A MODEL FOR MANAGING UNDERGROUND STORAGE TANKS

ABSTRACT The potential costs of underground tank leaks provide companies with a solid incentive to take action to reduce leak risks. However, a cost-effective risk management strategy is difficult to identify when faced with the uncertainties in the occurrence, nature, and timing of costly incidents. A decision support model based on the techniques of decision analysis has been developed to help managers choose the best course of action. The model works by balancing the known costs of preventive and mitigating actions with the uncertain costs of tank leaks. The model uses tank- and site-specific data to help determine how much testing or monitoring to do at each tank site, when to replace tanks, what to do in the future contingent on monitoring results, and what new tank system to install. For each strategy, the model assesses detailed outcomes such as the expected life-cycle cost of the tank system, the expected time for replacing the system, the likelihood of a leak, and the expected costs of leaks. Inp...