InspectAPedia®   -   Search InspectApedia

Photograph of - is this heating oil running across the basement floor? Notice the abandoned oil line at the furnace? Canadian Buried & Above Ground Oil Tank Leak Reporting & Tank Abandonment Regulations

Oil storage tank reguations guide for Canada.

This document outlines the basic Canadian laws & rules for reporting oil tank leaks and abandoning oil tanks which are no longer to be used. It provides locates and summarizes oil tank abandonment guidelines providing oil tank regulations and, it provides state and national Canadian building or environmental code references for abandoning oil tanks including procedures for temporary abandonment and for handling of tanks when converting to other fuels.

InspectAPedia tolerates no conflicts of interest. We have no relationship with advertisers, products, or services discussed at this website.

- Daniel Friedman, Publisher/Editor/Author - See WHO ARE WE?

Oil Leak Reporting Requirements & Oil Tank Registration at Residential Properties in Canada

We've been collecting copies of environmental regulations regarding oil storage tanks for U.S. states and Canadian provinces since 1990. Regulations regarding identification, testing, and removal or abandonment of buried tanks vary widely from state to state in the U.S., Canada, and other countries.

Article Series Contents

Government Contacts for Oil Tank Information & Regulations for Canada

Contact the Environmental or TSSA office in your province (Canada): [U.S. state regulations are listed below].

Canadian Environmental Regulations for Oil Tanks: Above Ground and Under Ground

Codes covering underground storage tanks in Canada

In BC (for example) new homes getting new oil-burning equipment including underground storage tanks are covered by the BC Building Code and must comply with section 6.2.1.5(1)

Existing underground storage tanks fall under the jurisdiction of the British Columbia Fire Code. If your client has an underground storage tank on their property that has no further use or has been out of service for two years, such tanks together with connected piping and dispensers, shall:

  1. have all flammable liquids and combustible liquids removed from the oil storage tank

  2. the oil storage tank must be purged of vapours
  3. except as permitted in some circumstances, the oil storage tank must be removed from the ground

If Contaminated, soil surrounding the storage tanks must be replaced with clean fill.

Where the authority having jurisdiction determines that it's impractical to remove underground piping, such piping shall have the ends permanently sealed by capping or plugging.

Where storage tanks are to be disposed of, sufficient openings shall be cut in the tanks to render them unfit tor further use.

Contact your local fire authority for more information.

Here we have adapted and expanded illegible pages from website http://www.6717000.com/doc.php?id=139.

Any questions or comments about the services or products CREA provides? You can contact CREA

Underground storage tanks in Canada

Fill pipe telltale evidence of a burie oil tank, a UST (C) InspectApedia.comWhat you need to know about oil tanks - a more readable copy of Canadian oil tank regulations for Alberta, Ontario, Newfoundland, PEI and Saskatchewan.

If you're listing or selling a single family home, townhouse or condominium apartment built before 1957, chances are there will be an under-ground oil tank on the property.

That's because many homes in the Greater Vancouver area were originally heated by furnace oil. The tanks were usually located in backyards and were filled with sand or capped when natural gas became available.

Right now, there is no accurate data available on the number of tanks and their exact location in the Greater Vancouver area.  at we do know is that if they haven't been removed, they're there.

Realtors beware. Underground storage tanks, even if capped and filled with sand, pose significant risks, says Doug Roberts, manager, Environmental Protection Branch, City of Vancouver. "Tanks corrode and rust."

Roberts explains that any remaining oil can leach into the ground and into the drainage system. "It can flow onto neighbouring property, into the storm sump and waterways including ditches and streams.

It can contaminate water and pose a hazard to wildlife."

In the City of Vancouver, Fire by-law no. 8191 (sec. 4.10.3) and the Sewer and Watercourse by-law no. 8093 (sec. 5.3) both require that tanks that have been out of service for two years or will not be reused, must be removed.

