FAQs

Providing answers on eligibility and the reimbursement process for the Petroleum Reimbursement Fund.

Eligibility Questions

Is verification required that other insurance coverage is not available?

Yes. The Fund provides “excess insurance” coverage for owners of AST facilities, owners of UST facilities, and owners of OPUF facilities. For potential contamination source properties contaminated by gasoline ethers, the fund is not an excess insurance fund by statute. However, costs paid by private insurance are not reimbursable. Facility owners must file a claim with their private insurance company(s) before requesting Fund assistance. A private insurance claim must specifically request if coverage is available for damages to land owned (first-party coverage) and for damages to waters of the state and/or abutting landowners (third-party damage/liability coverage). Owners may not interpret their policy coverage or provide an interpretation from an insurance agent. Only coverage determinations from the insurance company or an authorized adjuster will be accepted.

Under New Hampshire law (RSA Chapter 146-a:3-a), any person who, without regard to fault, directly or indirectly, causes or suffers the discharge of oil into, or onto any surface water or groundwater of the state, or in a land area where oil will ultimately seep into any surface water or groundwater of the state in violation of this chapter, or rules adopted under this chapter, shall be strictly liable for costs directly or indirectly resulting from the violation. Oil contamination in groundwater and surface water are damages for which the facility or property owner may have liability coverage under their private insurance policy. For groundwater or surface water contamination, NHDES will issue a Notice of Strict Liability that includes specific information regarding insurance coverage expectations. Private insurance companies have specific obligations under New Hampshire Insurance Department rules to provide a timely coverage determination when requested.

When requesting fund eligibility, the owner must include a copy of the correspondence from their insurance company or an authorized adjuster that details available coverage. If there is no private insurance policy in force, the owner must provide a notarized letter stating so. The Fund is available when there is no private insurance, no coverage, or only limited coverage.

 

Are costs resulting from a third-party lawsuit eligible?

Yes, costs resulting from a third-party lawsuit are reimbursable for Fund-eligible petroleum storage facilities and owners of land where compliant oil storage facilities were located; however, these costs are not eligible for potential contaminant source properties. The requirements for reimbursement of third party damage costs are located in Oil Fund Disbursement Board rules Odb 408. 

What petroleum project types are potentially eligible for reimbursement under the Fund?

The Fund provides excess insurance coverage for eligible parties with corrective action and third party damages caused by contamination from petroleum storage facilities including leaking above ground storage tanks (LAST), leaking underground storage tanks (LUST), bulk fuel oil storage facility releases (FUEL), motor oil and used motor oil releases (MOST), and on-premise use facilities (OPUF). Certain releases with groundwater impacts resulting from MtBE or other gasoline ethers may potentially qualify as an ETHER project.

What could delay my eligibility determination?
  • A facility is not in compliance with applicable local, state, and federal facility operating requirements. On-premise-use facilities (OPUF) must also be in compliance with the department’s guidance document titled “Best Management Practices for Installation and Upgrading of On-Premise-Use Heating Oil Tanks” 
  • The party seeking eligibility does not match the AST or UST facility owner registered with the department, the current property owner of record, or the Responsible Party listed for the project.
  • The party seeking eligibility is a corporation, LLC, LLP, or other corporate entity and is not registered with and in good standing with the New Hampshire Secretary of State.  
  • Private insurance coverage information was not provided or is not complete. A first party insurance determination is required when soil impacts are discovered and a third party insurance determination is additionally necessary when groundwater or surface water impacts are discovered.
  • The eligibility paperwork does not include a copy of the indemnification agreement obligating a former owner to continue corrective action after the facility or land is sold.

 

Reimbursement Questions

What are the limits of coverage under the Fund for owners of oil storage facilities and owners of land where compliant facilities were located?

The funds will reimburse a facility owner or the owner of land where a compliant facility was located for the costs of on site and off site corrective action, and for third-party damage claims. Aggregate coverage limits for any single occurrence are $500,000 for on-premise use facilities and motor oil facilities, and $1,500,000 for above ground and underground storage facilities. In addition, after the initial $1,500,000 is reimbursed, owners of above ground and underground storage facilities may apply for reimbursement of corrective action costs not to exceed at total of $500,000. An initial cost "deductible" applies to all facilities as outlined in RSA 146-D:6, IV.

What costs are considered eligible expenses under the Fund?

Eligible expenses include emergency release response actions and NHDES-required corrective actions including site investigation, remediation and groundwater monitoring. NHDES must pre-approve all work for scope and budget. Costs to complete NHDES-required corrective action are proposed in a Work Scope Authorization Form or Change Order Authorization Form that is submitted to NHDES for approval.  An eligible party must use the Unit Based Rate tables for Initial Response, Investigation and Remediation and Point-of-Entry Treatment Systems and Bottled Water.

 

When may reimbursement claims be submitted and by whom?

In general, reimbursement may be requested upon completion of a corrective action and subsequent submission of a report documenting the work performed. Claims may be submitted directly by the facility owner or by an Applicant who has a contract with the owner to perform corrective action. Requests for reimbursement must be submitted within one year of submitting the technical report that summarizes the corrective action work.

Who can be an applicant and how do I become one?

An applicant can be a professional engineer or professional geologist licensed in New Hampshire performing corrective action, a corrective action contractor, or an individual or company performing Env-Ws 300 public water supply gasoline ether monitoring or notification under RSA 485:16-a, II, under contract with an owner.

To become an applicant, the entity must:

  • Provide NHDES with a copy of a current contract with the correct site owner/responsible party. The purpose of this requirement is to confirm that the applicant and owner/responsible party have agreed on the scope of work and that another entity will not be requesting reimbursement for the same task(s).  The contract must meet the criteria outlined in Odb 402.01(g) and Odb 406.03.
  • Provide a description of the type of project cost ledger that will be used to track costs. The project cost ledger must be approved in advance by NHDES and contain a detailed narrative description of the specific accounting system used. Sample time sheets or time sheet summaries may also be required.  The ledger must meet the criteria outlined in Odb 402.01 (u); and
  • Obtain a vendor number through the New Hampshire Department of Administrative Services to receive reimbursement payments.

 

What are common Issues that could delay reimbursement approval?
  • The prime contractor/consultant, or applicant, invoices were not directed to the facility owner or eligible property owner.
  • Contractor timesheets, or a timesheet summary, were not included
  • Subcontractor invoices were not included when required.
  • A written contract with “Waiver of Claims Provision” was not included with an Applicant request.
  • Corrective action reports or related documentation were not provided, were not complete, or the corrective action was not satisfactory.
  • Corrective action costs were not reconciled against the approved budget(s); costs were in excess of the Unit Based Costs and/or an approved budget; lump sum costs were included; or non-reimbursable costs were included.
  • Waivers are needed.