Division of Spill Prevention and Response

Breadcrumbs

Financial Responsibility for Underground Storage Tank Owners

Financial Responsibility (FR) means that you have sufficient financial backing to cover expenses due to cleanup or third-party liability that result from a leaking UST. For most people this means you must have UST pollution liability insurance. Premiums for Pollution Liability Insurance have dropped considerably over the years, making the price more affordable. See your Insurance Broker about Pollution Liability Insurance. Make sure that your policy is specific for UST's and meets State and Federal requirements.



Private and local government tank owners and operators are required to show proof of Financial Responsibility. State and Federal governments are not required to show proof. Alaska does not have a State fund to offer tank owners and operators.


DEC requires proof of Financial Responsible from all applicable owners and operators:


  • annually, 30 days prior to expiration of the FR;

  • for a change of owner, prior to operation by the new owner;

  • within 30 days after a release from an UST;

  • prior to operating a newly installed UST system;

  • if requested by DEC; and

  • during a facility audit.

See a list of UST facilities without current Proof of Financial Responsibility.
See a list of UST facilities with current Proof of Financial Responsibility.

More Information




Financial Responsibility requirements vary depending on several factors. The following table explains the amount of coverage required.

 


Group Of UST Owners And Operators Compliance Deadline Per Occurrence Coverage Aggregate Coverage

GROUP 1:

Petroleum marketers with 1,000 or more tanks

OR

Nonmarketers with net worth of $20 million or more (for nonmarketers, the "per occurrence" amount is the same as Group 4-B below)

January 1989

$1 million

$2 million
if you have
more than
100 tanks

OR

$1 million
if you have 100
or fewer tanks

GROUP 2:

Petroleum marketers with 100-999 tanks

October 1989

$1 million

$2 million
if you have
more than
100 tanks

OR

$1 million
if you have fewer
than 100 tanks

GROUP 3:

Petroleum marketers with 13-99 tanks

April 1991

$1 million

$1 million

GROUP 4-A:

Petroleum marketers with 1-12 tanks

December 1993

$1 million

$1 million

GROUP 4-B:

Nonmarketers with net worth of less
than $20 million

December 1993

$500,000
if throughput is
10,000 gallons
monthly or less


OR

$1 million
if throughput is more
than 10,000 gallons
monthly

$2 million
if you have
more than
100 tanks

OR

$1 million
if you have fewer
than 100 tanks

GROUP 4-C:

Local governments (including
Indian tribes not part of Group 5)

February 1994

$500,000
if throughput is
10,000 gallons
monthly or less


OR

$1 million
if throughput is more
than 10,000 gallons
monthly

$2 million
if you have
more than
100 tanks

OR

$1 million
if you have fewer
than 100 tanks

GROUP 5:

Indian tribes owning UST's on
Indian lands (UST's must be in
compliance with UST technical
requirements)

December 1998

$500,000
if throughput is
10,000 gallons
monthly or less


OR

$1 million
if throughput is more
than 10,000 gallons
monthly

$2 million
if you have
more than
100 tanks

OR

$1 million
if you have fewer
than 100 tanks


For more information about Financial Responsibility for USTs, please contact: For more information about UST's, please contact:
Shauna McMahon, UST FR Contact
Prevention Preparedness and Response Program
DEC Division of Spill Prevention and Response
410 Willoughby Ave., Ste. 303,  P.O. Box 111800
Juneau, AK 99801-1800
Telephone: (907) 465-5233
Fax Number: (907) 465-5245
Email: DECUSTFR@alaska.gov

Larry Brinkerhoff, UST Prevention Manager
Prevention Preparedness and Response 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: Larry.Brinkerhoff@alaska.gov