In the other 21 villages, towns, cities and regional districts covered by the Real Estate Board of Vancouver, the BC Fire Code requires (sec. 4.10.3.1):

"when underground storage tanks have no further use or have been out of service for two years, such tanks, together with connecting piping and dispensers, shall... be removed from the ground."

John Poole, Lieutenant, Fire & Rescue Services for the City of Vancouver, recommends that property owners hire a contractor experienced in tank removal. "Before any work is done, you must obtain a permit issued by the Fire Prevention Department and you must follow all conditions noted on the permit."

Oil Tank Removal Process for Canadian Oiltanks

Typical Oil Tank Removal Situations 

1. There is a home for sale. Both the buyer and seller know there is an underground storage tank. The buyer agrees to buy the property. Who is liable to remove it? The property owner is responsible for tank removal.

2. Both the buyer and seller know about the tank. The buyer says the law requires the seller to remove it. at does the seller have to do? What happens if the buyer reports it? The property owner is responsible for removing the tank. If someone reports the tank, the City of Vancouver will respond by sending a letter outlining time periods for removal. If the property owner does not comply, the city is authorized to prosecute.

3. A property contains an underground storage tank, decommissioned 10 years ago in compliance with the law at that time, which required homeowners to remove contents and fill with sand. What is the position now on this tank? The tank must meet current bylaw requirements, which means it must be removed.

4. What happens if a property owner is demolishing a home and finds a tank? The tank must meet current bylaw requirements, which means it must be removed.

Contaminated oil tanks sites, what you need to know

What is a contaminated site?

A contaminated site is a location where commercial and industrial activities may have caused spills and deposits of chemi­cals on land Toxic sub-stances such as PCBs, lead or gasoline may be present in wilt surface or groundwater.

Who regulates sites and clean-ups?

The Ministry of Water, Land and Air Protection inspects and reviews sites, issues permits, and enforces legal controls. The Contaminated Sites Program is coordinated by the Contaminated Sites Unit of the Environmental Management Branch. Major responsibilities include:

Which legislation governs oil tanks sites in Canada?

The waste Management Act was amended in 1997 to incorporate provisions for managing and regulating contaminated sites. The Contaminated Sites Regulation provides rules to complement the contaminated sites provisions in the Waste Management act.

What is the Canadian oil tanks site registry?

The site registry provides public access to information on the site cleanup process. It contains information on 6,000 sites.The site registry is accessible through BC OnLine and includes:

Two oil tanks categories still to be developed are:

Who should use the oil storage tank site registry?

Anyone buying, developing or advising on property that is or was used for activities likely to cause contamination. These include bankers, land owners, developers, pur­chasers, lawyers, real estate agents, insurers, local governments, appraisers, notaries, and land surveyors.

Why is oil tank site information important?

During the development of contaminated sites legislation, concerned stakeholders informed the province of their need for quick and easy access to information about sites:

On May 14, 2002 the Hon. Joyce Murray, Minister of Water. Land and Air Protection appointed an advisory panel to carry out a review of the contaminated sites provisions in Part 4 of the Waste Managemnet Act and the Contaminated Sites Regulation.

The Panel will review key components of the Contaminated Sites Program and will consult with citizens and stakeholders to determine their needs and expectations.

The Panel will report to the Minister in September 2002, The recommendations of the Panel will be used to develop a new policy framework for the regulation of contaminated sites in British Columbia and will be used to inform subsequent legislative changes required for the Spring 2003 Legislative session and consequential regulatory changes.

The Board's government relations committee will keep you informed.

Oil tanks are a serious matter and due diligence is required by the Buyer and their Agent.

The following article from the BCREA is a good reminder to all licensees that all Contracts of Purchase and Sale for properties where an oil tank might exist must contain the appropriate clauses as provided in WebForms for insurance of the home and removal of the oil tank by the seller as well as a property inspection.

