Buried Oil Tanks

I have seen several oil tanks buried over the years and these now can be very costly to remove.

Recently I had an inspection of one building that had an oil filler pipe on the corner of the building. The listing Realtor said the inspector they had hired, never mentioned it in his inspection. As the pipe went into the ground and the building was heated by a gas boiler it was obviously an unused tank. When the cap was removed the smell of fuel was very strong, so I recommended they check it out.

(The buyer had a friend who got stuck with a $650,000 clean up bill for a property they purchased in Brampton.) They asked for this to be investigated and the tank removed. The last I was updated on was the company they hired, told them it would cost $10,000 to get to the tank and have it removed and the ground tested for contamination. They were told that if the ground was found to be contaminated that any cleanup costs would be added.

Another house I looked at had a filler pipe at the end of the deck and two copper lines that were crimped and bent near the gas furnace. I advised them to verify the oil tank had been removed. The seller insisted for 3 days there never had been oil into the house. Finally the buyers agent found a fuel supply company that verified they had delivered oil to the residence previously. When confronted with this information, the seller admitted they had oil previously but said the furnace and tank had been removed. When the agent asked me if I felt this was good enough to proceed, I suggested that they have the verification provided in writing. When they asked for verification that the tank had been removed, it took 3 more days for the seller to admit they had not removed it, but would have it done asap.

What are the current guidelines on buried oil tanks? Here are several items of note.

All existing fuel oil storage tank and appliances are required to undergo a comprehensive inspection by the Fuel Oil distributor at least once every ten years in order to ensure compliance with the regulations and code.

As of Oct 1 2009, all buried tanks no matter the age must be removed if not in use, or upgraded if they are still in use.

Once the use of an underground (buried) fuel oil tank has been permanently discontinued, the tank must be removed by a qualified TSSA registered Petroleum Equipment Mechanic 2 (also known as a PM 2).

If you are thinking of abandoning your fuel oil underground storage tank, and do not want to remove it, you are required to submit an application for a Variance to TSSA. Upon receipt of your Variance Application, it will be reviewed and you will receive written notification informing you of the outcome of your variance application.

If a homeowner wants to remove the tank themselves, this would be governed through a variance technical review process by TSSA. This would mean they oversee the entire procedure and set various guidelines in place as they see fit at the time and situation.

Who is responsible for the removal or any other work related to the underground tank?

The current owners of underground tanks are responsible for the costs of maintaining, upgrading, and/or removing their underground (buried) fuel oil storage tanks.

And if the tank is leaking?

With any fuel oil spill you are also required to notify the Spills Action Centre of the Ministry of Environment and Energy at 1-800-268-6060.

Who bears the cost of the cleanup of a spill or contamination?

TSSA states very clearly.... The cost associated with cleaning up contamination is the responsibility of the owner.

This means once the property changes hands, the new owner can find some very large costs associated with a tank that is old or not used.

Obviously having a buried oil tank is something you would want to be fully aware of as costs can get very high to remedy if a problem develops.