If you are like my wife and I all you know is that the heating oil for the furnace is pumped into a mysterious pipe in the yard. We didn’t give a second thought – as long as we had heat. But, when we sold our home, that tank was a major issue. Sales can fall through just because of an oil tank. The cost of taking care of the tank can exceed the cost of a whole new furnace, and even escalate into the tens of thousands of dollars. Why is it such a problem?
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| Here’s a tank that has been removed, showing a corroded hole where oil leaked contaminating the ground. |
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One of 3-Kings technicians working a tank in the process of being decommissioned. |
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Possible locations for a tank: |
In the late 1960s and into the 1970s, increased awareness of the impact of pollution on our health and environment led to federal and state legislation. Among the laws was the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), which is better known as Superfund. In it, the liability for the cleanup of a site was deemed to be on the owner of the property when the pollution is discovered. In other words, if you were to buy a property and later discover that it is polluted, you are liable for cleaning it up – even if you didn’t cause the pollution. Therefore, it is in a purchaser’s best interest to investigate the possibility of pollution on a site before purchasing so as not to inherit the liability. And since a loan underwriter could end up with a property through foreclosure or a devalued property due to pollution, lenders often also require this investigation before approving a loan.
How do I know if I have a tank? Obviously, if your home is oil-heated, then you must have a tank (either above or underground). However, if your home is heated by other means, but you suspect it may have been heated by oil in the past, there are a few things to look for:
Fill Pipe
The fill pipe usually either sticks out of the ground a few inches or so and has a cap on it, or it is an inch or so below ground covered by a round metal plate that often has the word “OIL” or the name of an oil company on it. Fill pipes are often located within 10 feet of the house, and could be under a lawn, landscaping, patio, walkway, or driveway.
Vent Pipe
The vent pipe is usually found against the side of the house, and can extend anywhere from a few inches to over 10 feet high. It has an oversize cap or a 180-degree elbow on the top to allow the venting of vapors.
Supply and Return Lines
The oil supply and return lines are typically found extending out of a basement wall or floor. They are often capped or cut back flush with the wall when the heating system was converted. Often they are 3/8” copper lines, but can be 1” or less steel pipe.
Ask an Expert
Companies that provide heating oil tank services can often find a tank that has eluded the homeowner, realtor, or home inspector. Some companies will conduct a tank search at no charge, or recommend a company that specializes in underground locating.
Once I find a tank, what do I have to do? In the State of Oregon, the minimum required by law is to empty the tank. Heating oil tanks are not regulated by the states of Oregon and Washington, thus they are not required by law to be removed or decommissioned. The State of Oregon, however, has provided a set of rules for heating oil tank service providers to follow to decommission a tank and certify that it is decommissioned properly. It is often a homebuyer or a lending institution that requires this certification as proof of decommissioning during a property transaction – thus reducing their potential liability.
How do I know if my tank has leaked? In order to determine if a tank has leaked, the minimum required is to collect two soil samples adjacent to and below each end of the tank. This is typically accomplished by drilling with a hand auger. If a tank is decommissioned in place, or removed, it is often possible to collect samples directly below each end of the tank. The soil samples are inspected in the field, then taken to a laboratory for petroleum analysis. The laboratory reports the quantity of petroleum found in the soil as parts per million (ppm) or ND (none detected).
What happens if my tank leaked? Although heating oil tanks are not regulated by the state, pollution associated with a leaking tank is regulated. In Oregon, the discovery of heating oil pollution over 25 ppm must be reported to the Department of Environmental Quality (DEQ) within 72 hours. In Washington, it is not required to be reported unless it a) has affected other properties; b) affected a water well or groundwater; c) caused vapor in buildings; d) pooled on the surface of the ground; or e) caused extensive contamination.
