How to buy a gas station in Canada

A gas station is a retail site, and one part of it that changes hands under its own rules is the fuel storage tank system. In the three provinces covered here, each province runs its own regime through its own body, and a separate federal regulation covers tank systems in the situations it lists. This guide sets out what three provinces say publicly about a change of owner, what the federal regulation requires of an owner or operator, and what Measurement Canada does at the pump. Your station may sit in a province not covered here, so the first job is to find out which body regulates it. Nothing here says whether a station is worth buying. Browse current gas stations for sale to see what sellers disclose.

Find the regulator for the province first

The three provinces below show how different the approaches are. Ontario routes change of ownership through the Technical Standards and Safety Authority, known as TSSA. Alberta’s Safety Codes Council publishes a storage tank page that points to the authority having jurisdiction and, for municipalities that do not provide their own storage tank services, a change-of-owner form. Newfoundland and Labrador regulates tank systems through its gasoline and associated products regulations. This guide does not cover the other provinces; check the regime where your station sits. Ask the seller which authority holds the tank file, then ask that authority directly what it needs from a new owner.

Ontario: the licence does not transfer

In Ontario, TSSA’s change-of-ownership page says that licences are not transferable and that the onus to apply for a new licence falls on the new owner. The same page sends a change of ownership for a retail outlet or bulk storage plant to the TSSA Client Portal. For a buyer, the practical point is that the seller’s licence does not become yours at closing. Contact TSSA before you fix a closing date, ask which application applies to your facility and what it needs from the seller, and have your lawyer reflect the timing in the purchase agreement.

Alberta: a change-of-owner report

Alberta’s Safety Codes Council storage tank page lists, among the services the Alberta Safety Codes Authority (ASCA) provides for municipalities that do not provide their own storage tank services, a fillable form to report a change of owner or operator, under the heading Change of Ownership. It also says the Where To Get A Permit tool shows which authority provides storage tank services in your municipality. The page quotes Article 2.2.5.2 of the National Fire Code, Alberta Edition: no person shall use or fill a storage tank unless they verify with the authority having jurisdiction that the tank meets that jurisdiction’s requirements, and no person shall install, remove or abandon a storage tank or storage tank system before contacting the authority having jurisdiction for accredited areas, or the ASCA for unaccredited areas, to ensure the code and any permit requirements are met. If your plans include replacing or removing a tank after you buy, ask the authority for your area what it needs first.

Newfoundland and Labrador: registration

Newfoundland and Labrador’s gasoline and associated products regulations say, in section 13, that a person shall not construct, install, alter or operate a storage tank system unless that construction, installation, alteration or operation is registered under the regulations. Section 18.1 says a person shall not operate, fill or cause to be operated or filled a system whose operation is not registered under section 13. Section 3 exempts aboveground and underground storage tank systems that are connected to a heating appliance and fall within the capacity limit that section sets. Before you close, ask the seller for the registration record and ask the provincial department how a change of operator is recorded, so the station can keep receiving fuel on your first day.

The federal tank regulation and the pumps

The federal Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations apply to systems in the situations listed in subsection 2(1), one of which is a system located on federal land or aboriginal land, subject to the exclusions in subsection 2(2). Where they apply, section 3 requires the owner or operator of a system that leaks a liquid to temporarily withdraw from service without delay, in accordance with section 43, the leaking component, if it can be isolated, or otherwise the system, subject to subsections 3(2) to (4); the system or component may return to service only after the necessary repairs to ensure it no longer leaks. Check whether your site falls in one of the section 2 situations. Separately, Measurement Canada says its programs include approving and inspecting gas pumps and investigating complaints of suspected inaccurate measurement, so ask the seller for the inspection records for each dispenser.

What to line up before you sign

• Identify the provincial authority that holds the tank file, and ask what it requires from a new owner or operator.
• In Ontario, plan for your own TSSA application; in Alberta, ask the authority for your area how to report a change of owner; in Newfoundland and Labrador, ask for the registration record.
• Ask whether the site is on federal or aboriginal land, or falls in another situation in section 2 of the federal regulation, which decides whether it applies.
• Collect the pump inspection records and any measurement complaints.
• Put the regulator steps and their timing into the purchase agreement with your lawyer.

For the steps that apply to any purchase, see how to buy a business in Canada. For the Ontario-specific walk-through, read how to buy a gas station in Ontario.