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Don't Let Product Leaks and Water Intrusion Leave You at a Loss

Article Courtesy of Convenience & Carwash Canada
By: Steve Stewart, Senior Manager, Regional Accounts for OPW Retail Fueling, a Dover Company

Don’t Let Product Leaks and Water Intrusion Leave You at a Loss

The familiar saying “Good things come in threes” – an acknowledgment that if something fortunate happens twice, a third might be likely to follow – applies to a wide range of outcomes. From the visual (primary colors: red, blue, yellow) to the dietary (primary macronutrients: carbohydrates, proteins, fats) to the smallest unit of matter (atom parts: proton, neutron, electron) and even the silly (Stooges: Larry, Curly and Moe), all are undeniably good things that come in three.

At the same time, to borrow from and paraphrase Newton’s Third Law of Motion (hmmm, another three), “for every action, there is an equal but opposite reaction.” So, if all good things come in bunches of threes, it could reasonably be argued that all bad things must also come in threes.

Which brings us to the operation of a retail-fueling facility. Sure, there are many good “threes” to be found in the forecourt, the most basic being the main reason for the business’s existence: the successful sale of fuel, vehicle washes and convenience items, the so-called “Big Three” of retail fueling. At the same time, the ability to sell these products successfully can be compromised by the bad “three” of fuel leaks and water intrusion, namely the three “Ls”:

  • Loss of product
  • Loss of revenue
  • Loss of reputation

Retailers may be able to overcome the occasional occurrence of one or two of those Ls. Still, if all three occur simultaneously or regularly, the result can likely be another negative “three”: “Three strikes and you’re out” – of business. With that in mind, this article will take a look at the challenges inherent in making a retail-fueling operation safe from product losses – and then illustrate some of the most notable ways that equipment manufacturers are developing products that can help lower the risk of product losses and, by extension, mitigate the adverse effects that can be incurred by retail-fueling businesses.

The Unavoidable Challenges of Loss Prevention

The operators of retail-fueling businesses know it when they sign up for the job: a great deal of the equipment they deploy will be buried underground and unable to be observed by the naked eye. Thus, it can be incredibly difficult to know when one of those pieces of equipment – underground storage tanks (USTs), piping, sumps, spill containers, overfill-prevention valves, etc. – will develop a leak or begin to fail. When that happens, the time clock for the arrival of the three loss-prevention “Ls” begins ticking.

Like all things mechanical, breakdowns are inevitable – it’s only a matter of time. It may be many days, weeks, months or even years before the operator is alerted to the problem. That is why what is called “loss prevention” in the industry is so hard to manage. The discovery of product loss also starts the snowball rolling downhill. The resulting avalanche takes with it retail revenues and, in worst-case scenarios, the operation’s good reputation, which can lead to far-reaching and incredibly harmful results.

But there’s a second prong to the overall loss-prevention fork. Whereas the overriding worry when considering loss prevention is losing product through equipment leaks, the second worry is the mirror image: the intrusion of fluids – namely water – into the fuel-dispensing system. Preventing water intrusion should be a front-of-mind concern for fuel-site operators because even the smallest amount of water intrusion can have far-reaching negative effects. Chief among these is that fouled fuel that finds its way into a driver’s vehicle can damage engine components, leading to breakdowns and repair costs – and the risk of the driver potentially returning to the fuel site and demanding remediation payments from the fuel-site operator.

While equipment and water intrusion are major problems for fuel retailers, there are also smaller loss-prevention challenges that they need to be aware of:

  • Old equipment that may be nearing its end of useful life
  • Lack of consistent service and proper maintenance
  • Inadequately installed equipment
  • Accidents at the dispenser, such as customer drive-offs with the fuel nozzle still in the vehicle or crashes into the dispenser itself

All of these things can result in “bag-on-nozzle” dispenser shutdowns, the too-often presence of repair vehicles in the forecourt and the feeling among drivers that a site experiencing consistent problems may not be one to loyally visit.

At Your Fingertips

The potential for accidents at the dispenser also serves to remind us that it is not only the equipment beneath the forecourt surface that is susceptible to experiencing product losses. The fuel island is also an area of concern, particularly the nozzles, swivels and breakaways that enable the fuel to flow from the UST into the dispenser and through the hose that ends at the fuel nozzle, from where the fuel travels into the vehicle’s fuel tank.

The seminal year in nozzle development was likely 1950, the year that the automatic shutoff nozzle was invented (see: Convenience & Carwash Canada, January/February 2025, page 38). That enabled vehicles to be fueled with no need for an attendant – and, later, the driver himself – to physically hold the nozzle open while the tank filled.

That, however, did not mean refueling accidents or errors became extinct. While nozzle hold-open clips did indeed revolutionize vehicle fueling, they, too, are not infallible and will eventually fail over time. In these instances, it is imperative that the site operator replace the nozzle so that other non-approved or non-advisable means of holding it open aren’t used. Don’t laugh; over the years, we have seen sticks, rocks, tennis balls and even cigarette lighters used to hold open a nozzle with no functioning hold-open clip.

