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No, actually, it's not wrong at all. You can abandon (also called decommission) an underground oil tank safely and legally. The top of the tank is cut off, the oil is taken out, the soil under & around it is tested, and the tank is filled in. There is no requirement that the tank be removed. Though, as someone pointed out earlier in the thread, most buyers these days will demand that it be removed instead of abandoned. Keep in mind, that's for tanks that are being dealt with currently. I've yet to see anyone successfully demand that a previously decommissioned tank be removed. If it was done properly, with all the town certifications & permits, there's no issue.
Not to panic anyone, but I DO know of this exact situation, just last year, in morris county.
I lived in an area of inground oil tanks, great in the 70's but who thought ahead back then. Proactively, I had mine completely removed 3 years ago, and the inspectors told me I was one of the few that didn't have a problem in my town. The "remediators" gave me the choice of half fill or remove, but I wanted it GONE. My neighbors thought I was overreacting, but I figured it was one less thing to worry about down the road.
One of my neighbors then put their lovely home of many years on the market right after I did last spring. There was a bidding war, and went under contract. I was envious. The house had an inside oil tank; the in ground had been decommissioned legally 20 years ago; cut in half, declared non contaminated, filled with sand, then covered over with dirt. The buyers still demanded removal and inspection...and guess what, tiny holes were found, some contamination, and the sellers had to get it taken care of...out of their own pockets, I heard, and not cheap. It held up the closing for weeks.
Needless to say, the neighbors who poo-hooed my removal, but then watched this whole scenario from next door, got theirs removed pronto (and with no contamination).
Residential tanks are 275 gallons.......not 500.......thats why.
You won't win this argument with me...I've been in the business for over 20 yrs
Most residential tanks are typically 550 or 1000 gallon.. a 275 inground tank is not typical... if it is a 275, they are typically leaking! I have a residential property to go and look at tomorrow that had a 1500 gallons! A tank becomes regulated based on the usage of the building... or the product stored in the tank.
One more detail... I hold a NJDEP License for tank closure
Residential tanks are 275 gallons.......not 500.......thats why.
Not the underground ones, Trust me I know. Most are 500 gallons. I had a routine termite inspection , and the man inspecting told me he smelled oil under the Slab. I called a Remediation company. This was in 05 when Insurance still covered it. My remediation cost $235,000. I'm not counting what I had to pay to replace a deck, grass, and landscaping. Luckly my inground pool and Gazebo were not affected.
You do not want to take a chace. A neighbor of mine converted to gas, and filled the tank. There was a spill, and its still on the DEP list.
There was no way after the DEP gave its stamp of approval that I could continue living there. My husband seeked a transfer, and out of NJ we went.
My house here was built in 2002, and its gas heat. I never want to even see an oil tank again.
If they won't take it out, Run don't walk away from that home.
[LEFT](b) The following types of underground storage tank systems are exempt from the
requirements of this chapter:
1. Farm or residential tanks of 1,100 gallons or less capacity used for storing motor
fuel for noncommercial purposes;
2. Tanks with a capacity of 2,000 gallons or less used to store heating oil for onsite
consumption in a nonresidential building;[/LEFT]
3. Tanks used to store heating oil for onsite consumption in a residential building;
I've yet to see anyone successfully demand that a previously decommissioned tank be removed. If it was done properly, with all the town certifications & permits, there's no issue.
All smart buyers will demand that an underground oil tank be removed whether or not it was previously "decommissioned".
There a non-zero chance that the decommissioning was not done properly and that you have a tank with oil still in it waiting to leak; or a tank that had already leaked with soil that's already contaminated. So long as that risk exists, a risk that you cannot cover with insurance, it would be foolish to purchase the house. It's a potential 250K+ liability that could bring financial ruin upon you and your loved ones.
Why take that chance? Because some real estate agent says not to worry about it? Because the owners don't feel like shelling out the money to fix it?
Wiley will tell you, it doesn't cost all that much to remove a previously decommissioned oil tank; pocket change in the grand scheme of things. But you cannot wait until you own the house to have it removed, because then you own the problem. Smart buyers will require the seller to have the tank removed, the soil tested, and an escrow deposit put down until the "no further action" letter is issued by the govt. And that's whether or not the tank was previously decommissioned. Any seller who is giving you trouble about it is afraid of the exact thing I'm talking about, they're afraid of soil contamination being found "on their watch" while their owners of the house.
This is a buyer's market. Don't buy a house with any underground oil tank in place. Don't take ownership of a piece of property with a built-in ticking time bomb that could go off to the tune of 250K. Get it removed -- if there's no problem, the sellers really have no reason to argue. If your real estate agent thinks it's not a big deal, have him/her personally indemnify you against any losses that result from a contaminated site (watch how fast they back off then).
Lusitan is 100% correct Bill. Typically, people who choose to abandon vs. remove a tank suspect that they may have an issue with the tank and feel that leaving it in place is the best way to "hide" the issue. It's usually very difficult to tell if a tank is leaking when you do an abandonment. Now, an abandonment accompanied by soil tests that results no issues, is a safer bet. Still not 100% accurate but better than nothing. Another issue is if a potential insurer of the home finds out that the property has a decommissioned tank still on-site, most will not right a policy unless it's removed and confirmed that there are no environmental issues. Realtors really need to educate themselves a little better on the issue.
Another issue is if a potential insurer of the home finds out that the property has a decommissioned tank still on-site, most will not right a policy unless it's removed and confirmed that there are no environmental issues. Realtors really need to educate themselves a little better on the issue.
Actually, when I was investigating this issue a while back, it seemed to be the case that a homeowners insurance company would insure the house, but they would only write a policy that explicitly excluded any costs associated with the oil tank or potential soil contamination.
So you could still get homeowners insurance, but it would not cover anything having to do with the tank.
Gee ... wonder why? Bottom line: don't take ownership of a house with an underground oil tank in place, no matter what its supposed condition.
Back in 2003, I had a hard time finding an insurance company that would grant me a homeowner's policy because I had an above-ground oil tank. Maybe they were less favorable because the tank was actually located within the home???
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