This report contains findings and recommendations for improving the operations of the Oil and Public Safety Sections. We acknowledge the efforts and assistance extended by the staff of the Department of Labor and Employment, Division of Labor, Oil Inspection Section, Public Safety Section, and industry representatives. The following summary provides highlights of the comments, recommendations, and responses contained in the report. OIS regulates and inspects petroleum products and the equipment, such as gas pumps and petroleum storage tanks, used to distribute and store those products. The section also regulates the remediation of contamination caused by leaking petroleum storage tanks and processes the applications for reimbursement of cleanup costs to eligible applicants from the State Tank Fund.
Statutes require every underground storage tank installation and upgrade to be inspected.
However OIS inspected only 58 percent of the upgrades and 95 percent of the installations in Fiscal Year 1999. Some petroleum release investigations and cleanups can be paid with 90 percent federal funds and a 10 percent state match. However, OIS risks a loss of federal funds because Colorado is one of nine states which spent 67 percent or less of funds awarded. Also, OIS has not acted on federally funded petroleum release investigations and clean ups according to its established priorities. We believe that OIS could fulfill its regulatory responsibilities and reduce its risk of losing unspent federal funds by inspecting every UST installation and upgrade as required by statute or recommending an amendment and by addressing the 117 sites currently eligible for 90 percent federal funding in a timely manner and by established priorities.