As an aid to help fuel retailers identify when a nozzle may be coming close to needing to be replaced, some nozzle manufacturers began placing “remove-by dates” on their nozzles and other hanging hardware, such as swivels and breakaways, in 2005. The agreed-upon interval was five years from installation. This was based on the useful life of most seal and diaphragm materials used to ensure the nozzle functions properly. In reality, there’s no true way to know when a piece of hanging hardware will or won’t fail, and you also can’t put a flashing red indicator light on it to show that a failure date is approaching.

Further complicating the issue is that, unlike a light bulb, which just burns out and has to be replaced, when a fuel nozzle stops working, there is a chance an adverse event will occur, such as a non-shutoff, spill or leak. The ultimate concern is that nozzles, swivels and breakaways may not always be “fail-safe,” which means that a dangerous situation can be created for the fueling site’s employees and customers, as well as the environment. In sum, remove-by dates are a preemptive way to generally let site operators know when the component may not work as designed anymore, alerting them that they should consider replacing it before a negative event occurs.

In the end, manufacturers that include remove-by dates have a simple and even altruistic reason for doing so: They are looking out for the best interests of their customers, the employees who work at retail-fueling locations and the drivers who frequent them. Wise site operators who use hanging hardware with remove-by dates are letting the world know they are very concerned with protecting the safety of site personnel, the environment and, most importantly, drivers.

All Is Not Lost!

So, that seems like a lot of gloom and doom – maybe enough to have you thinking there might be better (and safer) ways of earning a living than operating a retail-fueling business. But fear not! There is a big, bright silver lining amongst those lingering dark clouds.

Retail-fueling manufacturers have made great strides in recent years in the development of next-generation underground and aboveground equipment and systems, all of which can defang the many loss-prevention challenges, whether they come in the form of product leakage or water intrusion. Among the most noteworthy advancements are the following pieces of equipment:

  • Multiports: Installed over the top of sumps to allow easy access to the UST-top area while providing spill containment for UST fill pipes and vapor-recovery risers
  • Overfill Prevention Valves: Designed to prevent fuel-delivery overfills through the positive shutoff of fuel flow when a possible overfill event is detected
  • Spill Containers: Designed to prevent spilled fuel from entering the soil near the fill and vapor-return riser connections on USTs during a normal tank-fill operation
  • Emergency Shear Valves: Installed on fuel-supply lines beneath dispensers at grade level in order to minimize the hazards associated with a collision or fire at the dispenser; when the dispenser is damaged, the valve breaks free, which activates poppets that shut down the flow of fuel
  • Tank Sumps: Liquid-tight isolation containers that provide secondary containment for tank fittings, valves and pumps; they also provide surface access to the tank itself, as well as a clean, dry environment for future service and maintenance
  • Dispenser Sumps/Pans: Installed beneath fuel dispensers to provide access to, and secondary containment of, dispenser plumbing, emergency shear valves and underground piping connections
  • Flexible Piping: Offers a high level of protection from leaks while meeting compliance needs and controlling costs; can be fully integrated into any UST system for end-to-end double containment, complete testing, monitoring and total accessibility. Provides a transfer piping system with no buried joints in the ground.
  • Composite Manhole Covers: Watertight, lightweight, non-bolted covers that feature a flat gasket, making them ideal for use in general tank-sump access, multiport, single-port fill sump and interstitial-sump applications
  • Clean Fueling Nozzles: Feature innovative spout technologies and fuel-capture chambers that result in a cleaner, greener fueling experience for drivers and fuel-site operators
  • Reconnectable Breakaways: Designed to automatically separate when subjected to a designated pull force; upon separation, the breakaway’s dual valves close to automatically stop the flow of fuel and limit fuel spillage while protecting dispensing equipment; the breakaways can then be reconnected through a simple “push-twist-click” motion
  • Multi-Plane Swivels: With 360-degree and 270-degree planes of rotation and smooth operation, drivers have optimum refueling flexibility from virtually any direction, while hoses are protected from excessive wear

Conclusion

There’s no question that the challenge of preventing product leaks and water intrusion at retail-fueling locations can be daunting. At the least, vigilance can be a key tool for fuel-site operators, as good recordkeeping and a keen eye can help ensure that fueling equipment is operating in tip-top condition. However, that can be difficult when the equipment is located underground or the date of its installation is unknown. Recognizing the importance of loss prevention, the manufacturers of retail-fueling equipment and systems have made a steadfast commitment to developing both aboveground and underground components capable of mitigating the risk of product leaks and water intrusion. Including this equipment at your fueling site can be a positive first step in helping to ensure you operate a clean, safe and, in the long run, profitable retail-fueling business.

This article originally appeared in the May/June 2025 issue of Convenience & Carwash Canada.