Iron is present in almost all potable water, at varying concentrations. In your tank, the water is most likely anoxic, meaning "without oxygen." This is not unusual. In this condition, the iron is dissolved in the water and invisible. There is also probably manganese in the water...again not unusual and not harmful. Treatment with Clorox, which is an oxidizing agent (that's how it kills the bacteria) causes the water to become more oxidized and causes the iron and manganese to precipitate, causing it to become visible as rust. Using that much Clorox, which is a very powerful oxidizer, would probably oxidize all the iron in the water and give you the brown rust-like color. Again, it is not harmful and is more of an aesthetic issue, although iron can be a pretty good laxative. I am a groundwater geologist that deals with water treatment systems and if there is a Culligan Man on here maybe he can validate this.