(a) Operating a Petroleum Underground Storage Tank or UST System Prior to Foreclosure. A holder, prior to foreclosure, as defined in this part, for purpose of compliance with underground storage tank technical standards, corrective action requirements and financial responsibility, is not an “operator” of a petroleum underground storage tank or UST system; provided, that, after April 12, 1996, the holder is not in control of or does not have responsibility for the daily operation of the petroleum underground storage tank or UST system.

(b) Operating a Petroleum Underground Storage Tank or UST System After Foreclosure. The following provisions apply to a holder who, through foreclosure, acquires a petroleum site or petroleum underground storage tank or UST system:

(1) A holder is not an “operator” of a petroleum underground storage tank or UST system if there is an operator, other than the holder, who is in control of or has responsibility for the daily operation of the petroleum underground storage tank or UST system, and who can be held responsible for compliance with applicable petroleum underground storage tank requirements;

(2) If another operator does not exist, as provided for under subdivision (b)(1), a holder is not an “operator” of the petroleum underground storage tank or UST system, for purposes of compliance with applicable petroleum underground storage tank requirements; provided, that the holder:

(A) Empties all of its known petroleum underground storage tanks or UST systems within sixty (60) calendar days after foreclosure or within sixty (60) calendar days after April 12, 1996, whichever is later, or another reasonable time period specified by the department, so that no more than two and one half centimeters (2.5 cm.) (one inch (1″)) of residue, or three tenths of one percent (0.3%) by weight of the total capacity of the petroleum underground storage tank system, remains in the tank; leaves vent lines open and functioning; and caps and secures all other lines, pumps, manways and ancillary equipment; and

(B) Empties those petroleum underground storage tanks or UST systems that are discovered after foreclosure within sixty (60) calendar days after discovery or within sixty (60) calendar days of April 12, 1996, whichever is later, or another reasonable time period specified by the department, so that no more than two and one half centimeters (2.5 cm.) (one inch (1″)) of residue, or three tenths of one percent (0.3%) by weight of the total capacity of the petroleum underground storage tank system, remains in the tank; leaves vent lines open and functioning; and caps and secures all other lines, pumps, manways and ancillary equipment;

(3) If another operator does not exist, as provided for under subdivision (b)(1), in addition to satisfying the conditions under subdivision (b)(2), the holder must either:

(A) Permanently close the petroleum underground storage tank or UST system in accordance with applicable petroleum underground storage tank requirements; or

(B) Temporarily close the petroleum underground storage tank or UST system in accordance with applicable petroleum underground storage tank requirements:

(i) Continue operation and maintenance of petroleum underground storage tank corrosion protection requirements;

(ii) Report suspected releases to the department; and

(iii) Conduct a site assessment if the petroleum underground storage tank system is temporarily closed for more than twelve (12) months and the petroleum underground storage tank system does not meet either the applicable performance standards for new petroleum underground storage tank systems or the petroleum underground storage tank upgrading requirements, except that the spill and overfill equipment requirements do not have to be met. The holder must report any suspected releases to the department. For purposes of this provision, the twelve-month period begins to run from April 12, 1996, or from the date on which the petroleum underground storage tank system is emptied and secured under subdivision (b)(2), whichever is later;

(4) The petroleum underground storage tank system can remain in temporary closure until a subsequent purchaser has acquired marketable title to the petroleum underground storage tank or UST system or petroleum site. Once a subsequent purchaser acquires marketable title to the petroleum underground storage tank or UST system or petroleum site, the purchaser must decide whether to operate or close the petroleum underground storage tank or UST system in accordance with applicable petroleum underground storage tank requirements.