How Do You Approach Underground Oil Tanks?

Question

I have a contract on a house with an underground oil tank. I've had tank service people come out and estimate the removal at several thousand. A previous owner has poured sand into the tank so it's apparently better to remove than to try to decommission this tank.

I've had a couple of other investors tell me they stay away from oil tanks. There's a risk of past leakage or leakage during removal.

Here's a scary story -

http://community.seattletimes.nwsource.com/archive/?date=20030504&slug=hometank04

How risky is this? Do you stay away from oil tanks?

Matt Devincenzo · Answer

Terry Portier I think the problem I saw from the post is the prior owner filled it with sand, which is fine. But the tank was never decommissioned first meaning verified empty and cleaned then filled, so in order to do so now removal is almost required. I'm assuming the only other way would be to empty the sand out verify it's clean and then fill it again.

Brian Sorensen · Answer

Thanks for the feedback All. I got a hold of someone to take core samples around the tank this morning. It will take several days for a lab to test them. Unfortunately, the bank won't give me any more time. We'll see what happens.

Bryan L. · Answer

Q:  How do you approach undergound oil tanks?

A:  From above.

sorry, couldn't resist

Terry Portier · Answer

Oh, I see....what a nightmare.

Terry Portier · Answer

Brain, wow, interesting! From the article you posted sand is an acceptable alternative to removing correct? Depending on your local codes? What about a soil test is there one, or how are the plants, etc doing?

Brian Sorensen · Answer

Because of the risk of past leakage or leakage during removal?

Dawn Anastasi · Answer

I personally stay away.

Dion DePaoli · Answer

I am assuming the property is in your state.  The state offers some consumer guidance on the matter HERE