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Old 03-21-2018, 05:41 PM
 
6,015 posts, read 2,708,559 times
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Quote:
Originally Posted by CT356 View Post
We found a house we're interested in purchasing, but we're hesitant because it has an oil furnace and an underground oil tank. The owners have some kind of insurance on the underground oil tank, but I wouldn't buy the house unless they dug up the tank. What I'm wondering is:

How much more expensive is oil heat vs gas?

What would it cost to have the heat switched over to gas?
As someone else has already said, home owners in NY expect you to ask for the underground tank to be remediated and replace with an above ground tank. Cost of switching to gas would be on you.

The reason being is that most places in NY that have underground tanks have plans or are constantly exploring mandating all underground tanks to be removed. Because again as already stated, its not if they will leak but when.

Its a whole racket with the counties/state choosing to look the other way and hoping home owners will eventually rid them of the environmental problem. Hence why there are companies who do the remediation by draining the underground tank and filling it in with sand. They never test for leaks unless you are stupid enough to request it, in which case they are required to report it to governmental authorities and then you are on the hook for the cleanup which can be exorbitant.

As for gas, you first have to determine availability.

Just because it is available does not mean you will be willing to pay the price to hook up to it. For example, on Long Island, it was available off the main road to my neighborhood. My house was the first one on the left side of the street, but there were about two vacant lots of woods between the main road and my house. Additionally, my house was set very far back from the street. Great for privacy, but about $30,000 to hook up to the main gas line. You can get neighbors to go in at the same time and split costs, but hard to negotiate all that when you are buying a house.

To get the price of hook up call the gas company.

Then you have to call a company that installs gas furnaces to get the costs to do that as well as install any duct work you need.
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Old 03-21-2018, 05:49 PM
 
4,775 posts, read 1,882,786 times
Reputation: 4844
Quote:
Originally Posted by CT356 View Post
We found a house we're interested in purchasing, but we're hesitant because it has an oil furnace and an underground oil tank. The owners have some kind of insurance on the underground oil tank, but I wouldn't buy the house unless they dug up the tank. What I'm wondering is:

How much more expensive is oil heat vs gas?

What would it cost to have the heat switched over to gas?
I was in the oil service side years ago and i'd avoid this like the plague. Only deal with this if you have no other choice.
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Old 03-21-2018, 05:51 PM
 
4,775 posts, read 1,882,786 times
Reputation: 4844
Quote:
Originally Posted by Blondy View Post
As someone else has already said, home owners in NY expect you to ask for the underground tank to be remediated and replace with an above ground tank. Cost of switching to gas would be on you.

The reason being is that most places in NY that have underground tanks have plans or are constantly exploring mandating all underground tanks to be removed. Because again as already stated, its not if they will leak but when.

Its a whole racket with the counties/state choosing to look the other way and hoping home owners will eventually rid them of the environmental problem. Hence why there are companies who do the remediation by draining the underground tank and filling it in with sand. They never test for leaks unless you are stupid enough to request it, in which case they are required to report it to governmental authorities and then you are on the hook for the cleanup which can be exorbitant.

As for gas, you first have to determine availability.

Just because it is available does not mean you will be willing to pay the price to hook up to it. For example, on Long Island, it was available off the main road to my neighborhood. My house was the first one on the left side of the street, but there were about two vacant lots of woods between the main road and my house. Additionally, my house was set very far back from the street. Great for privacy, but about $30,000 to hook up to the main gas line. You can get neighbors to go in at the same time and split costs, but hard to negotiate all that when you are buying a house.

To get the price of hook up call the gas company.

Then you have to call a company that installs gas furnaces to get the costs to do that as well as install any duct work you need.
Good advice.
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Old 03-21-2018, 06:25 PM
Status: ""Don't count the days; make the days count "" (set 14 days ago)
 
Location: Eastern Long Island, New York
336 posts, read 91,298 times
Reputation: 1083
A family I know who lived in the Hamptons did a oil tank abandonment legally and when they decided to sell to move to NC they got an offer just below a million dollars ( he and his father built the home together in the 70's for a material cost of approx $28k less the cost of the very nice wooded lot in the town of Sag Harbor...

