http://walden-assoc.com/

Walden performed a cost benefit analysis for the conversion from Number 6 Fuel Oil to Ultra Low Sulfur Diesel at a Major Oil Storage Facility (MOSF).

Challenge

On February 4, 2014 a private power company received a letter from the  New York State Department of Environmental Conservation (NYSDEC) notifying them that three mounded tanks located at their facility were not compliant with the NYSDEC regulations for petroleum storage facilities, and requesting submission of a work plan to bring the retired mounded tanks (KER-4, KER-5 and KER-6) into compliance. KER-4 has 4,367,000 gallons capacity and KER-5 and KER-6 have 2,325,000 gallons capacity.

Action

Walden prepared a preliminary cost evaluation for the proper closure of the mounded tanks in accordance with 6 NYCRR Part 613.9(b) “Closure of tanks permanently out-of-service”. Three closure options were evaluated: leave the tanks in place, partial removal and full removal of the tanks.

Result

Based on the cost benefit analysis completed by Walden, the power company decided to completely remove the mounded tanks.

Benefit

Even though full removal of the tanks represents a higher cost compared to the other evaluated options, the benefit associated with having a free area compensates these costs. The close proximity of the property to the Grid makes it the perfect location for the installation of additional generating units saving high grid connection costs.

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