Duane Hicks
The town will be getting rid of its underground petroleum fuel storage tanks in favour of new above-ground models.
Currently, the town has four underground fuel tanks—two at the airport and two at the Fort Frances Cemetery.
Each location has a tank for diesel fuel and one for gasoline.
But due to several factors, it looks like the best option for the future is to replace them.
In a report from Operations and Facilities manager Doug Brown that council received last night, Brown wrote that in June, 2010, all four fuel tanks were tested.
While three of them passed a precision leak detection test and cathodic protection test, the diesel fuel tank at the cemetery failed its precision leak detection test.
Brown noted all four tanks have been in service for 21 years, and all four utilize galvanized single wall piping between the tank and dispenser.
This is considered substandard and non-compliant with Technical Standards and Safety Authority (TSSA) standards.
The tanks are to be tested every two years, no testing has been done in 2012, and the town’s insurance company is asking for test results.
At the risk of losing their licence, no licensed petroleum mechanic will install the necessary cathodic protection nodes on the single wall galvanized piping as it doesn’t conform to TSSA standards.
Meanwhile, the cost to replace the underground single wall piping between the tank and the dispensers is $2,000 per installation.
As well, if the town keeps the underground tanks, there will have to be more upgrades due to future changes to TSSA standards.
Starting in June, 2013, for instance, under-dispenser sumps (sumps installed under a dispensing device for flammable liquids to collect and contain any internal liquid leaking from the dispensing device during operation or routine maintenance) will have to be electronically monitored, and the check valves in the dispensers will have to be relocated to inside the underground storage tanks.
Brown noted the Operations and Facilities executive committee recommended council consider replacing the current fuel tanks with above-ground ones.
He said there are less risks involved with above-ground tanks, citing they are accessible for daily inspection and repair if required, there is no corrosion protection issue, the tanks can easily be relocated if required, and they are a general improvement from an environmental point of view.
He added that in the future, there will be no requirements for precision leak detection and cathodic protection testing for the new above-ground tanks, and this will mean eliminating the $4,600 cost to have them tested every two years.
Council approved the recommendation, and now all four underground tanks will be removed this fall.
Town staff will do the removal, but the job will require retaining one on-site petroleum mechanic during the removal stage at an estimated cost of $8,209 (excl. HST).
Then three new above-ground tanks will be installed: one 1,000-gallon diesel fuel tank at the cemetery, one 500-gallon gasoline tank at the cemetery, and one 1,000-gallon diesel fuel tank at the airport.
The town will buy the three double-wall tanks, dispenser pumps, hoses, nozzles, and associated piping directly from PYE Brothers Fuel Ltd. at an estimated cost of $14,461.45 (excl. HST).
This non-budgeted expenditure will be conciliated during the year-end audit process, and be financed from either reserves or an operating surplus.
