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Home Buyers and Home Owners Guide to Leaky Heating Oil Tanks - What to Do About & When to Report Oil Tank Leaks InspectAPedia®  -     Number of residential oil tanks Frequency of oil tank leaks by type and location of oil tank Oil leak environmental issues - the impact of leaky oil tanks Oil tank leak reporting requirements & regulations - where to find the rules

This document informs readers in detail about the issues surrounding leaking oil tanks, describes oil tank inspection and tank testing methods, suggests what a home inspector is obligated to do and report if an oil leak is found, and provides links to more detail about above ground and buried oil and other storage tanks. Leaking oil tanks are not only a concern as contaminants of the water supply, but have become an increasing general environmental concern addressed by the DEC. Leaking commercial equipment and even simply-suspect equipment have been extremely costly to address.

Such burdens were never anticipated when the equipment was installed. While similar regulations pertaining to residential installations are scarce, this topic is of growing concern to home owners and home buyers. This article explores opinions and suggestions culled from news articles, discussions in several states and provinces, and discussions among several home inspectors.

© Copyright 2010 Daniel Friedman, All Rights Reserved. Information Accuracy & Bias Pledge is at below-left. Use links at the left of each page to navigate this document or to view other topics at this website. Green links show where you are in our document or website.

INTRODUCTION - to Residential Buried Oil Tanks

Back in 1961, traditional heating oil tank installation procedures and standards recommended that all oil-storage tanks be buried outside wherever feasible. That was then. This is now.

New concerns about leakage and environmental pollution raise warnings about buried tanks. (Reference: Standards of the National Board of Fire Underwriters, as referenced by "Domestic and Commercial Oil Burners,", Charles H. Burkhardt, 1961, 3rd Ed., McGraw Hill Book Company, p. 172.)

In states where oil is used for residential space and water heaters, oil storage tanks are found buried outside (550 or 1080 gallons), outside above ground (often a 275-gallon "indoor" tank never intended for weather exposure), and inside (275 to 550 gallons maximum). Leaks at any of these tanks are at risk of causing environmental damage. In one older property we found an indoor tank leaking directly into the casing of a private well which was located in the basement!

New York State's Department of Environmental Conservation has been developing and enforcing a Petroleum Bulk Storage Program since the early 1980's. The goal of this program is to prevent leaks and spills of petroleum into the environment.

The New York State DEC estimates that there may be as many as 185,000 above and underground tanks storing petroleum in New York State subject to DEC regulations. Many of the tanks installed in the 1950's and 60's are bare steel and have a fifty percent chance of developing leaks today.

Currently the regulations apply to any facility with a combined capacity (liquid non-waste petroleum-based oils) which exceeds 1,100 gallons but is less than 400,000 gallons. No individual unregulated site can exceed 1,100 gallons; if the owner has a 1,000 gallon tank out by the garage and another 275 gallon tank for heating oil the regulations still apply. (Reference: Telephone conversation, author with Southern New York office of the Department of Environmental Conservation, DEC ca 1988.)

The regulations require that these facilities must be registered with the state. Depending on the size, age, location, and type of product stored the system may have to be upgraded or tested.

FREQUENCY OF OIL TANK LEAKS - Frequency of & Responding to Oil Leaks in Underground (Buried) Oil Storage Tanks - Residential

In New England for a two year period [1984-5] among customers who have buried heating oil tanks (16% of total customers) surveyors found an average of 1.7 tank leaks per thousand customers.

They also found 2.5 fuel line leaks per 1000 customers. (Fuel Oil and Oil Heat magazine, August 1985 p.18.)

More recent oil tank leak data seems to be a secret.

TANK FAILURE RATES gives details and statistics about the chances that an oil tank is leaking or about to leak or has already leaked.
ABOVE GROUND OIL TANK INSPECTIONS discusses the visual inspection of above ground tanks for evidence of leaks or other defects.

Usual Reasons for Oil Storage Tank Leaks - Rust Perforation

Underground fuel storage tanks usually fail from rust perforation due to several effects of water inside the tank including, in the case of heating oil, combination of water with sulphur in the fuel. External rust, unless very heavy, isn't highly correlated with internal rust. A new tank can involve significant expense.

