Heating Oil Tank

Jibber · Jun 19, 2006

I have an oil furnace and a buried oil tank installed when the house was built in 1992. I lived here for probably ten years before a neighbor asked if I had oil tank insurance. The insurance pays (after the thousand dollar deductible) for any environmental cleanup if the tank were to leak. So, three years ago I took out a policy, cost about 200 dollars a year. Now the insurance company, Zurich Environmental, has sent a letter saying they will no longer cover heating oil tanks in NY.. so I'm shopping.

My questions: I've searched web pages and they suggest the lifespan of a buried heating oil tank is 10 to 20 years! Egad, that would seem stupid to dig a huge hole and sink a 550 gallon oil tank if you had to dig it up again in 10 years. My tank is buried near the foundation on a hill above average terrain and also buried in a sandy mixture. I don't think much moisture would ever collect around it to promote rust. I'm wondering what the real threat is and if I need this insurance at all.

also, anyone who has oil heat and has a policy, what is your company and are you happy with them.

thanks for any help.

Deerlope · Jun 19, 2006

If it ever starts leaking the DEC will try to own every thing that you have including your bank account, life saving, etc. If a leak is found a few blocks away it can be traced to you and that is bad news. A young couple that I have known for many years have a small goc & gas station. Leaks of fuel oil was detected in the soil several blocks away and it was traced bad to their station. NYS put a hold everything they had. They ended up going to a state senator for help but it took 5-8 years. Get it out of the ground and get it out fast. Do it at night if at all possible and say nothing to no one.
By law an in the ground tank has to be tested every year and certified leak free. Testings not free either. Not trying to scare you but you are sitting on a powder keg that can blow anytime.

hilld · Jun 19, 2006

I removed my tank last fall after I purchased a house that had oil heat. I had the soil tested before the purchase and it passed. During our remodel, I decided to install a high efficiency heat pump and remove the oil furnace as oil prices have sky rocketed, however, electric prices have stayed relatively stable (as they are regulated by our PUC). It cost me about $1200 to have the tank removed and properly disposed plus an additional $100 for a DEQ certificate certifying clean dirt around the tank. After the tank was removed, I was amazed how much rust was on it, I even started to poke around with a screwdriver and in one spot I went through. Guess I removed it just at the right time. I don't know what would have happened if the tank started leaking and it was discovered later. Guess I don't really want to find out.

Derek

Deerlope · Jun 19, 2006

I have oil heat and I have 2, 275 gals tanks in my basement. There is no fuel oil smell if the are piped correctly. I see no need for the 2 tanks now but did a few years ago, when if I bought in quanity I could save a few pennies. The same in your case, a 550 buried??? Put a 275 above ground (maybe basement) if you can. You will slept better at night and save money on ins also.

PineRidge · Jun 19, 2006

Check to see if you would be permitted to pump the old tank dry and fill it with sand instead of digging it up. Put the new tank in the basement.

Highbeam · Jun 19, 2006

What a bad feeling you must have. There is also a good reason that your current carrier got out of the market- too much risk. That said, there are many thousands of the buried home heating oil tanks all over. I would rather have an above ground oil tank just like I prefer not to bury my barrel full of off road diesel.

Deerlope · Jun 19, 2006

Yes, he can pump it dry and fill it with sand. But if a leak shows up in someones ground water and it is traced to his buried tank, well its curtains.

The friends that I spoke of in my earlyer post with the gas sattion, well their tanks were OK. But over the years before they bought it a gas tank had leak and they were held respondsible. They pretty near lost their home. He was disabled from a motorcyle accident and his diablity was frozen. Gov works in strange ways at times. I do think that it has been resolved now or at least some of it.

Where Jibber lives in Putman county its getting close to NYC and they don't want problems with their water supply.

Jibber · Jun 20, 2006

Yes, I am in the water supply. The DEP people I talk to don't seem concerned. I have the tank tested every three years.. next test is tomorrow. I just had it filled so I figure I'm at least in this until next spring when she runs down.. that is.. IF the test is good. If not.. Zurich Insurance will pay to have it dug up.. the current policy is good thru July!

I do believe I will have it dug up and go with an above ground tank. Of course.. the price of oil may warrant a change.. I paid 2.35 a gallon for this latest load.. a relative bargain when compared to gasoline.. but you don't buy 500 gallons of gas in a fillup! I may just consider my options. Electric or Propane is it around here.. and Propane makes oil look cheap. I have a very good woodstove and last year kept my oil usage down to about a gallon a day, about what it is in summer to heat the water. I did burn 3 cord of wood along the way.. hauling splitting and all myself.

Oil heat is quite prevalent around here and many tanks are buried. I was surprised when talking to neighbors how few even had insurance, or worried about what might be happening underground. I found this story online which did nothing to ease my concerns...

http://www.makingbreadmagazine.com/Features/SavingSpending/Save_spend1.htm

Deerlope · Jun 20, 2006

Jim,

When and you do change your tank to above ground or below. There is a new style out and what it is is a tank within a tank. Not totally leak proof but real close. There is also a concrete tank within a tank that can sit above ground and it is not unsightly to look at. Check them out, they may cost most but what is peace of mind worth.

Pilot · Jun 20, 2006

When comparing the cost of oil vs. propane, keep in mind that oil gives more BTU's per gallon than propane. Propane: 95,000 BTU / gal, Oil, 138,700 BTU / gal.