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How to spot a buried fuel oil tank

By
Home Inspector with Structure Tech Home Inspections

If you're buying an old house in the Twin Cities with pipes sticking out of the ground in your yard, heads up.  You might have an oil tank somewhere at the property.   While the vast majority of homes in the Twin Cities are heated with natural gas, there is still a small percentage of homes in the metro area that are heated with fuel oil, and far more properties with abandoned oil tanks.

When a home gets converted from fuel oil to natural gas, the fuel oil tank becomes abandoned.  Once the tank is abandoned, it needs to be dealt with.

When tanks are abandoned

If the tank is buried, it needs to be removed or filled in place  If a fuel oil tank is left buried, it could eventually leak.  A leaking underground storage tank (LUST) can contaminate the soil as well as the home, creating an environmental hazard that can cost a ridiculous amount of money to clean up.  You can visit the EPA's web site on LUSTs for more info.

Oil TankWhen a tank is located inside the house but not buried, it needs to be properly disconnected, and sometimes removed.  A fuel oil tank takes up a large amount of room, so most people choose to have them removed, but requirements vary from city to city.  For example, once a fuel oil tank is abandoned in Minneapolis, it needs to be removed from the property.  This is written in to their Truth-In-Sale of Housing Evaluator Guidelines under item #25.  The guidelines state:

"The evaluator shall determine if there are any abandoned fuel oil tanks. If found, mark as RRP or RRE. A licensed contractor must properly remove them. (A permit is not needed if the tank is less than 200 gallons.). (Per Uniform Fire Code Sec. 79 and Mpls. Code 48.145)"

Another option for an abandoned fuel oil tank is to stick it out in your front yard and paint it like a cow.  You might think I'm kidding, but I've seen it done more than once.

Fuel oil tank painted like a cow, courtesy of Scott Graham

Clues to a buried fuel oil tank

The easiest way to identify a potential buried fuel oil tank is to look for a fill pipe and vent pipe at the exterior of the home.  Sometimes the pipes will go through the foundation wall of the home.

Oil Fill Pipes

Sometimes they just go down in to the ground.

Oil fill pipes2

When fuel oil tanks are removed, the fill and vent pipes need to be removed or cut off and filled with concrete.  If you find pipes sticking out of the ground or foundation wall like the ones shown above, it probably means one of two things: either the tank is still there, or it was removed by a hack.  No professional oil tank removal contractor is going to leave the vent and fill pipes looking like that.

According to Dean Nething of Dean's Tanks, there were many 'erroneous deliveries' that happened during the 60's and 70's, where one house address got confused with another.  About once a year, a basement would get contaminated with hundreds of gallons of fuel oil.  In every one of these cases, the contamination was so bad that the fuel oil company, Standard Oil, had to buy the property so they could tear it down and dig out the basement.  This is why the fill pipes always need to be removed when the tank is removed.

When the pipes are right next to each other like in the photos above, there's a good chance that the fuel oil tank is (or was) located inside the house or under the house.  When the pipes are separated from each other, there's a very good possibility that there's a buried fuel oil tank in the yard.  The photo below came from a house in Minneapolis - these pipes led to a 1,000 gallon tank buried in the yard.

Buried Oil Tank

Here's another example - the fill and vent pipes were located in the front yard behind some bushes at a home in Edina.  These innocuous, nearly hidden pipes led to an enormous buried tank in the front yard.

Fill pipes in front yard

There are a few diagrams floating around online that show an indoor style of tank buried in the ground, like the big green one that I showed at the beginning of this post.   Those indoor style of tanks are extremely unusual to find buried - or according to Dean's Tank, "once in a blue moon".  The vast majority of buried tanks look a lot more like big drums, like the ones shown below.  These photos are courtesy of Dean's Tank.

Oil tank being removed

Oil tank being removed2

Oil tank being removed3

Oil tank removed 4

Here's another example of pipes sticking out of the ground leading to a buried oil tank in the yard.  In this particular case, the fill pipe had a cap that could be opened.  I stuck my tape measure down the pipe, and it came out soaked in fuel oil.  It smelled like fuel oil for the next two weeks, despite my half-hearted efforts to clean it off.  Fuel oil has a strong odor, and takes a long time to go away.  It's easy to understand how a leaking tank can create such a nasty problem.

