California Designated Operator Practice Exam

Which of the following is not required if statistical inventory reconciliation (SIR) is used?

1. Approval by the local agency

2. Monitoring of tanks individually

3. Conducting weekly tank gauging

4. Providing monthly data submissions

The correct answer is: Conducting weekly tank gauging

Statistical Inventory Reconciliation (SIR) is a method used in the petroleum and environmental industries to ensure that the amount of product stored in tanks aligns with the amount sold and the amount that has been lost due to leaks or evaporation. When SIR is employed, certain requirements can be established to allow an efficient assessment of inventory, without the need for more frequent or intensive monitoring processes. Conducting weekly tank gauging is not necessary when SIR is in place, as SIR relies on statistical analysis of inventory data collected over a monthly basis. It integrates the sales data, deliveries, and usage patterns to identify discrepancies which might indicate a leak, thus eliminating the need for manual gauging on a weekly basis. SIR operates efficiently with monthly submissions of data, which means that other more frequent and labor-intensive checks, such as weekly gauging, can be omitted. In contrast, the other options represent necessary components tied to maintaining compliance and ensuring the effectiveness of the SIR program. Approval by the local agency is often required to confirm that the SIR methodology and processes meet regulatory standards. Monitoring tanks individually is necessary because SIR focuses on each tank to assess performance accurately and identify potential issues. Providing monthly data submissions is a requirement to ensure that all relevant