January 16, 2013 Meeting Minutes - Missouri Petroleum Storage Tank Insurance Fund
Michael L. ParsonGovernor

January 16, 2013 Meeting Minutes

The University Club
University of Missouri Campus
Columbia, MO

Start Time:  9:34 a.m.

Trustees Present:
Don McNutt, Chairman
Jim Ford, Vice Chairman
John Albert
Tom Kolb
Peter Lyskowski (for Harry Bozoian)
Ski Mariea
Danny Opie
Tom Pfeiffer
Melvin Schebaum
Renee Slusher


Staff Present:
Tim Duggan, Assistant Attorney General
Carol R. Eighmey, Executive Director
H. Patrick Eriksen, Williams & Company Consulting
Dan Henry, Williams & Company Consulting, Inc.
Diane James, Executive Assistant
Pat Vuchetich, Williams and Company Consulting
Dave Walters, Williams and Company Consulting

Others Present:
Ken Koon, Tanks Section, Hazardous Waste Program, MDNR
Ron Leone, Executive Director, MPCA
Jack McManus, Chief Counsel, Agriculture & Environment Division, AGO
Mary Mulhearn, Attorney General’s Office
Heather Peters, Compliance/Enforcement Section,
Hazardous Waste Program, MDNR

Chairman McNutt called the meeting to order.  He introduced Peter Lyskowski, new DNR Deputy Director for DNR.

Review and Approval of Minutes – November 28, 2012 Open Session Meeting
Ski Mariea moved to approve the minutes from the November 28, 2012 Board meeting.  John Albert seconded.   Motion carried.

Monthly Reports
Chairman McNutt asked if there were any questions or comments from Trustees regarding the monthly financial statements and activity reports provided in the meeting materials; there were none.

AST Releases in FY12
Chairman McNutt introduced David Walters from Williams & Company Consulting for a presentation on AST releases that occurred in FY12.  Mr. Walters showed pictures and explained the eight leaks, pointing out the cause of the leaks, summarizing expenses incurred, and noting whether there is subrogation potential.

Legislative Report
Chairman McNutt asked Ms. Eighmey to review bills of interest to the Board.  Ms. Eighmey said that, to date, the only bill she has found that would directly affect the PSTIF is one regarding the Sunshine Law.

Ms. Eighmey said she had spoken with the sponsor of SB122, Senator Schaefer, regarding concerns that the bill would prohibit the Board’s longstanding claim appeal procedure.  Jim Ford inquired whether other state boards and commissions have similar concerns; Renee Slusher suggested MOPERM and some of the professional licensing boards might.  Ms. Eighmey agreed to contact them to see if they are interested in working together on an amendment.

(Melvin Schebaum arrived at the meeting.)

Chairman McNutt suggested that since similar bills had been filed in previous years, the Board was already on record with its desire to amend the bill to allow its claim appeal procedure to remain legal; he asked whether any Trustees wished to change direction.  All agreed that the Executive Director should continue representing the Board’s concerns to legislators.

Ms. Eighmey briefly reviewed other legislation of interest.

Discussion of Diesel Exhaust Fluid
Chairman McNutt introducedDanny Opie to explain what diesel exhaust fluid (DEF) is, how it is being stored, and why it is of interest.

Mr. Opie distributed a handout and explained the changes in diesel engine design that had been made to comply with air emission standards.  He reviewed the trucking industry’s success in achieving those standards, and explained that DEF is a fluid that must be replenished in trucks to maintain proper operation of the emission control equipment.

He noted it is a challenge to store and dispense DEF, since it freezes at 12 degrees Fahrenheit, loses some of its properties above 86 degrees, cannot be exposed to direct sunlight, and tend to leak from connections, gaskets, etc.  He explained that the fluid is water and ammonia, and that when it is exposed to the atmosphere it forms white crystals that “cake” on things.

Mr. Opie said many truck stops are installing tanks and piping to store and dispense DEF, and noted the EPA and state UST agencies have concluded that DEF tanks are not regulated.  He said if there is a large spill or leak of DEF, it will be up to the owner and local agencies to direct cleanup.  Because DEF is highly corrosive, he expressed some concern about it being stored near PSTIF-insured tank systems with no regulatory requirements for preventing or detecting DEF leaks.

Tom Kolb confirmed that he has encountered challenges handling DEF, and that stainless steel or plastic seem to be the only materials suitable for storing and dispensing it.

Melvin Schebaum noted that use of DEF will continue to increase, as manufacturers plan to put this same emission control technology in farm tractors, pickups, ATVs and other types of vehicles.  He said MFA is currently using plastic packages for DEF storage and has not yet instituted bulk storage, but may in the future as DEF sales and use continue to increase.

John Albert observed that there is currently no way to effectively determine whether the DEF dispensing devices are accurate.  He concurred that there is a lot yet to be learned about DEF.

Mr. Opie suggested the PSTIF may have to consider, in the future, what its posture will be if DEF causes a leak from a petroleum tank system, as it is likely there will be spills and leaks of DEF in and around many of our insured tanks and piping systems.

After considerable discussion, Ms. Eighmey said she and her staff would initiate efforts to learn a bit more about DEF.  She asked DNR to determine whether a DEF spill or leak would be considered a “hazardous substance” under the “Spill Bill,” or an unregulated event, as is the case with some foods that have been spilled in transportation incidents.  Ken Koon said he would find out.

Update RBCA
Chairman McNutt directed Trustees’ attention to the report in their notebooks and said he is very pleased with the report.  He commented that a lot of people have worked very hard in recent weeks to get to this point and thanked DNR Director Sara Pauley and DNR staff Aaron Schmidt and David Lamb, as well as Ms. Eighmey and Dan Henry, for all their efforts.

Chairman McNutt asked if anyone present had any other comments and invited questions or comments from the Trustees; there were none.

Chairman McNutt noted there is still work to be done and this is not the last that will be heard about RBCA, but said this is the first substantial progress on this subject in a very long time and again complimented all involved.

Update – EPA Issues
Chairman McNutt asked Ms. Eighmey to summarize this information for the Trustees.  She distributed a letter recently sent to EPA by DNR regarding Missouri’s implementation of the FR requirement for equipment companies, opining it was an excellent letter.

Administrative Issues
PACE Trade Show – March 1-2, 2013 – Chairman McNutt reminded Trustees this is one of the nation’s premier trade shows for people in the petroleum and convenience store business and that Trustees are invited to attend.  He asked anyone who is interested to let Diane know so she can get them registered.

Billings – The Chairman then asked if Trustees had questions on any of the billings listed in the meeting materials; there were none.

Chairman McNutt thanked those in attendance for coming and reminded them that the next Board Meeting is scheduled at the Governor Office Building in Jefferson City on March 20.

Jim Ford moved that the Board go into closed session to discuss and vote on matters related to legal actions, causes of action, litigation, and/or personnel issues pursuant to Section 610.021, RSMo.  Tom Pfeiffer seconded.  A roll call vote was taken.  Motion carried without dissent.

Chairman McNutt adjourned the open session meeting at 11:12 a.m.

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