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Groundwater in the Great Lakes Basin

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Concern), 17 million gallons (64 million litres) of petroleum<br />

are float<strong>in</strong>g on <strong>the</strong> water table (IWRA, 1993), an<br />

amount which greatly exceeds <strong>the</strong> volume of <strong>the</strong> Exxon<br />

Valdez spill. Between 30 to 50 million gallons (115 to<br />

190 million litres) are estimated to pollute groundwater<br />

across <strong>the</strong> entire Area of Concern (Tolpa, 1992).<br />

Many homes and cottages have ASTs conta<strong>in</strong><strong>in</strong>g<br />

heat<strong>in</strong>g oil, which are rarely <strong>in</strong>spected and m<strong>in</strong>or leaks<br />

often go unrepaired. Over time, <strong>the</strong>se leaked fluids<br />

percolate through <strong>the</strong> soil and eventually reach <strong>the</strong><br />

water table. A significant issue regard<strong>in</strong>g ASTs is <strong>the</strong><br />

diurnal expansion and contraction of fuel with<strong>in</strong> <strong>the</strong><br />

tank due to atmospheric temperature variation and<br />

full-sun/shade cycles. In ASTs, variation <strong>in</strong> pressure<br />

is alleviated by vent<strong>in</strong>g to prevent flex<strong>in</strong>g of jo<strong>in</strong>ts<br />

and weaken<strong>in</strong>g of <strong>the</strong> tank seams. However, vents do<br />

become clogged. Additionally, <strong>the</strong>y also allow water to<br />

enter <strong>the</strong> tank as <strong>the</strong> fuel contracts and draws <strong>in</strong> humid<br />

air. Over time, water accumulates <strong>in</strong> <strong>the</strong> base of <strong>the</strong><br />

tank caus<strong>in</strong>g it to rust and leak (Friedman, 2007).<br />

FUNDING<br />

To aid with <strong>the</strong> cleanup and remediation of LUSTs,<br />

many states as well as <strong>the</strong> U.S. government have set<br />

up fund<strong>in</strong>g programs. F<strong>in</strong>ancial assurance funds by<br />

<strong>in</strong>dividual states accumulate assets through statespecific<br />

gasol<strong>in</strong>e taxes and tank registration fees.<br />

Approximately 40 states have UST cleanup funds,<br />

separate from <strong>the</strong> federal LUST Trust Fund (U.S.<br />

EPA, 2008c). In Michigan, owners/operators have to<br />

submit a registration form to <strong>the</strong> Waste and Hazardous<br />

Materials Division (WHMD) along with a $100 annual<br />

registration fee per UST (Ro<strong>the</strong>, 2003). These funds<br />

are used to help owners clean up sites as well as for<br />

clean<strong>in</strong>g up orphaned sites that have no known owner<br />

or <strong>the</strong> owner is unable or unwill<strong>in</strong>g to remediate<br />

<strong>the</strong> area (GAO, 2007). One such fund, <strong>the</strong> Ref<strong>in</strong>ed<br />

Petroleum Fund Temporary Reimbursement Program,<br />

was established <strong>in</strong> Michigan to provide $45 million for<br />

UST owners and operators who met specific requirements<br />

(Michigan DEQ, 2007).<br />

The U.S. federal LUST Trust Fund, was established <strong>in</strong><br />

1986 to provide subsidy for “oversee<strong>in</strong>g and enforc<strong>in</strong>g<br />

clean-up actions taken by a tank owner or operator and<br />

clean<strong>in</strong>g up leaks at tank sites, <strong>in</strong>clud<strong>in</strong>g those without<br />

a viable owner, or at sites that require emergency<br />

action” (GAO, 2007). The LUST Trust Fund is f<strong>in</strong>anced<br />

through a 0.1 cent per gallon tax placed on <strong>the</strong> sale of<br />

motor fuel (U.S. EPA, 2006) and currently has assets<br />

<strong>in</strong> excess of $2.6 billion and expected to reach over $3<br />

billion at <strong>the</strong> end of <strong>the</strong> 2008 fiscal year (“Clean up,”<br />

2007). Although total revenue to <strong>the</strong> LUST fund <strong>in</strong><br />