Oil tanks are a not a latent defect as there are several steps that any buyer and their agent would be expected to take to confirm the existence of an oil tank including the: PDS, property inspection and subject clauses in the contract referring to what happens if an oil tank is found through an inspection by the buyer, if the seller says there is no oil tank.

The consequences of an error are large if at the end of the day a soil contamination is found as a result of an improperly maintained or decommissioned tank.

The City of Vancouver by-laws require that all tanks that have not been used for 2 or more years must be removed. Decommissioning is allowed under certain circumstances.

More details can be found on our members site at www.happystreet.ca ;

use your full name in lower case, no spaces and your 4 digit numeric office security code for access to the site.

The insurance bureau of Canada says insurance claims from domestic oil tank leaks have increased by more than 50% in the past ten years. Tbe problem is that many oil tanks are corroding from the inside out so the failure is not readily visible.

Most insurers will cover homes with oil tanks, provided the following guidelines are met:

Regular insurers won't even consider underwriting a risk that has an underground oil tank; however, Lloyd's of London will underwrite a special risk policy for properties with underground oil tanks less than 25 years old. The policy would have a leakage/seepage/pollution exclusion.

Organizations like the Insurance Bureau of Canada create guidleines, but insurance firms are private enterprises and set their own underwriting policies. This means some firms have tighter underwriting policies than others.

According to the Bureau, the best thing a consumer can do is shop around for the best coverage, taking into consideration the risk involved. If they still can't get coverage, then a special risks firm will often underwrite a policy-for a higher premium.

CREA has created an excellent resource on this topic, entitled " What REALTORS™ Should Know About Property Insurance." It deals with several specific issues, and is available on CREA's REALTOR Link™ homepage.

Oil Tanks - Insurance issues you should know

The B.C Fire Code now requires the removal of any underground oil tanks that have been out of service for more than two years. Licensees who are involved with the sale of a property that contains, or is thought to contain, a buried oil tank should be aware that this is a concern and should also beware of their duties with respect to disclosure.

Actual scenario of what happened to a realtor at Re/Max Crest Realty Westside; Here is what happened with my listing.

The Buyer was aware that we had an above ground oil tank and oil furnace. Due to competing offers, he did not put subject to inspection. Now, he is trying to insure the property and every Insurance Co. has turned him down.... on one condition, he will have to replace the tank and / or furnace within 30 days of completion. So, this is an important factor for all the realtors to pay attention to.

Actual senerio of what happened to a realtor at Re/Max Crest realty Westside;

Here is what happened with my listing.The Buyer was aware that we had an above ground oil tank and oil furnace.

Due to competing offers, he did not put subject to inspection. Now, he is trying to insure the property and every Insurance Co. has turned him down. ...on one condition, he will have to replace the tank and / or furnace within 30 days of completion.

So, this is an important factor for all the realtors to pay attention to.

Understanding Oil Storage Tanks Oil Tank Leak Insurance Issues

CREA

The Canadian Real Estate Association,

Email: info@crea.ca

Real estate transactions can be put at risk if a client purchases a property with an underground fuel oil tank and is denied homeowners insurance. If a client finds that an existing tank has not been registered, remedial action may cost them thousands of dollars.

Homebuyers have expressed concern over home insurance policies being denied or being unable to obtain home insurance as a result of underground storage tanks. A number of transactions have fallen through on closing as a result.

According to the Insurance Bureau of Canada, a home with an exterior oil tank older than 15 years, or an interior tank older than 25 years will not be insured.

The problem is that many oil tanks are corroding from the inside out, so the failure is not readily visible. This often occurs from condensation that builds up inside the tank.

Since oil is lighter than water, the water goes to the bottom of the tank and causes corrosion. The first sign of a bad tank could be an odour of oil in the air.

There might be rust or corrosion where the legs are welded to the tank. Other symptoms could include a leak in the fuel filter or the nozzle becoming plugged.

Insurance companies are concerned that an old oil tank can leak and spill hundreds of litres of heating oil into the home, or into the ground.

