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DEQ seeks rulemaking authority for aboveground tanks registered to state cleanup fund
Summary
The Department of Environmental Quality asked the committee to let it develop rules for aboveground refined‑fuel tanks that are registered with the Petroleum Tank Release Compensation Fund; DEQ and retail and industry groups said the change aims to detect leaks earlier, protect the fund’s solvency and maintain exemptions for facilities already
Karl Rockman, deputy director of the North Dakota Department of Environmental Quality (DEQ), testified in support of House Bill 1058, which would authorize the DEQ to adopt administrative rules for aboveground storage tanks (ASTs) of refined petroleum fuels that are registered with the Petroleum Tank Release Compensation Fund.
Rockman told the committee the fund currently covers many aboveground tanks, but oversight of ASTs is limited compared with underground tanks, which are already subject to routine monitoring, leak detection and reporting rules. “Because of this, contamination from these tanks may not be discovered until long after the tank is gone,” Rockman said, adding that late discovery can lead to cleanup costs in the millions and pressure on the fund’s solvency. He said the bill would not expand coverage beyond tanks already required to register with the fund and that DEQ prepared amendment language to explicitly exempt facilities outside the intended scope (for example, certain oil and gas or refinery tanks).
Retail, bulk‑fuel and industry groups testified in support with a request for narrow exemptions and clarity. Mike Rood of the North Dakota Petroleum Marketers Association said retailers sought stronger measures to preserve the tank fund’s solvency and welcomed DEQ’s collaborative approach. Larger refiners and midstream companies (represented by Marathon Petroleum, MPLX and 1st Oak) asked for explicit exemptions for refinery‑level tanks, bulk terminals and other facilities already regulated under federal or other state programs; DEQ and industry said they were working on amendment language to address those concerns.
DEQ said the bill itself would not immediately impose new operating requirements; it only authorizes future administrative rules, which would be subject to standard public notice and rulemaking review. DEQ identified modest additional travel costs for inspections in the next biennium but said existing staff capacity had increased in 2019 and no new full‑time positions were requested at this hearing.
No opposition testimony was recorded and the committee closed the hearing on House Bill 1058. Several witnesses asked the committee to consider DEQ amendments that clarify exemptions to avoid unintentionally pulling regulated refinery and pipeline assets into the fund’s rule set.
