Everything you need to know about oil tanks.

Here is a quick breakdown of what you need to know when dealing with oil tanks.

Residential. Many single family homes were originally built with in ground oil tanks. Typically these tanks are 275 gallons but can get as large as 1,500 gallons. Abandoning an inground oil tank is easy and fairly inexpensive.

There are three ways to abandon and inground oil tank. The best is to remove the tank in it entirety. This is also the most expensive. The second is to cut the top of the tank ad fill the tank with sand. The third and least expensive option is to fill the tank with foam. Regardless, which option you chose the old oil will need to be removed and a new above ground tank put in its place. Once removed the health department typically issues a certificate of abandonment.

If you're house is listed on the market and a potential buyer asks to test the existing inground oil tank it's best to refuse even if it costs you the buyer. In the event that contamination is found the spill must be reported to the DEC and the cleanup could cost tens if not hundreds of thousands.

Commercial. In the commercial real estate world most contracts are subject to a clean environmental report. There are three phases of environmental.

Phase 1. This is a research report accompanied by a visit to the site. The environmental company reviews records to see if there are any signs that could lead to possible contamination. Examples could be previous uses like a gas station or dry cleaners. If there are no signs of possible contamination the research stops there. An average phase 1 report costs $1,500-$1,800.

Phase 2. If signs of potential contamination are found the next step is to take physical samples of the ground and ground water below. Samples are obtained by making multiple borings on parts of the site that show concern. Once harvested the samples are tested in a lab for potential contamination and at what levels. Phase 2's can cost $5,000 - $50,000 or more.

Phase 3. This is where the cleanup happens. Assuming contamination is found in Phase 2, the spill is reported to the DEC and a cleanup must take place. Depending on how severe the spill these cleanups can cost anywhere from $10,000 into the multiple millions. There are some sites that has so much contamination that the cost to cleanup exceeds what the property is worth. There are programs like the Brownsfield Cleanup Program that are aimed at helping mitigate the cost of environmental cleanups. Programs like these come with a heavy cost and a delayed timeline but are worth looking into depending on the situation.

Link to video https://www.youtube.com/watch?v=dfnwiubjzTc&t=11s