Kai Rivers
If you're renting out a property with an underground oil tank, you may be wondering if you need to decommission it. While it's not a legal requirement in all states, it's essential to consider the potential risks and liabilities associated with leaving an abandoned oil tank on the property. Oil tanks can leak over time, leading to soil and groundwater contamination, which can result in costly clean-up expenses. Lending institutions and homebuyers often require assurance that the property is not contaminated, so decommissioning the tank or providing proper documentation of its condition can facilitate a smoother sale in the future.
Characteristics and Values
| Characteristics | Values |
|---|---|
| Oil tank removal | Expensive |
| Soil test | Required before decommissioning in some places; if contaminated, the homeowner is responsible for the cleanup cost |
| Selling a home with an oil tank | Generally, lending institutions and home buyers require sellers to remove or decommission the tank; check local laws and disclose the presence of the tank to potential buyers |
| Decommissioning | Recommended when switching to another energy source; can be done by removing the tank or "closing it in place" by pumping out the oil, triple rinsing, and filling with inert solid material or foam |
| Oil tank leaks | Can contaminate soil and groundwater; the tank owner may be held liable under the Model Toxics Control Act |
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What You'll Learn
Local laws and regulations regarding oil tank decommissioning
If you have an underground home heating oil tank installed on your residential property, your tank is generally exempt from federal regulations. However, this exemption no longer applies if the tank releases oil into the environment. In such cases, the owner must take immediate measures to address the leak or spill, prevent its spread, and report the incident to the appropriate agency. While federal laws may exempt residential heating oil tanks, it's important to check with your state or local regulatory agencies as they may have their own regulations.
For example, in New Jersey, the governing agency for oil tank leaks is the New Jersey Department of Environmental Protection (NJDEP), not the federal Environmental Protection Agency (EPA). Similarly, states like Oregon have specific decommissioning standards and reporting requirements outlined in their laws. OAR 340-177-0025 details the procedures for decommissioning a heating oil tank, including soil and water sampling methods, cleanup rules, and safety precautions.
When decommissioning a heating oil tank, it is crucial to follow the appropriate standards and regulations. This often involves cleaning the tank and associated piping thoroughly and disposing of or recycling any sludge or waste according to local, state, and federal requirements. Additionally, collecting soil and water samples for testing is essential to ensure no contamination has occurred. If contamination is discovered, the responsibility for cleanup rests with the property owner.
Before purchasing a property with a decommissioned oil tank, it is advisable to request documentation of proper decommissioning and soil testing. This typically includes permits, reports from building inspectors, and laboratory results from certified environmental companies. An environmental professional can review these documents to ensure their completeness and accuracy. By being diligent, buyers can protect themselves from unforeseen costs and liabilities associated with contaminated soil or water.
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The costs of decommissioning or removing an oil tank
If you have an unused oil tank on your property, it is a good idea to decommission or remove it, especially if you plan on renting or selling the property. Oil tanks can cause serious environmental damage if they leak, and you may be held liable for contamination under the Model Toxics Control Act.
The cost of decommissioning or removing an oil tank can vary depending on several factors, such as the tank's size, location, condition, and accessibility.
Decommissioning Costs
Decommissioning an oil tank typically ranges from \$1,000 to \$3,000 or more, depending on the tank size. Decommissioning involves cleaning the oil and sludge from the tank and filling it with a substance such as foam, concrete slurry, or sand to prevent its collapse and the subsidence of the surface above it.
Removal Costs
Removing an oil tank can be a bigger project and generally costs more than decommissioning, with prices ranging from \$1,000 to \$5,000 or more. However, removal is often preferred as it allows for soil testing and ensures that the tank is no longer a potential source of contamination.
Cost-saving Strategies
To keep costs down, you can implement strategies such as comparing multiple quotes from licensed professionals, scheduling during off-peak seasons to take advantage of lower demand and labor costs, and shopping around for the best price by contacting environmental contractors or your oil company.
Additional Considerations
It is important to note that some lending institutions and home buyers may require the removal or decommissioning of abandoned heating oil tanks before finalizing a sale. Additionally, if you choose to leave the tank in place, you should have all unused heating oil removed to prevent possible contamination of the soil and groundwater. This is considered the easiest and least costly action to prevent future problems and expenses.
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The environmental impact of oil tanks and the importance of soil testing
Oil tanks, especially older ones, pose a significant environmental risk due to their propensity for corrosion and leakage over time. Leaking oil tanks can contaminate the surrounding soil and groundwater, rendering it hazardous and unusable for plant life or safe construction. This contamination can lead to complex and costly remediation processes. As a result, it is crucial to decommission unused oil tanks properly and perform soil testing to identify and address any potential environmental issues.
