BUYER BEWARE!: In Search of Buried Oil Tanks

17 Dec BUYER BEWARE!: In Search of Buried Oil Tanks

Are you buying a home that used heating oil in the past? If so, does a buried oil tank remain on the property? Every homebuyer needs to ask this vital question. This article tells you how to find the answer and protect your investment.

The Seller’s Disclosure

For many decades, heating oil was commonly used to heat homes. Many older homes converted to natural gas, but current owners often do not know if the underground storage tank (UST) was ever removed. The Seller’s Disclosure — provided with every real estate transaction — should indicate if an underground heating oil tank is or was present on the subject property.

Some homeowners will know that a tank was removed or abandoned on their property. But was it removed or abandoned properly? What forms of documentation does the seller present to certify that the tank was closed properly and that no residual impacts remain? If you buy a home with an abandoned UST, you become responsible for it. If the tank was not abandoned properly, the remedy — and expense — may fall to you as the new owner. So, prospective home buyers must protect themselves before closing by determining if a UST exists and, if so, knowing the status and circumstances of its abandonment.

Where’s the Proof?

A seller may declare that they removed or properly abandoned their UST, but they must have the accompanying documentation to prove their assertion. How was the tank abandoned? Was it cleaned? Did it leak? How do they know? Their word is simply not sufficient. They must furnish proof.

Here are examples of what you should look for to support the seller’s claims:

• Photographs of the work, including the tank
• Documentation that the contractor is or was certified by NJDEP to do the work
• Soil analysis demonstrating that the soil is free of actionable levels of petroleum
• Laboratory report and chain-of-custody for the soil analysis
• Receipts for the certified clean fill, scrapping of the tank, and disposal of the oil and sludge
• If soil was excavated and disposed, the seller should provide disposal documentation
• Analytical soil data that demonstrates that the remaining soil has no actionable levels of impacts.

 
Even if the seller says, “I was there. I witnessed everything, and the tank did not leak,” they may be correct, or they may think they are correct. But, for example, if they hired one of the many low-cost “tank-yanker” companies, the work may not have been done in accordance with state directives. Unless proof is supplied, the owner would not typically have any way of knowing this. Regardless of the circumstances, without the proper documentation, their word is meaningless.

In the absence of satisfactory documentation, what is a prospective buyer to do?

Enter the “Tank Sweep”

A Tank Sweep is a two-part inspection process. First, the basement/crawl space is visually inspected to determine if physical evidence (e.g., copper lines, foundation wall patching, etc.) exists that may suggest that a tank is or was present. Then, an exterior building inspection is conducted along the foundation for physical evidence (e.g., vent pipe, oil fill cap, etc.), and then the subsurface is scanned using a hand-held device to identify large ferrous objects such as a tank. Typically, buried heating oil tanks are found near the building’s foundation. They can be located in the front, rear, or side yard areas, and they can be found beneath paved driveways, concrete sidewalks, and near exterior utilities (e.g., air conditioning units).

What if a Buried Oil Tank is Found?

Purchasers should ask their real estate attorneys to negotiate the removal of the tank by the seller prior to closing. If the tank is determined to have leaked, the seller will be responsible for any potential cleanup costs.

What if the Seller Has No Documentation?

Consider having a consultant take one or two soil samples from the area where the tank formerly existed. Analyze the soil samples for petroleum compounds in accordance with current state requirements. If the results are clean, then you can be reasonably certain that the job was performed correctly and that no residual impacts remain.

What To Do if You Suspect a Buried Oil Tank On Your Property

If you’re considering selling your property and you suspect there may be an underground oil tank on your property — or even if you’d just like the peace of mind that comes with certainty, call ESA for assistance today. Let us help you find what others may have left behind. We can usually schedule a tank location service within 48-hours of your inquiry.