United States Solid Waste And EPA 510-B-93-004

Environmental Protection Emergency Response November 1993

Agency 5403W

Doing Inventory Control

Right
For Underground Storage Tanks

 CONTENTS

Why You Should Read This Booklet

If You Use Inventory Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

How Does Inventory Control Work? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Do You Have The Right Equipment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Step 1 — Measure The Tank’s Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Step 2 — Record The Amount Pumped . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Step 3 — Record Fuel Deliverables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Using Tank Charts Without 1/8 Inch Conversions . . . . . . . . . . . . . . . . . . . . . . . 9

Step 4 — Calculate Daily Change In Inventory . . . . . . . . . . . . . . . . . . . . . . . . 10

Step 5 — Calculate Monthly Changes In Inventory . . . . . . . . . . . . . . . . . . . . . 12

Why You Should Read This Booklet If You
Use Inventory Control

Federal and state laws require underground storage tanks (USTs)

to have leak detection.

If your USTs do not have leak detection, you can be cited for
violations and fined. Leak detection violations can also keep you
from getting legally required insurance coverage and reimbursement
for cleanup costs. Without leak detection, you constantly risk
discovering a leak only after it becomes a major financial burden for
yourself and an environmental problem for everyone.

If inventory control is part of your leak detection, then this

booklet can help you make sure you do inventory control
correctly.

Inspections conducted nationwide indicate that most people who

think they are doing inventory control are not doing it in a way that
is likely to find leaks and meet the law's requirements for leak
detection. So even if you are SURE you are doing inventory control
right, read this booklet carefully—it could save you a lot of grief and
money.

If you need information on federal leak detection requirements and

the various methods of leak detection available to you, see "Straight
Talk On Tanks." Call EPA's publication distribution center at
800-490-9198 and order this free publication by number: EPA
530/UST-90/012.

-1­
How Does Inventory Control Work?
This booklet helps you use inventory control to meet federal
regulatory leak detection requirements by showing you how to do
three important tasks:

• Good sticking

• Good math

• Good recordkeeping

Without these three, you may fail to meet the leak detection
requirements. To do inventory control right, you have to spend
time to make sure that you consistently measure the tank's
contents correctly, that you don't let math errors creep into your
daily and monthly calculations, and that you keep complete,
easy-to-read records on file for at least a year.

Basically, inventory control requires daily measurements of tank

contents and math calculations that let you compare your "stick"
inventory (what you've measured) to your "book" inventory
(what your recordkeeping indicates you should have). Some
people call this process "inventory reconciliation." If the differ-
ence between your "stick" and "book" inventory is too large,
your tank may be leaking.

Be sure you read about several important restrictions on the use

of inventory control that are described on the next page.

To use INVENTORY CONTROL correctly,

follow Steps 1—5 starting on page 6.

-2­
 Please note these important restrictions on the use of
inventory control as leak detection:

• Inventory control can never be used alone. Inventory control

must always be used in combination with tank tightness testing.
Tanks must be tightness tested every 12 months if they do not
have corrosion protection and spill/overfill devices. Tanks with
corrosion protection and spill/overfill devices must be tested every
5 years.

• Inventory control is a TEMPORARY leak detection method.

You can use inventory control only for 10 years after installing a
new tank that has corrosion protection and spill/overfill devices or
for 10 years after upgrading an old tank with corrosion protection
and spill/overfill devices. After the 10-year period, you must use a
monthly monitoring method, such as groundwater monitoring or
interstitial monitoring.

Tanks without corrosion protection and spill/overfill devices can

use inventory control only until December 1998, when these tanks
must be upgraded or closed. (See "Straight Talk On Tanks.")

• The combined use of inventory control and tank tightness

testing does not meet your tank system's leak detection
requirements for piping. Pressurized and some suction piping
must use other methods of leak detection, such as interstitial
monitoring. (See "Straight Talk On Tanks.")

If you don't pay careful attention to these restrictions,

you will fail to meet the leak detection requirements.

-3­
Do You Have The Right Equipment?

