Franklin Iron & Metal Corp. v. Ohio Petroleum Underground Storage Tank Release Compensation Board

690 N.E.2d 1310, 117 Ohio App. 3d 509, 1996 Ohio App. LEXIS 5972
CourtOhio Court of Appeals
DecidedDecember 31, 1996
DocketNo. 15904.
StatusPublished
Cited by5 cases

This text of 690 N.E.2d 1310 (Franklin Iron & Metal Corp. v. Ohio Petroleum Underground Storage Tank Release Compensation Board) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franklin Iron & Metal Corp. v. Ohio Petroleum Underground Storage Tank Release Compensation Board, 690 N.E.2d 1310, 117 Ohio App. 3d 509, 1996 Ohio App. LEXIS 5972 (Ohio Ct. App. 1996).

Opinions

Brogan, Presiding Judge.

The present action is before the court on the appeal of the Ohio Petroleum Underground Storage Tank Release Compensation Board from a decision order *511 ing the board to issue certificates of coverage to appellee, Franklin Iron and Metal Corporation (“Franklin Iron”). The facts underlying this dispute are not contested, and are as follows. On July 11, 1989, R.C. 3737.91 was enacted and created Ohio’s Petroleum Underground Storage Tank Release Financial Assurance Fund. According to the statute, the fund is financed through fees collected from underground storage tank (“UST”) owners and operators, supplemental fees assessed on underground storage tanks, interest on money in the fund, and appropriations to the fund from the general revenue fund.

The purpose of the fund is to pay costs of corrective actions and to compensate third parties for bodily injury and property damages caused by accidental release of petroleum from underground storage tanks. R.C. 3737.91(E)(1) and 3737.92(A). The fund operates like an insurance fund, with tank owners and operators being allowed to elect varying deductibles for coverage and being issued certificates of coverage by the board, which was also created by the 1989 legislation. With regard to certificates of coverage, R.C. 3737.91(D) specifically states:

“(1) The board shall issue a certificate of coverage to any responsible person who has complied with both of the following:
“(a) Paid the fee assessed under division (B) or (F) of this section;
“(b) Demonstrated to the board financial responsibility in compliance with the rules adopted by the fire marshal under division (B) of section 3737.882 of the Revised Code for the deductible amount established under division (E) of this section or, when appropriate, the reduced deductible amount established under division (F) of this section. If the responsible person utilizes self-insurance as a financial responsibility mechanism, he shall provide the board with an affidavit in which the responsible party certifies that all documentation submitted to the board is true and accurate.
“The certificate of coverage shall state the amount of coverage to which the responsible party is entitled from the fund pursuant to division (D)(3) of this section and the time period for which the certificate provides that coverage. An issued certificate of coverage is subject to the condition that the holder timely pay any supplemental fee assessed under division (C) of this section during the time that the certificate is in effect.
“(2) The board shall not issue a certificate of coverage to any responsible person who fails to comply with divisions (D)(1)(a) and (b) of this section.”

In addition to issuing the certificates of coverage, the board is given other responsibilities by the Revised Code, such as assessing supplemental fees to maintain the financial integrity of the fund, adopting regulations, and authorizing disbursements from the fund to pay claims arising from the accidental release of *512 petroleum. See R.C. 3737.90 through 3737.92. In the context of the board’s regulatory power, R.C. 3737.90 provides as follows:

“(B) The board may:
“(1) In accordance with Chapter 119. of the Revised Code, adopt, amend, and rescind rules establishing procedures for calling special meetings of the board;
“(2) In accordance with Chapter 119. of the Revised Code, adopt, amend, and rescind such other rules as are necessary or appropriate to implement and administer sections 3737.90 to 3737.98 of the Revised Code, including, without limitation, rules for the administration of the petroleum underground storage tank linked deposit program established under sections 3737.95 to 3737.98 of the Revised Code; rules establishing priorities for the payment of claims under section 3737.92 of the Revised Code on the petroleum underground storage tank financial assurance fund created in section 3737.91 of the Revised Code based upon a consideration of the date that a claim is originally filed and the threat posed to human health and the environment by the release to which the claim applies; and rules providing for the payment of any such claims in installments, when appropriate. The rules adopted under division (B)(2) of this section shall be consistent with section 9003 of the ‘Resource Conservation and Recovery Act of 1976,’ 98 Stat. 3279, 42 U.S.C.A. 6991b, as amended, and regulations adopted under it.”

In 1994, the board adopted a regulation that required tanks to be certified as assurable before a certificate of coverage would be issued. Specifically, Ohio Adm.Code 3737-l-04(E)(l) states as follows:

“For all underground storage tanks registered with the fund on or after July 1, 1994, upon receipt of full payment due of the annual fee and any past fees owed, * * * upon demonstration of financial responsibility as required by rule 1301:7-9-05 of the Administrative Code, and upon certification by the responsible person that the underground storage tank is assurable pursuant to the criteria set forth in paragraph (E)(3) of this rule, the director shall issue a certificate of coverage.”

The regulation also provided that failure to do a number of things, including demonstration and maintenance of assurability criteria, would result in the nonissuance or revocation of a certificate of coverage. Ohio Adm.Code 3737-1-04(E)(1)(c).

Among the factors set forth in Ohio Adm.Code 3737-l-04(E)(3) are the following:

“The director shall determine that an underground storage tank is an assurable tank system upon certification by the responsible person that, as of the date of certification, the following criteria are met:
*513 “(a) The underground storage tank system meets statutory definitions contained in divisions (P) and (Q) of section 3737.87 of the Revised Code and is used to store or dispense petroleum as that term is defined in division (J) of section 3737.87 of the Revised Code;
“(b) The underground storage tank is in compliance with the closure requirements within rule 1301:7-7-28 of the Administrative Code; and
“(c) The underground storage tank is in compliance with rules 1301:7-9-04, 1301:7-9-06, 1301:7-9-07, 1301:7-9-08, and 1301:7-9-10 of the Administrative Code; and one of the following applies:
“(i) The underground storage tank is intentionally being used to store or dispense petroleum, as that term is defined in division (J) of section 3737.87 of the Revised Code; or
“(ii) The underground storage tank is either temporarily out of service in accordance with the requirements of rule 1301:7-9-12 of the Administrative Code or is temporarily closed in accordance with the requirements of rule 1301:7-9-12 of the Administrative Code.

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690 N.E.2d 1310, 117 Ohio App. 3d 509, 1996 Ohio App. LEXIS 5972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-iron-metal-corp-v-ohio-petroleum-underground-storage-tank-ohioctapp-1996.