2005 was $269 million (GAO, 2007), only $73 million<br />

was designated to be allocated <strong>in</strong> 2006. Of this, only<br />

$59 million was distributed among <strong>the</strong> 50 states and<br />

<strong>the</strong> District of Columbia. The rema<strong>in</strong>der was divided<br />

between clean<strong>in</strong>g up sites on tribal lands and program<br />

responsibilities for <strong>the</strong> U.S. EPA (Henry, 2006).<br />

The U.S. EPA determ<strong>in</strong>es <strong>the</strong> amount allocated to<br />

each state from <strong>the</strong> LUST fund based on whe<strong>the</strong>r<br />

<strong>the</strong> state has a U.S. EPA-approved LUST f<strong>in</strong>ancial<br />

assistance program, <strong>the</strong> state’s needs, cumulative<br />

confirmed releases, percent of <strong>the</strong> population reliant<br />

on groundwater for dr<strong>in</strong>k<strong>in</strong>g purposes and past<br />

cleanup performance (GAO, 2005, 2007). Although a<br />

large portion of <strong>the</strong>se funds are utilized for clean<strong>in</strong>g<br />

up orphaned sites, <strong>the</strong> number of such sites per state<br />

is currently not considered by <strong>the</strong> U.S. EPA when<br />

distribut<strong>in</strong>g funds (GAO, 2007). Estimates place <strong>the</strong><br />

number of orphaned sites <strong>in</strong> Michigan around 4,200<br />

and <strong>the</strong> number of abandoned tanks at approximately<br />

9,000 (Pollack, 2007; Michigan DEQ, 2006). These sites<br />

are caus<strong>in</strong>g significant f<strong>in</strong>ancial pressure to be placed<br />

on <strong>the</strong> state as an estimated $1.5 billion will be needed<br />

to clean up <strong>the</strong> orphaned sites (Michigan DEQ, 2006).<br />

Never<strong>the</strong>less, $76 million has already been diverted<br />

from <strong>the</strong> UST cleanup program, and <strong>in</strong> 2007 <strong>the</strong><br />

Legislature decided to take <strong>the</strong> rema<strong>in</strong><strong>in</strong>g $70 million<br />

to balance <strong>the</strong> budget (“Clean up,” 2007; Lam, 2007;<br />

Pollack, 2007).<br />

As designated by <strong>the</strong> Resource Conservation and<br />

Recovery Act (RCRA), adequate <strong>in</strong>surance coverage<br />

must be ma<strong>in</strong>ta<strong>in</strong>ed by tank owners. Yet, <strong>in</strong> 25 states<br />

proof of this coverage is checked <strong>in</strong>frequently and<br />

<strong>in</strong> some cases not at all. In <strong>the</strong> <strong>Great</strong> <strong>Lakes</strong> states,<br />

check<strong>in</strong>g is variable (Table 2) (GAO, 2007). This can<br />

result <strong>in</strong> owners laps<strong>in</strong>g <strong>the</strong>ir leak <strong>in</strong>surance coverage,<br />

forc<strong>in</strong>g <strong>the</strong> state to utilize public fund<strong>in</strong>g (GAO, 2007)<br />

for clean-ups. States are slow to apply penalties on<br />

companies who are <strong>in</strong> violation. More than eight years<br />

after a leak was detected <strong>in</strong> Pierson under a Mobil<br />

Station f<strong>in</strong>es have yet to be handed out (“Clean up,”<br />

2007).<br />

CLEANUP COSTS<br />

Average clean-up cost per LUST site is estimated by <strong>the</strong><br />

U.S. EPA to be $125,000 (Figure 6). However, several<br />

experts believe this number to be much closer to<br />

$400,000 (Wisely, 2007). Depend<strong>in</strong>g on <strong>the</strong> extent of<br />

contam<strong>in</strong>ation this figure may easily exceed $1 million,<br />

especially if <strong>the</strong>re has been groundwater contam<strong>in</strong>ation.<br />

Clean-up at one site <strong>in</strong> Utica, New York, cost $2<br />

million, which was equivalent to <strong>the</strong> total received<br />

by that state for its LUST program from <strong>the</strong> LUST<br />

Trust Fund <strong>in</strong> 2006 (Brazell, 2006). Fur<strong>the</strong>rmore, this<br />

estimate does not take <strong>in</strong>to account all costs of site<br />

75

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