Spilled oil can quickly contaminate soil and groundwater. If the leak finds its way into a sump pump or floor drain, the spill will undoubtedly make it a very expensive clean up. With outside storage tanks, where rust and corrosion are more common, a spill can contaminate the soil or make its way into the nearby streams or rivers.

What may seem like a simple clean-up can in fact be a complicated task to replace the leaking tank and supply lines, remove contaminated soil, replace the foundation and treat groundwater.

The cost to repair a leaking oil tank can range from several hundred to several thousand dollars.

The most commonly used tanks for heating oil are steel containers that hold about 1,000 litres and weigh close to 1,000 kg when full. Their odd shape, which lets them easily pass through doorways, also makes them unstable unless they are properly secured from tipping over.

When buying a tank, look for a label that tells the date and location the tank was made. The label should clearly indicate that it meets a national construction standard.

The National Fire Code recommends that all piping and connections on oil tanks be made of metal, not plastic or rubber.

Buying a used oil tank is not recommended. Rust and sludge that has collected in the tank will cause burner problems.

See OIL TANK WATER CONTAMINATION for details.

Indoor Oil StorageTanks in Canada

Leaky oil tank (C) Daniel Friedman

Many home oil tanks are designed and built for indoor use. Indoor oil tanks will generally last longer and improve the efficiency of oil-fired appliances. Indoor storage tanks are less likely to spill and do not emit an odor.

When installing an indoor oil tank, place the tank where it can be easily inspected but will not be damaged by normal household activities.

If possible, surround the tank with a low curb and dyke to contain any leaked oil. Never place a tank against a wall, as this can cause the tank to rust.

Cover the supply line and filter to protect them from damage. Storing objects on top of the tank could potentially lead to damage.

Outdoor Oil Storage Tanks in Canada

Photograph of an oil tank filler flush with the ground.Outdoor tanks should be placed at least 15 m from any well. To prevent rust, cover the tank's exterior with enamel paint. Support the tank properly to prevent it from shifting or falling over. Prepare a non-flammable base using concrete or patio stones.

Wood is not recommended as it can burn, rot and retains water, which causes the tank to rust. Slope the tank slightly toward the drain.

Ensure the tank stays upright and does not make contact with a wall.

To allow for changes in ground level, the oil burner supply line should have a horizontal loop before entering the building. The line should be sloped toward the building to prevent water collection.

If possible, the oil filter should be placed inside the home because collected water can freeze and cause splitting.

The supply line can be installed through the top of the tank to protect against breaking the line and draining the tank.

If frost heaving or ground settling causes an tank to move, have it leveled properly.

Underground Oil Storgage Tanks in Canada

Many underground oil tanks have reached the end of their useful lives and are beginning to corrode, rust and leak. Increasing homeowner insurance claims resulting from leaking oil tanks are very expensive and can lead to high insurance rates, or even refusal of coverage.

It is a homeowner's legal responsibility to properly maintain the oil tank and clean up any spills or leaks that may occur.

Leaking underground storage tanks may create several hazards including:

  • Products and product vapours can generate a potentially explosive mixture;
  • Products can enter surface water;
  • Products can enter drinking water;
  • Products can contaminate surrounding soil;
  • Products can damage property.

Problems with underground oil tanks may complicate the process of applying for homeowner's insurance and, in extreme cases, may adversely affect real estate transactions themselves.

What Oil Tank Registration Is Required in Ontario

In Ontario, effective May 1, 2002, fuel distributors may not supply fuel oil to an underground tank that is not registered with the Technical Standards and Safety Authority (TSSA).

To ensure uninterrupted oil supply, tank owners must complete the TSSA's Underground Fuel Oil Application Form and may be required to upgrade their tank with specific leak and spill grevention equipment depending on the age of the tank.

Upon approving an application form, the TSSA will assign a registration number to the tank. The tank owner must provide the registration number to a fuel distributor to ensure uninterrupted fuel supply.

