Heating Oil
Tanks
The
Hidden 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: vent pipe and oil fill pipe. |
By William CullochDasson
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?
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 and is an environmental
specialist with 3 Kings Environmental, Inc. He can be reached at 360-666-5464,
or by email: BillC@3kingsinc.com.
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 |
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