Gauge Stick Or Other Gauges

The gauge stick used to measure the depth of liquid in an underground
tank must be marked or notched to the 1/8 inch, starting with zero at
the bottom end. Check your stick to be sure the end has not been worn
or cut off and that the stick is not warped. The stick should be made of
non- sparking material, such as wood, and varnished to minimize the
creeping of fuel above the actual fuel level in the tank. Instead of using
a gauge stick, you may use a mechanical or electronic tank level
monitor. Whatever measuring device you use must be capable of
measuring the level of product over the full range of the tank's height to
the nearest 1/8 inch.

Pastes For Finding Water Or Fuel

You must check for water in the bottom of the tank at least once each
month by smearing a water-finding paste along the bottom of the gauge
stick. The paste changes color when it comes in contact with water.
Many operators improve their stick readings by smearing a fuel-finding
paste on about 6 inches of the stick where they expect the fuel level to
be. Fuel-finding paste changes color when it comes in contact with fuel.

Forms
The instructions in this booklet are keyed to two forms: the "DAILY
INVENTORY W ORKSHEET" and the "MONTHLY INVENTORY RECORD." You will
find filled-in sample copies of these forms on the last two pages of this
booklet. These samples are on perforated pages, so tear them out and
refer to them while you read through the directions that are keyed
alphabetically to the sample forms. Also, near the back of the booklet,
you will find "masters" you can copy repeatedly to provide forms for
use in your recordkeeping. If these forms are filled out according to the
instructions in this booklet, you will be in compliance with federal
regulations for inventory control. You should find out if state or local
requirements have limitations on the use of inventory control or have
requirements that are different from those presented in this booklet. You
can use other standard recordkeeping forms, as long as they are clear,
consistent, and contain all the information required by the federal and
state leak detection regulations.

-4­
Tank Chart
A tank chart is a table that converts the number of inches of liquid in the
tank into the number of gallons. You need a tank chart that exactly
matches your storage tank (tank manufacturers usually provide charts for
their tanks). If you have more than one tank, you will need a chart for
each tank unless the tanks are identical. The tank chart must show
conversion to gallons for each 1 /8 inch stick reading. If your tank
chart does not convert each 1 / 8 inch reading into gallons, contact
the tank manufacturer, or, if you have a steel tank, the Steel Tank
Association (708-438-8265) to get an appropriate chart.

You always need to convert inches into gallons in order to fill out the
forms correctly and to do the necessary math. To convert inches into
gallons, find your stick's reading to the nearest 1/8 inch on the tank
chart, then simply read across to the gallons column to find the number
of gallons. If you cannot get a tank chart showing conversion to gallons
for each 1/8 inch reading, you must do the additional math explained on
page 9.

Drop Tube
The fill pipe through which the fuel is delivered into the tank must have
a drop tube extending to within 1 foot of the bottom of the tank. Stick
measurements should be made through a drop tube in the fill pipe or
gauging port. If your fill pipe does not have a drop tube, call your
petroleum equipment supplier to have one installed.

Calibrated Dispensing Meters

Meters must be calibrated according to local standards.

Manifolded Tanks
If you have manifolded tanks or dispensers that blend fuel, consider these
tanks as one tank system if they share a common inventory of stored fuel.
As you follow the directions on the following pages, you will need to
combine your measurements and calculations for all the tanks manifolded
into one system.

-5­
 Step 1—Measure The Tank's Contents

You must measure the tank every day that fuel is added or removed. You may
take measurements using a gauge stick or a mechanical or electronic tank level
monitor.

No fuel can be added or removed from the tank while you are performing
Step 1 or Step 2.

Every day you measure the tank, you should fill out a "DAILY INVENTORY
WORKSHEET." As you go through the following directions, refer to the sample
DAILY INVENTORY WORKSHEET you will find on the last pages of this booklet. For
easy reference, the sample is on a perforated page so you can tear it out and
Use the sample "DAILY keep it handy as you read through the directions. Also, near the back of the
INVENTORY WORKSHEET"
booklet is a "master copy" on a perforated page you can tear out to make copies
from the last two
of the DAILY INVENTORY WORKSHEET for your recordkeeping.
pages of the booklet
to see where you put
the information from Fill in the identifying information at the top of the worksheet.
letters "A" through
"M" in the following
Next to the "TANK IDENTIFICATION" box are empty vertical columns. Each
directions.
column represents one tank—consistently enter all information on that one
tank in the same vertical column. NOTE: Once you have filled in the
tank identification boxes, make copies of the worksheet so you won't have
to repeatedly enter the same information.