To receive a copy of the Underround Fuel Oil Application Form, or for more information, call the thechnical standards and safety authority toll-free at 1-877-682-8772.

HOW TO CHECK IF AN UNDERGROUND OIL TANK IS LEAKING

Because they are buried, it is difficult to detect a leaking tank. Some underground tanks may leak for years without owners realizing it. If oil consumption suddenly goes up the tank may have sprung a large leak.

There are companies that test underground tanks for leaks. Call the fuel supplier to help find underground tank testing companies.

WHAT TO DO IF AN OIL TANK IS LEAKING

Suspect a leak in an underground oil tank? Call a TSSA registered fuel oil contractor to help find and stop the leak and clean up any leaked fuel oil.

In Ontario, homeowners are also required to call the Spills Action Centre of the Ministry of Environment at 1-800-268-6060. Insurance companies may also have resources of information.

Underground tanks are required to be upgraded with specific leak and spill prevention equipment or be removed.

WHAT TO DO WITH UNUSED UNDERGROUND OIL TANKS

An unused underground oil tank must be removed and all contaminated soil must be cleaned. Underground tanks are required to be removed by TSSA registered fuel oil contractors.

When an underground tank is removed, the soil around the tank must be assessed for contamination and all contamination cleaned.

OIL STORAGE TANK MAINTENANCE ADVICE

Spills can be avoided by detecting problems early on. If asked, most fuel companies will inspect the tank yearly, and will report any problems or recommend repairs

.At least once a year, change the filter and remove any sludge and water from the tank. Check with a fuel company about oil additives to reduce the water in the tank.

Occasionally, check the outside of the tank for any rust. Clean off any spots and apply a rustproof paint.

When replacing an oil tank, be careful not to transfer all of the contents of the old tank into the new one.

Accumulated water, sludge and bacteria will cause the new tank to corrode and leak.Keep the tank relatively full over the summer so that less water from condensation will collect inside. Oil tanks should be checked for problems after each fuel delivery.

WHAT COMSUMERS SHOULD DO WHEN BUYING OR SELLING A HOME WITH AN OIL TANK

Prior to closing, contact the fuel oil supplier for the home and determine if the basic or comprehensive inspections of the tank and oil-heating appliance have been completed. The fuel oil supplier will have information about the servicing and inspection program that is in place for the home.

Selling a home with an oil tank? REALTORS should expect questions regarding the age of the tank, location and proof that the tank installation meets safety requirements. Purchasers should expect to be asked, by their insurer, to provide this type of information when applying for insurance.


...


...

Continue reading at CANADIAN OIL TANK REGULATIONS by PROVINCE or select a topic from the closely-related articles below, or see the complete ARTICLE INDEX.

Or see these

Recommended Articles

Suggested citation for this web page

CANADIAN OIL TANK REGULATIONS at InspectApedia.com - online encyclopedia of building & environmental inspection, testing, diagnosis, repair, & problem prevention advice.


Or see this

INDEX to RELATED ARTICLES: ARTICLE INDEX to HEATING OIL, OIL BURNERS, OIL FIRED HEATERS, OIL TANKS

Or use the SEARCH BOX found below to Ask a Question or Search InspectApedia

Ask a Question or Search InspectApedia

Try the search box just below, or if you prefer, post a question or comment in the Comments box below and we will respond promptly.

Search the InspectApedia website

Note: appearance of your Comment below may be delayed: if your comment contains an image, photograph, web link, or text that looks to the software as if it might be a web link, your posting will appear after it has been approved by a moderator. Apologies for the delay.

Only one image can be added per comment but you can post as many comments, and therefore images, as you like.
You will not receive a notification when a response to your question has been posted.
Please bookmark this page to make it easy for you to check back for our response.
Our Comment Box is provided by Countable Web Productions countable.ca

Comment Form is loading comments...

Citations & References

In addition to any citations in the article above, a full list is available on request.


ADVERTISEMENT