Underground oil tanks, particularly those that are aging or abandoned, pose a risk of leaking and contaminating the surrounding soil. Even small leaks can result in soil contamination, which can have detrimental effects on the environment. Soil testing is essential to determine the extent of any contamination and assess the potential risks to the ecosystem and human health.
Soil testing around oil tanks typically involves collecting soil samples from various points around the tank to ensure comprehensive coverage. These samples are then analysed in a laboratory to detect the presence and concentration of petroleum hydrocarbons and other contaminants. This process helps identify the extent of soil contamination and guides the development of appropriate remediation strategies.
The importance of soil testing is evident in situations where oil tanks have been removed. In some cases, tanks may have been improperly decommissioned or abandoned, leading to potential soil contamination. Conducting soil tests before purchasing a property with a previously removed oil tank is crucial to ensure that no contamination has occurred. If contamination is detected, specialised strategies, such as bioremediation or phytoremediation, can be employed to restore the ecological integrity of the site.
Overall, the environmental impact of oil tanks underscores the significance of proactive measures such as proper decommissioning and routine soil testing. By addressing these issues, homeowners, property managers, and businesses can minimise the risk of soil and groundwater contamination, protect the surrounding ecosystem, and ensure regulatory compliance. Working with experienced oil tank removal companies and soil testing specialists is vital to navigate environmental regulations and ensure a safe and responsible process.
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The process of decommissioning an oil tank
Firstly, you should consider arranging to have any remaining oil removed from the tank if you do not plan to decommission it immediately. Removing the unused oil can prevent possible contamination of soil and groundwater. If you plan on selling your house, home buyers and lending institutions may require assurance that the property is not contaminated, and removing the tank and sampling the surrounding soil is the best way to do that.
The decommissioning process may involve a search for groundwater if contamination is present. Workers will dig a hole directly over the centre of the tank, making the hole bigger if the tank is deeper underground. Once they reach the tank, they will cut off the top to allow access. The technicians will then empty the tank of all liquid inside, which usually includes a layer of watery sludge. They will then clean the tank, possibly using a vacuum truck, pressure washer, bucket, or scraping tool. After cleaning, the workers cover and fence off the hole to secure it from pets and children.
If the tank has not leaked, workers will backfill the tank with an approved material, such as perlite, gravel, or concrete. If tests show hydrocarbon contamination, the extent of the contamination will need to be assessed before issuing a certification. If some contamination is present but it is not a large spill, the tank can stay in place.
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The risks of not decommissioning an oil tank
Decommissioning an oil tank is important to prevent future problems and expenses. If you are renting a property with an oil tank, it is important to know the risks of not decommissioning it. Here are some of the risks of not decommissioning an oil tank:
Environmental and Health Risks
Underground oil tank leaks can have serious environmental and health implications. If a leak occurs, oil can contaminate the soil and groundwater, rendering it unusable for irrigation. This contamination can spread to nearby residents and wildlife if it reaches the surface water supply.
Financial Costs
The cost of cleaning up contaminated soil and water can be expensive, often stretching into the thousands of dollars. Homeowners insurance typically does not cover these costs. If the leak affects neighbouring properties or buildings, it could result in additional expenses or even lawsuits.
Structural Integrity
Old and abandoned oil tanks can pose a risk to the structural integrity of the property. As tanks age, they become more susceptible to decay and leaks. Even small, slow leaks can go undetected for long periods, causing significant damage to the surrounding area.
Legal Consequences
Under the Model Toxics Control Act, a tank owner may be held liable for contamination caused by a leak. If you plan to sell a property with an abandoned oil tank, lending institutions and homebuyers may require its removal or decommissioning. Failing to properly decommission the tank could lead to legal complications during the selling process.
Peace of Mind
Ignoring an abandoned oil tank can cause unnecessary stress and worry. Dealing with the tank proactively by decommissioning or removing it can provide peace of mind and minimise potential future problems.
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Frequently asked questions
It is not a requirement to decommission an oil tank before renting, but it is recommended. Decommissioning can prevent future leaks and the contamination of soil and groundwater, which could be costly to clean up.
If you don't decommission your oil tank, you run the risk of it leaking in the future. Even if the tank is abandoned and not in use, it could still cause an environmental problem and contaminate the surrounding soil and groundwater.
The process of decommissioning an oil tank involves removing any remaining oil, triple-rinsing the tank, and then filling it with an inert solid material like sand, gravel, or foam. This prevents the tank from collapsing and causing a sinkhole.
If you cannot afford to decommission your oil tank, you should at the very least have the oil removed. This is the easiest and least costly way to prevent contamination.
If you plan to sell your house, it is recommended to decommission the oil tank first. Buyers and lending institutions may require assurance that the property is not contaminated, and removing the tank and
