Introduction

Underground Petroleum Storage Systems (UPSS) can pose significant environmental and financial risks if not properly managed. However, when approached proactively, UPSS systems offer opportunities for cost savings, compliance certainty and improved stakeholder trust.

In this article, we answer key questions about the benefits of proactive UPSS management and how it supports long-term business and environmental outcomes.

What Is a UPSS and Why Does It Require Proactive Management?

A UPSS is an underground system used to store petroleum products, typically found at service stations, depots, industrial facilities and commercial operations with fuel-handling needs. These systems can include underground tanks, pipes, valves and associated infrastructure.

In New South Wales, UPSS are regulated under the Protection of the Environment Operations (Underground Petroleum Storage Systems) Regulation 2019. The risk of leaks, groundwater contamination and regulatory breaches means these systems require ongoing monitoring, reporting and maintenance.

Proactive management involves more than just regulatory box-ticking. It includes:

• Regular integrity testing
• Environmental monitoring (e.g. vapour and groundwater checks)
• Maintenance and documentation practices that reduce the chance of contamination events

What Are the Financial Risks of Poorly Managed UPSS Sites?

A reactive or minimal approach to UPSS management can result in:

• Soil and groundwater contamination requiring remediation
• Fines and regulatory penalties for non-compliance
• Increased insurance premiums or claims disputes
• Property devaluation due to environmental risk classification

In many cases, contamination from legacy systems only becomes apparent when a site changes hands or undergoes redevelopment. At that point, remediation costs can impact the entire viability of the project — especially if contamination spreads off-site.

Proactive management protects long-term asset value and reduces the likelihood of costly surprises.

How Can Early UPSS Compliance Reduce Insurance and Liability Costs?

Insurers often assess environmental risk and maintenance practices when determining premium levels or policy exclusions. By adopting best-practice UPSS management, operators can:

• Demonstrate due diligence and reduce perceived risk
• Strengthen their case for lower premiums
• Minimise the chance of having claims rejected due to improper documentation or oversight
• Avoid business interruption from compliance breaches or pollution events

Maintaining a complete and up-to-date monitoring and maintenance record is not only a regulatory requirement — it’s also a strong form of legal protection in the event of insurance disputes or third-party claims.

What Are the Environmental Advantages of Proactive UPSS Maintenance?

Even slow or minor leaks from underground systems can accumulate into significant environmental problems. Proactive management prevents:

• Groundwater contamination affecting drinking water or ecosystems
• Vapour intrusion into nearby buildings or structures
• Soil damage requiring excavation and disposal
• Long-term degradation of the site’s environmental condition

By detecting and addressing issues early, operators avoid downstream impacts that often carry reputational, legal and financial consequences.

How Does UPSS Stewardship Enhance Brand Reputation and Stakeholder Confidence?

Regulators, investors, tenants and the public are increasingly attentive to how environmental risks are managed — particularly for fuel-handling facilities or industrial sites.

A documented history of proactive UPSS management demonstrates:

• Environmental leadership and compliance awareness
• A commitment to sustainability and safe operations
• Reduced reputational risk for commercial partners or buyers
• Credibility in ESG reporting or voluntary sustainability disclosures

This is especially important for companies pursuing government contracts, property transactions or partnerships where environmental due diligence plays a critical role in decision-making.

Conclusion

UPSS systems don’t need to be a liability. With forward-thinking management, they can become a point of compliance strength and operational confidence. The cost of proactive upkeep is far less than the risk of reactive remediation.

Whether you operate a single site or manage a property portfolio, Raw Earth can work with you to protect your assets and meet your environmental responsibilities.

Reach out for further information today.