Oil tank leaks are also caused by mechanical damage during installation,oil fill, vent, or supply piping errors, corrosive soil conditions, possibly by oil tank manufacturing defects, possibly indirectly, by weather conditions and in-tank condensation, and finally, by delivery of bad oil that contains excessive amounts of water.

OIL TANK FAILURE CAUSES gives details about the causes of oil tank leaks
TANK ABANDONMENT discusses the requirements for abandoning or removing oil tanks. If a tank is leaking its use will have to stop and an oil spill cleanup performed. Leaks must be reported, as discussed below at WHAT IF AN OIL TANK IS LEAKING?

ENVIRONMENTAL ISSUES - Regarding Underground Oil Storage Tanks (USTs)

The U.S. Department of Environmental Conservation has a program registering buried tanks at any site storing more than 1100 gallons of heating oil. Requirements for gas (auto fuel), or other fuels may be different. Eventually this concern may spread to smaller residential tanks. The concern is for leaks which contaminate the environment. Tanks located where they may leak into a
local waterway or into the water supply are a special environmental concerns. Free publications are available from DEC regional offices: Petroleum Storage Regulations, How to Register Your Petroleum Storage Facility, Testing Underground Storage Tanks. A New York Help-line number is also available at 1-800-242-4351. Other state environmental regulators and their contact information are listed at OIL TANK REGULATIONS.

OIL TANK REGULATIONS gives details about the regulations which require reporting leaks and which govern oil tank abandonment

OIL TANK LEAK IMPACT vs REGULATIONS- How are we affected by oil tank regulations?

On-site oil storage capacity can require tank registration: It is not unusual for a homeowner in the Northeastern U.S. to have installed additional storage tanks during the energy crisis of the 1970.

The added storage can bring the capacity of the property above the 1,100 gallon threshold and under the DEC regulations.

Many older homes with underground steel tanks have a good chance of developing a leak. We should provide our clients with this information. They can then make an informed decision to seek additional data and can also decide if testing should be performed.

WHAT IF An OIL TANK IS LEAKING? - What if an oil-fired heating tank or system is leaking? Oil Tank Leak Reporting Requirements

A leaking above ground oil tank may be discovered by simple visual observation. Leaks in buried tanks require special testing methods to locate and then test the tank for leaks or the soil for past leakage.

If you see a leaky oil tank or an oil spill: In New York (and in most other jurisdictions) anyone visually inspecting a petroleum storage tank of any size and finding that the system is leaking must report the leak to state environmental authorities. In New York State an oil leak must be reported within two hours to New York DEC. The New York Oil spill hotline is 1-800-457-6362. For other states see the state contact information listed at OIL TANK REGULATIONS.

We do not consider a minor drip onto the boiler room floor at a bad fitting a reportable leak for these purposes. (Beware! A small leak at an oil line can result in air entry into the system which can create other dangerous conditions at the equipment.)

Test oil tanks for presence of water

Buried fuel tanks should be tested for amount of water present in tank bottom, and any water should be pumped out. Water corrodes the tank and leads to leaks. So if there is a lot of water in the tank we are more concerned about the chances that inside-tank corrosion is severe and there is a greater risk of tank leaks.

While we've found them lasting longer, a common life expectancy of buried oil tanks is 10-15 years. We do not have the same data for gas tanks. Life may be similar. If the tank is to remain in use, ask your fuel supplier about using an additive or other methods to help remove water.

What should a home inspector report to a client about buried oil tanks?

Inform clients that a buried heating oil tank is installed using at least the following text:

A buried fuel tank is installed at this property. Such components are not inspected (tested) during a home or building inspection unless specific prior test arrangements have been made for advice by an appropriate expert. More information on what to do about inspecting, testing, abandoning, or replacing oil tanks is available at the "Oil Tank Home Page"InspectAPedia.com/oiltanks/tanks.htm

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Use links just below or at the left of each page to navigate this document or to view other topics at this website. Green links show where you are in our document or website.

