are described in the fact sheet downloadable below. The cover letter also below is a fax cover sheet to be used by a certified inspector to transmit leak detection records to DEC.

What is required for spill and overfill devices?

  • All USTs must have a spill prevention device, such as a catchment basin, which should be routinely inspected and cleaned out. 
  • All USTs must have an overfill prevention device, either using a high-level alarm, a ball float valve or an automatic shut-off device in the drop tube.
  • The owner or operator must ensure that a tank is measured prior to each delivery and ensure there is enough room in the tank to receive the fuel and that the entire transfer is monitored. UST owner and operators are encouraged to use DEC's new fuel delivery log, available soon.
What must be done to meet corrosion protection requirements?
  • All existing tanks and piping must have corrosion protection.
  • Corrosion protection options include: Non-metallic material such as fiberglass, galvanic or impressed impressed current cathodic protection or internal lining of tanks.
  • Cathodically protected systems must be tested every 3 years by a state certified tester or inspector.
  • Impressed current systems must be inspected very 60 days and the results logged.
What is involved in installing or upgrading a UST system?
  • File an Intent to Install form (PDF 18K) 15-60 days prior to installation.
  • Hire a Certified Worker to install or upgrade the system.
  • For upgrading with in an internal liner, do an Integrity Assessment.
  • File completed Registration form (PDF 34K) no more than 30 days after installation or upgrade complete. Form must be signed by BOTH Owner/Operator and Installer.
  • Make sure that you have Proof of Financial Responsibility: (PDF 64K)
    (Installation only).
  • Pay registration fee of $50.00 per tank (Installation only).
  • Inspection of the UST system is due three calendar years after installation.
How do I properly close an underground tank?
  • File an DEC Closure notice (PDF 22K)15-60 days prior to closure.
  • Check with your Fire Marshall to see about local fire code requirements.
  • Hire a Certified UST Worker to perform closure.
  • Hire a firm with a Qualified Person to perform site sampling.
  • Notify DEC immediately if spill or leak encountered.
  • Make sure tank and material is properly disposed.
  • Submit a Post-Closure notice (PDF 19K) 30 days after closure.
  • Submit Site Assessment/Release Investigation (PDF 22K) report to local DEC office.
What forms do I fill out and when?
Please see the UST Forms links on our Guidance page.

If you do not have PDF file viewing software programs, or if your browser cannot download these documents, DEC can mail or fax you these forms by contacting Dolly Holganza in Anchorage. Or call 1-800-478-4974 in Alaska or 907-269-7500 outside of Alaska.

For more information about UST's in Alaska, please contact:

Larry Brinkerhoff
UST Prevention Manager
Industry Preparedness Program
DEC Division of Spill Prevention and Response
555 Cordova Street
Anchorage, AK 99501-2617
Telephone: (907) 269-3055
Fax Number: (907) 269-7687
Email Address: Larry.Brinkerhoff@alaska.gov

Aboveground Storage Tanks

What is the definition of an aboveground petroleum storage tank?
An aboveground storage tank or aboveground storage tank system means one or more devices, including any connected piping, designed to contain an accumulation of petroleum, of which the volume, including the volume of underground pipes, is 90% or more above the surface of the grade.

Are there industry standards and references available?
Yes. Please see our Standards and References webpage.

What are the laws and regulations governing aboveground storage tanks (AST's) in Alaska?
Tanks located aboveground and storing petroleum products are divided into three distinct categories for regulation in the State of Alaska. There are federal, state and local laws regulating each size of tank. The DEC only regulates the third category of tanks:

What should I do if I notice a leaking tank or a tank has a release of petroleum product into the environment?
Contact the DEC immediately

    All releases of petroleum product into the environment are required by law to be reported to the Department of Environmental Conservation. Call the closest location to you.

  • Anchorage: 907-269-3063
  • Fairbanks: 907-451-2121
  • Juneau: 907-465-5340
  • Soldotna: 907-262-5210
    • Outside normal business hours call: 1-800-478-9300

Is there training available for operators of AST's?
No, training is no longer provided by the DEC. There may be training offered through the Alaska Energy Authority (AEA) and/or the Denali Commission.

What are the regulations governing installation of AST facilities under 420,000 gallons?
There are building codes that determine how to properly install aboveground containers of flammable and combustible liquids. Please contact your local fire marshal or the State Fire Marshal to obtain the appropriate information for your area.

What are the regulations governing removal of old or unused aboveground tanks?
Any AST that is not being used to store or dispense petroleum products must be properly cleaned and closed within a year of removal from service. Fire Marshal regulations stipulate what must be done to safely close a tank.  For further information, contact the State Fire Marshal.

Is there funding available for helping clean up contaminated AST areas?
No. Currently there is funding only for upgrading tank farms in rural communities in Alaska. Funding for upgrades is available through the Alaska Energy Authority (AEA) and the Denali Commission.

What is the Denali Commission?
The Denali Commission Act of 1998 created the Denali Commission to implement federal-state partnerships to enhance critical utilities, infrastructure and support for economic development in Alaska. Please visit their website at http://www.denali.gov for more information.

How can I get more information regarding aboveground petroleum storage tanks?

