A house that has an abandoned underground oil tank will stop most buyers in their tracks because the buyer doesn't want to inherit some problem in the future. We have had plenty of clients (who eventually hire us to remove the oil tank) selling with a properly abandoned oil tank, properly abandoned in the ground.
Oil tank testing by obtaining soil samples from around the buried tank provides concrete results regarding the oil tank. If the soil test determines that the soil is acceptable, the home buyer can use the soil testing report to facilitate the tank closure process after the real estate closing.
One of the most significant reasons to avoid a property with an underground oil tank is the potential for environmental contamination.
Check with your local government about how they handle Household Hazardous Waste. Chances are you'll be able to bring them the fuel oil for cheap/free disposal. All you'll need to do is pump it out, and it might take a few trips if they have limits. Once it's empty, you can probably fill it with sand or concrete.
It's a loaded question, and unfortunately, the answer is most likely no. Your oil barrel contains dangerous chemicals that could pose a risk to your home and the property surrounding it.
An underground oil tank can last anywhere from 10-20 years, depending on how well it is maintained.
This means they will leak into the ground causing an environmental issue. So, while you are not obligated to remove the underground oil tank by regulation, there could be an issue leaving it in the ground.
Tank removal is always best, but tanks were buried with no thought of future removal, so maybe there is something on top of the tank like a garage or building, then closure in place is a great option.
The greatest potential hazard from a leaking UST is that its contents (petroleum or other hazardous substances) can seep into the soil and contaminate groundwater, the source of drinking water for nearly half of all Americans.
While some underground heating oil tanks have lasted longer, a common life expectancy of buried underground oil tanks is approximately 10-15 years. The odds of a leak happening increase, as the tank gets older.
Before municipalities installed natural gas lines, the furnaces in most homes used fuel oil stored in a tank. Underground oil tanks were common from the 1930s to the 1980s.
Before local governments installed the natural gas lines that many of us use to heat our properties today, most homes from the 1930s to the 1980s used fuel oil, which was stored in tanks, but because the tanks were large and unsightly, they were often buried on the property.
The Seller's Disclosures in the Sale Contract
The first place to look to determine the seller's disclosure obligations is the contract of sale. Buyers should, as a matter of course, require that the seller indicate whether there is or ever was a UST on the property.
Yes, it does require a permit to remove an oil tank.
Underground Oil Tank
A tank buried in the ground can jump removal costs between $1,000 and $3,000. A tank buried in a basement may cost beyond the high range of $3,000.
Average UST Depths
Although, at many gasoline service stations today, the tops of the buried underground storage tanks remain between 2 feet and 3 feet below the ground surface. Occasionally, larger USTs may be observed with the top of the tank as deep as 7 feet below the ground surface.
However, on average, an oil tank replacement cost between $2,950 and $3,400. The cost may be up to $4,000 plus, if you are working with a double wall or a Roth tank. These rough quotes are as of 2023.
Abandoning USTs was a common practice when switching to aboveground storage tanks. That practice is no longer recommended because it's difficult to prove a tank did not leak. Mortgage and insurance companies will require removal of the tank before a loan or insurance is approved.
If your 275-gallon tank is full at the start of a 40-degree weather spell, the oil will last for approximately 74 days, or 2.5 months. Granted, you would be lucky if the temperatures in your area drop no lower than 40 degrees during the winter months.
You must then clean the leak, adhering to DEQ standards. This will lead to a recommendation to either decommission the tank or a risk assessment. If you're selling a property with an underground heating oil tank, prepare for serious negotiations from the buyer, whether it's leaking or not.
A typical leaking underground storage tank scenario involves the release of a fuel product from an underground storage tank that can contaminate surrounding soil, groundwater, or surface waters, or affect indoor air spaces.
Sellers can indeed legally sell the home, but in the rare times this does occur there is liability generated for both buyer and seller. To buy a property with a tank is to assume the liability associated with the tank, which some buyers assume is no liability.