Preston — Town officials quickly reached a settlement with the state Department of Energy and Environmental Protection last week, one day after two underground fuel tanks at the Public Works garage were found in violation of state laws and ordered shut down.

The town was found in violation by a DEEP inspector on Jan. 15 for operating the two 1,000-gallon underground storage tanks at the garage at 423 Route 2 — one tank with gasoline and one with diesel fuel — after they exceeded their 30-year lifespan. The tanks were installed sometime in 1989, the inspection report said.

The town also failed to do the required monthly inspections and failed to have a certified trained operator of the fuel tank system.

No leaks or fuel spills were discovered, and the tanks and all piping are located inside a concrete vault. No fines were imposed.

DEEP Inspector Ronald Dildine placed a “red tag” on the tanks ordering that they not be used, not accept new deliveries and their contents be pumped out.

But the next day, Jan. 16, town officials reached a settlement agreement with DEEP, town and school Finance Director John Spang and Public Works Foreman Robert Boyd representing the town, which allowed the town to continue using the tanks until April 21.

The town already had been working on replacing the tanks, having received two proposals to remove and replace them with above-ground tanks starting in March. The town agreed to provide a signed contract with “a date certain for the permanent closure of the (underground tank) systems.”

First Selectwoman Sandra Allyn-Gauthier said Thursday she did not yet have a final cost estimate for the replacement project. Allyn-Gauthier told the Board of Selectmen on Thursday the town has three quotes for the work and will ask the Board of Finance to waive the formal request for proposals process to speed up the replacement project.

The town has been approved to use state Local Capital Improvements Program grant funds of up to $97,700 for the project. The fuel tanks are used for town vehicles and some school buses and vans, Allyn-Gauthier said. Selectman Jerry Grabarek said the school system pays the town for the fuel used from the tanks.

According to the agreement, the town already has assigned a trained operator and conducted the monthly inspections.

As long as the underground tank facilities "remain in significant operational compliance," they may continue in use until April 21, 2020, or 20 weeks, the agreement stated. “The town will be allowed to remove the disabling devices (red tags) immediately for DEEP recovery at a later date.”

Allyn-Gauthier said there was no disruption in the use of the fuel tanks, and the fuel was available for snowplows during last weekend’s storm.

c.bessette@theday.com