USE GOOD STICKING PRACTICES: Slowly lower the gauge stick to the tank's
bottom. Let the stick gently touch the bottom, then quickly bring it back up. Read
the depth of fuel indicated by the wet mark to the closest 1/8 inch division on
the stick. Use of fuel-finding paste will make your stick readings more accurate.

Write your measurement in the box labeled "END STICK INCHES" for the
tank you measured.

NOTE: If your tank is equipped with an automatic tank gauge (ATG), you may
record the inches of product and gallons of product directly from the ATG's
printed tape or simply staple the tape with this information to the worksheet.

-6­
Step 2—Record The Amount Pumped

At the same time you measure the tank contents (Step 1), you must record on
the DAILY INVENTORY WORKSHEET the amount of fuel pumped. No fuel can be
added or removed from the tank while you are sticking the tank and
recording the amount pumped.

Locate the box labeled "AMOUNT PUMPED" on the left side of the
worksheet. Copy the numbers from each dispenser's totalizer onto the
worksheet. Be very careful that you write all the meter readings for
a tank in the same column. You may have several dispensers and
totalizers for one tank, so the worksheet provides boxes in which you can
enter several readings in any order.

Add up the totalizer meter readings in each column and write the result
in the box labeled "TODAY'S SUM OF TOTALIZERS."

Find the last DAILY INVENTORY WORKSHEET you completed. Copy "TODAY'S
SUM OF TOTALIZERS" from that worksheet into the "Previous Day's Sum of
Totalizers" box of the worksheet you are working on today.

On today's worksheet, subtract "Previous Day's Sum of Totalizers" from

"T ODAY' S SUM OF TOTALIZERS" and write the result in the box labeled
"AMOUNT PUMPED TODAY." If you pumped fuel
through a dispenser
You may have an alternative to reading totalizers. If you have a self- and back into a tank,
service fueling operation where the cashier can authorize fuel sales from inside for example during a
the facility, you can probably print out a daily report that gives you the total sales test, subtract the
for each type of fuel. NOTE: You can use the sales volumes from this report number of gallons
instead of reading your totalizer meters only if no fuel sales are made you pumped from
"AMOUNT PUMPED TODAY."
between the time you print the report from the cash register and the time
you measure your tanks (Step 1).

If you are using cash register reports to record the amount pumped, enter
the amount of each type of fuel pumped in the box labeled "AMOUNT
PUMPED TODAY" or staple the printout to the worksheet.

-7­
 Step 3—Record Fuel Deliveries

You must check how much fuel has been delivered every time any amount of fuel
is delivered to your tank. NOTE: You should not pump any fuel during the
time it takes to do items "I" and "J" below.

Before the delivery begins, the liquid level in the tank must be measured. Always
use good sticking practices: slowly lower the gauge stick, gently touch the stick
to the bottom of the tank, then quickly bring the stick back up. Read the depth
of fuel indicated by the wet mark to the nearest 1/8 inch division on the stick.

Write your measurement in the box labeled "Inches of Fuel Before

Delivery" for each tank you measured.

The delivery person can now deliver fuel into the tank. After the delivery, wait at
least 5 minutes for the fuel level in the tank to stabilize, and then measure again
as described above.

Record fuel level in the box labeled "Inches of Fuel After Delivery."

