Tank Decommissioning or Removal

The best way to avoid significant expenses later is to have your tank taken out of the ground now and have a new tank installed in the basement, garage or storage shed. Alternatively, as is most often the case, the home is switched over to a different source of heat. (Natural gas, propane, electricity.)

If we find a tank as part of the due-diligence process of a real estate transaction, we always advise our client to have the tank decommissioned. There is little benefit to soil testing that does not involve decommissioning because if soil samples are collected, one of two things can happen:

  1. Heating oil contamination is not found in the soil we collect. At this point, the home still has a tank in the ground that has not been decommissioned. The tank still needs to be properly decommissioned, and contamination may be discovered as part of that process. (Under the tank, for example.)
  2. The soil samples have heating oil contamination. At this point, the home still has a tank in the ground that has not been decommissioned. The tank still needs to be properly decommissioned, and additional contamination may be discovered as part of that process. (Under the tank, for example.)

Soil sampling can either give the client a false sense of security, if no contamination exists, or confirm what we already know – that the tank must be decommissioned.

It is always in the best interest of the buyer of the property to ask for the heating oil tank to be decommissioned prior to closing. This is the only way to ensure that the buyer will not be faced with additional, and unforeseen, expenses down the road.

Decommissioning of an abandoned oil tank oftentimes does not require that the tank be removed from the ground. If a tank has not leaked it can be opened, cleaned, inspected, and filled in-place. The actual removal of a buried tank involves the additional expense of excavation to remove the tank and then having to fill-in the hole.

Take a look at these few examples to see what some states require for abandoned heating oil tanks:

  • Michigan requires all USTs be properly closed and removed within one year of its last use unless removing it would jeopardize the structural integrity of a connected structure. If the UST stays in the ground, it must be 100% filled with an inert material, like cement slurry or pea gravel.
  • New York requires all USTs be emptied, cleaned, and rid of all vapors. You can leave the tank in place once it’s cleaned, but the vent line must remain open and intact, the fill line must either be removed or plugged, and written proof must be provided, assuring that the tank was properly abandoned. However, the State of New York is a proponent for tank removal.
  • Florida and Washington are two of the states that do not regulate underground oil. So the tank could be left in the ground as is, taking the “out of sight, out of mind approach,” but that’s neither safe nor responsible.

How much does an underground tank removal cost?

Removal contractors generally charge between $1,000 and $2,500+ depending on the size of the tank, its condition, and how easily it can be reached. Often not included in this price is the cost of a replacement tank, sampling and testing, cleanup work if a leak is found, and landscaping after the removal is complete.