Is Your Fuel Tank Regulation Compliant?
All Above Ground Storage Tanks (ASTs) must comply with the Water Resources (Control of Pollution, Silage, Slurry and Agricultural Fuel Oil) Regulations 2010.
This regulation states that if more than 1,500 litres of fuel oil are stored on a farm in England or Wales and the storage tank was first used or constructed after 1st September 1991 in England (1st March 1991 in Wales), the tank must be in a bund that will contain at least 110% of the tank’s storage capacity.
If a pre-September 1991 (pre-March 1991) tank is substantially reconstructed or enlarged, it falls within the regulations. Furthermore, no part of the fuel storage area or the bund may be located within 10m of any permanent inland freshwaters or coastal waters that fuel oil could enter if it were to escape. Therefore, if tanks are within 10m, we would suggest the farmer moves them.
The Role of Insurance Brokers
Non-compliance with the regulations is a criminal offence. Therefore, un-bunded ASTs newer than 1991 and over 1,500 litres in size are illegal and not covered by insurance policies. It is the responsibility of insurance brokers to inform their clients whether their tank set-up complies with their insurance policy. If the farmer confirms that the tank conditions do not meet legal requirements, brokers should advise them to replace it. Once a new tank that complies with the regulations has been installed, it will be eligible for cover under an environmental liability insurance policy.
Get in Touch
Looking for a comprehensive environmental liability insurance policy to offer your clients? LBU is at the forefront of the insurance industry, providing cover that makes up for the shortcomings of traditional policies. Our environmental liability insurance will give your clients financial protection against pollution clean-up costs, business interruption and much more. Contact us today for more information.