They disclosed the abandonment which left the tank in the ground and the new buyer was fine with it and she could not wait to close and to move in ..in the meantime they had already bought a nice larger home in NC with many acres so they could have horses...they even moved their furniture down while the closing process was taking place.....everything was going great until the Town of Southampton stepped in to delay the closing as they insisted he remove the oil tank from the ground....so he has his wife were now sleeping on a mattress on the floor while the company he hired removed the tank and it was all on his dime.....that cost him $3,800 k but it was necessary in order to close which they did but later than it should have.....

They ended up very happy in NC and the woman who purchased their home is very happy with the home and her living in Sag Harbor.

Oil tank abandonment versus oil tank removal

Oil Tank Abandonment- Is it the right choice for you? | ATS Trust
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Old 03-22-2018, 10:35 AM
 
1,418 posts, read 814,066 times
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As has been said here many times, definitely require removal.

If you're moving forward on this house, make sure to be in communication with the seller- the seller will have to buy a new above-ground tank during the removal process, but tank size matters. They will (obviously) want to put the cheapest/smallest tank in as possible, but it is very annoying to live with a small tank. My last rental house had a single 330 gallon tank and it was just too small- it held 3 or 4 weeks' worth of oil during the peak of heating season since you need to get the fill process started once you hit 1/4 tank.

The incremental cost to get a bigger tank during the removal process will be very small and you should offer to pay it.

My new house has twin 275's and the extra capacity is helpful. It's still only a couple more weeks' worth of oil but it allows me to deal with the oil company a little less.
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Old 03-22-2018, 11:41 AM
 
11,416 posts, read 5,887,059 times
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Quote:
Originally Posted by ss20ts View Post
When was oil cheaper as a heat source than natural gas? I live in Upstate NY and oil has been much more than natural gas since I was a teenager. Electric was always the most expensive heat source. Oil and propane have bounced back and forth on which is more expensive over the years. Natural gas was always the cheapest...in my lifetime. I haven't heard anyone say oil has been cheaper.
Right now, oil is cheaper than propane in my market if you're calculating in dollars per BTU. I have a townhouse condo at a Vermont ski resort where I heat with propane from a metered shared tank. I'm paying $1.79/gallon and that's a low price because of the bulk purchase. A gallon of propane produces 91,600 BTU. A gallon of heating oil produces 140,000 BTU. You can certainly get a heating oil contract this year for way less than $2.749/gallon. The spot market right now is about $2.00 and the local heating oil price for small home deliveries in that part of Vermont is $2.39.9.

The issue with propane is usually rented tanks. You're locked into buying propane from the company that owns the tank. If you're going to heat with propane, you really want to own your own tank, have a very large tank, and fill it in the summer when prices are low.

I personally don't ever want to own a house that doesn't have piped natural gas in the street. With fracking, that's going to always be cheap. I'm in southern New England where we have a pipeline capacity problem as electric plants have switched from coal to natural gas. We see pipeline surcharges during the winter where natural gas (and electricity) is kind of expensive. The NIMBY people and eco-freaks fight the gas line expansion that would stop this from happening. Most of the rest of the country doesn't have that issue.
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Old 03-22-2018, 11:45 AM
 
Location: Somewhere in America
12,305 posts, read 10,080,394 times
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Quote:
Originally Posted by GeoffD View Post
Right now, oil is cheaper than propane in my market if you're calculating in dollars per BTU. I have a townhouse condo at a Vermont ski resort where I heat with propane from a metered shared tank. I'm paying $1.79/gallon and that's a low price because of the bulk purchase. A gallon of propane produces 91,600 BTU. A gallon of heating oil produces 140,000 BTU. You can certainly get a heating oil contract this year for way less than $2.749/gallon. The spot market right now is about $2.00 and the local heating oil price for small home deliveries in that part of Vermont is $2.39.9.

The issue with propane is usually rented tanks. You're locked into buying propane from the company that owns the tank. If you're going to heat with propane, you really want to own your own tank, have a very large tank, and fill it in the summer when prices are low.

I personally don't ever want to own a house that doesn't have piped natural gas in the street. With fracking, that's going to always be cheap. I'm in southern New England where we have a pipeline capacity problem as electric plants have switched from coal to natural gas. We see pipeline surcharges during the winter where natural gas (and electricity) is kind of expensive. The NIMBY people and eco-freaks fight the gas line expansion that would stop this from happening. Most of the rest of the country doesn't have that issue.
I asked about natural gas not propane. Depending on the location, oil and propane bounce around which one is cheaper as I said. This winter there were areas that had a propane shortage. Complete nightmare for those heating and cooking with it!
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