For information about Home Heating Oil Tanks, please contact:

Bob Fultz, Environmental Specialist
Prevention and Emergency Response Program
DEC Division of Spill Prevention and Response
540 Water Street, Suite 203
Ketchikan, AK 99901
Telephone: (907) 225-6200
Fax Number: (907) 225-0620
Email Address: Bob.Fultz@alaska.gov

For information about AST's over 10,000 gallons within a regulated facility that stores over 420,000 gallons (refined product) or 210,000 gallons (crude oil) , please contact:

Bill Steele, (Acting) Section Manager
Industry Preparedness Program
DEC Division of Spill Prevention and Response
555 Cordova St
Anchorage, AK 99501
Telephone: (907) 269-7886
Fax Number: (907) 269-7687
Email Address: bill.steele@alaska.gov

Who can I contact for more information about the Industry Preparedness Program?

Betty Schorr, Program Manager
Industry Preparedness Program
DEC Division of Spill Prevention and Response
555 Cordova Street
Anchorage, AK 99516-2617
Telephone: (907) 269-3054
Fax Number: (907) 269-7687
Email: Betty.Schorr@alaska.gov

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Prevention and Emergency Response Program FAQ's bullet PERP Homepage

Who can I contact for more information about the Prevention & Emergency Response Program?

Gary Folley, Program Manager
DEC Division of Spill Prevention and Response
43335 Kalifonsky Beach Road, Suite 11
Soldotna, AK 99669
Telephone: (907) 262-5210 x234
Fax Number: (907) 262-5210
Email: Gary.Folley@alaska.gov

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Response Fund Administration Program FAQ's bullet RFA Homepage

What is Cost Recovery Program?

Under the authority given to the Commissioner of the Department of Environmental Conservation, the department has developed and implemented a “Cost Recovery Program”. This program will be responsible to seek reimbursement for cost incurred in the cleanup or containment of oil or hazardous substance releases from those responsible for the spill or contamination.

What is the Alaska Statute governing the Cost Recovery Program?

Alaska Statute Section 46.08.070 authorizes the Commissioner of the Department of Environmental Conservation to promptly seek reimbursement for the costs incurred by the State in the cleanup or containment of oil or a hazardous substance that has been released in the environment.

Who is responsible for the cleanup of contaminated environments?

The Department of Environmental Conservation is responsible to ensure that cleanup of a release of oil or a hazardous substance is done in a way that protects human health and the environment or that appropriate steps are taken to contain a threatened release. Generally, the owner and/or operator of a vessel or facility from which a release or threatened release of oil or a hazardous substance occurs or the owner of property contaminated by oil or any hazardous substance are responsible for cost incurred by the state for oversight, assessment, cleanup, containment and other related response activities.

What are the costs charged to the responsible party (RP)?

Both direct and indirect costs incurred by the state for response to a release or threatened release of oil or a hazardous substance, as well as costs incurred for cleanup or remediation of a contaminated site are charged to the responsible party.

Direct Costs may include the following:

DEC's staff salaries and benefits such as health care, and employer payroll taxes. These costs are billed using an annually calculated standard hourly rate, by job classification. Direct personnel costs attributable to a site may include but are not limited to, time spent by DEC staff to:

  • Consult with the owner/or environmental consultants
  • Visit the site (travel & perdiem)
  • Review data and reports describing the type and extent of contamination
  • Review proposed cleanup actions
  • Provide comments and/or direction on the preferred cleanup method or remedy
  • Provide information about the site and opportunities for the general public to comment on the cleanup

Other direct cost includes but are not limited to :

  • Travel and per diem.
  • Supplies
  • Equipment
  • Legal Services

Indirect Costs are those costs associated with operating the department and providing administrative and clerical support to department programs. Typical indirect costs may include:

  • Office space, office equipment and supplies
  • Supplies and equipment used in site investigations and other field activities
  • Non-site specific activities of project staff, such as training and program administration
  • Clerical and administrative support
  • Management supervision
  • Development of technical guidance and policies
  • Centralized services, such as accounting, budgeting, human resources, and information systems.

How are the indirect rates established?

The DEC's indirect rate is negotiated with the Federal Environmental Protection Agency (EPA) and is also used to chargecosts against Federal grants and cooperative agreements. Current year indirect rate is 36.98%.

How is the Cost Recovery Program hourly rate established?

The standard hourly rate for regular time is established by averaging the actual quarterly cost of positions by job class, then adding the indirect rate to the average hourly rate.

Specific steps for calculating the standard hourly rate are as follows: 1) the actual costs for salaries and benefits for one quarter of a fiscal year for each job class utilized by DEC are totaled, then divided by the number of positions in that job class, for a quarterly average; 2) the quarterly average is multiplied by 4 for a yearly average; 3) the yearly average is divided by 1763 *regular time hours in a year to get the average hourly rate; 4) indirect is added to the average hourly rate to get the standard hourly rate charged.

*Regular time hours in a year are calculated as follows: 365 (days in a year ) minus 104 ( weekends ) minus 11 ( holidays ) minus 15 ( average number of annual and sick days ) equal 235 work days x 7.5 ( daily work hours ) equal 1762.5 hours, rounded up to 1763.

What other State Departments are involved in enforcing the cost recovery?

The DEC's enforcement of the cost recovery is thru the State's Department of Law.

Who can I contact for more information about the Response Fund Administration?

Cassidy Kearney, Program Manager
Response Fund Administration
DEC Division of Spill Prevention and Response
410 Willoughby Ave., Suite 303
P.O. Box 111800
Juneau, AK 99811-1800
Telephone: (907) 465-5270
Fax Number: (907) 465-5262
Email: Cassidy.Kearney@alaska.gov

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