Buried oil tank outdoors

The person buying this home had the sellers remove the tank; here's what the site looked like after the tank was removed.

Oil tank removed

What to do if you suspect a buried oil tank

If you suspect a buried oil tank, call Dean's Tank, Inc.  They've been specializing in fuel oil tank removal / abandonment in the Twin Cities for over 25 years.  If a fuel oil tank has been professionally removed from a property, there's a good chance that this was the company that did it.  To determine if a fuel oil tank is present, they'll come out and do a site inspection for $200.

Dean estimates his company has removed between ten and twenty thousand tanks.  The cost of removing a buried fuel oil tank varies greatly from property to property, but costs will typically range from $2,000 to $3,000.  Having a tank filled in place typically costs just a little bit less.

According to Dean and Minnesota Real Estate Attorney John Braun, some homeowners may qualify for free oil tank removal by the Minnesota Pollution Control Agency, but certain conditions apply.  You can read more about this program in the first link included at the end of this post under 'Useful Links'.

Buried Fuel Oil Tanks and Home Inspection Standards

Home Inspection Standards of Practice specifically state that buried fuel oil tanks are not something that home inspectors are required to inspect.  Here's some SOP language from different home inspection organizations:

  • ASHI:  Inspectors are NOT required to inspect: underground items including, but not limited to underground storage tanks or other underground indications of their presence, whether abandoned or active.
  • NAHI: The inspector is not required to record location of any on-site visible fuel tanks within or directly adjacent to the structure.
  • InterNACHI: The inspector is not required to inspect fuel tanks or underground or concealed fuel supply systems.
Does this mean that if a home inspector sees obvious clues that a buried fuel oil tank is present, they should keep their mouth shut?  Heck no.  A buried fuel oil tank is important to know about when buying a house.  If a home inspector has enough experience to suspect a buried fuel tank, they should say so, even though they're not required to.
 
Useful Links:
Show All Comments Sort:
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

When I see evidence, I never keep my mouth shut!

And those are some huge tanks there!

A cheese state is an obvious, but probably one of the few, areas where abandoned tanks would be painted to look like cows!

Nov 28, 2012 01:46 AM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Love the cow idea - creative! In our area, a home just will not convey with an underground oil tank - needs to be removed and soil tested by the state.

Nov 28, 2012 02:42 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I love the cow idea!  LOL  We don't run across too many buried oil tanks in our area, although, interestingly enough, there are a number of houses with oil tanks in their basements.  

Nov 28, 2012 02:53 AM
Robert Butler
Aspect Inspection - Montreal West Island, QC
Montreal Home Inspector | Aspect Inspection

Haven't found one yet but I always identify any exyerior piping visible to be sure.

Nov 28, 2012 04:09 AM
Robert Sole
REM Inspections LLC - Winter Springs, FL

 I recnetly did an inspection on a home that had an oil furnace (we don't have too many of them here).  I looked all around for the tank and finally asked the home owner where it was.  He told me that it had been removed and that they were installing a new gas furnace next week.  I thought I was going blind for a while there.

Nov 28, 2012 04:21 AM
Shane Barker
Amerifirst Financial, INC. - Salt Lake City, UT

Thanks for the info and heads up, I had no idea about these types of things.  Good thing you're here to set us straight!

Nov 28, 2012 06:22 AM
Rob Ernst
Certified Structure Inspector - Reno, NV
Reno, NV-775-410-4286 Inspector & Energy Auditor

I love the cow idea. I've seen a few sitting in the yard but never painted. In Nevada if you don;t fill it your eligible for Superfund money to help with any soil contamination, If you fill it your not. With the price of oil going up I bet more people will be trying to look for alternatives.

Nov 28, 2012 09:53 AM
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

I've written about this before and even included a video of a legal abandonment of an oil tank (foam) because we have a ton of them here on Long Island and people don't understand what to do. Great info.

Nov 28, 2012 10:55 AM
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Reuben:

I had a listing with a buried oil tank.  The seller, who was the trustee selling the property.  He knew it was there but was not concerned about it.  The buyer had to have an inspection and testing of the dirt around the tank.  The buyer also discovered oil in the soil in a large building which must have been used as a garage sometime during its life.  This was a touchy transaction, but thankfully, the buyer went through with the purchase.  He had enough inspections to fell OK about buying the property.