Using your tank chart with 1/8 inch readings, convert both delivery
readings to the correct number of gallons. Record these numbers in the
An automatic tank boxes labeled "Gallons of Fuel Before Delivery" and "Gallons of Fuel After
gauge (ATG) can Delivery." (If necessary, see page 9 on converting inches into gallons.)
usually print a delivery
report. If your tank Subtract "Gallons of Fuel Before Delivery" from "Gallons of Fuel After
has an ATG that prints Delivery." Record the result in the box labeled "GALLONS DELIVERED
such a report, you may
(STICK)."
simply staple the
ATG's delivery report
to the DAILY INVENTORY Now look at the delivery receipt and find the volume of each type of product that
WORKSHEET.
was delivered. If two volumes are given, one labeled "net" and the other "gross,"
use the gross gallons as the volume of product delivered.

For each type of fuel delivered, copy the gross gallons delivered from the
delivery receipt onto the worksheet in the box labeled "GROSS GALLONS
DELIVERED (RECEIPT)." The gallons in items "L" and "M" should roughly
match. If they don't, contact your supplier.

-8­
Using Tank Charts Without 1/8 Inch
Conversions
If your tank chart does not list direct conversions from inches to gallons for every
1/8 inch, then you must do the additional math described below every time
you stick your tank.

The easiest way to explain this procedure is with an example. Let's say you have
a stick reading of 43 3/8 inches and you need to figure how many gallons are in
your tank.

1. Look on your tank chart and find the inch measurements that are just
above and below your stick reading and write down the number of gallons
for these inch readings. Subtract the gallon readings to find the
difference between the two readings:

Chart reading at 44 inches: 3,585 gallons

Chart reading at 43 inches: 3,480 gallons

-----------------------------------------------------------------------------------
Difference: 105 gallons

2. Dividing 105 by 8 will give you the number of gallons per 1/8 inch, which
in this example is 13. (More exactly it is 13.125, but do round off the
number to the nearest whole number.) Because your fraction is 3/8,
multiply 13 gallons by 3, which gives you 39 gallons as the volume
represented by 3/8 inch.

CAUTION: The gallons represented by each 1 / 8 inch will vary

from top to bottom of the tank and must be calculated for each
conversion.

3. Take the number of gallons you have just calculated and add it to the inch
reading just below your actual stick reading:

Chart reading at 43 inches: 3,480 gallons

Gallons at 3/8 inch: + 39 gallons

-----------------------------------------------------------------------------------
Sum: 3,519 gallons

Thus, your stick reading of 43 3/8 inches converts to 3,519 gallons.

NOTE: If your tank chart is in half or quarter inches, you must still use this
procedure so that your gallon readings are accurate to 1/8 inch.

After all of this math, you can see why it pays to have the correct tank chart
that indicates gallons for each 1/8 inch.

-9­
 Step 4—Calculate Daily Changes In Inventory

In this step, you will copy information from the DAILY INVENTORY WORKSHEET onto
the MONTHLY INVENTORY RECORD. You will then do some math to determine your
daily inventory. You need one MONTHLY INVENTORY RECORD for each tank that you
have.

As you go through the following directions, refer to the sample MONTHLY

INVENTORY RECORD you will find on the reverse side of the DAILY INVENTORY
WORKSHEET sample you have already been using. For easy reference, the
sample is on a perforated page so you can tear it out and keep it handy as you
read through the directions. Also, near the back of the booklet is a "master copy"
Use the sample "MONTHLY on a perforated page you can tear out to make copies of the MONTHLY INVENTORY
INVENTORY RECORD" from RECORD for your recordkeeping.
the last two pages of the
booklet to see where
you put the information Fill in the identifying information at the top of the MONTHLY INVENTORY
from letters "N" through RECORD.
"Z" in the following
directions. If this is the very first day of your inventory recordkeeping, convert the "END
STICK INCHES" from the DAILY WORKSHEET into gallons and enter on the MONTHLY
RECORD under "END STICK INVENTORY (GALLONS)" for that starting date. (If
necessary, see page 9 on converting inches into gallons.) This is all you can do
today. Starting tomorrow, follow all of the instructions listed below.

Find the line in the left column on the MONTHLY RECORD with today's date
listed. Copy the previous day's "END STICK INVENTORY (GALLONS)" number
into the box for today's "START STICK INVENTORY (GALLONS)."

