GUST 2 Party Check Status

                                                                                    March 11, 2011
                                                                                   
 
GEORGIA UNDERGROUND STORAGE TANK TRUST FUND TWO-PARTY CHECK STATUS
 
As many of you know by experience, investigation and remediation activities resulting from fuel releases at a site can be very costly.  Even with Georgia Underground Storage Tank (GUST) Trust Fund coverage, the responsible party has to pay for required activities and then eventually be reimbursed, after all necessary paperwork has been submitted to and approved by the Underground Storage Tank Management Program (USTMP).
 
The most expensive of required environmental activities resulting from a fuel release at a site is remediation.  Many years ago, the USTMP began allowing two-party reimbursement for qualifying parties who met all requirements to be covered by the GUST Trust Fund and who could reasonably prove that the burden of shouldering the cost of remediation, even for a short while, was beyond their financial means.  As time has passed, the USTMP has begun issuing two-party check status for most, if not all qualifying sites.  This includes sites that are undergoing investigative or monitoring phases of corrective action; two-party check status is no longer limited to remediation sites.
 
Having two-party check status means that the responsible party, once this status is awarded by the USTMP, no longer must pay for approved environmental activities and wait to be reimbursed by the GUST Trust Fund.  All costs are submitted to the USTMP on their required Cost Review Forms.  When approved, the USTMP issues a check, made out to the responsible party and to the consulting firm being utilized (hence the name two-party checks).  The responsible party then endorses the check and submits it to the utilized consulting firm for deposit.
 
To qualify for two-party check status, a site requiring corrective action must be in good standing with the USMTP.  That means that all system monitoring, compliance, and inventory control measures are active and current; any and all required corrective action activities (investigation/remediation of fuel releases) are progressing and adhering to a schedule acceptable to the USTMP; and that the site is approved by the USTMP for GUST Trust Fund Coverage.  The next requirement is that a Corrective Action Agreement (CAA) be signed by the responsible party and executed by the USTMP.  In order to receive a CAA, a site requiring corrective action must have completed and submitted a Corrective Action Plan (CAP) – Part A and corresponding documentation.  Once the USTMP receives the CAP – Part A and determines that the site is GUST Trust Fund eligible, they will issue a draft CAA to the responsible party.  The CAA must then be signed by the responsible party and resubmitted to the USTMP, along with any requested documentation.  The USTMP will subsequently execute the document.  Once the CAA is executed, two-party check status may then be requested.
 
One thing to remember is that the responsible party is still required to meet the $10,000 deductible and pay for all CAP – Part A costs.  All costs for completion of the CAP – Part A (minus the deductible) will be reimbursed following normal channels, upon USTMP approval of trust fund coverage and execution of the CAA.  Another important thing to remember is that the consultant must also agree to receive payment via two-party check status.  Many consultants are not able to shoulder this financial burden, as the time they must wait for payment via two-party status may be six months or more.
 
Georgia Oilmen's Services, Inc. is able and more than willing to utilize the two-party payment process for all qualifying sites. Please call Kurt Hausner of GOS at 678 225-4558 with any questions, or if GOS can be of service.