OIL TANK LEAK ADVICE
  OIL TANK LEAK ENVIRONMENTAL ISSUES
  FREQUENCY of OIL TANK LEAKS
  HOME INSPECTOR OIL TANK REPORT
  OIL TANK LEAK IMPACTS
  OIL TANK LEAK CAUSES
  OIL TANK LEAK CLEANUP GUIDE
  OIL TANK LEAK REPORTING REGULATIONS - ALL
  OIL TANK REGULATIONS - CANADA
  OIL TANK LEAK TESTING
  LEAKY OIL TANK FILL PIPES
  OIL TANK LEAK REPORTING BASICS
  WHAT IF AN OIL TANK IS LEAKING?
OIL TANK LIFE
OIL TANK TESTING
FLOATING UP OIL STORAGE or SEPTIC TANKS
FUEL OIL TYPES & CHARACTERISTICS
OIL TANK LEGAL ISSUES
OIL TANK REGULATIONS details about reporting requirements, links to state authorities, contact telephone numbers
OIL TANK HOME - The Oil Tank Information website InspectAPedia.com/oiltanks/tanks.htm

• Thanks to Arlene Puentes for for technical edits on oil tank leak advice- 12/2005. Arlene Puentes is a licensed home inspector, educator, and building failures researcher in Kingston, NY.

More Information on Building Diagnostic Inspections and Repairs

• Oil Tanks - The Oil Storage Tank Information Website: Buried or Above Ground Oil Tank Inspection, Testing, Cleanup, Abandonment of Oil Tanks
• Abandon a Buried Oil Tank, How To - Abandoning Commercial Underground Tanks, Russ Brauksieck, ASHI Tech. Journal, Vol.3 No.1 Spring 1993, P. 40-41 [Reprint]
• Above Ground Oil Tanks: Visual Inspection of Oil Storage Tanks for evidence of leaks, damage, improper piping - photos and text
• Above Ground Oil Tanks Checklist, an Oil Company's advice
• Above Ground Tanks UL Standards, UL Tank Listing Standards, guidance for home owners, buyers, and inspectors
• Buried Oil Tanks - Finding How to Find Buried Oil Tanks and "Nearly Hidden" and Leaky Oil Tanks - photos and text.
• Buried Fuel tank - Advice - Buried FUEL Tank - GAS or OIL advice for home buyers, inspection report language
• Environmental Issues & Regulations for Oil Tanks, Registration, Abandonment, Leak Reporting
• Home Inspection Report Language Library: Buried Oil Tanks, Basic home buyer advice - home inspection report language suggestions
• Home Inspection Report Language Library: Visible Defects in Oil Tank Installations, Tanks, and Heating Oil Piping
• Home Inspection Report Language Library: Gas Fuel Piping or Tank Faults Basic advice - home inspection report language suggestions
• Home Inspection Report Language Library: Oil Tanks text file list © Oil and Other Storage Tank Leaks, Testing, Abandonment, Inspection - UST home inspection report language files - Reference List
• Indoor Environment Website Indoor Building Environmental Hazard Detection, Testing, Repair, & Prevention - Main Web Page
• Leaky Heating Oil Tanks - Advice for Home Owners or Buyers: caused of leaks in oil tanks, oil tank testing alternatives, what to do about leaky tanks: D.J. Friedman, ASHI Tech. Journal, Vol.2 No.1, Winter, 1992 p. 42-43 Illus
• Leak or Failure Rates for Home Heating Oil Tanks
• Legal Issues Regarding Buried Oil Storage Tanks K.S. Rea, Attorney, summary from ASHI Chapter Seminar.
• Primer on Petroleum Bulk Storage Tanks & Petroleum Contamination of Property Paul H. Ciminello, ASHI Tech. Journal, Vol.3 No.1 Spring 1993, p 35-39
• Petroleum Bulk Storage J. Sibblies, NY State DEC, Advice to Home Owners and Home Inspectors about Oil Storage Tanks - summary from ASHI Chapter Seminar.
• Septic Tank inspection, testing, diagnosis, repair
• OIL TANK FAILURE CAUSES - Oil Tank Failure Causes - oil tank leaks are caused by corrosion, damage, soil conditions, other factors
• TANK FAILURE RATES - Oil Tank Failure Rates - Oil Tank Leak Probability as a Function of Tank Age, Location, Condition, Soil Conditions and Other Factors
• OIL TANK TESTING - - How Oil Tanks are Tested for Evidence Leaks, of Current or Previous Oil Spills
• Web Link Exchange: Contact Us to list your website or contact information for oil tank testing, tank corrosion research, oil industry experts

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