A Complete Guide to Leaking Underground Storage Tanks

Leaking underground storage tanks (LUSTs) continue to challenge municipalities and property owners across Michigan and Indiana. Even small leaks can contaminate soil and groundwater, trigger vapor risks, and create long-term liabilities.

In both states, managing a LUST site requires technical precision and coordination with environmental agencies. Fleis & VandenBrink (F&V) works with local governments, developers, and property owners to investigate, document, and remediate LUST sites, which helps communities’ projects stay compliant and on schedule.

What Is a Leaking Underground Storage Tank?

An underground storage tank (UST) is a buried container used to store petroleum or hazardous substances. When corrosion, installation issues, or structural failure cause the tank to leak, it becomes a leaking underground storage tank (LUST).

While many tanks are properly maintained, older systems — especially those installed before modern corrosion protection standards — are prone to failure. Leaks often go unnoticed until a property transfer, redevelopment project, or environmental assessment reveals contamination.

Common Causes of Leaks

• Corrosion of aging steel tanks and piping
• Improper installation or poor backfill practices
• Spills or overfills during fuel delivery
• Cracked seals or damaged joints
• Abandoned or undocumented tanks left in place

Regulatory Vocabulary

Term	Meaning
UST vs. LUST	A UST is a buried tank system; a LUST is one that has released contaminants.
Release vs. Suspected Release	“Release” means confirmed contamination; “suspected” requires investigation.
Free Product (LNAPL)	Liquid petroleum floating on groundwater.
RBCA	Risk-Based Corrective Action – a framework for cleanup decisions.
MNA	Monitored Natural Attenuation – allowing natural degradation to occur with monitoring.
Vapor Intrusion	Migration of volatile compounds into nearby buildings.

Environmental and Public Health Impacts

Petroleum and chemical releases migrate through soil and groundwater, potentially affecting:

• Private and municipal water wells
• Building air quality through vapor intrusion
• Nearby wetlands and surface waters
• Property value and redevelopment potential

For municipalities: LUST sites can interfere with infrastructure projects, water supply protection, and land reuse goals.

For property owners and developers: Leaks can delay transactions, complicate financing, and result in cleanup liability under state law.

Michigan and Indiana Regulations

Michigan

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) manages the Part 213 Leaking Underground Storage Tank Program under the Natural Resources and Environmental Protection Act (NREPA).

Owners and operators must report releases, investigate impacts, and submit:

• Initial Notice of Release
• Site Investigation Reports
• Corrective Action Plans
• Closure Reports

Eligible responsible parties may qualify for cleanup reimbursement through the Refined Petroleum Fund (RPF). Eligibility depends on compliance status and ownership at the time of release.

Indiana

The Indiana Department of Environmental Management (IDEM) oversees LUST sites. Confirmed releases must be reported within 24 hours, followed by site characterization and corrective action reporting.

The Excess Liability Trust Fund (ELTF) reimburses qualifying cleanup costs, but documentation discipline — field notes, disposal records, timesheets — is vital.

Early coordination with EGLE or IDEM helps make sure investigation plans, reporting cadence, and funding submittals align. F&V front-loads data defensibility and documentation to help submittals clear faster and remain eligible for reimbursement.

The LUST Investigation and Cleanup Process

Step	Responsible Party	Agency Touchpoint	Success Metric
1. Release Confirmation	Consultant or owner	EGLE/IDEM notified	Contamination verified through field data
2. Regulatory Notification	Owner or operator	24-hour reporting	Agency acknowledgement
3. Initial Response	Consultant	As directed	Free product removed or contained
4. Site Investigation	Consultant	Agency-approved scope	Plume boundaries defined confidently
5. Corrective Action	Consultant/ contractor	Agency oversight	Contamination reduced below cleanup criteria
6. Monitoring & Closure	Consultant	Agency review and sign-off	Cleanup documentation accepted, site closed

F&V uses soil borings, nested wells, low-flow groundwater sampling, and vapor screening to define site conditions. When cleanup is necessary, we apply methods such as excavation, soil vapor extraction (SVE), air sparging, or monitored natural attenuation (MNA), depending on site conditions.

Closure Readiness Checklist

Before closure is requested, F&V confirms:

• Plume stability through trend analysis
• Cleanup criteria or risk-based endpoints achieved
• Waste manifests and chain-of-custody records on file
• Monitoring wells abandoned to standards
• All required reports submitted and accepted

How Fleis & VandenBrink Supports Municipalities and Property Owners

For Municipalities

• Prioritize high-risk or publicly owned LUST sites
• Prepare grant and funding documentation (RPF, ELTF, brownfield programs)
• Develop GIS-based mapping to track post-construction data (GIS is a post-construction documentation tool, not a survey)
• Coordinate infrastructure and public works access during investigation
• Provide council-ready memos and public communication materials

For Property Owners and Developers

• Conduct site assessments and confirm releases
• Delineate contamination and prepare corrective action plans
• Manage regulator communication and documentation
• Prepare lender-ready reports and data packages
• Coordinate safe removal and remediation activities
• Support redevelopment planning once closure is achieved

F&V’s multi-disciplinary team of engineers, hydrogeologists, and scientists works daily with EGLE, IDEM, and local agencies. Our team makes sure each site is investigated, documented, and closed in accordance with agency standards.

Redevelopment and Long-Term Management

After cleanup and closure, former LUST sites can often be redeveloped safely. F&V integrates brownfield redevelopment and site planning to help communities and owners effectively reuse property.

Redeveloped sites can become new community spaces, commercial centers, or infrastructure assets once environmental risks are managed and documented.

Common Funding Pitfalls

• Starting work before eligibility confirmation
• Missing or incomplete disposal documentation
• Unlogged scope changes after plan approval
• Lack of supporting invoices or field logs

F&V builds funding-ready submittals so scope, data, and documentation align with state expectations.

Final Thoughts

Addressing a leaking underground storage tank is complex, but with experienced technical and regulatory guidance, it can be resolved efficiently. Whether you manage municipal infrastructure or private redevelopment, early action and accurate documentation are the foundation for successful closure.

Fleis & VandenBrink has supported hundreds of LUST projects across Michigan and Indiana and has helped communities and property owners advance toward closure without avoidable delays. Contact us today to discuss your project.

Frequently Asked Questions

How can I tell if I have an undocumented UST?

Look for vent pipes, fill ports, or old fuel islands. Records searches and ground-penetrating radar can confirm presence.

What happens if contamination crosses a property line?

The responsible party remains liable, but cooperative investigation and access agreements can resolve boundary issues efficiently.

Can I redevelop while cleanup is underway?

Yes, with coordination. F&V helps phase investigation and corrective action to align with construction schedules.

How does vapor intrusion screening work?

Sampling sub-slab vapors and indoor air determines if petroleum vapors are migrating into structures. If necessary, mitigation systems such as sub-slab depressurization can be installed.

What documentation do lenders usually request?

Phase I/II ESA reports, regulatory correspondence, and closure documentation confirming no further action required.