Oregon allows three kinds of cleanup methods, depending on the degree of soil contamination:
- Soil Matrix Cleanup – less than 500 ppm in soil
- Generic Remedy Cleanup – between 500 and 10,000 ppm in soil
- Risk-Based Cleanup – Over 10,000 ppm in soil, complex cleanups, and/or groundwater cleanup
Washington regulates contamination from heating oil tanks through the Model Toxics Cleanup Act (MTCA). A cleanup level of 2,000 ppm is typical for most residential sites.
Cleanup methods can include removing the tank and/or contaminated soil, or characterizing the contamination remaining on site. A company specializing in residential heating oil tank services can help you determine which cleanup option is best for your site.
How much will this cost? Costs can be significantly different between companies, depending on the size of the company, their workload, or their philosophy. A site assessment, in which soil samples are collected to find out if there is contamination, is usually less than $300. The cost of decommissioning a tank can vary greatly, but averages about $900, and can be as high as $2,000 or more. A cleanup usually costs between $2,000 and $4,000, but can escalate substantially if groundwater is affected, or extensive excavation is required.
One of the difficulties we have in providing our service is defining a “bottom line” cost for a project. Unlike a mechanic, who can open a hood of a car and look at the engine, we don’t know what the extent of a problem is until we complete some investigation. For instance, initial samples may have been collected that are contaminated and dry. But we don’t know until we start to conduct the cleanup if contamination has affected groundwater deeper in the ground, or has gone off-site. Sometimes, we have to approach contamination on a site in a piece-meal fashion. Understandably, this can be frustrating for a homeowner, since costs can keep adding up.
What about insurance coverage? Insurance coverage for contamination cleanup can be difficult to obtain. In the 1990s some insurance companies fought every pollution claim, sometimes through litigation. Eventually, they discovered that it was costing them more to fight it than to pay for it, so they decided to cover eligible cleanups. Eligibility is defined through third-party impact – usually impact to groundwater or off-site properties. Also, in the 1990s, insurance companies began to change their new policies to exclude pollution claims, so most new policies do not cover heating oil contamination cleanup.
How do I choose a contractor? The Oregon DEQ provides a list of licensed heating oil service providers, which is available upon request or through their website. Washington Department of Ecology does not have contractor licensing requirements. When choosing a contractor, we suggest that a homeowner consider the following:
- Licensing, Insurance, and Bonding – A contractor should be licensed, if required, and carry liability insurance and a bond.
- Contractor License – In addition to specific environmental licenses, a contractor must be licensed with the Construction Contractors Board in Oregon and the Department of Labor and Industries in Washington.
- Experience – Some contractors have been working in the heating oil tank business for years and have gained the experience and knowledge to inform the homeowner of the best options and methods for the site. Some inexperienced contractors, unfortunately, have entered this business to make a quick dollar, which can be detrimental to the homeowner.
- Ethics – Much of the business that heating oil contractors receive is through word-of-mouth. Well-established businesses typically have gained their reputation by treating clients and competitors with respect and professionalism. This business is highly competitive, however, and some contractors have attempted to obtain clients by badmouthing their competitors, or hiding additional costs in their estimates.
Can I do the work myself? The simple answer is, yes. However, in Oregon, if a certification is required, a homeowner must complete the required forms and indicate how he or she learned how to do the work. I do not recommend that a homeowner undertake heating oil projects. Issues to consider include: a) working in confined spaces; b) locations of underground utilities; c) possibility of causing or adding to contamination during tank removal; d) working with potentially hazardous chemicals; or e) unforeseen conditions that can result in additional or difficult work.
That said, sometimes, the cost of a heating oil project can be reduced by the homeowner conducting some of the work; for instance, digging down and exposing the top of a tank, or having the oil pumped out.
William CullochDasson is a registered professional geologist with over 12 years experience in the environmental field.
For more information
If this all seems confusing and difficult to understand, you are not alone. The Oregon DEQ and Washington DOE have websites with additional information:
www.deq.state.or.us or www.ecy.wa.gov
