Storage Tank Law Enforcement/Trust Fund Eligibility: Tennessee Department of Environment and Conservation Proposed Executive Order Regarding the Henderson Underground Storage Tank System | Mitchell, Williams, Selig, Gates & Woodyard, LLC

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The Tennessee Department of Environment and Conservation (“TDEC”) on July 19 issued a Proposed Order and Assessment (“Order”) to Johnson and Clayton, Inc. (“JCI”) regarding the Eligibility for the Underground Storage Tank Trust Fund and Alleged Violations. See Case No. FDA22-0014.

The order states that JCI is the registered owner of six underground storage tanks (“UST”) in Henderson, Tennessee.

The TDEC Underground Storage Tanks Division (“Division”) reportedly conducted an inspection at a JCI facility utilizing all six USTs on January 11, 2022.

The inspection reportedly identified the following infractions:

  • Failure to test spill prevention equipment at least once every three years
  • Failure to inspect overfill prevention equipment at least once every three years
  • Failing to ensure cathodic protection works as intended and effectively prevents corrosion

Division personnel also reportedly identified a roadside diesel dispenser dripping into the uncontained sump. This drip would have been determined by the Division to be a suspected leak.

Division personnel reportedly sent an Amended Site Verification Letter – Distributor Leak to JCI on January 20 asking it to investigate the suspected leak discovered at the site during the referenced inspection.

Division personnel reportedly received satisfactory hydrostatic test results for all six spill buckets on February 24.

The Order states that on March 10, Division personnel received an application for JCI fund eligibility for the January 11 release. Additionally, on March 21, Division personnel received satisfactory overfill inspection results for all overfill prevention devices.

The information contained in the site check, along with the test results for the UST site, are listed to indicate that no release has occurred and further investigation is not required. As a result, the project would have closed on April 8.

The order provides that JCI has not corrected all of the violations discovered at the time of the inspection and that the facility remains in operational non-compliance.

It is noted that Division staff have reviewed the previous application for trust fund eligibility as well as the documentation required by the applicable rules. It is said to have determined that the facility did not meet the minimum deductible requirements for release due to the following:

  • Failure to test spill prevention equipment at least once every three years
  • Failure to inspect overfill prevention equipment at least once every three years
  • Non-compliance with requirements regarding the design, construction, use and/or improvement of the corrosion protection of tanks

Therefore, the order sets the deductible for release at $10,000. The Order also requires JCI to take additional specific actions and pay a civil penalty of $26,000.

The College provides certain appeal rights.

A copy of the order can be downloaded here.