Enter the amount of fuel delivered from the DAILY INVENTORY WORKSHEET.
If you were NOT pumping fuel during the time when the delivery was
taking place, then use the "GALLONS DELIVERED (STICK)" number.
However, if you had to pump fuel while the delivery was taking place,
then use the "GROSS GALLONS DELIVERED (RECEIPT)" number as your
delivery amount.

Copy the "AMOUNT PUMPED TODAY" number from the DAILY INVENTORY
WORKSHEET into the "GALLONS PUMPED" column of the MONTHLY INVENTORY
RECORD.

-10­
 Add the "START STICK INVENTORY (GALLONS)" and the "GALLONS
DELIVERED" columns; then subtract the "GALLONS PUMPED" column. Enter
the result in the column labeled "BOOK INVENTORY (GALLONS)."

Copy the "END STICK INCHES" number from the DAILY WORKSHEET into the
GOOD ADVICE: If
column labeled "END STICK INVENTORY (INCHES)" on the MONTHLY RECORD. you are "over" for 5 days
Convert inches into gallons and enter the result in the column on the in a row (or "under" for 5
MONTHLY RECORD labeled "END STICK INVENTORY (GALLONS)." (If days in a row), you
necessary, see page 9 on converting inches into gallons.) should check for
problems with your math
Subtract the "BOOK INVENTORY (GALLONS)" from the "END STICK INVENTORY and your UST.
(GALLONS)." Enter the difference into today's "DAILY OVER OR SHORT" box.
This number will usually be a positive or negative number (only rarely will
it be zero).

Enter your initials to show who entered today's information.

At least once each month, you must also measure for water in the tank.
Smear water-finding paste on the bottom few inches of the gauge stick. Open the
fill pipe and slowly lower the stick to the tank's bottom. Hold the stick on the
bottom for 10 seconds for gasoline (30 seconds for diesel). Then remove the
stick. If there is water in the bottom of the tank, the water-finding paste will
change color. Read the depth of water indicated by the line where the water-
finding paste has changed color to the closest 1 /8 inch division on the stick.
Do not use this stick reading to measure the amount of fuel in the tank,
because the fuel will creep up the stick and will give you an inaccurate reading.

If you checked the tank for water today, enter the number of inches of
water in the tank on the line under "Facility Name" at the top of the
monthly record. If there is no water present, enter a zero to indicate that
you in fact checked for water but found none. If you find more than 1 inch
of water, you should arrange for its immediate removal, notify the product
supplier, and conduct further tests to ensure that the tank is not leaking.

-11­
 Step 5—Calculate Monthly Changes In
Inventory
At the end of each month, follow the directions below to see if the difference
between "stick" and "book" inventory indicates a possible leak.

Add all of the month's "GALLONS PUMPED" numbers and write this total at
the bottom of the column in the box labeled "TOTAL GALLONS PUMPED."

Add all the month's "DAILY OVER OR SHORT" numbers: pay careful
attention to positive and negative numbers to get an accurate total. For
example, adding +4 and +3 and -2 should equal +5. Enter the total at the
bottom of the column in the box labeled "TOTAL GALLONS OVER OR SHORT."

Fill out the "LEAK CHECK" line at the bottom of the MONTHLY INVENTORY
RECORD as follows:

• Take the "TOTAL GALLONS PUMPED" number and drop the last two
digits to get 1% (for example: 6594 becomes 65).

• Add 130 (for example: 65 + 130 = 195).

Enter the result of this calculation at the end of the "LEAK CHECK" line.
This number is the maximum change in inventory allowed by federal
regulations (1% of throughput plus 130 gallons).

At the bottom of the MONTHLY INVENTORY RECORD, circle "YES" or "NO" to

show whether your "TOTAL GALLONS OVER OR SHORT" number is LARGER
than the "LEAK CHECK" number you identified in the previous item. Even
NOTE: Keep your if your "TOTAL GALLONS OVER OR SHORT" is a negative number, treat it as
inventory control a positive number for the purpose of this comparison. For example, -74
records on file for at would become +74.
least 1 year. Your
state, however, may have If you circle "YES" for 2 months in a row, you must notify your
different rules about regulatory agency as soon as possible (usually within 24 hours) that
when you have your tank may be leaking.
to report a leak or
how long you must
keep the inventory
records. Be sure you
know the rules that apply
to you.

