The California Underground Storage Tank Cleanup Fund
Environmental Enlightenment #115
The Cleanup Fund assists owners of leaking petroleum underground storage tanks to pay for the cost of regulatory-mandated corrective action and for third party damages. There’s up to $1,500,000 allocated to cover each occurrence, Since 1992, and true to August 31, 2010, there has been a total of $2.727 billion paid against 11,069 claims. This translates to an average of $246,000 per claim over this period.
Looking at current day costs and size of projects, one can assume that recent averages could run in the $500,000 per occurrence.
Most owners and/or operators of leaking petroleum tanks can qualify. This is a broad statement to which there are exceptions. Detailed eligibility criteria are listed in the literature available by the Fund.
Many real estate transactions bog down because of concerns about leaking underground petroleum tanks. It shouldn’t be so. The financial backup of the Fund is a factor that can assist to carry these transactions through. It’s not a cure-all panacea, but in certain instances it can save the day.
For more information search at the Fund web site
or contact me. I’ll be happy to help.
Environmental Enlightenment #315—Current and historical oil field operations may have issues that can impact real estate transactions. Oil fields in Los Angeles basin provide countless examples.
Environmental Enlightenment #314—Real-estate brokers, attorneys and investors can glide through ENVIROSTOR fast to identify items of interest about properties in California.
Environmental Enlightenment #219—Here’s a data-packed site that provides handy information on environmental data at sites of interest.