Nov 28, 2012 11:31 AM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Reuben - I recently had a sale where the sellers were assured that the tank had been removed before they bought the home.  Their attorney had not demanded any supporting paperwork.  When we went to sell the home, the first buyer demanded the paperwork BEFORE signing the contract, because they had the same issue in selling their home (an underground oil tank they they weren't aware of that became known upon inspection).  Imagine my seller's surprise in learning that while there was no tank, the Fire Marshall's office showed that there had been an oil spill from the previous tank that had never been remediated.  Yep, my sellers had to remove the above ground tank and remediate the soil.  Of course, they sued the previous sellers, but that will take time to resolve in the court system.

Nov 28, 2012 12:46 PM
Reuben Saltzman
Structure Tech Home Inspections - Minneapolis, MN
Delivering the Unbiased Truth.

Gita - thanks!

Lori - yeah, they're not cheap to pull out.

Scott - they don't seem to be a big deal around here, but I probably run in to about ten a year.

Edward - I've heard that when the 'indoor' type tanks are buried, they mostly just turn in to dirt after a long time.  There's never anything left of 'em.

Clint - I'm glad this is one less thing for you to have to worry about :)

Nov 28, 2012 07:21 PM
Reuben Saltzman
Structure Tech Home Inspections - Minneapolis, MN
Delivering the Unbiased Truth.

Richie - ha!  Good question.

Dale - everyone loves to discuss LUST events ;).  Bad times with your old septic system!

Dave - please do, thanks.

Michael - that makes it a lot easier to keep track of 'em ;)

Jared and Amanda - I've seen a lot of them painted like that photo.  I wish I had more photos to share.

Nov 28, 2012 07:24 PM
Reuben Saltzman
Structure Tech Home Inspections - Minneapolis, MN
Delivering the Unbiased Truth.

Keith - that's a good idea.  Let people know what they're getting in to before everyone's time gets wasted.

James - ha!  Boy, that would take quite some effort to remove a tank but leave the vent in the ground.  I'd love to hear someone's explanation of how that was done.

Donna - definitely.

Dana - I don't understand how the obvious ones get missed either.

Jay - I'm sure those cows all came over from Wisconsin.

Nov 28, 2012 07:26 PM
Reuben Saltzman
Structure Tech Home Inspections - Minneapolis, MN
Delivering the Unbiased Truth.

Olga - some municipalities in our area require soil testing under the tank.  Those get a bit more involved.

Susan - I probably find one or two of those a year.

Robert B - good to hear. Let me know if you ever do come across one.

Robert S - ha!  Must have been during the summer?

Shane - thanks.

 

Nov 28, 2012 07:29 PM
Reuben Saltzman
Structure Tech Home Inspections - Minneapolis, MN
Delivering the Unbiased Truth.

Erica - you're not alone :)

Rob - I've gotta assume those things are hideously expensive to keep running.

Jill - I'll have to look that up.

Evelyn - Good to hear they discovered everything up front.

Gail - bad times!  How do people think they can just get away with hiding stuff like that?  How do they sleep?  

Nov 28, 2012 07:31 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Ignoring the signs cold be a very costly thing for a buyer.  If it looks like a tank was once there care must be taken to make sure it has been dealt with.

Nov 29, 2012 10:24 AM
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Rueben, really good post.  I'm in the South San Francisco Bay area and we don't have heating oil tanks.  But San Francisco, 50 miles north, requires a professional inspection for abandoned underground oil tanks as the pre-sale requirement for every real estate transaction.  We also obtain a report that contains all LUST sites, plus other environmental and natural hazards.

Nov 30, 2012 03:05 PM
Barbara Tattersall
Keller Williams Realty Metropolitan (Keene,NH) - Keene, NH
GRI

Just after I read this blog I saw an oil tank on a lawn with cutouts to make a scary jack-o-lantern! I immediately thought of you.

Dec 04, 2012 07:25 PM
Lisa Friedman
Great American Dream Realty - Essex, VT
35 Years of Real Estate Experience!

Reuben, your posts are so informative! Thank you for sharing this information. I LOVE the cow tank photo!

Aug 07, 2013 04:41 PM
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Mar 24, 2018 06:06 AM
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