-12­
 DAILY INVENTORY WORKSHEET
FACILITY NAME: _________________________________________

YOUR NAME: _________________________________________

DATE: _________________________________________

TANK IDENTIFICATION

Type of Fuel

Tank Size in Gallons

END STICK INCHES

AMOUNT PUMPED 9 9 9 9 9
Totalizer Reading

Totalizer Reading

Totalizer Reading

Totalizer Reading

Totalizer Reading

Totalizer Reading

Totalizer Reading

Totalizer Reading

TODAY'S SUM OF TOTALIZERS

Previous Day's Sum of Totalizers

AMOUNT PUMPED TODAY

DELIVERY RECORD 9 9 9 9 9
Inches of Fuel Before Delivery

Gallons of Fuel Before Delivery

(from tank chart)

Inches of Fuel After Delivery

Gallons of Fuel After Delivery

(from tank chart)

GALLONS DELIVERED (STICK)

[Gallons "After" ! Gallons "Before"]

GROSS GALLONS DELIVERED

(RECEIPT)
 MONTHLY INVENTORY RECORD
TANK IDENTIFICATION & TYPE OF FUEL: ____________________________________

MONTH/YEAR :_______/______

FACILITY NAME: ___________________________________________________________

DATE OF WATER CHECK: ___________ LEVEL OF WATER (INCHES):_________

START STICK BOOK END STICK INVENTORY DAILY OVER (+)

INVENTORY GALLONS GALLONS INVENTOR _________________________ OR SHORT (!!)
DATE (GALLONS) DELIVERED PUMPED Y ___ ["End" ! "Book"] INITIALS
(GALLONS) (INCHES) ' (GALLONS)

1 (+) (!) (=)

2 (+) (!) (=)
3 (+) (!) (=)
4 (+) (!) (=)
5 (+) (!) (=)
6 (+) (!) (=)
7 (+) (!) (=)
8 (+) (!) (=)
9 (+) (!) (=)
10 (+) (!) (=)
11 (+) (!) (=)
12 (+) (!) (=)
13 (+) (!) (=)
14 (+) (!) (=)
15 (+) (!) (=)
16 (+) (!) (=)
17 (+) (!) (=)
18 (+) (!) (=)
19 (+) (!) (=)
20 (+) (!) (=)
21 (+) (!) (=)
22 (+) (!) (=)
23 (+) (!) (=)
24 (+) (!) (=)
25 (+) (!) (=)
26 (+) (!) (=)
27 (+) (!) (=)
28 (+) (!) (=)
29 (+) (!) (=)
30 (+) (!) (=)
31 (+) (!) (=)

TOTAL GALLONS PUMPED > TOTAL GALLONS OVER OR SHORT >

DROP THE LAST 2 DIGITS from the TOTAL GALLONS

PUMPED number and enter on the line below Compare these numbers

LEAK CHECK: _____________ + 130 = ____________ gallons

Is "TOTAL GALLONS OVER OR SHORT" LARGER than "LEAK CHECK" result? YES NO (circle one)

If answer is "YES" for 2 MONTHS IN A ROW, notify regulatory agency as soon as possible.

KEEP THIS PIECE OF PAPER ON FILE FOR AT LEAST 1 YEAR

>>>Copy and post this reminder where employees

who measure tanks can see it!<<<

GET GOOD INVENTORY CONTROL

MEASUREMENTS!

• Measure each tank every operating day

• Use gauge sticks that are

 marked to the 1/8 inch
 not cut off or worn off at the "0" end
 varnished and not warped

• Measure through the same drop tube each

time

• Use good sticking practices

 SLOWLY lower stick
 GENTLY touch stick on tank bottom
 QUICKLY pull stick out

• Measure just before each delivery

• Wait at least 5 minutes after delivery,

then measure again

• Read and record totalizer meters carefully

• Check for water at least once a month

using water-finding paste
Developed in cooperation with...