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Buried Fuel Oil Tanks

By In Fuel Oil Tanks, Oil Tanks On November 27, 2012


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 houses 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 financial assistance through the Abandoned Underground Storage Tank Removal Program, which is run by the Petrofund program at the Minnesota Department of Commerce.  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:

About the Author

Reuben

Reuben is a second generation home inspector with a passion for his work. He grew up remodeling homes and learning about carpentry since he was old enough to hold a hammer. Reuben has worked for Structure Tech since it was purchased by Neil in 1997, and is now co-owner of the company. Reuben’s favorite customers are the ones who have a lot of questions; he grew up thinking he was going to be a school teacher because he enjoyed teaching others so much. In a sense, that’s a lot of what home inspections are about, so Reuben truly does what he loves. Reuben has an A.A. degree in liberal arts and has attended most of the Building Inspection Technology classes at North Hennepin Community College. Reuben and his wife are the proud parents of two young childen, Cy Alexander and Lucy Nicole, and have a German Shepherd named Stanley. With two young children Reuben doesn’t have much free time, but he still tries to play disc golf as often as possible during the summer. Reuben lives in Maple Grove, MN. Professional Qualifications / Memberships: *ASHI Certified Inspector *President, ASHI Heartland Chapter *Member, Minnesota Society of Housing Inspectors (MSHI) *Licensed Minneapolis Truth-in-Sale of Housing Evaluator *Licensed Saint Paul Truth-in-Sale of Housing Evaluator *Licensed Maplewood Truth-in-Sale of Housing Evaluator *Licensed Hopkins Truth-in-Housing Evaluator *Licensed Robbinsdale Point of Sale Evaluator *Affiliate Member, Southern Twin Cities Association of Realtors

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9 Comments

  • martha 12 MONTHS AGO

    I need Help!!! I have a buried tank in my yard, I believe it is leaking in my basement, there are oil stains on the basement wall. I am a first time homeowner and did not know the tank was there. I live in Indiana and don't know who to call or where to start. Any assistance would be appreciated.!!!

  • GREGG CORDELL 1 YEAR AGO

    I am not sure about this but a few years ago certain trailer parks had to dig up all underground tanks and make them above ground , I do not know if this was a state law or just certain ones because of the water table and salt water of the Indian river and Rehoboth bay in Delaware , but i'm quite sure the home owners had to pay for it to be done. Lot of vacation homes around where I live so just to let people know buyer beware. GREGG C

  • Chester Dryke 2 YEARS AGO

    A friend had a house near Lake Phalen in St Paul. One day while walking in his yard he found the old cess pit. He sort of walked into it. The pit was made of substantial oak timbers, and its existence was a complete surprise. I believe he bought the house just after the city sewer was hooked up.

  • Eric Szvoboda 2 YEARS AGO

    Well that is amazing! I did not know where the old tanks when and how they get them out. Thanks for posting!

  • Charles Buell 2 YEARS AGO

    Reuben, very well done post. You are so right about home inspectors not being "required" to inspect for these buried tanks---but they dang well better not miss one where there are signs of one.

    • Reuben Saltzman 2 YEARS AGO

      Thanks. What prompted me to write about this was the photo that had my truck in the background. The home inspector never mentioned anything about a buried fuel tank to the buyer, and then fell back on his SOP when the buyer asked why he missed the buried tank. I have to assume the inspector just didn't know any better.