GSB-50: 4 Very Unique Questions & Answers About Underground Fuel Storage Tanks

In this episode, I answer four very unique questions about the underground storage fuel tanks. Some of these are very unique problems; these problems can happen to any gas station operators. I highly recommend you listen to this episode and take notes...

Welcome to Gas station business 101 podcast, I am Shabbir Hossain, and this is episode 50. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

This episode is a direct response to 4 of our podcast listeners, they all have questions regarding UST or underground storage tanks, I could have included these questions in our next Q&A episode, but I decided to keep this very important topic separated from all the rest.

Back in Episode 40 and 41, I spoke at length about some of the risk factors that come with buying a gas station business, in those episodes, I covered some of the risks associated with UST. If you haven't listened to those episodes, I highly recommend that you do so, this way you will get the complete picture. But today I will take a different angle and talk both from a tenant's point of view and from an owner's point of view.

The first question comes from Andres and he wrote:

"I own the gas station business but not the property. The landlord (fuel distributor) is responsible for the underground activity and I maintain all above ground. In case there is a soil contamination, a tank leakage or a tank replacement need, the landlord will have to take care of that. However, I would face a business interruption. Is it normal to include in the lease with the landlord that, in case such things happen, I will not pay rent during the time period when I can't operate my business? Even more, would the landlord indemnify me? How far can I push it in the contract normally?"

The second question came from Tina and she wrote:

The land is owned. The business is owned. But the tanks are leased. So...who insures the leased tanks? What kind of insurance? If the tanks are not double lined...can the leased tanks be replaced through the company which is leasing them? What should be reviewed for UST through the TCEQ website? Who registers the tanks? How much does registration cost?

The third one came from Michel, he wrote:

"Hello, I enjoy your podcast very much. Great information and useful tips. Could you do a podcast on how you manage inventory effectively? Also, what do you think is the best way to handle, record and comply with UST regulations and compliance. Thank you."

 

Last one came from Rakesh, and he wrote:

"I am getting complaints from customers time to time that my gas has water/dirt in it, I called a local repair company and they told me to call a tank company to wash my tanks!!! I am confused, please help"

Here is an image of how the UST sits underground and various layers of earth look.

If you have any question, feel free to send me an email at [e-mail], or you can post it on my Facebook group page by going to shabbirhossain.net

Lastly, If you are about to buy a gas station for the first time, make sure to read my book "Gas Station Business Smart Start-up" How to measure profitability, how to come up with a valuation, how to calculate ROI, how to write a business plan and how to get financing for your new venture. You can find this book on most all retailers including Amazon, Apple iTunes, Kobo, Smashwords and Barnes and Noble.

If you are interested in learning more about small business and gas station marketing strategies, you should check out my book .css-j9qmi7{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:row;-ms-flex-direction:row;flex-direction:row;font-weight:700;margin-bottom:1rem;margin-top:2.8rem;width:100%;-webkit-box-pack:start;-ms-flex-pack:start;-webkit-justify-content:start;justify-content:start;padding-left:5rem;}@media only screen and (max-width: 599px){.css-j9qmi7{padding-left:0;-webkit-box-pack:center;-ms-flex-pack:center;-webkit-justify-content:center;justify-content:center;}}.css-j9qmi7 svg{fill:#27292D;}.css-j9qmi7 .eagfbvw0{-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;color:#27292D;}